Spanish Property Market Remains Steady Despite Price Drops, Says Expert
The Spanish property market is not on the brink of a crash, according to Sean Woolley, CEO of Cloud Nine Properties. Despite a cooling in the market at both national and local levels in 2023, and some price drops, Woolley insists that this does not indicate an impending crash. The price reductions were partly due to some homes, particularly in areas like Marbella, being slightly overpriced.
Marbella Market Maintains a Steady Flow of Clients
Woolley rates the current market in Marbella as a steady 7.5, noting a consistent flow of clients and a higher value average buyer than before the COVID pandemic. He believes that Marbella and the Costa del Sol will remain strong as a destination in the long term. The market, he says, is excellent for primary and secondary home buyers, as well as investors.
Property Demand Surges Post-Pandemic
Having worked in the Costa del Sol property market for over two decades, Woolley attributes the surge in purchases to pent-up demand following the Covid pandemic. This led to a couple of years of genuine growth in terms of price. However, he now observes a return to calmness in the market, with gradual price rises in popular locations. This, he believes, is good news for those concerned about a property bubble.
Marbella’s Global Brand Pushes Prices Up
Marbella’s global brand and its reinvention as a 5-star destination have pushed prices up, creating a new super-prime price range. Properties ranging from six to seven million Euros are now commonplace. The arrival of branded residences and shortages of prime stock in the best areas continue to drive prices up. However, Woolley notes that there is also a lot of depth in the market, with plenty of buyers at lower price points attracted by the lifestyle, weather, and opportunities for remote working.
Post-Covid Rush Normalises in 2023
The so-called Covid rush, which saw many new teleworkers looking for sun-drenched boltholes and many people re-evaluating their lives to move abroad, has now begun to calm down. According to Woolley, 2023 has seen the market become more ‘normalised’. Buyers are once again coming from all around the world, including Britain, North Europe, the Middle East, and North America.
Eastern European Buyers Increase Due to Ukrainian Conflict
One notable change is an increase in buyers from Eastern European countries. The proximity to the Ukrainian conflict and uncertainty about the future have encouraged these buyers to invest their money in a safe bolthole. Despite the challenges, Woolley is optimistic about 2024, predicting continued interest in the area and stability in the market.
