Mankind has never really been able to predict the future, but one thing we do know: the 2020s have so far been anything but uneventful. A 2020 characterised by stalled economic growth caused by extended lockdowns and travel restrictions cut short momentum in areas such as the Costa del Sol, only to be followed not just by recovery as 2021 provided fewer obstacles to growth, but by a boom year.
Indeed, the Costa del Sol property market which recovered so well in the wake of the global financial crisis of 2008-2012, and which had reached a level of steady growth by the start of the current decade, saw an unexpected level of growth and success in 2021, a feat driven above all by the higher end of the market.
It’s true, more properties were sold in Marbella and surroundings during the heady days of the 2000s property boom, but back then the bulk of the market was in the mid-range and the average price per property sold was up to three times lower than that experienced in 2021. The result was a record year for many of the estate agents in this region, especially those specialised in luxury homes.
Luxury and modern drive the Marbella market
If the higher segment drives the Costa del Sol property market, then this is also true of new-built villas and apartments, which continue to be the most sought-after. However, in contrast to the 2000s, buyers now focus not so much on off-plan projects within a two-year pipeline but want their new home ready to use and enjoy as soon as possible, and Covid has added to this sense of urgency.
The pandemic experience and greater adaptation to remote working has spurred much of the demand for property for sale in Marbella and other parts of the Golden Triangle (Marbella, Benahavis and Estepona). Also interesting to note is that more people now choose to live in this area permanently or spend extended periods here, adding to the long-established concept of the Costa del Sol holiday home.
What to expect in 2022
Remembering that most countries lost a significant chunk of their GDP in 2020, and that strong (recovery) growth in 2021 is likely to be followed by more of the same in 2022 unless we return to pre-pandemic economic levels by 2023, it is fair to assume there will be continued growth in 2022. The financial markets are sending out some warning signals, but apart from this and the now-familiar geopolitical highlight, the way ahead looks reasonably calm for once.
This leads us to believe that growth will continue to be strong in 2022, and with signs that the Covid situation may be ameliorating a little over this year, and property price increases that remain far from a bubble yet offer above-average investment returns, the conditions are set for a good year in the Costa del Sol property market.
This much is being borne out by the earliest January 2022 indications in terms of buyer interest, so let’s raise a glass to a hopeful and safe new year.
Mary Dunne Partner & Private Office Advisor
Mary Dunne is an experienced Real Estate Broker in Marbella with over two decades of expertise in the luxury property sector. She offers profound insights into Marbella’s luxury market, backed by her extensive experience with property transactions’ financial and legal facets. Her deep market knowledge positions her as a trusted expert, providing tailored experiences for high-end clients and showcasing Marbella’s lifestyle.
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