Move Project

Why 2021 was a good year for property in Marbella

Last year, we predicted a relatively positive post-Covid scenario in which the local economy would bounce back soon enough, but even we could not have imagined that the recovery of the tourist sector and the economy in general, but also of the real estate industry in particular, would be quite as strong as it has been.

To put it plainly – 2021 was an excellent year for property on the Costa del Sol, for many agents and developers their best on record! Of course, the strength of 2021 was in part due to the weakness of 2020, with pent-up demand released the moment people were allowed to travel more freely again, but there is more at play here than simply a delayed reaction.

The Covid-impact

One factor that was already becoming clear during the course of last year was a change in the mindset of many people, particularly those residing in the large urban centres in more northerly climes. There the impact of prolonged lockdown caused a sense of enclosure that many have been keen to avoid, thus sparking a move to the suburbs, countryside and also lifestyle destinations such as the Marbella and the Costa del Sol.

The experience has also caused many to take stock, to consider the relatively fragile and short nature of our lives and focus less on career and material goods and more on freedom, time spent with loved ones and living in spacious surroundings close to nature. This has led many to the Marbella area, spurred on by the ability to work remotely – the adaptation of which has also been sped up by the Covid-situation.

One thing we got wrong

When we discussed the slight and remarkably small drop in property prices, and considered the advantages of enhanced competitiveness this might produce, we would never have envisaged the strong inflationary orbit we – and the rest of the world – have suddenly found ourselves in. In construction and property development we’ve been hit with a shortage of everything from steel and wood to microchips, cement and skilled workers – a situation seen around the globe.

Supply chain shortages and short-term price hikes might have been expected in the immediate aftermath of the lockdowns, as the machinery of production and distribution began to move again, but the current delays and price hikes are expected to continue well into 2022, and they affect everything from construction to shipping, agriculture and food supplies. It’s added greatly to the cost of building, as well as the timeframes for delivery, but we’re buffered by the fact that this is a universal problem, and one that for now is pretty much unavoidable.

And so, demand remains strong, supply is challenged to the limit, and those working on projects such as we do are working very hard to balance the process to the benefit of all involved. Imagine if you didn’t have someone like Move Project on your side right now… 😊