Luxury housing is resistant to Covid-19 and despite its effects on the economy, the high-end segment continues to register a “great interest” in the Costa del Sol, mainly in Marbella, whose strength of the brand makes it “ throw more of the car “, as highlighted by the president of the association ‘Leading property Agents’, José Carlos León.
The representative of the group, which concentrates high-standing real estate agents from Malaga and Sotogrande, pointed out that “Marbella as a brand has re-emerged”, with an “increase in sales from July to October of around 15% in the high-end segment ”with properties of“ 1 million euros and up ”.
The most sought-after urbanizations of the so-called ‘Golden Triangle’ –which includes Marbella, Estepona and Benahavís- are “Sierra Blanca and La Zagaleta”, which are followed by the Golden Mile and Guadalmina; being “new construction housing” of a “contemporary” style that brings together “70% of the operations” that are currently carried out, while 30% are residences “of a more traditional style, Andalusian and Mediterranean ”, he assured.
Regarding the second residence on the Costa del Sol, he pointed out that “it is moving less” because “the demand and the customers who buy this type of housing suffer more”, while the first one supports the effects of the crisis, assessing that “Young couples who had acquired a home” or “families that need a mortgage are going to suffer” because “it is more difficult to access financing.”
In this sense, León has regretted that “in Marbella there are no homes for young people” or “affordable”, focusing the market “on the non-resident”, highlighting that buyers currently demand high-end houses and come from “Central Europe” , And specifically from countries such as Belgium, Holland, Sweden, Norway and the United Kingdom, although the latter in smaller numbers ”due to the uncertainties of Brexit, as well as“ some of Germany, Russia, the United Arab Emirates and neighboring countries, the United States. USA or Canada ”.
Thus, it has estimated that in the first and second homes on the Costa del Sol, sales have experienced a drop of 40% between March and May, 30 and 20% from June and an “increase” from August to October, by which in general terms have suffered a fall “of 20 and 25% by calculating every month.”
The recovery forecasts are, according to the expert, in the form of a “prolonged U” and he estimates that from February there may be “a rebound or champagne effect where we explode in the second or third quarter of 2021” if the vaccine is finally applied and expects an “improvement” for 2022 and 2023.
For the moment, León has pointed out that the health and economic crisis has not generated a drop in prices, although he has indicated that in the first home the cost of the second-hand one “is adjusting a bit to the market” between 5 and 10% and some “between 15 and 20%”. On the other hand, he stressed that “in the luxury segment they have remained.”
The homes most in demand today have to do with the impositions set by the new normal, with spaces to telework and enjoy the outdoors with terraces, solarium, gardens, “with views, with golf courses or on the beachfront” , as highlighted by the president of the Andalusian Federation of Urban Developers and Residential Tourism, Ricardo Arranz, who has pointed out that in the luxury segment “neither sales nor interest have dropped”, although operations “take longer to complete”.