Market Forecast | February 2023
Buying, Selling or Investing?
In the post pandemic world of 2021 and 2022 it was back to business as usual, with many property agents reporting record years in terms of sales volumes. There was significant pent up demand as I had predicted in an earlier forecast from buyers wanting to finally realise their dreams of owning a property on the Costa del Sol. Many of these clients took action and finally turned their dreams in reality. How do we think that 2023 is going to turn out? Let’s find out…
So what’s the market like at the moment?
This is without doubt the question I get asked most by clients, existing property owners and people I meet after golf in the clubhouse! As I have said many times before, it is easy to give sweeping statements of general market wide conditions, but they rarely hold any real value to someone genuinely looking to understand specific local market conditions. So my answer is always the same - “it depends! Are you looking to buy, sell, invest or rent?”
Already in 2023 there has been steady buyer activity, despite the fact that the market is still waking up as is expected for this time of year.
What do we think is going to happen during 2023?
With increasing uncertain economic conditions being publicised in some news channels in home countries, increasing inflation, rising fuel costs, interest rate increases, peaked house prices or in some instances on the decline, the ongoing conflict in Ukraine which has evolved into a Russia: NATO conflict, what does all this mean for the year ahead in terms of property on the Costa del Sol?
Whilst the Costa del Sol does of course not exist in a vacuum, it is my opinion that 2023 is going to be another stellar year in terms of property transactions.
How do I get the best deal?
There are some challenges that need to be overcome in terms of false expectations on the part of both buyers and sellers when it comes to the market. Some buyers still appear to be under the impression that any property can be acquired at a significant discount. This is definitely not the case in today's market. It is buyers with this mindset that tend to miss out on the genuine opportunities and lose the property they really want, fixated on getting a discount rather than assessing the value and actually securing the property they want.
Sellers with high price aspirations need to remember that buyers have done their research and are being advised by a trusted agent. They are looking at the comparables and can see the value in a property and where a premium is worth paying for a specific property. Given the current market conditions with high buyer demand properties priced correctly will sell quickly. As a seller, if your property has been on the market for several months, chances are it is not priced correctly.
Ongoing market trends
The following are trends that have been consistent over the years and I believe will continue to be the case moving forward.
1) Desire to be close to amenities:
Over the past few years, regardless of type of property or budget, we have noted particularly high demand for properties located close to amenities. For some, this means ideally walking distance to shops, bars, restaurants and possibly to the beach, for others it is a short drive.
2) Private outdoor space:
Properties with private outdoor space will continue to be at a premium, be they apartments with large terraces or villas and townhouse with private plots.
3) Views:
There are those people for whom properties with big views – particularly sea views are a prerequisite. For some that means beachfront properties and due to the very limited supply, these always command premium prices
4) Orientation for the sun:
Most northern Europeans, particularly Germans and Scandinavians will only consider South and South West facing properties. Many have the intention of spending the winter months in Spain and want to enjoy the afternoon/evening sunshine.
Buying a property on the Costa del Sol in the current climate is becoming somewhat of a competition. Buyers who are in a strong buying position, ready to move quickly to sign purchase contracts will be the ones to secure the premium properties.
-
Want to know more about our view of the real estate market?
-
How can buyers increase their chance of securing their ideal property?
-
How can sellers maximise their opportunity in the current market?
Download the Lion Trust 2023 Costa del Sol Market forecast to get the answers!
Our intention with this blog post is for you to get an initial insight into our views of the market based on our experience of 20+ years in the Costa del Sol real estate business. Whether you're buying, selling or thinking about investing, our 2023 market forecast should be of value to you and help you reach a decision that is right for you. If you want more information and an in depth market forecast of the 2023 Costa del Sol property market, you are more than welcome to download the full version below.
...
[email protected]
