What Makes The Sotogrande Property Market A Safe Post-Pandemic Bet?
Ask those who have long owned property in this glorious part of Andalucía, and they might consider it slightly ridiculous to question the merits of investing in real estate here. But at BM Sotogrande, we can also completely understand that you’ll be second-guessing, and third-guessing, every investment decision you make amid the recent ups and downs we’ve seen around the world.
We are, of course, largely referring to the turbulence brought to the international economy – and even people’s freedoms – by the coronavirus crisis. But there are also other recent factors, such as Brexit, that might be causing some hesitancy in you when considering property to buy.
So, let’s run through some of the reasons why Sotogrande property consistently stands out from the alternatives when it comes to genuinely ‘COVID-proof’ investment opportunities.
Sotogrande is simply a fabulous place to live, work and play!
It might be the “obvious” point to make, but it’s an important one, nonetheless; the property markets that are most likely to continue to thrive during broader global uncertainty and struggle, are those that have always been attractive in times both good and bad.
Sotogrande definitely fits the bill here – it was recently described, quite justifiably by British newspaper The Times, as “Spain’s secret playground for the super-rich”. Sure enough, Sotogrande is inhabited and frequented by politicians, royalty and other members of the international elite.
But even if you aren’t much into ‘celeb-spotting’, you could scarcely beat the mix of high-class leisure and sporting amenities here, or the area’s finest of fine-dining establishments.
The property market here has proved consistently robust in times of difficulty
The COVID-19 pandemic doesn’t represent the first headwinds that the Sotogrande property market has ever faced successfully; after all, there was also the late 2000s and early 2010s global economic slowdown. Back then, the value of Sotogrande homes held up well, even while prices in other areas of the Costa del Sol fell – a trend attributable largely to the local residents’ financial status.
Looking now to the impact of the latest crisis, it is interesting to note that new developments in the Costa del Sol being put on hold has helped prevent an over-supply of property. This – combined with the refusal of local property owners to panic – has helped guard against any significant drop in prices.
The Costa del Sol and Spanish property markets are already recovering nicely
Indeed, according to valuation firm Tinsa, average market values for homes in Spain’s Mediterranean coastal areas have actually gone up by 5.1% over the past 12 months as of February 2021, compared to the 1% fall seen in capitals and large cities. This hints at another potential effect of the pandemic; would-be property buyers choosing idyllic locations like Sotogrande as bases from which to work from home, both during and beyond the immediate crisis.
Furthermore, the key real-estate market indicators for Spain as a whole are looking increasingly healthy as the country plots its path out of the worst of the pandemic. Official data released this month revealed that property transactions in the country went up by 32% in March compared to the situation a year earlier, reaching the highest level since July 2019.
What does all of this mean? Well, it indicates that if you’re waiting for the most opportune time to invest in Sotogrande property from a price perspective, there may not be a better moment than now to firm up your interest in local real estate.
Here at BM Sotogrande, we expect plenty of pent-up demand for Sotogrande property to be released as vaccination rates rise across Europe and the coronavirus pandemic gradually becomes a mere memory. To learn more about the latest opportunities and to have a chat with us about your own ambitions in Sotogrande property, don’t wait any longer to get in touch with our friendly team.