Costa del sol property sales on the rise

Is it time to buy yours?

This time last year, Spain was still in a ‘state of alarm’ due to COVID-19. It’s fair to say, the previous 12 months had been tough for the real estate sector. For a while, property sales all but came to a halt. But fast forward three quarters, and the story looks very different.

As a leading real estate agent in Marbella, 2021 was a busy year for us here at Bromley Estates. According to the Spanish Institute of Statistics (INE), it wasn’t just a fluke, either.

Their latest figures show that property sales in the Costa del Sol soared throughout the year. So much so, it was one of the busiest years on record.

On average, 91 homes were sold every single day – which is almost double the number sold in 2020 and 11.4% more than in 2019, before the pandemic had even begun. What’s more, property in Andalucia saw a 32.3% increase in sales compared to 2020, with 32,102 homes changing hands. This was the second-highest increase in the whole of Spain.

Not only has the market made a full recovery, it’s actually stronger than it was pre-COVID.

But why? What is driving this speedy boom in Costa del Sol property sales? Here our in-house industry experts take a closer look at the possible explanations.

Why have Costa del sol property sales increased?

1. Reasonable property prices

Property prices in Spain have risen over the last 12 months. In fact, according to data provided by TINSA, they’ve increased by 8.5%. Whilst this may seem like a large rise, it’s important to point out, it remains well below the peak of the 2007 property bubble.

Homes in Spain are still very affordable, particularly compared to like-for-like homes in other countries – such as the UK. Which means prospective buyers can get a lot more for their money.

2. Cheap mortgages

Spanish mortgage interest rates are determined using the ‘Euribor’.

Essentially, this is a benchmark – based on the interest rates at which credit institutions lend money to each other – and it’s currently experiencing historic lows. In October 2021, the 12-month rate stood at -0.467% – the lowest ever. And the lower the Euribor is, the cheaper the mortgage.

It’s no surprise then, that by July 2021, the number of mortgages in Spain had increased by 36.8%. People are taking advantage of the climate and seizing the opportunity to mortgage a home in the sun – for much less than usual.

3. A change in people’s priorities

2021 certainly benefited from the pent-up demand of 2020. However, over the last 24 months, Costa del Sol real estate has also accrued a lot of fresh interest.

The pandemic has caused people to re-evaluate their priorities; to really think about what’s important to them and the kind of life they wish to live. For many, the style and quality of life that Spain can offer – particularly in the Costa del Sol – fits the bill perfectly.

Properties are immaculately finished and spacious, offering plenty of outdoor space to enjoy the 300+ days of sunshine a year. The cost of living is relatively low. There’s plenty to see and do. And the country benefits from a sophisticated national health service.

Lockdown also gave many people the opportunity to save more money than usual, particularly retirees. Coupled with fair property prices and low mortgage rates, this could have been the final push they needed – to purchase the holiday home of their dreams, or even move to Spain permanently.

4. Remote working

Prior to 2020, working from home was the exception – not the rule. But the pandemic changed that overnight and demonstrated the many benefits of remote working.

Even though restrictions have now ended, many businesses are allowing employees to continue with this new way of working. Which, of course, has opened up new possibilities. Workers no longer need to live in a cold UK city, but can do the same job remotely from a beautiful property in the Costa del Sol.

Whether buyers were looking for a second home or wishing to fully relocate, this change may have contributed towards the boost of sales recorded in 2021.

Interested in Costa del Sol property?

Here at Bromley Estates, we’re predicting another busy year ahead. If you’re thinking about moving to Spain or planning to buy in 2022, we’re here to help and can’t wait to hear from you.

As the No.1 real estate agency in Marbella, we have access through our extensive collaboration network not only to our own listings, but to all properties for sale in the Costa del Sol – including new developments, villas, townhouses, apartments and even plots. So there’s something to suit all needs, wishes and budgets.

We continuously search the market for the best homes available in Marbella, Puerto Banús, Estepona, Cabopino, Nueva Andalucía, Elviria and many more popular areas. And we can help to find your dream property and guide you through the buying process.

Now is a fantastic time to be investing in Costa del Sol real estate, and despite the sudden boom in demand, we have thousands of properties for you to view. So why not take a look through our online portfolio? See if anything catches your eye.

If you have any questions, please feel free to get in touch with our specialists. You can call us at any time on +34 952 939 460 (+44 208 068 7606) or send an email to info@bromleyestatesmarbella.com and we’ll respond to your enquiry as soon as possible.