Effects of Corona Virus in Marbella Real Estate Market
The highest fall in house sales and mortgages since 2013 to the Spanish Real Estate Market. The first public data is now coming available showing the impact of the Coronavirus in the Real Estate market with the figures of the notary offices showing a drastic fall in the numbers of signatures of purchases and mortgages in March.
Coinciding with the start of the Spanish Lockdown and the State of alarm, house sales fell by 37,5%. The mortgages by 28% of the annual figures. Prices also fell by about 2.2%, but this should not be due to the Covid-19 issues.
On an annual basis, the Covid-19 crisis the biggest real estate fall since December 2013 when it had dropped by 51%. In March there were 32.332 purchases and 18.446 mortgages signed we have the worst figures since last August. The data is reflecting the effects Covid19 is having on the market, and we have yet to see the April and May figures.
Many of the operations which were signed in March were previously agreed. They were considered urgent under the regulations of the State of emergency and allowed to continue. The figures for April and May are going to be catastrophic as it has been impossible to visit homes, perform valuations and of course, the prohibition of the movement of people ensures that the real estate market has been effectively closed for business since 14th March 2020.
How does that affect us going forwards into 2020 with all kinds of restrictions in place? We, like many other Marbella estate agents, have deals that are postponed, renegotiated and several cancelled. From 18th May real estate agents may reopen their premises. However, with the Spanish government enacting a law from Friday 15th May until the end of the State of emergency that anyone entering Spain will be obliged to self-quarantine for 14 days means even more delays and cancellations of travel plans.
Overseas residents own approximately 35 % of second homes in the Costa del Sol. These are precisely the clients that are needed to be allowed to come to Spain. It means that the only activity and interaction that the Marbella until at least the end of June is with the local market. We will be open for business, but with no clients through the doors, sales are not going to happen at the usual numbers for the time of year.
Marbella property owners are facing some hard decisions with buyers in short supply. Already we have lists of clients confirming their interest but only if the price is right!