Move Project

The impact of Covid on the Marbella property market and major cities in Spain

As a company that provides specialist project management services for developers and investors, we are of course very close to the market, and make it our business to stay on top of the latest developments, be they technical, design-related, concerning buyer/consumer trends or economic. While the Covid-19 situation that has dominated 2020 is not an economic crisis in itself, the restrictions caused by the fight against the pandemic have undeniably had an impact around the world.

“What we have seen is a continuation of demand and property sales in Marbella, but the pace has slowed somewhat,” says Fabian Delle, founder and director of Move Project. “The drop in sales and prices has been moderate, however, nowhere near the levels feared by some, and this is because the demand for Marbella property and lifestyle never went away. In some cases it was actually reinforced by the lockdown people experienced in the major urban centres of northern Europe, but of course the travel restrictions and to some extent the economic uncertainty related to the Covid crisis have limited sales as well as had a big impact on tourism.”

Short and medium-term prospects
The tourist industry is indeed looking to restructure and survive a bad year, putting its focus on a revival and return to normality next year, and in real estate too there is an expectation that property prices in Marbella and surroundings will see a moderate downward adjustment. “In big cities such as Madrid and Barcelona this has already happened, albeit at a moderate level, as has also been seen in the luxury market.” However, here Fabian expects a moderate recovery  within the next 3 to 4 years  as HNW buyers seek opportunities and have the means to react quickly.

“The commercial market will take a big blow, with some businesses folding and others being offered for sale, but this also brings with it new opportunities for fresh start-ups, and it will allow the prices of commercial and retail premises to drop, which will lower the threshold cost too.” He sees investors with funds looking for opportunities of this kind, and some have already begun to make purchases without waiting for a possible ‘second drop’. Their confidence will be rewarded when things return to normal, as economies are then expected to register strong recovery growth.

Like all periods that bring change and challenges, the present moment also carries opportunities for everyone from investors and entrepreneurs to normal homebuyers. Working from a network that stretches across Spain, including Madrid, Barcelona, Málaga and Marbella, Move Project can source, study and project manage such opportunities, and find the perfect fit for your investment needs.

Right now, we are commissioned to research four large projects and we have become the chosen partner for funds and companies from across Europe and beyond.