The Costa del Sol has long been a favourite destination of property investors from all over the world. What might surprise you, however, is how strong a choice it remains in the current climate, even when its apparent familiarity is considered.
If the uncertainty brought by the pandemic over the past year or so has left you questioning whether now is the right time to invest in Sotogrande property, we can bring you important reassurance at BM Sotogrande.
While there’s never been a bad time to purchase property on the Costa del Sol, 2021 might provide an especially opportune moment – for quite a few reasons.
How did COVID affect Costa del Sol’s property market?
The start of the COVID-19 crisis in 2020 saw property sales on the Costa del Sol initially fall by 22%; by the end of that year, however, sales had picked up again.
Although the coronavirus outbreak helped bring about a drop in prices for resale properties by an average of 5% to 10%, new-build prices stayed consistent, and higher-end properties valued over €800,000 maintained their value.
By the final quarter of 2020, the Costa del Sol was registering the second largest sales per 1,000 inhabitants in Spain. New-build sales also increased by 8% during 2020, which all points to property in Sotogrande being as hot a prospect as it has ever been.
How has the Costa del Sol property market recovered?
As mobility and travel restrictions began to lift, and of course the success of COVID-19 vaccines, this allowed more foreign investors the opportunity to begin investing again in Spanish property.
Due to this, as of February 2021, square metre prices for properties on the Mediterranean coast had increased by an average of 2.3% over the past year, according to Tinsa, which helped bump up the value of property in Sotogrande.
In fact, Spanish property is expected to have an injection of €9,200 million in investment capital in 2021, which is 18% more than in 2019.
Why has the region recovered better than other areas of Spain?
The Costa del Sol housing market has recovered much quicker than other areas of Spain, seemingly largely due to the popularity of its high-end luxury properties.
While the upper-middle segment of the housing market suffered during the pandemic, the Costa del Sol is typically a draw for luxury second homes and residential tourism, boasting a larger number of high-end properties for high-end clients.
The Costa del Sol is also a lot less dependent on British clients and tourism than other areas of Spain, such as the Costa Blanca. This has led to less steep price fluctuations and allowed the region to recover much better than other comparable areas.
Overall, it is expected that 2021 will be a good year for property in Sotogrande and Costa del Sol real estate in general. After all, the Costa del Sol is hard to resist for investors across Europe, the US, and beyond.
If you are ready to make an appropriately hot property investment in 2021, get in touch with the team at BM Sotogrande. We are ready and waiting to provide advice and guidance on your next steps into the Sotogrande property market, to help ensure you make only the most confident and informed choices.