Why Costa Del Sol? & FAQ's

Now is the Best Time to Buy - The councillor for the economy and tax of the Junta de Andalucía recently advised that now is likely to be the best time to buy a property in the region. The regional government advisors believe that prices will not fall further, and with the various subsidies and agreements with the banks currently in force, now is the time to take action. Prices in the region's provinces range between €1,600 per sq.m. Inland, to €3,000 in Marbella.

Foreword - The Current Economic Climate:

The continuing global economic turmoil has brought Governments worldwide to address the fundamental issues and underlying root causes of the crisis. This will lead to a stablising of the situation and although it will take time to restore confidence in the market it will naturally return at some point.

Overall, since the crisis began at the end of 2008 property prices in Spain have dropped on average by around 25% and in some extreme cases by as much as 50% of the price at the height of the boom period. If there ever was a Buyer's market, it is NOW!, and there has never been a better time to snap up a holiday home or investment bargain in the Spanish property market. Many developers are offering huge discounts (some up to 67%) on unsold stock and highly motivated owners of resale properties are still open to offers. In real terms whilst property prices have dropped on average by 10-12% in the UK since 2008, in Spain the overall drop is more like 25-30% and in many instances asking prices are back to where they were 7 or 8 years ago before the boom!

As with any downturn, we are starting to see funds and institutional investors moving in to cherry pick the best opportunities and this confirms that the market has now reached bottom. The trend is forecast to continue into 2011. 2012 is predicted to be a turning point but we may begin to see a turnround in the market during 2011 and so now is the time to act.

Mortgages are still possible to obtain, the banks are valuing accurately, and many deals are being structured by banks who have repossessed property, whereby they are packaging up the sale with a mortgage and including the purchase costs, with only a minimal down payment etc. For new property offered with up to 100% Finance Deals, Click here. The banks are being very cautious and vetting all mortgage applicants very carefully and 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 third 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, is completed and due to open early in January 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

Marbella Cruise Port Project: Take a Virtual Tour

Rental Market: 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. We have a thriving long term rental business and can help our owners to find tenants should they wish to let out their property for either long or short term lets.

Frequently Asked Questions (FAQ's)

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 30 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.