THE property market in Spain is not heading for a crash next year, a leading estate agent boss has insisted.
Sean Woolley, CEO of Cloud Nine properties, says the market on a national and local level has cooled in 2023, with some prices dropping, however this has not resulted in a crash.
The price drops were partly caused by many homes in areas like Marbella having been slightly overpriced.
He added: “I would rank the market in Marbella as a steady 7.5 right now, with a good flow of clients and a higher value average buyer than pre COVID. Marbella and the Costa del Sol as a destination, long term is staying strong.
“It’s fantastic for primary home buyers, for secondary home buyers, for investors and I don’t see that changing.”
Woolley, who has worked in property on the Costa del Sol for over 20 years, said pent up demand from the Covid pandemic led to a surge in purchases and ‘a couple years of genuine growth in terms of price.’
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He said: “I think now we’re seeing a little calmness coming back to the market, with just gradual price rises in the more popular locations. This is good news for anyone concerned about a property bubble.
“I think the market is in good health and there’s definitely no sign of a crash. In fact, there is still a lack of supply of good resale stock in good areas. While there’s a lot of building taking place, demand is high for new build developments and these are regularly selling out.
“Marbella’s global brand and reinvention as a real 5* destination has pushed prices up and created a new super-prime price range, with properties from six to seven million Euros becoming commonplace. The arrival of branded residences and shortages of prime stock in the best areas has pushed the prices up and will continue to.
“However, there’s a lot of breadth and depth in the market too, with plenty of buyers at a lower price point too. They are attracted by the lifestyle, weather and opportunities for remote working and with the brand of Marbella riding high, they will continue to come.”
The so-called Covid rush saw scores of new teleworkers looking for boltholes in the sun, while many people re-evaluated their lives and decided to finally take the plunge to move abroad.
This has now began to calm down and according to Woolley, 2023 has seen the market become more ‘normalised’.
He added: “Our buyers are from all around the world once again. We’ve had British people, we’ve had North Europeans, we’ve had people from the Middle East, and once again buyers from North America have come over during the summer months.
“One difference, is an increase in buyers from Eastern European countries, due to their proximity to the Ukrainian conflict and a nervousness about what the future holds, encouraging them to get their money out and purchase a safe bolthole.
“I’m pleased to say that this will be our most successful year ever, even compared to the last two years. I am very positive about 2024, and predict continued interest in the area and stability in the market.”
