House prices in Murcia continue to rise, which cannot be said about most other regions of the country. Costa Calida is thriving today thanks to a local tourism boom that arose after a long period during which the province was considered an agricultural region and was in the shadow of its neighbors – Valencia and Andalusia. According to the Spanish Ministry of Tourism and Trade, in 2007 the number of arrivals at Murcia San Javier Airport increased by 23% and amounted to about 2 million passengers, and this despite the fact that many use the larger Alicante airport to travel to Murcia. During the same period, the average tourist's expenses increased by 30%, which has a positive impact on the region's economy.
"Hot spot" in a cold market
There are many reasons why Costa Calida attracts tourists. One of them is the climate: the average annual temperature here is +18°C, and in summer the temperature reaches +40°C with little precipitation. The province is also famous for the Sierra Espuna Nature Reserve with its beautiful pine groves, steep cliffs and magnificent views.
Costa Calida also has a dozen beaches marked with "Blue Flags", and the largest salt lake in Europe - Mar Menor (which means "Small Sea" in Spanish), and a picturesque coast. The coastline of Murcia, with a length of more than 170 km, is an alternation of bays, small beaches, cliffs, sand dunes, saltwater lagoons and sea shoals. Costa Calida already has some of the best yacht parking in Spain, and a marina is also being built in the city of Puerto de Masarron, including diving centers, with a total cost of several million euros.
In the largest cities of the province – Murcia and Cartagena – in addition to traditional resort beach activities, there are many shops and boutiques, buildings of Moorish architecture, Baroque cathedrals, as well as many restaurants with excellent cuisine.
Gourmets speak especially about the local cuisine. So, the following review was published in the Daily Telegraph newspaper: "If you live to eat, and do not eat to live, then after getting acquainted with the exquisite cuisine of Murcia, you will feel in seventh heaven. The capital of the province is home to the famous fruit and vegetable market – Huerta de Europa – which is famous for its rich selection of products. Tomatoes, peppers, olives, lemons, almonds, artichokes and saffron of various varieties grow in sunny valleys and on fertile coastal plains all year round. In addition, there is always fresh fish, seafood and meat on sale on the Costa Calida."
As in any thriving tourist region, the residential real estate market on the Costa Calida is stable: it is especially loved by the British and Scandinavians, noting the optimal combination of price and quality. According to the Spanish Ministry of Housing, in the first quarter of 2007, the province of Murcia ranked third in the country in popularity among foreign home buyers, second only to Alicante and Malaga. A fifth of all real estate sold in the province was bought by non-residents.
Marie-Elena Dubois, a specialist at Life Overseas, notes: "Currently, the area between Cartagena and Masarron is of great interest to those who want to make a successful purchase. Housing on the seashore is still inexpensive here, when compared with prices on the Costa Blanca and Costa del Sol. And thanks to the opening of the new AP7 motorway, the journey from San Javier Airport takes much less time, and this attracts more and more new investors and tourists."
Prices and profits
Murcia is also suitable for investors who buy real estate in order to rent it out. Marie-Elena Dubois says: "On the Costa Calida, the season lasts about 16 weeks, from June to September. The peak season is August, when Spaniards living in the interior of the country are added to foreign tourists on the coast, so houses located next to the sea are almost 100% occupied, and the owner can charge almost any rent. In golf complexes, the season lasts all year round, but competition in this sector is very noticeable, so you should not count on full employment of housing. A high-quality facility on the territory of the golf complex with all amenities, rented out at a reasonable price, can be occupied from 18 to 40 weeks a year. The greater or lesser employment of residential real estate largely depends on the marketing strategy."
Like the income from renting out housing, the profit from the growth in the value of real estate in this region is very stable, although at the moment it is not too high. According to the data published on the Spanish portal Kyero.com There is an increase in the Murcia market, but the cost of housing here remains below the national average, which cannot but interest potential buyers.
In 2005, the average price of a property in Murcia was 197,488 euros, in 2006 it increased by 4%, to 203,568 euros, and in 2007 – by another 4%, to 211,250 euros. According to the latest data Kyero.com Now it is 212 000 euros, which is 14% lower than the Spanish average (245,000 euros).
Martin Dell, Managing Director Kyero.com He says: "The steady rise in prices over the past three years is a sign that Murcia has very good prospects. Compared to provinces such as Alicante and Malaga, which are particularly popular among European second-home buyers, Murcia remains an affordable destination with a variety of offers."
The increase in cost is typical not only for the coast of Murcia, but also for the interior of the province. Mike Hamilton, head of the development company Casas de Lorca, located in Lorca, an hour's drive from the city of Murcia, says: "The average price of new villas in Lorca increased by 6% last year, and in the secondary market – by 4%. The Murcia real estate market is one of the fastest growing in Spain. The new international airport, which is scheduled to open in 2009, will contribute to the further development of the province and will receive approximately 3 million people in the first year alone."
In search of a home
, Jeff and Shelagh Burns, an elderly British couple, bought a one-bedroom villa in May 2007 in the town of Camposol, which is located 10 km north of Masarron.
After choosing the property, they made a deposit of 90,000 euros and soon received a letter saying that the construction of their house was almost finished. However, when they arrived at the construction site, they saw that the work on the construction of the house had not even begun yet.
Disappointed, the Burns rented a house and began to look for a new home for a quiet life in their old age. Jeff Burns was 75 years old at the time and had just retired as a management consultant.
"Every day we drove many kilometers in search of new housing," says Jeff Burns. – Having traveled from Almeria to San Javier, we examined dozens of houses, but could not find an option suitable for us. After that, we saw a house that was for sale in Masarron. We watched it and we liked it right away."
Having bought the villa for 140,000 euros, the family added two more bedrooms to it. Now Jeff Burns says that he and his wife are happy with the choice they made: "We like living in this country of contrasts, admiring the magnificent mountains, coasts and forests. We also like the locals, who are very friendly and welcoming."