Spaniards throw themselves into luxury homes on the Costa del Sol
Spaniards throw themselves into luxury homes
on the Costa del Sol
The national client has doubled and now represents 52% of the buyers for Engels & Völkers Marbella, which has increased its sales by 18% since the end of the confinement in respect to the same period last year
The real estate agency confirms a greater interest in homes of between 2 and 3 million euros, which represents 38% of inquiries
Marbella, November 10th – The health crisis caused by coronavirus has accentuated interest in the demand for luxury housing on the Costa del Sol, making it a perfect destination for teleworking due to its good connections, the abundance of nature and the excellent services that are offered. The real estate market confirms the increase in demand for properties in the area, especially among the Spanish public, who have once again set their sights on this area and have already become the main market. The 52% of buyers during the penultimate quarter of 2020 were Spanish, compared to 24% in 2019, according to data obtained by Engels & Völkers. The real estate company maintains its optimistic forecasts for the next few months, since the new restrictions may consolidate this change in the market, and underlines the 18% increase in sales since July, with the end of the lockdown, and the beginning of October compared to the same period last year.
Despite the mobility restrictions implemented in various European countries have led to fewer international buyers, the international customer has increased compared to the previous year. However, as Engels & Völkers Marbella has found throughout this year, the main characteristic of the new times is the change in the origin of buyers, with a national market that has taken over in search of comfort and best quality of life that Costa del Sol offers.
“We have seen more families planning to permanently move to Marbella or people looking to spend more time in their properties,” says Smadar Kahana, director of the real estate with five offices in the city. “We believe that Covid 19 created a new type of clientele who realized that much of their work can be done remotely and prefer to live in a greener place with a better climate,” she adds, underlining they have had various clients who traveled to Marbella with the sole purpose of purchasing a property and did so in the space of 24 hours”.
After closing an excellent year in 2019, the outlook for 2020 was extraordinarily high, as corroborated by the 10% increase in sales and demand in the first quarter of the year. Since the start of the confinement, and contrary to what one might think –with forecasts of price drops of up to 25% – Engels & Völkers detected an “unusual number” of inquiries, up to 68% more than in the same period of the year last year. The 45% of these inquiries came from the national market, followed by local and international clients.
The validity of this interest shows that 85% of the transactions initiated just before the confinement continued their sales process and ended at the notary, and even new acquisition operations were carried out with ‘virtual’ visits to properties. Another 15%, however, decided to wait in the hope of a price drop.
Along these lines, the return to the new normal has been translated into constant activity in the different Engels & Völkers offices in Marbella, with a volume of inquiries that is 72% higher than those registered in July and September last. A trend that has lasted until October, with an increase in consultations that has been 30% higher than that of October last year.
New clients who choose the Costa del Sol show interest above all in villas between 2 and 3 million euros, where a 38% increase is detected among inquiries. In the case of homes above that price, inquiries have increased by 19% compared to the same period last year. Due to the past confinement, interest is focused on those properties with a private gym and more entertainment space. Also, seven out of ten inquiries were about new or completely renovated and furnished properties that had private gardens and swimming pools. Finally, the average value of the properties sold went from 1.3 to 1.8 million euros.
About Engel & Völkers Marbella Golden Mile
Engel & Völkers is one of the world’s leading companies specializing in the brokerage of luxury residential properties, commercial real estate, yachts and aircraft. Present in more than 800 locations in 34 countries on 4 continents, Engel & Völkers offers both private and institutional clients a wide variety of professional services to suit them, providing access to a wide range of potential international buyers and with a proven track record of success over the years. Advice, sale and rental make up the key competencies of the more than 12,837 people who are part of E&V.
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