During the COVID-19 pandemic, in many cases being at home has ceased to be a place to rest and has become the epicentre of work for many people across the world. Given this situation, second homes are an ideal option for those who are now interested in an alternative place to rest and work remotely. Consumers’ housing preferences have changed, new priorities such as square meters, terraces, balconies, good views or gardens are much more valued elements, and all those that are located in ‘prime’ places.
The appeal of Marbella lies in several fundamental features:
A pleasant year-round climate – let’s not forget that the area enjoys 320 days of sunshine a year.
An enviable lifestyle – the Costa del Sol has always been about alfresco living, whether that’s doing sports, enjoying the beaches, swimming in your pool or dining on your terrace.
These characteristics make the Marbella perennially attractive and remain in place despite COVID-19.
Here are some reasons why to buy a second home in Marbella :
- Rest and assured holidays. Buying a second home in Marbella where you can enjoy your holidays, and looking to the future, in your own safe and comfortable environment, is a good option now. In this sense, a second home offers a change of scenery with respect to your main residence and an environment in which the owners are responsible for guaranteeing the relevant security measures.
- Good opportunities and more negotiation capacity. After a few months in which the real estate sector suffered a slowdown in its activity in Spain due to the health crisis, new opportunities have arisen as some sellers have chosen to sell off properties in order to obtain greater liquidity or by changing their interest in certain assets. This practice will be beneficial for buyers, as they will have more negotiating margin to acquire properties at more affordable prices.
- This is an investment that can generate a return. Buying a second home that offers a change of scenery and a pleasant place to spend your holidays, or even where you can telework, can lead to an increase in profitability in the event of renting or revaluing the property in the medium to long term. Despite the arrival of the pandemic, renting remains a good option for profitability. According to the Housing Market Indicators offered by Banco de España (the Bank of Spain), the gross return on rent in the second quarter of 2020 – after the arrival of the pandemic – was 3.7%; the same value as the previous quarter and only two tenths of a percent below the same period in 2019 (3.9%). In addition, it is necessary to consider the acceleration that COVID-19 has produced in digitalisation and remote work. A fact that makes many consider living ‘permanently’ in less populated areas, thus increasing the demand for rent in those areas.
- Personalised attention and more time to make decisions. The holiday months are presented as an ideal free time period for those interested in exploring the market and visiting properties. It is a time when real estate agencies in Spain, as well as private sellers and clients themselves have more time and flexibility, which implies personalised attention and the possibility of making more thoughtful decisions.
- The fall of the Euribor, a factor that could benefit purchases: this indicator fell to -0.279% in July. This is the lowest level the reference indicator for most mortgages in Spain has recorded since February, just before the outbreak of the coronavirus crisis. The experts at Solvia ensure that interested buyers could benefit from better conditions when applying for a mortgage and that now may be the time to get more attractive variable interest rates.
Room for optimism
All the factors discussed above, together with a treatment and/or vaccine for COVID-19 on the short-term horizon lead us to cautious optimism about the Costa del Sol property market. We believe that pent-up demand and the overall appeal of the area will ensure a gradual return to regular market activity. And we fully expect figures for 2021 to be on par for those registered in 2019.
Many financial analysts and market experts in Spain agree that a property is a safe house for investors in the time of Coronavirus crisis.