The COVID pandemic is having a significant impact on economic growth, and the real estate industry is feeling the consequences as well, though not as strongly as other industries.
Despite the complexity of the situation and the high degree of uncertainty about how the pandemic will unfold, it is important to note that the sector is backed by a much stronger base than it was during the previous crisis in 2008.
According to a recent article of the Financial Times, Marbella has experienced a rise in demand of high-end, luxury homes such as the development in the Golden Mile by Fendi design.
Still according to the article the pandemic period has been particularly profitable for some investors who have bought the desired properties for a discounted price.
While the first period of the lockdown has experienced a drop in sales, as soon the lockdown measures have been eased, the number of sales rebounded to almost pre-Covid levels.
The INE (National Statistic institute) recorded a total of 1,339 transactions in May 2020, more than half the total for the same month a year earlier. Some of these purchases were for properties ‘viewed’ during the lockdown.
As many airlines have already announced services, and the airport is expected to pick up its usual network of flights relatively quickly, we believe that the Costa del Sol has several characteristics that augur full recovery within few months.
