Covid Drives Housing Market Boom in Andalusia

At the start of the Coronavirus pandemic the Spanish, and European, property market experienced a universal drop in demand. This was largely driven by lockdowns and restrictions making it difficult for the mechanics of the housing market to continue. But this downwards trend reverted quickly and, in September 2021, five of the top ten municipalities where housing prices have risen compared to their pre-pandemic figure were located along the Andalusian coast. A clear sign that the market has recovered and that buyers, and investors, are returning to the area. Here’s everything that you need to know:

Demand For Coastal Locations

In the top ten list of popular locations for buying property in Spain, released this month, five of these locations were situated on the Andalusian coast: a clear sign that pandemic supply and demand has swung back in favour of these coastal resorts. The five municipalities in question are the Las Salinas district of Roquetas de Mar in Almeria province, where average asking prices have increased by 46% compared to the same month in 2019: this location took the number one spot on the list, with the highest property price increases in Spain. Next up we look at Marbella, where three of the top ten municipalities are based: Nagueles is the highest of these, with a 41% year on year increase. The final Andalusian location on the list was a district in Estepona, giving Andalusia a total of five spots out of the top ten largest price increases in Spain: an incredible feat.

Housing prices are rising faster in Andalusia than anywhere else in Spain, except for the Balearic Islands, but only one of the listings included in this specific top ten list is located on the Balearic Islands. This is in the regional capital of Palma de Mallorca, located on the island of Mallorca, where property prices in September 2021 were up 30% when compared to their September 2019 averages.

Why is Andalusia So Popular?

Andalusia, like the Balearic Islands, has always been a popular location for foreign investors, but local buyers are also becoming increasingly interested in moving to these areas. With the ability to purchase property in these areas being artificially suppressed by the lockdowns and travel restrictions implemented due to the pandemic, now that the borders are open again we are now seeing a mini post-pandemic boom in the region. This is a regional trend rather than a national one, with price increases focused on specific coastal locations rather than on Spain as a whole. This is being driven by two main reasons:

• Andalusia has always been a popular holiday location with overseas visitors, who are seeking to invest in locations that they know, and that have a proven track record of being sound investment locations for foreign locations.
• Both local and international buyers are looking for properties with outdoor space and plenty of fresh air, in response to being cooped up during the pandemic lockdowns. Andalusia offers both of these things, whilst still having the convenience of not being far from cities and offering excellent transport links: it’s the best of both worlds. The attractive outdoor/coastal living with the convenience of a city base.

Are you ready to take your next holiday to Spain? Or perhaps you are in the process of moving to Spain or looking to make the right move to Spain for you? If you’re looking for estate agents in Southern Spain then why not get in touch ? Our locally based property experts are a font of local knowledge, and are perfectly placed to help you find the home of your dreams.