Why Costa Del Sol?
Now is the right time to Buy Property in Spain!
Bargains still available! Distressed properties from Developers, Banks and private sellers needing an urgent sale, are being transacted around 50% below Peak, in some cases; unsold new properties are selling on average with 45% discount from their original list price. This situation will not last for long as thousands of bargains are being snapped up by savvy investors who recognise that timing is everything.
Sources: Ministry of Development, National Institute of Statistics, Nestoria.es
The Current Economic Climate
As the post crash global economic situation stabilises and Governments worldwide have addressed the fundamental issues and underlying causes of the crisis this has led to a return of confidence in the property market as can be seen by the continued new investment flowing into new property development projects on the Costa del Sol.
Mortgages are still possible to obtain although the vetting process time is now longer and can take up to 2 months from the time they have received all required documentation. Where the bank owns the property, the offer period is much quicker and can be within 2 weeks to receive offer and mortgage approval. The banks are being very cautious and assessing the risk with every application ensuring carefully that they are only lending to credit worthy buyers to avoid the mistakes of the past.
Costa del Sol Specifics
The Costa del Sol has a geographic advantage over many other sun destinations. This combined with the enviable climate guarantees it's position as the number one sun destination in Europe.
- 2-3 hours flight time from most North European City and Regional departure points
- High frequency of Low Cost Airlines making it easy and cheap to enjoy your property year round
- English widely spoken
- 320+ days of sunshine per year
- Safe environment and first class medical facilities
- Over 100 Golf courses in the region of Andalucia
Historically, the Costa del Sol has been a relatively safe place to invest. Now more than ever for the reasons described above this will continue to apply. And today there are now even more powerful reasons to invest, namely due to the new and improved infrastructure! The sheer scale of all the Civil Engineering projects both under construction and in the pipelines is a major testament to the expansion and development of this area which is already gearing up for the next big boom. Many of these projects are listed below.
- The new AVE High speed train is now in it's fourth year and has proved a big success from day one, operating between Malaga and Madrid (2.5 hours), and has recently added Malaga to Barcelona.
- Malaga Airport expansion, new super terminal and transport hub is now completed and fully operational and the second runway which will double the airports capacity from 10 to 20 million passengers per year, was opened in the Summer of 2012.
- The new Metro in Malaga currently in advanced stage of construction.
- New second ring road around Malaga (Hiperronda) linking all motorways, completed and open (Oct 27, 2011)
- Planned extension of the Coastal Train from Malaga to Nerja in the East and Estepona in the West.
- Trans Mediterranean Motorway linking Spain with Portugal and France mostly complete.
- Approved new port facilities in Malaga and Cruise ship terminals.
- Several new marinas are planned along the CDS including one in Mijas Costa and a new cruise port in Marbella
- Many New parks, green zones.
- New and improved medical facilities, hospitals and clinics.
- Renewable energy forms including solar, wind and water desalination plants and water treatment plants.
- Proposed new tunnel linking Morocco and Spain.
- Improved and new Sports and Leisure facilities and new Medical centres, in almost every town.
- New Marina and Cruise Port Terminal Project for Marbella. Approved by the Junta de Andalucia, Nov 2011
- Airport City Project, Innovation and Leisure combined. Alhaurín de la Torre, Málaga
Take a Virtual Tour of the Airport city project (Ciudad Aeroportuario, Ocío y la Innovación) promoted by the town of Alhaurín de la Torre
Innovative Airport City project - Alhaurín de la Torre, Málaga
The best rental yields are to be achieved on the Costa del Sol with no other Mediterranean country that can compare in offering a decent rental yield on a year round basis, either for Holiday Lets or Long Term. There is a strong demand for long term rental property and can help our owners to find tenants should they wish to let out their property for either long or *short term lets (*in collaboration with our partners).
We often receive enquiries regarding general information about living in Spain and owning property in Spain. We stongly advise carrying out as much research as possible before coming to Spain and you can find the answers to virtually any question you may have by carrying out a search online on the Internet. Below, you will find answers to many of the frequently asked questions we have previously received.
Q. I am looking for a property near the beach?
A. Virtually every urbanisation on the Costa del Sol between Nerja and Sotogrande will be near the beach, certainly within 10 minutes drive, but to be in walking distance to the beach means having a property located just North of, or Beachside (South) of the main coastal road, A7 (N-340), which serves virtually all the main urbanisations along the coastal strip. The advantage of being beachside is that it can be easier to rent out the property, but the community fees may be higher and the vicinity is more likely to be built up. Some road noise may also be noticeable but not usually if located closer to the sea.
Q. I want to be within 45 mins drive from the Airport.
A. This will put you from Nerja, East of Málaga to Mijas Costa, West of Málaga. Marbella is 45 minutes drive from the Airport and Estepona 60 minutes.
Q. I want to be located no more than 15 mins to a Golf course.
A. Virtually anywhere on the Costa del Sol puts you within 15 minutes of numerous Golf courses to choose from.
Q. From an Investment point of view what type of property should I buy?
A. There are more Apartments for sale and less independent Villas available on the market thus improving chances of letting out a Villa easier as there will be less competition in the area.
Q. I'm looking to snap up a bargain property!
A. Based on supply and demand it is more likely to be an Apartment than a Villa for example. In order to succeed, you need to be serious about buying, know what you are looking for and be ready to move quickly when a genuine distressed sale property comes available. Unless you are in Spain at the time and ready to reserve with a deposit to secure the property you are unlikely to be successful in snapping up a genuine bargain as there will always be another buyer ahead of you! Bargains are also more suited to a cash buyer and anyone requiring a mortgage is strongly recommended to apply for a mortgage offer in principle as it can take up to 2 months to obtain an offer from Spanish Banks and no vendor will want to take their property off the market for such a long time with just a holding deposit made subject to a mortgage offer.
Q. What is crime like in the area?
A. Statistically, the Costa del Sol is probably one of the safest places to live in Europe.
Q. What is the Rental market like if I want to rent out my holiday home?
A. As the Number One Holiday Destination for North Europeans the Costa del Sol offers probably the best rental market in the Mediterranean, both for Holiday Lets and Long Term tenants. Due to the convenient location and climate the Costa del Sol will always be in high demand for renters and holidaymakers.
Buying Off-Plan in Spain
There has never been a better time to invest in Spanish property. As land values decrease with the recession the price of urban building plots have dropped substantially. This combined with the readily available builders and tradesmen plus lower build costs mean that it is now more than ever the best time to build your dream home in Spain. In around 18 months or less you could have the home you have always dreamed of and watch your investment grow.
From buying a plot of land, choosing an Architect to safely building your new home in line with current regulations or to buying a new build direct from a reputable builder we can help you through the entire process step by step.