It is truly affecting as frontiers with most European countries are open but with restrictions and traveling is kind of messy so the situation is not facilitating the arrival of buyers willing to come to Spain to buy properties. Uncertainty on the economy and the new outbreaks, does not help either. We saw an increase of the activity just when we were allowed out after the lockdown but mainly of people living in the area that had waited for two months to be able to see properties and, now, is back to “normal” with showings although not massive because of the restrictions to the arrival of new potential buyers.
Number of Closed Units in Marbella - 1st Quarter 2020
In any case and what is true is that, from one year ago, I have been commenting that the market was in a need for adjustment because there was no equilibrium on it. 2019 was the worst year of the last six in the number of sold properties, as it can be seen on the attached chart, but that is not even fully negative because the number of transactions was still 3.676 in Marbella that is about 50% higher that in the worst years of the 2008 crisis. That means that the demand is still there so there are buyers willing to buy but they have cooled down somewhat because of the excess of supply, the increase of prices and, now, the traveling complications. Pure law of demand and offer, more price and offer means less demand. It could be an indication that an adjustment was needed.
Number of Units Closed in Benahavis - 1st Quarter 2020
Another sign of that effect was seeing on the sales of the first quarter that went down almost 17% in Marbella and 22% in Benahavis. We were getting into covid-19 but not yet. However, although 2020 is going to be the worst year in sales of the last decade, we are optimistic because the demand is still there as potential buyers want still to come to the Costa del Sol to enjoy our weather and quality of life, now even more after the experiences of the lockdowns, and the fact that the lockdown proved the potential of online working from abroad, that is living and working in Marbella while the company operates somewhere else.