According to Premier Marbella news sources, the Spanish property market post Cov19 forecasts that sales are likely to return to 2012 levels. A report warns of the consequences for the Spanish property market due to the lack of foreign tourists, but predicts a rapid recovery. This year the property market in Marbella and general area is likely to return to 2012 and 2013 levels. Spanish property market forecasters are predicting up to a 30 per cent reduction in sales, but prices will not be as badly affected. It warns that the lack of foreign tourists will have consequences for the Costa del Sol.
Covid-19 has hit hard almost all the economic sectors of Spain and half the world. Some will have a faster recovery than others. In the case of the Spanish property market, the year will be a write off in terms of the return of the numbers of monthly sales registered in comparison to the last two years. In 2018 and 2019 the number of property sales was just above 500,000 units. Last year it fell 2.5%, for the first time in five years, largely due to the impact of the Mortgage Law and the political uncertainty caused by the successive elections. In fact, January and February 2020 ended with good data for the sector.
In March, some operations opened in the previous months have still been closed. In practice, signing is possible (if the notary considers it urgent). Abril is a wasteland in the used housing sector, which represents more than 80% of the housing sales in Spain. The notaries confirmed a historical collapse of 70% of the sales operations in April, today it is the turn of the National Statistics Institute INE. According to data from the statistics agency, which is fed by the Property Registrars, in the fourth month of the year, in full alarm, 25,042 home sales were formalized, 39.2% less in year-on-year terms.
The balance so far this year shows a drop of 14.4%, mainly weighed down by new home operations. April has been historic, with the lowest number of sales in history (4,439). In year-on-year terms, new home transactions have plummeted 41.3%, compared to the 38.8% decline in sales of second-hand residential properties (20,603, the lowest number since December 2014).
Leading Marbella property specialist Romano Keogh commented that in the first four months of the year, nearly 151,000 operations have been signed, of which the vast majority have been second hand properties. If the current rhythm is maintained, the year could end with more than 450,000 transactions, well above the 318,000 that were registered annually between 2012 and 2014, despite the covid-19 crisis.
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