Our residential specialist Bjorn Cocquyt has been visiting leading properties and real estate projects at home and abroad for more than 10 years. In our section Pureliving he likes to give his vision on exclusive living.
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Most owners of a second home in the sunny south did not enjoy it much in 2020 or 2021. Those who have a place in Tenerife can still be somewhat lucky, because the corona crisis hit less hard there. The island remained reasonably accessible throughout the corona crisis and the value of the real estate held up well. "During crises, Tenerife often escapes the dance and that doesn't seem to be any different now," says Carl Vorsselmans of Nieuwbouw in Spain. The Belgians are investing more than ever in Spain and by extension in Tenerife, in their own corona-proof bubble!
The market for second homes in the south of Europe has been at a standstill since the corona virus conquered the world in no time. Many compatriots also put their dream of a home under the sun on hold or were satisfied with an apartment on the Belgian coast. Understandably, because there is a lot of uncertainty about how and when we can travel back in the coming weeks and months.
In Spain, for Belgians by far the most popular country for a second residence, they see the 'new normal' with regret. For many real estate agents on the Costa Brava, Blanca, Calida and del Sol, corona is a drama, but colleagues in Tenerife appear to be less affected.
“Sales in July and August last year were better than previous summers, but that is largely due to a catch-up movement that has been implemented. The period from March to the end of the lockdown in June has not been made up for in any way," says Carl Vorsselmans of New Construction in Spain, which has a base on the Canary Island. “We mainly sold in the higher segment and that is a phenomenon that is often noticeable during a crisis. In periods of economic uncertainty, real estate is a safe investment. With the hesitant stock markets and savings accounts that yield nothing, there are also few alternatives.”
No discounts
Quite a few buyers hope to negotiate hefty discounts in the corona era, but they have come to the wrong place in Tenerife. “Actually, we are experiencing the same thing as during the crisis of 2008, when the real estate market on the islands, including Ibiza, held up relatively well. The prices in the higher segment, and I'm talking from 500,000 euros, have not fallen this year. I even know a promoter who just made a project 10 percent more expensive. He noticed that the sale of the first phase went smoothly and is convinced that there are also buyers who are willing to pay a little more. This approach is common, but it may seem strange in times of corona. Yet it is not entirely illogical, because the supply of new homes on Tenerife is and remains limited, in contrast to the mainland.”
There is also little movement in prices in the cheaper segment for the time being, although Vorsselmans does not rule out the possibility that this will change. “There are not many tourists and the coming months will also be quiet. Investors who cannot rent out their apartments for a long period of time may be forced to sell. As a result, the supply will increase, without the demand side following suit. The next step is a drop in prices.”
Blind buy
Another thing: just as happens more and more often in Belgium, a number of clients bought from New Construction in Spain without making a viewing trip. “People make decisions purely on the basis of guided tours via WhatsApp and watching online videos. These are customers who came to us through word of mouth, so it was certainly not 100% a leap into thin air.”
Information with the photos:
In Caldera del Rey, above the Siam Park, ten luxury villas are being built in a minimalist style. They enjoy a beautiful view of the ocean and the Costa Adeje. Each villa has four bedrooms and five bathrooms, a swimming pool, garage and garden. Prices from 1,800,000 euros.
Source: Bjorn Cocquyt - PUREDELUXE