Andalusia leads house price boom triggered by Covid

Asking prices are rising strongly in Marbella

Five of the top ten municipalities where prices have risen the most since the pandemic started are located on the Andalusian coast, reveals research from the Idealista property portal. 

Idealista compared asking prices in September 2021 to the same month of 2019, to get a pre-pandemic benchmark. The research revealed that coastal municipalities in Andalusia have seen some of the biggest asking price increases in Spain, perhaps because of the influence of the pandemic on supply and demand. 

Asking prices have risen the most in the Las Salinas district of Roquetas de Mar in Almeria province, up by 46% compared to 2019, making it Spain’s leading hotspot for Covid pricing. Marbella has three districts in the top ten, with prices in Nagüeles up 41%. Along with one top ten district in Estepona, Andalusia has five out of the top ten districts where asking prices have risen the most over the course of the pandemic. All of them are areas of interest to foreign investors.

The latest data from the Association of Spanish Notaries also shows house prices rising in Andalusia faster than any other region of interest to foreign investors except the Balearics. Anecdotal evidence from lawyers and agents further supports the notion that the housing market on the Costa del Sol is enjoying a mini boom after the pandemic, perhaps even thanks to the pandemic.

The Balearics is another region where data from the Association of Spanish Notaries suggests house prices are rising strongly, but according to asking price data from Idealista, the Balearics only gets one district in the top 10, in the regional capital of Palma de Mallorca, up 30%. 

According to Idealista, asking prices have not risen above pre-pandemic levels across the board, so what might have caused them to jump in certain areas like Marbella, but not others?

Estate agents tell me that, thanks to Covid, buyers are more interested than ever in areas that offer space and fresh air not far from cities and good transport links. A move away from city centers towards the coast would help explain why asking prices are falling in most parts of Barcelona, yet rising in resort towns like Marbella.

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