Business activity is gradually awakening after the coma experienced by the economy during the COVID-19 lockdown, although we’re not yet in a position to know the real consequences of this crisis. The forecasts for the fall in GDP are around 10%, although those of the Government, the European Commission and the IMF are closer to 9% or even 8%. In this regard, unemployment rates of between 19 and 21% are also expected.
Business activity is gradually awakening after the coma experienced by the economy during the COVID-19 lockdown, although we’re not yet in a position to know the real consequences of this crisis. The forecasts for the fall in GDP are around 10%, although those of the Government, the European Commission and the IMF are closer to 9% or even 8%. In this regard, unemployment rates of between 19 and 21% are also expected.
Experts speak of a more or less general fall in house prices, except in cases where, curiously, the virus has been somewhat less present, such as Andalusia, the Balearic Islands or Murcia. In this context, it seems like a good time for buying real estate at somewhat cheaper prices but not such a good time for selling. And what are the best options in the event of choosing this investment opportunity? There are two main options which are proposed as the safest:
– Homes located in prime locations in cities tend to have less elastic demand. That’s why their prices will remain more stable, regardless of the evolution. In this regard, we could speak of specific areas of the Costa del Sol such as Marbella or Puerto Banús.
– Houses with a garden and pool. As activity resumes, search engines for real estate sites are seeing increased interest in these types of properties. This trend has not yet been reflected in actual purchases, but it can give you an idea of the increased interest in housing in areas on the outskirts of cities with green spaces and with lower population density.
Recently, the consulting firm Savills Aguirre Newman published a report where they analysed the short-term effects on housing prices in Malaga. The conclusions in this regard could not have been more favourable, since it seems that this Andalusian city will withstand the effects of the virus better than other cities.
Recently, the consulting firm Savills Aguirre Newman published a report where they analysed the short-term effects on housing prices in Malaga. The conclusions in this regard could not have been more favourable, since it seems that this Andalusian city will withstand the effects of the virus better than other cities.
But what is the reason for these very promising forecasts? The truth is that Malaga and the Costa del Sol maintained a very good sales situation until the start of lockdown, moreover with supply quite suited to the existing demand.
In their report, analysts also highlighted the stabilisation of supply and demand for rent in recent times, even more so in some areas such as the centre and its surroundings. They also reviewed the integration of a holiday rental home into a long-term rental.
In any case, the revival of tourism may also give a big push in the demand for real estate. It should be noted that last year, the city of Malaga received more than 1.4 million visitors, surpassing all previous figures since records began.
With a proportion of approximately 60/40 in favour of international tourism, coming from countries such as the United Kingdom, Germany or France, opening borders will favour the arrival of such tourists. But it’s also necessary to consider the lifting of restrictions on inter-provincial mobility which will undoubtedly lead to an increase in tourism and demand from large cities for an area recognised for its high quality of life.
As we’ve said, it’s still early to draw conclusions about the evolution of the real estate sector after lockdown. However, our teams of experts are available for any kind of consultation which allows you to take advantage of investment opportunities.