Monday, June 1, 2009

Long term prospects for Costa Brava property look reasonably good

It's been the dream of millions - People from all over Europe looking for villas and apartments by the sea in sunny Spain. Now could be a good time to buy second home in Coastal Spain as recent figures indicate that in the 12 months leading up to April, the cost of housing fell by ten per cent.

According to data from appraisal company Tinsa, coastal areas were hardest hit, along the Mediterranean coast, prices dropped regularly over the last 12 months, down 1.2 per cent in April last year, and then 8.3 per cent in August and 14.3 per cent in December , which could mean that homes on the Costa Brava represent particularly good value.

François Carrière Pastor, managing director of the John Taylor agency in Spain said Spain is a tricky market in the current climate. He said that Prices in Barcelona have fallen by 15 percent to 20 percent and the nearby Costa Brava has seen as much as a 35 percent drop.

Carrière Pastor said, "it wasn't really necessary to do much marketing in the past because homes sold without it," Now, finding clients is more difficult and the market is much tougher. Developers who used to do their own marketing are now going to agents for help and glossy brochures are becoming a very important marketing tool."

The housing market is just starting to turn down on the Costa Brava. There will also be the distress sales, where vendors of attractive properties have to accept a low but reasonable offer for a quick sale, and it is worth being in the market for that reason alone.

Regardless of the ups and downs in the market, the long term prospects for property on the Costa Brava look realistically good. The best parts of the Costa Brava have not been awfully over-developed and not flooded with newly built properties, so the market is not fundamentally flawed. Costa Brava attracts affluent buyers from both Spain and the rest of Europe, so demand is reasonably well diversified. Purchasers who are not that concerned about financial returns, and just want a home to use and enjoy, then 2009 could be a great time to buy attractive property in the Costa Brava at a reasonable price.