October 22, 2005
Spain is still the best country for buying a holiday home
For me Spain hasn't lost it charm or its investment potential: One of the reasons I have started this weblog is to let people know that despite the negative press, the horror stories and the perceived attractiveness of NEW AND UPCOMING AREAS along the med.
Dare I say it, it is still one of the best second home markets in the world with plenty on offer for all. I really enjoy living here and I feel that there is a great long term potential for the property market, especially on the Costa del Sol.
I do want to be clear on certain points. I live here and have a business here so I have seen my stretch of the Costa del Sol change dramatically over the last 7 years. I am extremely realistic about the future.
Do I think the Spanish Costas have become overdeveloped? Answer Yes.
Do I think current market prices for property are too high? Answer Yes.
Do I think there will be a major correction rather than a soft landing? I think there is going to be a correction.
Do I think Spain could fall foul of the cheaper labour markets in Poland, ,etc leading to a manufacturing declining and a further strain on an economy that is already showing signs of overheating? Answer Yes.
Property prices have gone up more than 300% in some areas of the country over the last 12 years, similarly there has also been a significant increase in the cost of living. This has ended Spain´s affinity for cheap low cost package holidays. Tourism figures have been hurt up until recent years and Hotels in particular have been feeling the strain.
The Costa del Sol and Spain led the boom in the development of the EU gold rush for second homes in the sun. What ever happens here will follow in places like Bulgaria and Turkey. I am waiting to see the kinds of horror stories that come from these locations over the coming years, which are not EU member states and will never have the same levels of investment infrastructure (According to the Economist's Special Report: European Union enlargement April 30th 2005).
So for the record: I like thousands of other expats am very happy where I live, I had no problems buying my property (because I used a good lawyer), I got a good deal (because I did my home work and studied the market before rushing in) and I am really happy with my move. So just because Spain is sounding a little jaded at the moment doesn´t mean the magic is gone.
Is there anyone else out there who is happy with their Spanish property or life in Spain, or have we all fallen foul to the British love you one day, hate you the next scenario that constantly plays out between tabloid press and latest celebrities?
Dare I say it that Spain IMO, is still one of the best second home markets in the world with plenty on offer for all. I really enjoy living here an dI feel that there is a great long term potential for the property market, especially on the Cosat del Sol.
I do want to be clear on certain points. I live here and have a buisness here so I have seen my stretch of the Costa del Sol change dramatically over the last 7 years. I am extremely realistic about the future.
Do I think the Spansih Costas have become overdeveloped? Answer Yes.
Do I think current market prices for proeprty are too high? Answer Yes.
Do I think there will be a major correction rather than a soft landing? I think there is going to be a correction.
Do I think Spain could fall foul of the cheaper labour markets in Poland, ,etc leading to a manufactuing decling and a further strain on an economy that is already showing signs of overheating? Answer Yes.
Property prices have gone up more than 300% in some areas of the country over the last 12 years, similarly there has also been a significant increase in the cost of living. This has ended Spain�s affiinity for cheap low cost package holidays. Tourism figures have been hurt up until recent years and Hotels in particular have been feeling the strain.
But lets just rememeber one thing, the Costa del Sol and Spain led the boom in the development of the EU gold rush for second homes in the sun. What ever happens here will follow in places like Bulgaria and Turkey. I am waiting to see the kinds of horror stories that come from these locations over the coming years, which are not EU member states and will never have the same levels of investment infrastructure (According to the Economist�s Special Report: European Union enlargement April 30th 2005).
So for the record: I like thousands of other expats am very happy where I live, I had no problems buying my property (because I used a good lawyer), I got a good deal (because I did my home work and studied the market before rushing in) and I am really happy with my move. So just because Spain is sounding a little jaded at the moment doesn�t mean the magic is gone.
Is there anyone else out there who is happy with their Spainsh property or life in Spain, or have we all fallen foul to the British love you one day, hate you the next scenario that constantly plays out between tabloid press and latest celebrities?
Category: The Costa del Sol Property Market.