A spoonful of honey Where and for how much
As in the rest of Spain, the Costa Brava real estate market is characterized by more than restrained optimism today, and realtors are very critical of the current situation. However, Isabel Kasaos from John Taylor Costa Brava argues that the inertia of market participants had no negative consequences for the business of the company, which is engaged in 95% of the sale of "second homes". Egbert Van de Strick from Holiday Home Costa Brava explains the reasons for the slowdown in the local market: "The decrease in the number of transactions in our region is a consequence of the stagnation of the Spanish real estate market as a whole, which we owe not least to the excessive activity of developers, for example, in the Costa del Sol. Buyers took it as a sign that clouds were gathering over Spain, and the Costa Brava, of course, came under attack." At the same time, Van de Strick is in a hurry to note that Holiday Home's customers (mainly British, Dutch, Germans, French and Swedes) continue to purchase residential properties even now.
Brian Thompson of Golf Residencial is more skeptical. In his opinion, there is a turning point in the situation now: prices are stable today, but very soon, according to his forecasts, they will begin to decline, and most notably for new projects. In this situation, he advises buyers to try to bring down the initial price by 15%, and only then conclude a deal. Comparing the current situation with the events of one or two years ago, Tom Maidman from Lucas Fox also notes that new facilities are being sold out more slowly today. At the same time, the Catalan market, according to him, is very different from the market, for example, Costa del Sol: "I don't think supply is outstripping demand here. Analysts keep their finger firmly on the pulse of developers, and the Catalan market has not lost its power." Tom Maidman simultaneously agrees that the tone is now being set by customers: "Today, sellers are making deals below the initial cost. But just a year ago they could not have been moved. Only luxury facilities hold the bar."
As noted by Carolina Bulbes, an employee of Fincas Exclusivas, a branch of Christie's Great Estates, exclusive properties are still in high demand. Dutch and British people who have a passion for native Catalan farm dwellings are attracted to small urbanizations in rural areas, as far away from the hustle and bustle as possible. Russians, on the contrary, prefer luxury villas with sea views. Karolina Bulbes talks about how buyers sometimes set impossible tasks, and as an example she gives a fresh story about an Austrian who wanted to acquire a huge object near the sea and territory for the construction of the Formula 1 track! Of course, the legislation prevented his grandiose plans.
According to Paul Pesant of La Primavera Real Estate, whose office is located in Figueros, Salvador Dali's hometown, "the slowdown in market growth observed over the past few years has nothing to do with high-quality housing in good areas with adequate prices."
The fact remains that the Spanish real estate market is quite weak today. As for the investment attractiveness, the specialists from Amberlamb believe that now is the right time to make a purchase on the local market. Of course, you can't count on a huge income, but with the current state of the market, the buyer will inevitably benefit.
On the Costa Brava, as in many other popular resort areas, the choice of buyers depends much more on the location of the object. And not from its value.
Seaside regions are still popular, for example, the city of Llansa, where housing prices, according to experts, will continue to grow, albeit more slowly. On the one hand, there is an exit to the coast within the city limits, on the other hand, the resort is located next to a high–speed motorway and a railway connecting Spain and France. Among the villages covered by the construction boom are Canyelles Petites with its pristine landscapes, Calella de Palafrugell with two sandy beaches and dazzling white architecture in the Andalusian style, Llafranc – modern, but with an eye to the past, urbanization, where there is a beach with a boulevard and pine grove. It is also worth noting the towns of Tamariu in a secluded bay with a beach strewn with pebbles; the postcard-like town of Aiguablava with a golf course in the neighboring village of Pals and, finally, the village of Begur, crowned by the fortress ruins of the Middle Ages.
The cost of real estate on the Costa Brava is very diverse. Here you can buy inexpensive budget apartments, or you can buy a luxury villa, the cost of which is estimated in millions of dollars.
As for low-budget offers, Holiday Home Costa Brava offers one-bedroom apartments in the Pals area for 153,000 euros. Apartments in the village of Tamariu with a view of the coast are estimated by the same company at 165,000 euros. La Primavera offers one-bedroom apartments in Santa Margarita for 139,000 euros, as well as two-bedroom apartments after major renovation in the lively Bay of Roses for 180,000 euros.
For more demanding buyers, the offer of the Golf Residencial company will be interesting, which has put up for sale facilities in a complex near the city of Empord, where two golf courses and 86 large land plots intended for development are located. Prices here start from 310,000 euros. The cost of a furnished two-bedroom apartment in Canelles Petites, an area with excellent seascapes, is 329,000 euros, and in Almadrava, half of a two–bedroom house designed for two families is estimated at 345,000 euros.
A two-bedroom villa near the town of Roses costs 375,000 euros, and in the bay of the same name, a renovated house with a separate studio is for sale for 365,000 euros. Holiday Homes Costa Brava offers a detached two–bedroom villa with a swimming pool in the city of Pals for 299,000 euros, in the village of Regencos – a four-bedroom house for 300,000 euros and in the city of Begur - a magnificent six-bedroom house with sea views for 440,000 euros. Lucas Fox has several luxury properties in its portfolio, including a newly built three-bedroom duplex with stunning views of Sa Riera Beach at a price of just over 1 million euros, a four-bedroom duplex on Cap de Begur beach for 850,000 euros, and two-bedroom apartment near the beach in Tamariu for 536,000 euros. Luxury properties are offered by Fincas Exclusivas realtors – a picturesque renovated farmhouse far from the sea and near Llagostera for 1.5 million euros and a mansion in the Tossa de Mar region with a private beach for 8 million euros.
There are basic rules that the buyer should follow and which nowhere seem to be as true as on the Costa Brava, despite the prevailing situation and the downturn in business activity. Firstly, there is a high demand for tourist infrastructure facilities: the summer of 2007 once again surprised investors – the cost of renting, even if the owner will rent out the facilities only at the peak of the season, will easily cover the mortgage costs. Secondly, despite external economic factors, the demand in the secondary market of holiday homes has stable prospects. And thirdly, according to leading experts at Lombard Street Research, for all its drama, the downturn in the local real estate market is temporary, although it will last at least a year and a half. Note, by the way, that a branch of the TGV high–speed railway will be built soon, which will connect Paris and Barcelona, and after that, obviously, the demand for Costa Brava real estate will grow.
