As we reclaim the freedoms we once took for granted – one of them being freedom of movement – people once more return to the streets, shops, businesses, restaurants and other establishments that form the fabric of our society and backbone of our economy. If no more unexpected setbacks are suffered, we will be on the path back to recovering what has been lost, but what have we learned along the way, what perspectives have we gained, and how is the market operating right now and expected to be performing in the months and years to come?

How have things been since the end of lockdown?

“I think we’ve all seen how the gradual opening up has given the Costa del Sol a boost, but even so it would have been hard to predict the response from the buying public,” says Smadar Kahana, owner of five Engel & Völkers shops in the greater Marbella area. “Currently, sales figures have rapidly risen to a level we haven’t seen in the almost twenty years that we have been active in this market. The demand is clearly top-down, with the main emphasis on the mid to high end segments, and focused primarily on luxury modern villas and apartments/penthouses in top locations. It really is quite astounding, and appears to be a combination of pent-up demand and a decision to seize the day and push for quality of life and enjoyment following the Covid lockdown experience.”

Has Covid changed the way business is done?

“Modern technological developments in the fields of communication, drone video and also virtual viewing tours derived from gaming technology have been gathering pace over the past decade,” says Stacy Welch of Solvilla, “but their adoption on a mass scale was slow and gradual until Covid hit. The need to adapt quickly and embrace these tools in an everyday environment has pushed our industry and many others ahead by eight to ten years. Even though you will never replace personal service or visiting a property and location in person, the new methods of working and communicating are here to stay and will only continue to develop further.”

How did the Covid situation affect the property sector on the Costa del Sol?

“It can’t be denied that it was a great challenge,” says Anssi Kiviranta of Strand Properties. “The biggest problem was certainly not a lack of interest and enquiries, but the severe restrictions on international travel, which greatly limited the number of people coming here to view and ultimately buy properties. That said, those in the higher income spheres, especially people with access to private jets, could and did come, and this is one of the reasons why the top end of the market has been so dominant over the past year.”

Are buyers looking for anything different than before?

“Yes,” says Michael Liggan of Altavista. “But subtly so. They still want stylish modern properties with attractive lifestyle amenities, open-plan interiors and a good location, but more important than ever are also space, green zones, proximity to amenities as well as nature, and areas that can be used as office space.” As a specialist commercialising agent and developer with particular expertise in contemporary villas, Altavista is incorporating these elements into its designs. “We satisfy an important mid-high segment and in recent years this has become a specialisation in villas, many of which have exactly the kind of features people are looking for right now. We have seen that they will compromise a little on some of the things on their wish list, as well as on location, but given the urgency many of them feel right now towards acquiring a property in Marbella, one of the key factors is finding a home that suites them, especially since the stock of ready, new-build modern villas is running low.”

And how will prices develop?

“If things continue as now there may be pressure for them to grow too much, and this wouldn’t be good for the market in the longer term,” says Smadar (Engel & Völkers). “Another important thing to keep in mind is the fact that the strongest demand is and for some time has been for newly built properties in Marbella, not for existing re-sales, with the exception of redeveloped/highly renovated properties. This means that re-sale properties cannot track the prices of new homes, and that owners have to price their properties sensibly in order to find buyers. Such pricing should always take into account the cost, effort and time that goes into renovation.”

Are most still buying holiday homes?

“The majority of our clients continue to be second-home buyers,” says Anssi Kiviranta (Strand Properties), “but the proportion of people looking to relocate permanently and base themselves in Marbella is greater than ever and continues to grow. As part of this trend, the average age has also continued to drop further and many of our clients are now young families in their forties who are not retired but clearly working independently and remotely. They feel the Costa del Sol is an excellent, safe base with a clear focus on quality of life, an expanding offer of co-working centres and good connections with the rest of the world. The growing focus on fulltime living in Marbella is also having its effect on property design, resulting in larger interior spaces, the importance of features such as storage, workspaces, sizable bedroom suites and also the demand for manageable but spacious gardens.”

How do you see the market evolving in the near future?

“We foresee continued and in some cases accelerated growth for the remainder of this year and next – the so-called recovery period – but this of course supposes there will be no more lockdowns and travel restrictions will continue to ease as we begin to leave the Covid experience behind us,” says Stacy (Solvilla). Thereafter the market will find a new equilibrium, but we expect it to be at a healthy level of sales.”

What will be the final impact of Covid for the Costa del Sol real estate market?

“Firstly, a release of pent-up and lifestyle-driven demand,” says Michael (Altavista), “but in the long term it will further emphasise the quality of life this region offers and have pushed the property sector into the future with regard to modern technologies and methods of work. Beyond this, I believe we will return to many of the factors that dominated the market before Covid, and of course some things – such as quality of location, property and service – will never change.”