22 Dec, 2023 @ 13:40
2 mins read

Property market in Spain ‘will NOT crash next year’, insists expert on the Costa del Sol – and this is why

THE property market in Spain is not heading for a crash next year, a leading estate agent boss has insisted.

Sean Woolley, CEO of Cloud Nine properties, says the market on a national and local level has cooled in 2023, with some prices dropping, however this has not resulted in a crash.

The price drops were partly caused by many homes in areas like Marbella having been slightly overpriced.

He added: “I would rank the market in Marbella as a steady 7.5 right now, with a good flow of clients and a higher value average buyer than pre COVID. Marbella and the Costa del Sol as a destination, long term is staying strong.

CEO of Cloud Nine, Sean Woolley, insists the property market in Spain is not heading for a crash

“It’s fantastic for primary home buyers, for secondary home buyers, for investors and I don’t see that changing.”

Woolley, who has worked in property on the Costa del Sol for over 20 years, said pent up demand from the Covid pandemic led to a surge in purchases and ‘a couple years of genuine growth in terms of price.’

READ MORE: Where are Brits buying property in Spain? New data reveals the hottest locations

He said: “I think now we’re seeing a little calmness coming back to the market, with just gradual price rises in the more popular locations. This is good news for anyone concerned about a property bubble.

“I think the market is in good health and there’s definitely no sign of a crash. In fact, there is still a lack of supply of good resale stock in good areas. While there’s a lot of building taking place, demand is high for new build developments and these are regularly selling out.

“Marbella’s global brand and reinvention as a real 5* destination has pushed prices up and created a new super-prime price range, with properties from six to seven million Euros becoming commonplace. The arrival of branded residences and shortages of prime stock in the best areas has pushed the prices up and will continue to.

“However, there’s a lot of breadth and depth in the market too, with plenty of buyers at a lower price point too. They are attracted by the lifestyle, weather and opportunities for remote working and with the brand of Marbella riding high, they will continue to come.”

The so-called Covid rush saw scores of new teleworkers looking for boltholes in the sun, while many people re-evaluated their lives and decided to finally take the plunge to move abroad.

The price drops were partly caused by many homes in areas like Marbella having been slightly overpriced

This has now began to calm down and according to Woolley, 2023 has seen the market become more ‘normalised’.

He added: “Our buyers are from all around the world once again. We’ve had British people, we’ve had North Europeans, we’ve had people from the Middle East, and once again buyers from North America have come over during the summer months.

“One difference, is an increase in buyers from Eastern European countries, due to their proximity to the Ukrainian conflict and a nervousness about what the future holds, encouraging them to get their money out and purchase a safe bolthole.

“I’m pleased to say that this will be our most successful year ever, even compared to the last two years. I am very positive about 2024, and predict continued interest in the area and stability in the market.”

Laurence Dollimore

Laurence Dollimore is a Spanish-speaking, NCTJ-trained journalist with almost a decade’s worth of experience.
The London native has a BA in International Relations from the University of Leeds and and an MA in the same subject from Queen Mary University London.
He earned his gold star diploma in multimedia journalism at the prestigious News Associates in London in 2016, before immediately joining the Olive Press at their offices on the Costa del Sol.
After a five-year stint, Laurence returned to the UK to work as a senior reporter at the Mail Online, where he remained for two years before coming back to the Olive Press as Digital Editor in 2023.
He continues to work for the biggest newspapers in the UK, who hire him to investigate and report on stories in Spain.
These include the Daily Mail, Telegraph, Mail Online, Mail on Sunday and The Sun and Sun Online.
He has broken world exclusives on everything from the Madeleine McCann case to the anti-tourism movement in Tenerife.

GOT A STORY? Contact newsdesk@theolivepress.es or call +34 951 273 575 Twitter: @olivepress

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