How the coronavirus will affect the Sotogrande residential property market
The coronavirus has already rocked Sotogrande and has changed our daily lives. The pandemic has impacted the local real estate market, especially for those who had been preparing to buy or sell a home this spring.
While much will depend on the time it takes to contain the spread of the virus, I think the impact could vary at different prices and sectors in the local market. Sotogrande mainly serves the luxury market, what could be the near future for this sector?
So many uncertainties and questions. Will the State of Alarm last for another three weeks, three months, or until 2021? Will demand revitalize property and business transactions as soon as we can all go back to work? Questions are even being raised about conspiracy theories, in particular the “real” story behind the virus’s Chinese origins. Was it a deliberate act intended to weaken the west?
In the long run, we feel optimistic about the residential property market.
I feel optimistic, we are scared, but far from being terrified, we firmly believe that the high-end Sotogrande property will definitely survive the pandemic. Of course, in the short term, buyers and sellers are waiting and seeing. This is the norm, especially in Sotogrande when there is a crisis. Not many sellers have financial problems, and no buyer is forced to make a purchase. The status quo will be the default position, as we have seen many times in the past.
Luxury residences have never been liquid products, and villas that sell for many thousands of euros never sell like hot cakes.
Properties in Sotogrande are offered at generous prices and it is not unusual to see them on the market for a year or more. At times like these, sales will be slow until there is clarity about the virus restrictions and buyers can assess its economic impact. Potential buyers will hold their interest and plan their tactics, banks will want to lend, and sellers will sell once they accept the real values of the new normal.
However, the sun will continue to shine, everything will reopen one day soon, and our environment will resemble to a more normal state. Sotogrande is Sotogrande, and always will be. Over time, the market will recover and so will we.
Thank you for your interest,
Charles Gubbins.
Mobile: +34 607 911 661
Email: charles.gubbins@noll-sotogrande.com
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