Experts predict that the total volume of sales will drop by 30% due to the Coronavirus pandemic. It also means that sellers, desperate to sell, will be much more willing to take a hit to strike a deal. This makes for an opportunist market to get what they want for less than expected.
These predictions are heavily based on the fact that 80% of the luxury real estate market in Marbella is bought by foreigners. And Sanchez, the Prime Minister of Spain, seriously bruised Marbella’s potential this summer by declaring, back in April, that he was expecting to keep borders closed until September 2020. Since, he has changed his mind and borders are now opening in July 2020. However, this announcement Mr Sanchez made last April meant holidaymakers made other plans for this summer that excluded Marbella.
This drop in sales is expected to be temporary and the market is expected to pop back to normality within the next year. This is excellent news for those with their heart set on buying a home in Marbella. It provides them with the opportunity to take advantage of this short window of opportunity without having to weigh-out a long-term market recovery. “Now is the time to buy because this drop in prices will not last long”, is what experts predict.
Many overseas buyers seem to have already caught on to this scenario, resulting in Marbella registering, for the first time in its history, a substantial amount of closed property deals done exclusively through virtual visits. The market, contrary to that of 2008, has not come to a complete stand-still because of this new way of viewing and buying real estate. Technology is taking us into a new era and a new way of doing business, propelled by the Coronavirus crisis.
Prices have already been dropping to adjust to the reduced flow of incoming, foreign visitors expected this summer. They are expecting to drop temporarily, within the 5% to 10% range over the next few months. Knowing the market will perk back up within the next year, many sellers prefer to wait it out. “It is a short window of opportunity for buyers which needs to be acted upon quickly, if they don’t want to miss the boat,” confirm experts in the Marbella real estate realm. “It will not last long.”
Marbella is one of the world’s most sought after areas for luxury living under the sun. This attraction and love affair with foreigners worldwide makes for a stable real estate market, even in these unstable times. Whilst other parts of Spain may not boast the same claim, Marbella sets itself apart as it has for over half a century.