Let's Go To The Beach: Analysis Shows Seaside Real Estate Spiking in Popularity

More consumer-facing figures are in- this time by Rightmove. The British property portal has collected data showing which beach towns are the most popular after the worst of the COVID pandemic. 

The most popular seaside town, according to Rightmove, is Whitby in North Yorkshire, with asking prices at a little over £210,000. Following a close second is Whitley Bay, Tyne and Wear where asking prices are about £260,000. 

Rightmove’s Commercial Director, Miles Shipside, said:

“Lockdown has changed what a number of home-hunters are now looking for from their next home, and while some are looking for more space or a bigger garden, others are now contemplating a move to the seaside.”

When gathering this data, the portal focused on the demand for each area based on the number of inquiries about local properties. Analysts would also compare those numbers to the size of each area and the inventory available. 

Engel & Völkers analyzed data collected from around 30 cities in Spain and found that the pandemic is not causing any large variations in house prices. 

Juan-Galo Macià, CEO of Engel & Völkers for Spain, Portugal and Andorra, said:

"Investor interest remains alive in the most premium areas and this high concentration of demand in fewer markets will keep prices unchanged.”

However, Macià points out that the macro and microeconomic situation (i.e. economic recession, increased unemployment, lack of liquidity, etc.) could translate into moderate adjustments (up to 10%) in major cities such as Madrid, Barcelona, and Valencia.

"The amount of these variations will be linked to the effects of the pandemic on GDP and employment, which are still uncertain.”

But when it comes to popularity, money is playing less of a part compared to location as movers flock to seaside residences, and interestingly enough, islands. 

Engel & Völkers analysts found that islands are a type of oasis for real estate. 

In Mallorca, an island in the Balearic Islands, the average marketing price for listings on Engel & Völkers has risen from €1.6 million to €1.8 million, an increase of 12.5%.

The reason for this can be equated to international interest. Spain is already a hotspot for foreigners looking for a new or, in some cases, a second or third home for vacation purposes. And with Rightmove findings pointing towards increased interest in seaside property, its no wonder that beach towns and islands are seeing the same spike in popularity. 

Furthermore, Engel & Völkers has reported that the increase in virtual tours to see such real estate has spiked as well. This follows in line with something we’ve covered a multitude of times: That the pandemic, with global lockdowns and quarantines and social distancing, has changed the way consumers search and buy real estate.