Mid Year Property Market Update 2024
Costa del Sol, Spain
What has happened so far in 2024?
It should be said from the outset that this is of course a very subjective topic, as if you speak with an agent who has recently had clients buy an expensive villa they will tell you the market is booming! Also it is not in anyone’s interest who is in the business to talk negatively about the market. I have tried to keep this brief article as objective and unbiased as I can. It is based on having an overview of activity from multiple traffic streams including our web site and all of the major portals offering property on the Costa del Sol. I have consulted with other leading estate agencies to help form my opinion, but at the end of the day, it is my current understanding and view of the market.
Start of the year.
The first quarter of the year, January - March as anticipated, got off to a fast start with lots of buyer activity reported, given the slow closing months of 2023.
Buyer expectations still generally exceed what they actually get for their money. This is perhaps down to insufficient time to research and understand the market conditions, or not having had open and honest conversations with property agents prior to visiting the coast.
The theme of a limited supply of quality housing stock which was prevalent last year has continued. There was a particularly noticeable shortage of villas all along the coast in the price range of 500-750k Euros. Also without doubt, the bar has been raised for the entry level to get into the market.
In the second quarter (April to June) there was a noticeable slow down in buyer inquiry flow, especially in June. July was similar. We would expect this over the summer months, but lead flow has been noticeably down until the last week of July. However, it seems the quality of inquiries has improved, which from an agent's perspective is a good thing. Inquiring prospective buyers seem to be more prepared, with finances organised, proposed buying timescales and visit plans in place.
On 4th April we had the announcement of the proposed withdrawal of the Golden Visa scheme, whereby an non-EU resident investing 500.000 Euros in property can apply for a visa allowing them access to the Schengen area for up to 183 days a year with no restrictions. This caused a flurry of activity with buyers (and indeed everyone) uncertain of when the cut off date will be. At the time of writing it is still not know what the actual cut off date for application or issuing of Golden Visas will be. What comes after the Golden Visa will be subject to a separate blog post.
So what’s the market like at the moment?
It depends! Are you looking to buy, sell, rent or invest?
The answer is somewhat different depending on your intentions and of course who you speak with.
General volume of buyer inquiries from portals across the board is down which is typical for this time of year. On the other hand, as an agency our number of client referrals for both buyers and sellers is up, which is very satisfying.
The coast is getting busy. The inbound flights are full, traffic is building up and you need to book your favourite restaurants and beach sunbeds well in advance!
As August has been approaching you could almost feel the Andalucia holiday mode easing in! Everything here almost grinds to a halt in August in Andalucia, or at least anything to do with banks, notaries and administrative offices. It makes it challenging for buyers, sellers, agents and lawyers who are looking to progress or conclude transactions. In addition, with the tourist season in full flow, it becomes harder (sometimes impossible) to access properties which are for sale, as owners have rented them out to holiday makers.
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Read our full market forecast here!
