But hardly anyone can deny that the Spanish coasts are no longer a place to buy cheap housing. Such prices, which are typical for Bulgaria or Turkey, have not been here for a long time. However, the cost of real estate on the Spanish coasts should also not be considered excessively high. After 10 years of rapid growth, prices have stopped at a fairly comfortable level for buyers. And although the market has really calmed down, many continue to be optimistic about its investment attractiveness – but in the long term.
Stability and stability again
Buying real estate in Spain remains extremely attractive due to the stable political and economic situation, excellent infrastructure and transport accessibility. The proximity of the mentalities of Spaniards and Russians, in particular, respect for family values, are also of great importance when making a purchase decision. The rich culture and deep history of the country, the widespread use of the English language, a reliable medical system and, of course, a magnificent climate are also of great importance.
"Investors will always buy real estate on the Spanish coasts. Because this is a market they are already familiar with, with developed infrastructure and excellent transport accessibility – you can say that you are traveling from one house to another. We see no reason for the fall in house prices in Spain. Many investors choose this country because of the reliability of their investments," says Sue McMullen, head of Headlands International.
She recommends Murcia to potential buyers as a region especially favorable for investment. It is here that the most extensive construction of resort real estate is currently underway, and the once backward province is rapidly becoming one of the leaders of the Spanish real estate market. The vast majority of the objects put on the market are at the off-plan stage.
Among the many offers in Murcia, the Corvera Golf and Country Club Golf Resort stands out, which has an 18-hole golf course designed by famous golfer Jose Maria Olazabala. The resort is located in a rural area, close to Murcia airport, but only 20 minutes away. driving to the Costa Calida. The resort has a luxury hotel, restaurants, a wellness center, a spa and a tennis club. Apartments and villas are offered for sale, and 2-bedroom apartments can be purchased at a price of 235,000 euros. The installment payment scheme provides for a down payment of only 30% of the value of the property. The rest is paid only at the end of the project – in March 2009.
Although Murcia is a region of great opportunities, buying here carries a certain amount of risk – to date, future resorts remain a large construction site. James Dursley, commercial director of the European company Atlas International, recommends a more developed southern part of the Costa Blanca than Murcia and cites the example of the Playa Golf complex in Cabo Roig, where real estate can be bought for less than 180,000 euros. "Thanks to the purposeful work of the developer, an atmosphere has been created here that is favorable for buyers from Northern Europe. Ultramodern design buildings are of great interest to investors thinking about tomorrow," adds James Dursley.
"The advantages of the Costa Blanca in comparison with other coasts are the unique climate that allows you to relax all year round, because in summer it is not hot here, and in winter it is not cold," says Sergey Zhigalov, head of real estate sales in Spain and Portugal at the agency "Obereg". – In addition, the coast is conveniently located in relation to the south and north of the country. On the Costa Blanca there is a very wide range of real estate prices: find a house or cozy apartments here can be both owners of several million, and those who who is willing to spend an amount of 100,000 euros or more on a pleasant and profitable purchase."
The most popular objects are in the picturesque northern part of this coast, which are being built on the slopes of the mountains. Most often these are modern complexes of townhouses, with a private pool and garage, their price usually starts from 350,000 euros. Luxury apartments in complexes with communal pools and recreation infrastructure are also popular. The cost of such apartments starts from about 230,000 euros.
Thinking about the future
A few years ago, prices for real estate on the Costa del Sol rose by 25-30% annually. Such high growth rates were due to the fact that there were many investors among the buyers buying up housing at the off-plan stage with the expectation of a profitable sale upon completion of the project. In an effort to meet the incredibly high demand, developers spared no money on bribes, just to get a construction permit, and officials shamelessly issued illegal licenses. Corruption on the Costa del Sol was curbed last year when the leadership of the Marbella City Hall was arrested in almost full force.
The corruption scandal has led to a decrease in consumer confidence and, moreover, to lower prices in some areas, said Julian Merck, whose firm Merck Estates specializes in Costa del Sol real estate. However, the situation has changed now – the new mayor's office should soon publish a plan to eliminate violations in design and construction. If we take into account that transport, communications, as well as recreation and entertainment infrastructure are much better developed here than on any other Spanish coast, then the Costa del Sol remains a good prospect for long-term investments in the foreseeable future.
"If you buy a house at the off-plan stage in a prestigious complex with a good view and high quality construction, you will certainly get a good profit in 3-5 years,– says Julian Merck. "But it is critically important, when making a purchase, to make sure that the developer has all the necessary licenses and permits, and they are obtained legally."
As in any other place on the coast, on the Costa del Sol, the price and prestige of real estate largely depends on its location. The new Marques de Atalaya complex next to the Benahavis urbanization offers stunning views of the coast with the rock of Gibraltar to the west, Puerto Banus and Marbella to the east. The complex is surrounded by several prestigious golf courses. Prices here start from about 360,000 euros. In the Premier Property company, you can find offers for the sale of a 4-bedroom villa for 1.2 million euros.
Mind and calculation
In 2006, the highest increase in prices for resort real estate was observed in the province of Cadiz on the Costa de la Luz. This sparsely developed and largely virgin coast is experiencing significant interest from the Spaniards, while foreign buyers have not yet "tasted" it. Secondary housing in good condition can hardly be found here for less than 200,000 euros. Immo-Andaluz is selling a new 2-bedroom apartment near the center and beaches of Conil de la Frontera for 250,000 euros.
Many agencies recommend the Costa Asaar coast, which is not far from Valencia, to investors. Terry Walker of Property in Spain points out that hosting the prestigious Cup of America yacht regatta here has helped attract huge investments in infrastructure, including the construction of a new airport in Castellon, which is scheduled to be completed in 2008. This will reduce the travel time to the coast, which is beneficial for real estate buyers. At the off-plan stage, you can purchase real estate in the developing Marina d'Or resort, where 2-bedroom apartments are sold from 190,000 euros.
In general, in recent years, the atmosphere of competition with other countries and the new market conditions have somewhat changed the nature of the offers. Smart developers are willing to make less profit, and prudent buyers can get much more for the same money. For example, buying a property at the off-plan stage, you can get attractive conditions for renting out the property.
