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On the year of their 50th anniversary, Panorama, Marbella’s longest established real estate agency, was awarded for the second consecutive year the highest accolade for the category of BEST REAL ESTATE AGENCY SPAIN (SINGLE OFFICE)... The post Panorama wins Best Real Estate Agency in Spain for second consecutive year appeared first on...
On the year of their 50th anniversary, Panorama, Marbella’s longest established real estate agency, was awarded for the second consecutive year the highest accolade for the category of BEST REAL ESTATE AGENCY SPAIN (SINGLE OFFICE) at the European Property Awards for 2020-2021 held online on the 11th December 2020. Panorama won again the 5-star variant of the award after competing against the best property professionals in Spain.
Due to the exceptional worldwide circumstances the awards were held online and the winners were announced via video that you can see below:
As a top winner for its category, Panorama is also nominated for BEST REAL ESTATE AGENCY (SINGLE OFFICE) in Europe. Award winners for this category will be announced at the overall International Property Awards ceremony, once all the regions have been already been announced.
Christopher Clover, Panorama’s owner and Managing Director, said: “It is a great honour to be awarded this magnificent recognition. Winning the award for best real estate agency in Spain is a reflection of our team’s joint effort, and of our commitment to clear and transparent communication and providing an unbeatable service to our clients. Little by little we have gathered together the best team of champions in our field we have ever had. This is perhaps the most fundamental reason for our success and longevity.”
International Property Awards
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On the occasion of Panorama’s 50th anniversary in Marbella, Mayoress Ángeles Muñoz inaugurated their completely renovated sales office located at the Puente Romano hotel. Marbella, December 10th. – The renovation of its Puente Romano sales... The post Mayoress Angeles Muñoz inaugurates Panorama’s renovated sales office at the Puente Romano hotel appeared first on...
On the occasion of Panorama’s 50th anniversary in Marbella, Mayoress Ángeles Muñoz inaugurated their completely renovated sales office located at the Puente Romano hotel.
Marbella, December 10th. – The renovation of its Puente Romano sales offices has been the crowning achievement for the 50th anniversary of Panorama Properties, the longest established real estate agency in Marbella. Panorama’s in-depth knowledge of the luxury home market and top-quality professionalism have allowed this family-run company, directed and managed by Christopher Clover, to lead the industry during this time. Panorama has become an integral part of the history of Marbella over the last half century, a milestone recognized by the Mayoress of the city, Ángeles Muñoz, who by her presence at the inauguration of the renovated facilities this Thursday, showed her commitment and support to one of the most important economic sectors on the Costa del Sol.
“Marbella takes pride in having companies such as Panorama Properties, led by professionals such as Christopher Clover and his children, who over the last 50 years in the city have contributed greatly in making the brand Marbella be associated with prestige and professionalism,” said the mayor during her visit to the offices, also highlighting that “Marbella continues to be a benchmark and a in-demand destination for second home owners and also for professionals that choose Marbella as their idea l permanent home to live and work. Therefore, it is of outmost importance that companies like Panorama are able provide legal and urban security to these buyers”. “Having companies with the solvency of Panorama Properties makes us a more reliable destination,” she concluded.
Panorama’s ability to adapt in a sector that is in continuous evolution has been essential in order to reach the half century mile stone as a benchmark real estate agency in the luxury sector on the Costa del Sol, an anniversary that shows the strength of the company for its high level of professionalism and quality of service. These values have been passed on from generation to generation in the Clover family, who began in the real estate business more than a century ago in the United States and in the 70s ended up in a rapidly growing Marbella that attracted aristocrats, royalty, Hollywood stars and the most select Spanish and European society. “A unique quality environment that continues to attract people from all over the world,” said Christopher Clover.
In 1970, by opening its first office in Marbella, Panorama became the first international real estate agency located in the city, and since then has been an exceptional witness to the evolution of Marbella and the Costa del Sol. The agency broke new ground with innovative practices such as sponsorship of inspection flights to the coast or the promotion of “open houses” to encourage the collaboration of other agents in selling their listings. Clover’s children, Alex and Katinka, joined the management team after the turn of the century, sharing their father’s passion and dedication to forge lasting alliances with their clients and friends.
Panorama’s offices have been located on the Golden Mile for the last 25 years, in the hotel Puente Romano and opposite the Marbella Club Hotel. “A strategic location in the heart of the ultra-prime area of Marbella”. To celebrate half a century of leadership in a highly competitive and constantly evolving environment, Panorama has completely renovated its Puente Romano sales office. This continues to show their many clients who have trusted their experience and know-how when acquiring or selling a property, that Panorama is on the leading edge of innovation whilst at the same time, remaining the agency with the most experience in its sector. The refurbishment combines state-of-the-art technology with bright and modern spaces achieving even more comfortable and professional facilities. AM Construcciones and the prestigious interior designer Jean-Pierre Martel were commissioned, under the guidance and direction of Alex Clover, to conceive a space around a fantastic and unique panoramic aerial photograph of Marbella over eight meters in length taken by aerial photographer Daniel Posner.
Likewise, a mural timeline recreates Panorama’s most important milestones and achievements of the last 50 years, including the highest distinctions in the real estate sector. In 2015, Christopher Clover was appointed a Fellow by the prestigious Royal Institution of Chartered Surveyors (RICS), the largest and most prestigious organization of real estate professionals in the world founded in 1868. And in 2016, the CEO of Panorama was awarded the Lifetime Achievement Award from the REAS association. Last year, Panorama was chosen as the “Best Real Estate Agency in Spain” 2019-2020 by the prestigious European Property Awards and again this year for 2020-2021. In June of this year, Clover was named honorary president of the Leading Property Agents of Spain (LPA), the first association of real estate agencies created in Marbella.
You can contact Daniel Posner of aerial photography on firstname.lastname@example.org
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50 YEARS IN MARBELLA 1970 – 2020 View in PDF format here For any company to achieve 50 years of uninterrupted business is a milestone, but to do so in the highly competitive Marbella property... The post Panorama celebrates 50 years in Marbella! appeared first on...
50 YEARS IN MARBELLA 1970 – 2020
For any company to achieve 50 years of uninterrupted business is a milestone, but to do so in the highly competitive Marbella property market is a true accomplishment indeed.
Words: Michel Cruz Images: Courtesy of Panorama Properties
Founded in Marbella in 1970, Panorama Properties is much more than just a real estate agency. In half a century, it has not only surmounted the vicissitudes of time, experiencing both the good and leaner times, and in the process chronicling the evolution of Marbella, and becoming part of its very fabric.
The company is family owned and managed by Christopher Clover and his two children Alex and Katinka, and is today comprised of a team of 22 professionals speaking ten different languages between them.
The Panorama Team 2020
FOUR GENERATIONS IN REAL ESTATE
Half a century in Marbella real estate is an achievement as yet unequaled, for Panorama is the longest-running agency in the region – and yet, the family’s link with real estate goes back even further, stretching four generations to the founding of the real estate agency B. B. Clover and Company in Chicago in 1904 by Chris’ grandfather Burtt Byron Clover.
It was in this setting that Chris and his brother, Bill, grew up. After graduating with distinction from the University of Virginia with a degree in economics, commerce and French, Chris taught French for two years before joining the family business in 1971. Three years before in 1968, his father had acquired the Washington DC-based property agency Panorama International Ltd, as a means to market luxury international homes to American buyers. This led to the opening of the Marbella office in 1970, later followed by Mallorca and also Mexico City, established by Chris’s brother Bill.
EVOLVING WITH MARBELLA
When Chris arrived in Marbella in 1973 to head up the Marbella office, the town was still small and truly glamorous. The Marbella Club was in its heyday, attracting an international A-list clientele that included aristocrats, royalty, Hollywood stars and the cream of Spanish and European society. This much was evident at the inauguration party of Puerto Banús, which was attended by the likes of Prince Rainier and Grace Kelly, the Aga Khan, José Banús and of course, Prince Alfonso von Hohenlohe. A certain Julio Iglesias provided the live entertainment.
“They were heady times,” recalls Chris Clover. “Marbella was in full development and already a very exclusive, special place where you could not only enjoy the finest climate in Europe within a beautiful setting, but also rub shoulders with fascinating people from around the world. It was an enriching experience which, together with the Andalusian culture and gentle pace of life, produced a unique quality environment that continues to attract people from around the world.”
Even before 1980, Panorama was already a prominent name in Marbella real estate, and continues to be even more so as it celebrates its fiftieth anniversary. Operating from two offices on the prestigious Golden Mile, Panorama is involved in the listing, promotion and sale of many of the most important properties in this region, expanding its expertise to also include luxury rentals, commercial property and a special division dedicated to land acquisition and providing a bespoke service for both institutional and private investors.
50 YEARS OF SERVICE
The relationship forged with clients is at the heart of Panorama’s success, where Chris and his team have been involved in finding and managing properties on behalf of royalty, managing the acquisition of an embassy building in Tokyo for the Foreign Ministry of Saudi Arabia, as well as transactions involving large tracts of land on the Costa del Sol and prime office premises in Madrid and London. The main focus of the business, however, has always been and continues to be marketing quality residential properties in the Marbella area.
“There are always challenges to overcome in this highly competitive business and we are in an industry that is constantly evolving. My greatest personal pleasure has been to meet so many wonderful people from around the world who come to Marbella, many of whom have become close friends,” says Chris Clover. “We have had clients from well over 50 different countries, and have learned something from each of them.” It is this passion both for real estate and the personal relationships forged with clients that forms the basis for Panorama’s longevity and dedication to professionalism. “It has been said of me that I am a stickler for precision and detail, but how else would it be possible to survive and thrive for 50 years in such a competitive industry as this?”
Chris’s penchant for clear and correct procedure is his clients’ guarantee in a process that involves not only excellent service but also a level of in-depth technical and market knowledge that is the product of 50 years of experience. “Over the years we have come across every real estate situation you can imagine, and we have become experts at solving problems when they come up. We move very quickly and efficiently—and safely—on behalf of our clients and perform our own due diligence before taking a property for sale on our books, but we are not a ‘pushy’ sales organisation. We are here for the long haul and strive to be a high quality, as well as highly qualified service company in every aspect of our work.”
As a result of his many contributions to the real estate industry in the area, Chris was invited to become an Eminent Fellow of the renowned Royal Institution of Chartered Surveyors (RICS) in 2015, the largest real estate organisation in the world with 120,000 members in 140 different countries. As a result of this, the following year, Panorama became one of only two residential real estate agencies in Spain to be RICS regulated, which gives important guarantees of professional conduct to its buyer and seller clients.
In 2019 the firm was awarded Best Real Estate Agency in Spain out of hundreds of applicants by the prestigious International Property Awards.
Panorama also operates another real estate agency called Puente Romano Real Estate as part of a joint venture with the Puente Romano and Nobu Hotel Group, giving their seller clients highly effective, direct exposure of their property listings to the hotel’s clients.
It is this pedigree that clients can count on when buying from or selling through Chris and his international, multilingual team. “We jealously protect our role as negotiators of the commercial elements of a property transaction and are very good at bringing the two parties together in harmony,” says Chris. “We work closely with other agents and colleagues, as well as learning from them, but we always seek to distinguish ourselves through the quality of our service and our efficacy. Through our experience and market research, resulting in our annual market report, we have become an authoritative source of information, offering our clients hard market knowledge and statistics that is well documented and of great value to both buyers and sellers.”
The fully renovated state-of-the-art Panorama office at the Puente Romano hotel, next to the Nobu reception
Continuing the long-standing real estate tradition of the Clover family Chris’s children, Katinka and Alex, both born in Spain, joined the company after the turn of the century. Katinka, a graduate from the American University of Paris, and Alex, who graduated from his dad’s alma mater, the University of Virginia in Charlottesville, have become an integral part of Panorama, bringing an essential perspective and added leadership to help the company to adapt to changing times, opening a new chapter in the history of Marbella’s longest-established real estate agency.
Chris and his children Alex and Katinka, the fourth generation in real estate
This article first appeared in Essential Marbella Magazine in February, 2020
By Christopher Clover, Managing Director of Panorama Properties, Marbella’s longest established real estate agency, celebrating 50 years in the city. “A further perspective to our previous report published on June 2“ Market stronger than expected... The post Buying and selling property in Marbella during the coronavirus crisis: a further perspective to our previous report appeared first on...
By Christopher Clover, Managing Director of Panorama Properties, Marbella’s longest established real estate agency, celebrating 50 years in the city.
“A further perspective to our previous report published on June 2“
Market stronger than expected
The extraordinary market activity of the last couple of months since the end of lockdown, is solid evidence that demand for the higher-end properties in Marbella is increasing as a result of the Coronavirus, a perspective shared by our agency as well as most other agencies specializing in luxury properties. See the article: “Real estate agencies in Marbella and Mallorca are immune to the Coronavirus”, published recently in the Spanish press and in the August edition of Essential Marbella Magazine.
It has long been known that the market for higher-end properties (say, over €800,000) in the Marbella area is comprised of at least 80% foreigners, which has given this market so much resilience over the years. Surprisingly, despite the severe reduction in the number of foreign visitors this summer by at least 50%, an exceptional number of highly motivated buyers have travelled to Marbella with the specific intention of purchasing properties here, and sales in all price categories are being made.
From our own agency statistics, compared with the same period in 2019, buyer inquiries have increased overall by 25% since lockdown ended on June 21st. The number of properties visited by prospective clients during that period increased by 16%. The number of sales signed up in the same period increased by 13%. And, surprisingly, the average sales prices of properties sold by our agency in this brief two month period has increased by 55%. All this, with a severely reduced number of foreign visitors over the summer months.
Positive outlook for the coming months
The most optimistic predictions with respect to the luxury market have therefore proven to be accurate. This is an important harbinger of a very solid market in the coming months, a “coming of age” of the better located, high-end property market in our area, and a solid recognition of the broad demand for the incredible life style that the Costa del Sol, and especially the Marbella area, has to offer, which were the same reasons for Panorama opening its first office in Marbella in 1970.
Lifestyle factors and the “safe harbor” of real estate are leading buyers’ motivations more now than ever
There are many factors and new trends involved in this surge in demand for Marbella property, including larger gardens, proximity to services as well as nature, the necessity to have a “work space” or study to be able to comfortably work from home and high quality construction, as we have elaborated in more detail in our June 2 report. But the prime motivational factor to purchase properties here is, as it has been for decades, the quality of the lifestyle that this area affords. Many of those prospective buyers who have been looking for years to buy a property here have made the decision to proceed now.
Coupled with the above, there is also another interesting conclusion resulting from this increase of property purchases in the middle of this ongoing Coronavirus crisis: that the purchase of real estate in our area is being seen as a “safe harbor” investment in these uncertain days, maybe even as much as gold, and undoubtedly more than stocks or many other investment opportunities.
Prices in the best areas are holding steady
Prices in the highest end of the market have held steady. Other prime properties have shown a little more negotiation room than before, and less prime properties slightly more. Of properties belonging to “motivated vendors” a high percentage of asking prices have been adjusted to very reasonable levels, which has resulted in an increase of viewings and consequently, more sales. There has also been a spurt of sales in the higher end of the market, of properties over €5,000,000 which confirms the total appeal of Marbella not only to the affluent millennials, but also to those who have known Marbella for decades, and have decided that now is the right time to buy.
After all, if we have to go through another lockdown, where would you like to be? In a city or town in Northern Europe, or in the low-rise, Garden City of Marbella, with the best climate in Europe and a true 12-month season, like no other resort city in the Mediterranean Basin?
© 2020 Christopher Clover, Panorama Properties SL
Real estate agencies come together to create LPA, the first real estate association on the Costa del Sol, appointing Christopher Clover, owner and Managing Director of Panorama, Honorary President in recognition to his flawless professional career in... The post Christopher Clover, CEO of Panorama named Honorary President of new real estate association, LPA appeared first on...
Real estate agencies come together to create LPA, the first real estate association on the Costa del Sol, appointing Christopher Clover, owner and Managing Director of Panorama, Honorary President in recognition to his flawless professional career in real estate sector in the Costa del Sol for over 50 years.
The Leading Property Agents of Spain (LPA) has set itself the goal of excellence in the promotion and development of residential tourism.
Likewise, the organization will ensure the maintenance of a code of good practice in the sector.
Marbella, Tuesday July 21th 2020.-
Promoters and real estate agencies based in Malaga and Cádiz join forces to create the first association of the sector on the Costa del Sol, the Leading Property Agents of Spain (LPA). The entity was created with the double objective of promoting the Costa del Sol as a highly qualified destination for residential tourism on the one hand, and to revalue the role of real estate agencies in the implementation and development of residential tourism on the other. To do this, the LPA will scrupulously ensure compliance with the deontological code and ethical principles of the professional activity of its partners, in order to offer a personal and professional service of the highest quality.
The organization was presented this Tuesday by its president, José Carlos León (Nvoga), the honorary president Christopher Clover (Panorama), the vice president Fausto Martínez (FM Consulting) together with the mayoress of Marbella, Ángeles Muñoz. This association includes among its members some of the leading companies and leaders in the real estate sector on the Andalusian coast. Thus, apart from the above mentioned companies, Diana Morales Properties, Lucía Pou, Gilmar, Casa Marbella, Villa Marketing, Drumelia, Nevado, and Banús Property are some of the agencies that will form part of the association’s administrative body. The law firm of Pérez de Vargas assisted with the creation of this new association will assume the role of treasurer and secretary. The honorary presidency will go to Christopher Clover Holzworth, in recognition of his impeccable professional career for 50 years on the Costa del Sol through his agency Panorama.
As explained by its founders at a press conference, the association is ahead of the regulation of the Mandatory Registry of Real Estate Mediators, an initiative of the Andalusian Government to ensure good practice in the sector. The registration was already contemplated in the regulatory regulations of the Right to Housing (Law 1/2010 of March 8, provision eight), and was later also included in the Law that regulates the right of first refusal and retraction in evictions of homes in the region (Law 1/2018, of April 26).
The sector regulation decree, already submitted to the public exposure process in 2019, is still pending approval, so the association will work to make this regulation a reality as soon as possible. “The situation of the professional real estate sector in Spain requires an urgent change, our industry has experienced difficult times with many ups and downs and specifically in Marbella we have undergone a stage that we all want to erase, hence the need to look at other countries where this profession is regulated and works in a more orderly and transparent way”, explained León. The president of the new association also wanted to highlight the efforts of the associated companies to constitute “a work platform that will act as an interlocutor with the authorities and other associations with the aim of seeking excellence in our industry”.
In this sense, the LPA will seek to promote and improve communication with public administrations in matters related to the Costa del Sol holiday and residential tourism sector, being aware of its importance as an economic engine of the area. “The creation of the LPA is not only a historical milestone, but it is essential for our city and for the Costa del Sol, since it is essential that we collaborate to conserve and improve high-end residential tourism that, together with vacation tourism , are the main sources of wealth in our area” said Clover. And he pointed out that the organization will carry out this work, “offering highly qualified professional services, and in turn, a framework of legal security in urban planning that is being configured by the current municipal corporation”.
The new collective of real estate agencies aspires to become a relevant actor in the approval procedures for land-use planning and urban planning instruments. As stated in their statutes, there will always be contributions aimed at improving the existing facilities and equipment or promoting the implementation of new ones, in order to increase the endowments of cities to make them more habitable and consumer friendly.
Continuous and quality training for associates will be another of the elements highlighted in the LPA, in order to strengthen that presence as an indispensable actor in the construction sector, always under a strict code of conduct and professional ethics that associates undertake to fulfill. The association will give seminars and conferences on different perspectives of the real estate and urban development world, so that its members can offer excellent information and advice to its clients. “Training is key for companies in times of change”, emphasized Martínez, “and we have a golden opportunity for the LPA to help its associates to centralize training efforts and thus enhance new skills and new knowledge in their human teams, in addition helping people with more responsibility to manage and lead the change towards business models that are much more in line with the so-called ‘new normality’”.
About LPA Spain:
Web page: www.lpaspain.com
PRESIDENT: NVOGA José Carlos Leó
HONORARY PRESIDENT: Christopher Clover, Panorama
VICE PRESIDENTS : FM CONSULTING Fausto Martínez, LUCIA POU PROPERTIES, Lucia Pou, GILMAR, Setareh Mohregi
PANORAMA, Christopher Clover
DIANA MORALES, Mariano Beristain
NEVADO REALTY, Gines García
BANUS PROPERTY, Jesús García
CASA MARBELLA, Wolfgang Schlesier
DRUMELIA, Sergey Sinichkin
VILLA MARKETING, Miguel Tobar
Published by: Marie-Noëlle Comunicación
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By Christopher Clover, Managing Director of Panorama Properties, Marbella’s longest established real estate agency, celebrating 50 years in the city. Please Note: on 19 August 2020 a further perspective to this report was published, click... The post Buying and selling property in the Marbella area during the coronavirus crisis: a market perspective appeared first on...
By Christopher Clover, Managing Director of Panorama Properties, Marbella’s longest established real estate agency, celebrating 50 years in the city.
There are a lot of questions to be answered:
How is this crisis different from that commencing in late 2007?
Will the lockdown end in a relatively short order?
When will international tourism resume?
Will non-resident owners be able to use their homes here in the near future?
What is the demand for higher-end properties in the Marbella area?
What about prices?
Let’s take a look…
Together with the Panorama Team, I have been studying all the likely scenarios regarding the future of the property market since the week before the Spanish lockdown on March 14, and I wanted to share my perspectives on the Marbella property market based on the information currently available.
Our ideas and recommendations are evolving on a daily basis, so anything we say now might change in accordance with current events and government actions. We will update you as our perspective evolves.
How is this crisis different to that of the prior one starting late 2007?
In spite of this historic shock to the world’s economies and the expected economic recession,
banks appear to be in a relatively strong position, as well as many, if not most, of the property developers.
Tourism has stopped dead in its tracks, creating the biggest immediate challenge to our industry
The hardest hit sector of the worldwide economy, and especially the Spanish economy, is that of tourism. In terms of number of tourists, Spain has held the world’s number two spot for the past three years, with 84 million tourists visiting in 2019.
The Marbella property market originates, primarily, from tourists who discover this wonderful area and later make a decision to buy or rent a property as a second home, which more often than not turns into a primary residence after some years. We estimate that 80% of the market for buying property over €750,000 in Marbella is comprised of foreigners mostly from the UK and North of Europe.
Since the lockdown and travel restrictions commenced in mid-March, the Marbella property market has slowed down almost to a halt, as it has everywhere around the world. The overall volume of sales, especially by the foreign market, will consequently drop substantially in 2020 compared with 2019. As of now, it seems likely that this year will be the hardest year ever for the tourism industry worldwide.2
Since May 18, agents have once again been able to show properties to clients in person, and there has been immediate and frenetic activity, a good sign for months to come.
When will the Spanish borders open to international tourists again?
Currently Spain is in the process of gradually opening up after lockdown commenced on March 14, and is scheduled to end the final lockdown phase at the end of June.
There were many articles in the Spanish press in April indicating the possibility of actively restricting tourism this summer to Spanish tourists only, and maybe even until the end of the year, as a preventive measure to avoid a possible “second wave” of coronavirus infections.3
President Sánchez announced on April 26 that the measures were being studied to allow foreigners to return to use their holiday homes thereby allowing another type of tourism, that known as “residential tourism” to continue, albeit with the same restrictions as those continuing throughout the country.4
On May 13 further hope was given to the tourism industry when the European commission proposed a program called “The Commission package on tourism and transport in 2020 and beyond” which is composed of three guidelines and a recommendation to help EU countries gradually lift travel restrictions, giving hope that there might be some tourism from outside Spain this summer. 5
And on May 23, President Sanchez finally announced that the country will be open for national tourism in June, and for international tourism in July, bringing excellent news not only to the tourism industry, but to the Marbella real estate sector which is largely dependent on foreign investors.
Safety is a key element of the tourism restart, Sánchez told a press conference. “Spain needs tourism and tourism needs safety … We will guarantee that the tourists won’t be at risk and won’t bring any added risk to our country.” The current two week quarantine for anyone entering Spain now, will end on 1st July.6
Spain is planning a government certification scheme for Covid-compliant tourist establishments. Hotels, restaurants, tour operators and others will get some sort of corona-safety stamp of approval. The government will soon announce more details of the health protocols for the travel industry.7
This announcement unfortunately has come too late for many. We know of many potential clients from northern Europe, the Middle East and Eastern Europe, as well as many owners, who have already made other plans for their summer holidays when the government originally announced in April the likelihood that foreign tourism would be excluded this summer.
Additionally, with the details of the implementation of the plan not yet revealed, the new health protocols themselves might discourage many travelers, as well as the fear of catching the virus on airplanes, in spite of safety measures.8
Because of the above it appears to us at this point in time that international tourism will return to the Marbella area very gradually throughout the rest of the year, with 2021 faring much better.
The important thing is that this crisis, as all of the crises of the last century, will also pass. The cards are stacked against the virus, and it is only a matter of time before it is controlled, or indeed eradicated. In the meantime, we are going to have to put up with a lot of state mandated inconveniences to protect ourselves and others.
How has the market behaved during lockdown?
Clearly, without the ability to physically view homes for over two months, and with no international visitors allowed, the number of sales has dropped severely.
Over the past two months, Panorama has seen some buyers put ongoing deals on hold, but there are, interestingly, very few cases of sales being cancelled or deposits being forfeited, not just according to our own experience, but also to that of our many agent friends and property developers. As might be expected, many are adopting a “wait and see” approach while some have made adjusted, lower offers, and many owners have shown themselves ready to negotiate.
While Panorama has made several sales during the lockdown period, most were to buyers who viewed the properties before lockdown was enforced, with the exception of a few clients who had virtual tours of a property in a complex they already knew well. We are reading of other virtual tour sales being made not only in Marbella but also in other parts of the world and we expect more sales of this nature in the coming months.9
By how much will sales volume drop this year?
With very few sales during the lockdown coupled with the unknown factors affecting the return of travel and foreigners to Spain, the annual number of property sales in this area will be drastically affected this year. However, there have been sales made and all major agents are reporting a pent-up demand of foreigners waiting for the lockdown to end so they can travel here to inspect properties.10
Given the dependence of Marbella on the foreign market our educated guess at this point for sales volume in Marbella, Estepona and Benahavís, is they will most likely drop by 25% to 30% this year, to reach the same levels of 2012-2013.
How long will market recovery take?
While recovery may take some time, it is unlikely that we will be facing the same scenario as that of the last crisis where the market took more than four years to touch bottom before starting to recover. Barring no second-wave of coronavirus and counting on a vaccine, or at least an effective treatment in the next year or so, we believe it will take up to two years for the local property market to regain the same sales volume we had before lockdown began. This is an approximation which is backed-up by many other professionals in the industry, keeping in mind that market recovery is in good part, economy dependent, and that we are in unchartered waters.11
Where are prices headed?
In the following paragraphs, we distinguish clearly between “asking prices” and real after-negotiation sales values.
Owners who want to sell their property within the next few months should carefully analyse their “asking price”, and adjust it in the light of the present state of the market. The single most important factor in selling a property (in any market) is to get the asking price right.
The market for resale properties in resort areas has never been a particularly fast one, other than for exceptionally well-located and well-priced properties. Under normal market conditions, properties can, and do, take up to a year (or more) to find the right buyer.
With the current crisis, potential buyers are naturally expecting prices to be lower. This is simply an example of the classic law of supply and demand at work.
Adjustments to the asking prices of properties by owners who want to sell their properties in the next year might need to be anywhere from 10% to a more hard-hitting 15% or even 20% (or more) for seriously overpriced properties. Some properties, however, may not require any asking price adjustment at all.
Adjustments in asking prices depend on a number of variables:
Once an asking price has been adjusted with the advice of the owner’s agents, there should also logically be a margin left for negotiation.
About 35% of the owners with whom Panorama has been in touch in the last couple of months have adjusted their asking prices. The average reduction of asking prices we have witnessed has been close to 11%. Also, almost all owners will listen to reasonable offers.
There is a strong but unrealistic perception from buyers today that all sales prices will be heavily reduced. This will no doubt increase the slowdown in sales until there is a better match between buyer and sellers perceptions on real market value. Of course, there will be some real bargains available from those owners who have decided that they must sell this year and have adjusted their asking price accordingly, and are open for offers.
There is nothing to stop buyers asking for more aggressive discounts, but they will have to remember that the Marbella area is comprised, for the most part, of relatively well-off property owners, which is one of many factors which distinguishes it from the rest of the country. In the luxury market, potential buyers should be prepared to see many sellers refuse low offers, even in these extraordinary times.
For those owners who prefer to wait, we believe it is a waiting game which will take well over a year. Some owners will no doubt also consider renting their properties on a long-term basis to well-qualified tenants.
How much are resale property values (not asking prices but real sales values) going to drop this year with respect to luxury Marbella property in the Marbella area, compared with pre-coronavirus property values? Based on the positive factors analysed later in this article, and the various publications and surveys by other professionals, we are estimating a real sales price decrease this year somewhere in the region of 5% to10%. In some high demand areas, less. In less desirable areas, perhaps more.
In a summary of various studies of different areas around Spain, by the national newspaper Expansion, a price decrease in Marbella of up to 6.5% was estimated.12
Some new properties under construction will see developers reduce their prices to sell now, rather than later. However, given the strong financial position the developers have now we have seen and read many interviews with developers who have stated they intend to wait patiently until the market improves. In this respect, these are some of the points to consider:
We believe it is too soon to estimate the percentage of decrease in real sales prices of new developments, and it will be interesting to discover how many of them become great opportunities for investments within the next few months. What is clear is that with less foreign clients travelling to this area, demand will be weaker and sales will be slower.13
The local and Spanish markets will be the most active in the coming months
The local market: There is an ever-increasing number of potential buyers of all nationalities who already live full or part-time in Marbella, either in rental properties or properties which they already own, who will not be affected by travel restrictions. Marbella has a census population of 150,000, to which at least 100,000, must be added on account of the floating or unregistered, off-season residents. Some will undoubtedly be actively looking to buy in the coming months, in order to upgrade their properties, or pick up well-priced properties for investment purposes which some owners may need to sell to obtain liquidity.
The Spanish holiday home market: The certain return of national Spanish tourism to our area this summer, in large, maybe even record numbers, is likely to mean that there will be a significant increased interest in purchasing homes here by those Spanish buyers less affected economically by the crisis.
Spaniards, who historically represent the very foundations of the Marbella property market, have been less present in the market since the crisis of 2008, and we will welcome their return with open arms!14
Reasons for optimism
Prospective Buyer Enquiries
In the 30 days preceding the publication of this report (June 2, 2020)), Panorama’s enquiries from potential buyers were down only 2% from the same period last year. This is very encouraging news, drastically different to what we experienced in 2008, where buyer enquiries virtually disappeared for months on end. Many of our colleagues are reporting the same results.
An unusual number of potential buyers, international as well as Spanish, are honing in on small details of specific properties that we are offering for sale. This indicates an extremely strong motivation factor, which we have seldom seen in the past.
As further evidence of the “pent-up” demand mentioned earlier, Panorama agents have accompanied prospective clients on a substantial number of property viewings since the “state of alarm” restrictions were relaxed on the 18th of May, even though tourism and travel from outside the province is still not permitted.
New criteria are being manifested by potential buyers
Marbella will endure and adapt
Despite what will be very difficult months ahead in the Marbella area property market, we have a clear perspective, a firm vision and absolute confidence that a healthy property market will return in the medium term. Although nothing will be quite the same in the post-Covid-19 world, Marbella will not only endure, but will adapt to new circumstances, and prosper.
The extraordinarily positive factors making Marbella so spectacular include, more than any other single factor, the interesting and accomplished people from all walks of life, from all over the world who have chosen the Marbella area to live all or part of the year, enjoying a 12-month season which is unknown elsewhere in Europe. Marbella’s strength is that there is nowhere else that offers quite so many advantages within the borders of Europe. This is precisely why we established our agency here in 1970.
Over these past 50 years, Panorama has faithfully and successfully served buyers and sellers through many economic crises. Even though this crisis is different, I believe that Panorama is uniquely qualified to counsel our clients and facilitate successful brokerage, especially in times like these.
©2020 Christopher Clover, Panorama Properties SL
1. Fomento: Valor tasado de la vivienda
2. El País: El turismo afronta el peor año de su historia, 19.04.2020
3. El País: El Gobierno planea una recuperación de la actividad en dos fases,17.04.2020
Marca: Spain will not allow tourism, culture or leisure until Christmas, 18.04.2020
4.UH Noticias: Sánchez, ante la petición de alemanes con segunda residencia en Mallorca, 25.04.2020
5. European Union: The Commission package on tourism and transport in 2020 and beyond, 13.05.2020
6. El País: Spain will lift two-week coronavirus quarantine for overseas arrivals from July 1, 25.05.2020
7. Forbes: Spain Travel: Here’s How World No.2 Destination Wants Tourists Back, 23.05.2020
8. Financial Times: Aviation industry prepares for sweeping changes in post-pandemic travel, 25.05.2020
9. Idealista: Extranjero paga casi 7M por una casa en Londres tras realizar una visita virtual, 27.04.2020
10. Bloomberg: Loaded With Cash, Property Buyers Wait for Sellers to Crack, 19.05.2020
11. El Diario: El sector inmobiliario volverá a estar en un año a un 80% de su actividad anterior, 11.05.2020
12. Expansión: ¿Qué va a pasar con los precios de la vivienda de costa?, 10.05.2020 /
EDeconomíaDigital: El precio de la vivienda caerá pero “no se derrumbará”, 20.04.2020
Aura: Luxury House Prices to Fall by 4% in Madrid and by 2.5% in the Rest of the World, 05.05.2020
13. Idealista: Las principales promotoras residenciales ya han abierto sus 250 oficinas de venta, 11.05.2020
14. Bloomberg: Spanish Homebuyers Tired of Confinement Seen Fleeing Cities, 14.05.2020
15. El País: El éxodo inmobiliario que viene tras el virus: de la ciudad al campo, 02.05.2020
Idealista: De la urbe a la ‘urba': los españoles, más interesados en abandonar la ciudad, 22.05.2020
16. Idealista: Los tipos de viviendas que podrían subir de precio en plena crisis del coronavirus, 29.04.2020
17. Diario Sur: La alcaldesa de Marbella, indignada con la decisión del Gobierno sobre Málaga, 08.05.2020
18. Diario Sur: Todos los indicadores de Covid-19 Costa del Sol mejoran la media española, 12.05.2020
The post Buying and selling property in the Marbella area during the coronavirus crisis: a market perspective appeared first on Panorama.
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