We know what you’re thinking. Amid the disruption and uncertainty caused by the coronavirus crisis, could there at least be a modest ‘silver lining’ for you in the form of more affordable Sotogrande property than you might otherwise have been able to expect in 2020?
The effects may be more moderate than you think
As a ‘second wave’ of COVID-19 gradually takes hold, there is still inconsistency across the various predictions of how it could impact on Spanish property prices.
The US credit rating agency Standard & Poor’s, for instance, has forecast that the Iberian nation could be one of the few European countries with overall falling property prices in the wake of the pandemic. However, it has also suggested this could be relatively modest and short-lived.
More specifically, the agency has tipped Spanish property prices to decrease by 1.4 per cent in 2020, before bouncing back by 1.8 per cent in 2021.
Sotogrande’s prices may also prove more robust than the rest of the Costa del Sol
At this point, you might be thinking... sure, even price declines like the above would be nowhere near the drastic falls seen amid the late 2000s and early 2010s financial crisis. Back then, property prices in the country plummeted to about a third less in 2014 than they had been in 2008.
But what about the other recent reports, including from expat newspaper The Olive Press, that more tourist-oriented areas of Spain – such as the Costa del Sol, where Sotogrande is located – could record property price falls of more than 20 per cent?
This particular prediction, by Barcelona University and a consulting company, perhaps reflects just how difficult it is to forecast exactly what might happen to the Spanish property sector as the coronavirus situation evolves in the months to come.
But even if this particular scenario came to pass, there is far from any guarantee that Sotogrande property would be similarly affected.
Real estate values in this especially prestigious part of Andalucía have tended to hold up strongly during previous times of regional property-market decline. So, any window of lower prices for Sotogrande houses, villas and apartments may prove very short-lived.
If Sotogrande property is your dream, get in touch today
Of all of the lessons that the COVID-19 crisis might teach to would-be Sotogrande property buyers, the biggest one might be to not be unduly influenced by momentary market conditions.
Whatever impacts the ongoing pandemic otherwise has, the longstanding desirability of Sotogrande as a focal point for property investment and a rewarding lifestyle is unlikely to be dulled very much in the long run. The best time to act on your interest, then, might be right now.
Contact our capable and seasoned Sotogrande property experts today, and we would be delighted to begin the discussion immediately as to how we could best help you to make your dreams of owning a home here come true.