19 Oct, 2020 @ 20:30
1 min read

Major property price falls predicted for the Costa del Sol and Costa Blanca in Spain

Big Falls Predicted For House Prices On The Costa Del Sol And Costa Blanca In Spain

PROPERTY prices in Spain’s tourist areas of the Costa Blanca and Costa del Sol could crash by over 20 per cent over the next year due to the pandemic.

The prediction comes in a real estate report from Barcelona University and consulting firm, Forcadell, which suggests a bounce back will start in 2022.

In contrast, big city areas like Barcelona and Madrid are projected to see a more modest price drop of around 12 to 13 per cent.

Report author, Professor Gonzalo Bernardos, said:

“The big cities always have a high demand for property, but prices will still fall, especially in poorer neighbourhoods.”

Bernardos added that he was very hopeful of Spain’s economy recovering next year, but that it would take until 2022 for property prices to resume climbing.

Rental prices will show an even more dramatic fall, as Professor Bernardos explained:

“The rental market always suffers more during any economic crisis and with more properties available due to a drop in tourism, prices are inevitably falling.”

However, the report says that the commercial property sector gives the greatest cause for concern.

It predicts that a third of all retail premises will close and rents will drop by 50 per cent.

“The commercial market has been destroyed as if a tsunami has engulfed it,” Gonzalo Bernardos commented.

He also expected many hotels to change hands, especially when sellers drop their demands for ‘very high prices’.

Alex Trelinski

Alex worked for 30 years for the BBC as a presenter, producer and manager. He covered a variety of areas specialising in sport, news and politics. After moving to the Costa Blanca over a decade ago, he edited a newspaper for 5 years and worked on local radio.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

COVID-19 cases maintain reduced totals in Costa Blanca and Valencia areas of Spain
Previous Story

Big overall weekend rise in new Covid-19 cases in Spain’s Valencian Community

Cleric Goes On Trial For Allegedly Creating Jihadist Terror Group On Spain  S Costa Blanca
Next Story

Cleric goes on trial for allegedly creating jihadist terror group on Spain’s Costa Blanca

Latest from Costa Blanca

Go toTop

More From The Olive Press

An anti-tourism slogan at a demonstration in Barcelona on July 6, 2024

US tourists change their holiday plans in Spain after seeing anti-tourism protests and ‘feeling guilty’

THE recent wave of anti-tourism protests in Spain is beginning
2 bedroom Villa for sale in Corralejo with pool garage - € 560

2 bedroom Villa for sale in Corralejo with pool garage – € 560,000

Villa Corralejo, Fuerteventura   2 beds   2 baths €