Property prices have dropped by up to 60% since the crash in various areas of Spain which has made them an increasingly attractive target for investors. It is not hard to find bargains when searching the main property portals or agency websites as they are full of properties listed at prices which would have been unimaginable in the boom years.
A budget of ?50,000 will now give a prospective buyer a relatively wide range of coastal homes to choose from, particularly on the less popular coasts such as the Costa Azahar in Castellón province and the Costa de Almeria, but even in the more sought after locations of the Costa Blanca and Costa del Sol although the range will be more limited.
A recent article in the Spanish newspaper El Mundo reports that there are areas of the coast where prices are now below ?1,000/m2. The paper highlights a 45m2 property for sale in Almeria province at ?32,000 which is 200m from the beach and boasts access to a swimming pool and other communal facilities as well as being fitted with all modern conveniences.
Sales are now picking up and price falls are easing, already many of the major real estate investment funds have made their move and purchased Spanish property portfolios. It appears that many individuals are now doing the same and taking advantage of prices which do not have much further to fall.
The two most famous Spanish coasts, the Costa del Sol and the Costa Blanca, are the ones that are benefiting most so far from the surge in foreign purchases. In a recent interview on Spanish Property Insight with Martina Heynemann, a managing partner of the Costa del Sol agency Your Viva it was commented how quality housing stock is now in short supply in the area.
The problem, says Ms Heynemann, is that buyers are demanding high quality homes and while there is an abundance of relatively poorly built housing stock on the Costa del Sol, there is a rapidly diminishing amount of quality property. She adds how developers are starting to wise up to the opportunities on offer and are buying up land for development.
This phenomenon can already be seen on the Costa Blanca South where development has already restarted in earnest with numerous, smaller, modern and more boutique developments being built. Both coasts are showing that high levels of unsold stock do not mean that certain segments of the market cannot flourish.