Our housing specialist Bjorn Cocquyt has been visiting leading properties and real estate projects at home and abroad for more than 10 years. In our Pureliving section, he gives his vision of exclusive living.
Most owners of a second home in the sunny south will not enjoy it much in 2020 or 2021. Those with properties in Tenerife were somewhat lucky, as the corona crisis hit less hard there. The island remained reasonably accessible throughout the corona crisis and property values held up well. “During crises, Tenerife often escapes and this time seems to be no different,” says Carl Vorsselmans of Nieuwbouw in Spanje. Belgians are investing more than ever in Spain and by extension in Tenerife, in their own coronaproof bubble!
The market for second homes in southern Europe is at a standstill since the coronavirus took the world by storm. Many compatriots also put their dream of a house under the sun on hold or settled for a flat on the Belgian coast. Understandable, because there is a lot of uncertainty about how and when we will be able to travel again in the coming weeks and months.
In Spain, by far the most popular country for Belgians to stay for a second time, they are saddened by the ‘new normal’. For many estate agents on the Costa Brava, Blanca, Calida and del Sol, corona is a tragedy, but their colleagues in Tenerife appear to be less affected.
“Sales in July and August last year were better than previous summers, but this is largely due to a catch-up process that has taken place. 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 Nieuwbouw in Spanje, which has a base on the Canary Island. “We sold mainly in the higher segment and this is a phenomenon that is often seen during a crisis. In periods of economic uncertainty, real estate is a safe investment. With the hesitant stock markets and savings books not yielding anything, there are few alternatives.”
No discounts
Numerous buyers are hoping to negotiate hefty discounts in the corona era, but they are in the wrong place in Tenerife. “Actually we are experiencing the same 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 then I am talking from 500,000 euros, have not decreased this year. I even know a promoter who has just made a project 10 per cent 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 commonplace, but may seem strange in coronation times. Nevertheless, it is not entirely illogical, as the supply of new homes on Tenerife is and remains limited, unlike on the mainland.”
In the cheaper segment, too, there is little movement in prices for the time being, although Vorsselmans does not exclude that this will change. “There are not many tourists and the coming months will also be quiet. Investors who cannot rent out their flats for a long period may be forced to sell. As a result, the supply will rise, without the demand side following. The next step is then a fall in prices.”
Buy blind
Note: just as is happening more and more in Belgium, some customers of New Build in Spain bought without making a viewing trip. “People decide purely on the basis of tours via whatsapp and watching online videos. But these were customers who had come to us by word of mouth, so it certainly wasn’t a 100 per cent leap of faith.”
Info about the pictures:
In Caldera del Rey, above the Siam Park, ten luxury villas are being built in a minimalist style. They enjoy a magnificent view of the ocean and the Costa Adeje. Each villa has four bedrooms and five bathrooms, a swimming pool, garage and garden. Prices start from 1,800,000 euros.
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