12 years ago, the world plunged into an economic crisis. Among the worst-hit sectors of the economy was the property market. Today, the economy of many countries, including Spain, are under pressure because of the novel coronavirus pandemic’s effects that have brought the whole world to its knees.
Spain, like many other countries internationally, is yet to recover from 2008’s economic shock fully, but everything is not entirely the same as 12 years ago. Although the country’s debt and deficit levels are seemingly higher, other sectors, including the export sector, are stronger than they were in 2008.
According to a research body, BBVA Research, data collected from Spain’s real estate sector indicates that there is already an apparent decline, and the trend is most likely going to continue in the coming months. However, it stresses the fact that although there is a significant decline, the situation today, despite the confinement, is far more promising than it was 12 years ago. The economy is better placed to cope with the situation and adjust accordingly.
In the opinion of Real Estate Situation’s latest report, the starting price per square metre of a property in 2008 was averagely €2,100, and it stands at an average of €1,650 today. That is why BBVA maintains that people are not buying homes as much today. It goes ahead to add that you will realise that when you consider the mortgage payments, they were more than 50% in 2008, and it is now lower, standing at 32%. It is an indication that the country’s financial situation is healthier than it was in 2008. Putting in mind that the household debt rose to 131% in 2019 from 171% in 2006. They also value the interest rates to remain at relatively low levels indicating that Spain isn’t experiencing an oversupply of new housing today as it was 12 years ago.
Spain is experiencing increased support from the European Union (EU), compared to 2008, when the EU took too long to provide backup for its member states, Spain being one of them. The EU now provides a lifeline for countries that may be hardest with the coronavirus pandemic. Today’s swifter actions mean that they are more prepared to remedy the situation, preventing it from going the 2008 direction.
The Situation in Marbella
Marbella is a Spanish city known all over the world for its international flair and superb infrastructure. It is also a World Trademark of luxury that experiences one of the best climates. The city boasts of a proven track record of over 40 years. It is an epitome of stability and investment opportunity. Although it may not be entirely immune to economic shocks, it is far better placed to get out of it as compared to many other parts of the world.
Marbella has all it takes to resist the current economic downturn in the premium market segment as the demand remains solid. This means that investors and potential buyers have confidence in their investments in this magnificent location. They remain certain that despite the volatile economic times, their investments will remain safe as everyone hopes for things to improve because they certainly will.https://my.matterport.com/show/?m=VFpapnYpPNh