With home-working and flexible working practices becoming the norm, many people are looking more seriously at basing themselves somewhere with a warmer climate and a more relaxed lifestyle for part of the year, if not a full-time basis. So the 2020/21 lockdown has actually fuelled the already exiting fire for thousands more potential visitors and emigrés to Spain.
Most of the Northern European population is itching for at least a holiday in the sun, and maybe a longer stay. And as long as the sun continues to shine, the area of Southern Spain, and especially the Costa del Sol, will always be a firm favourite for overseas property investors.
The area between Malaga and Sotogrande has always been a hotspot for tourism and investors, with some holiday resorts being established as far back as the 60s, such as Torremolinos and Fuengirola, home to a plethora of high-rise 3 and 4-star hotels. But further west, there are resorts and towns such as Mijas, Marbella, Estepona and Benahavis, which offer a very different feel, with some of Europe’s very best hotels, and finest leisure, retail and sporting amenities available in the Mediterranean.
2021 could present a perfect scenario for property investors in the area as new developments have been placed on hold for the past 12 months, which means the market in the strongest and most affluent coastal areas has not experienced an over-supply of new stock. And property owners have refused to panic during the pandemic, meaning that, unlike the global financial recession of 2008-2012, there has been no significant drop in property prices. Although there have been some much-needed price corrections in areas that were previously over-priced.
The Costa del Sol which offers 320 days of sunshine per year, has become a magnet for second homeowners over the last 20 years or so, especially with the arrival of low-cost air travel with airlines such as EasyJet and Ryanair, which has created many good value commuter routes from nearly every European city. And many of these property investors have now moved to the Costa del Sol on a full-time basis, drawn by the outdoor and more relaxed lifestyle, high-quality international schools and the improved connectivity and accessibility.
Usually, as a rule of thumb one week’s high season holiday rental will equate to a month´s rental on a long-term let. And an experienced real estate professional will be able to guide investors towards the best opportunities and provide income and cost estimates will be able to assist with your budgeting forecasts prior to any investment being made.
With an expected surge in holiday bookings in 2021 and there after, there are real opportunities for property investors on the Costa del Sol. The key, as always, is to buy in the right location – ideally close to amenities – and to ensure that community fees are not exorbitant and eat up all your profits.