Should you invest in new build villas on the Costa del Sol during, or shortly after, the Coronavirus lockdown? Perhaps a million-dollar question that you have asked yourself several times during the past few months. In this article, we answer this question. Luxury New Build Projects for Sale – Our best picks for new build property investments in the Marbella area (Costa del Sol).
The impact of the COVID-19 pandemic on financial markets and the economy worldwide will be immense. Many (property) investors, owners, and potential home buyers are, as a result, uncertain if now is the right time to buy a property. The main question we try to answer is: Is the Covid-19 crisis affecting the Costa del Sol real estate market?
To answer this question accurately, we should dig a little further into the subject. First of all, there is an immediate impact or short-term impact. Next, there is the long-term effect on the real estate market. We, therefore, split the main question into 3 subquestions to provide you with the most accurate answer. Please bear in mind, while we write this article, the Costa del Sol is currently in phase 3 of the reopening plan.
The final phase or stage 4 of the reopening plan will start on 22nd June for those Spanish territories that pass the 4-criteria requirements at each stage. This means that at the end of June, if the number of COVID-19 cases continues to reduce, Spain will formally complete its reopening process in a bid to get out of lockdown, and we will finally be living in the frequently mentioned “new normal”.
According to current data and experts, no unexpected developments or market behaviour have been recorded so far. In the years immediately after the crisis, you will see the Spanish property market collapsed in 2007 and bottomed out in 2013 before beginning to recover in late 2013 / 2014. The national story was a long, steady decline before a long, steady recovery. It was one of contraction: in property sales, house prices, transactional values, construction and nance. According to property columnist Adam Neale in The Olive Press, a faster recovery for the Costa del Sol, especially Marbella and Estepona are expected. “This time around, and as long as treatments for Coronavirus contain or cure it within a reasonable timeframe, we expect a similar sharp drop in residential property sales in 2020 with an equally sharp recovery, once the immediate risk is mitigated or over. Long story short: The Covid-19 pandemic leads at short notice to shifts of purchase behaviour, on a long-term basis it will, however not reduce the housing demand.”
As a result, the Coronavirus crisis does not seem to have had a negetive impact on property prices at the moment. The explanation for this is relatively simple: real estate does not lose its attractiveness for investors in harsh times. A home can still be considered a stable investment in times of crises. But, more important than ever before, location is key.
A crisis always creates opportunities. For real-estate buyers, this can be good news. For sellers, it may mean lower expectations, both in terms of price and time to sell. Experts predict that the total volume of sales will crash by around 30 per cent, bringing it closer to the levels witnessed in 2012 and 2013. Will this lower property prices in the 2nd part of 2020? Not per se, as the demand for residential space will not decrease, even in the face of the corona crisis. Simply because of the fact that people will always be in need to have a roof over their heads. It is not yet foreseeable that property prices will fall as a result of the Corona crisis, given the current market situation. However, it is only possible to estimate how prices and the number of sales transactions resulting from COVID-19 will develop in the second or third quarter of this year.
There is no available data for regional prices but, on a national basis, if you compare the history of house prices in the last crisis against the number of residential sales for the same period, you will see that they reached the end of their downward trend at the end of 2013. The decline in residential sales drove the market prices downward until confidence was restored. The statistics show most buyers missed buying at the bottom of the market, with the majority of sales occurring before and after. If, as we believe, the local market sees a rapid fall before quickly recovering (subject to effective treatments of Coronavirus), then the best time to buy should be within the next six-to-18 months. While new project launches are being staggered by the developers, the available ready-to-move-in inventory continues to see interest during the ongoing lockdown period. According to Financial Express, the Real estate business will continue to remain an attractive asset and be a sense of security for any buyer.
Luxury New Build Projects for Sale. Our best picks for new build property investments in the Marbella area. For more information, please click on the link to the detailed property page, or contact our sales department.
15 exclusive independent luxury new build villas. Finished according to the latest luxury qualities, avant-garde design, pure lines, neutral colours and large spaces, creating a perfect symbiosis with the natural environment where it is located. FROM: €690,000
The design of this new build villa is modern and fresh. It is located in Puerto de La Duquesa. The horizontal lines, parallel to the sea, create a symmetrical shape, while the vertical lines break that symmetry and give movement to the villa. FROM: €495,000.
View property details: https://www.cilomarbella.com/sales/modern-design-villa-with-sea-views-estepona-marbella/
New luxury development of 8 private, luxury villas for sale set in a secured gated golf and country club estate. These fabulous villas are placed in a prime location, on the first line of La Resina Golf Course. FROM: 985,000.
This exceptional development consists of 7 contemporary luxury villas with sea views in an exceptional location in one of the best golf courses on the Costa del Sol just 5 minutes from Estepona, with its beautiful beaches, marina, shops and leisure.
View property details: https://www.cilomarbella.com/sales/luxury-villa-new-golden-mile/
Cilo Marbella is an exclusive boutique agency specialising in the sale and rental of luxury residential property in the Marbella region of Spain. Formed in 2011 by two affiliate directors from Sotheby’s International Realty, each with over 20 years’ experience in the luxury real estate market. Cilo Marbella is a member of Who’s Who in Luxury Real Estate. This by-invitation-only grouping of some of the most prestigious names in international real estate spans over 70 countries and collectively sells over USD 300 billion of real estate annually.