The coronavirus pandemic had a negative impact on property sales figures across Europe, as a result of financial uncertainty, lock-downs closing offices and making viewing properties impossible, and wider economic downturns. This trend was also true in Spain, and the tourist-focused region of the Costa del Sol, where property sales in Spain declined sharply at the beginning of the crisis. The good news, however, is that real estate in Spain Costa del Sol is now recovering from this negative impact, with some areas of the region having more advanced recoveries than others. One of these regions is Fuengirola, where Costa del Sol property sales are booming. From the number of property sales, to house prices in Spain, here’s everything we know about the recovery of the Costa Del Sol property market:
Declining Property Sales in Spain
Property sales figures in the Costa Del Sol were beginning to decline gradually before the coronavirus pandemic struck, but the result of the pandemic accelerated this decline sharply. In the first quarter of last year (when the first lockdown period began) property sales in Spain dropped suddenly, and in the second quarter, the region experienced a 60% decline compared to the previous year. From the third quarter, recovery began, but this recovery was a fairly slow, lackluster one to begin with.
The only area in the region where sales figures for real estate Spain Costa del Sol have returned to above their pre-pandemic levels is Fuengirola.
Fuengirola is located between Marbella and Malaga. It is in an excellent location for both tourists and commuters, as it is accessible by road, rail, and bus. Whilst Fuengirola is an authentic Spanish working town, it also offers everything that second home owners are looking for, including sprawling beaches, a thriving ex-pat community and excellent infrastructure. In the first quarter of this year, Fuengirola saw an explosion of property sales in Spain. 753 sales were registered, which is an increased of 121% compared to 2020 figures and an increase of 86% compared to 2019 figures. What we don’t know, at this stage, is why Fuengirola has proven so popular, compared to other Costa del Sol regions, and whether this trend will continue into Q2. Is Fuengirola the next Costa del Sol hot spot? Or are the figures a one-off, as a result of a big portfolio purchase by a fund? Only time will tell.
It is understandable that the pandemic had a negative impact on property sales in Spain and the Costa del Sol, and the impact of this period is clear to see. Comparing 2021 sales figures to 2020 sale figures, therefore, is difficult because there was such a big anomaly in 2020: instead, it is more sensible to compare Q1 2021 to Q1 2021, to find a more even and balanced point of comparison.
How is the Rest of the Costa Del Sol Recovering?
The municipalities that make up the Costa del Sol are Benahavís, Benalmádena, Casares, Estepona, Fuengirola, Manilva, Marbella, Mijas, and Torremolinos. Of these municipalities, the area that is recovering the best after Fuengirola is Marbella. Marbella Q1 sales are up by 22%, compared to the same period in 2020, and they are also up very slightly on the 2019 figure too. At the other end of the scale, Mijas is struggling the most, with sales down by 2% on the 2020 figure, and 21% lower than the 2019 figure and house prices in Spain in the area are also beginning to decline. Estepona property sales have also been hard hit by the coronavirus crisis; whilst the figures are up a fraction on the 2019 sales figure, they are down 10% on the 2020 figure.
In conclusion, whilst it is clear that the market for real estate Spain Costa del Sol was hit hard by covid, as was the property market in much of Spain and Europe, the region is recovering. Whilst this recovery may be slow, and uneven across the region, the figures are heading in the right direction and there is much to be optimistic about.
Are you thinking of taking the plunge and moving to Spain? There’s no better time to be looking for property in the Costa del Sol and house prices in Spain are very attractive right now. Why not let our local property experts help you with your property search: get in touch today. We’re perfectly placed to help you turn your dreams of Spanish homeownership into a reality.