The old estate agent adage of “location, location, location” holds certainly true in a housing market that collapsed at the end of 2007 and is not expected to recover until 2015 at the earliest. With so much Spanish property being offered at heavily discounted prices of up to 70% less than the original list price, it’s hard to decide where to buy - and what type of property to invest in.
Value for money, high-spec properties in Marbella and the rest of the Costa del Sol have been a hit with many foreign buyers this year. The 2nd and 3rd quarter results for this year showed that the Costa del Sol hasn’t lost any of its appeal for foreign investors and holidaymakers alike. When buying a holiday home as an investment it is easy to get carried away, making buying decisions based mainly on price and breath-taking views alone.
Modern holidaymakers are looking for something a little bit special these days and investing in a luxury apartment with breath-taking sea or front-line golf views will obviously outweigh a property that overlooks a car park or merely the rooftops of other houses.
However, if the property is badly designed, the interior fittings and fixtures are poorly chosen and room sizes are ill conceived, no amount of panoramic views will persuade holidaymakers to return for another season let alone recommend the apartment to their friends and family.
The recent trend among investors, therefore, seems to be for quality build and design in settings that tick all the boxes, even if this means a higher price tag. For around EUR 435,000 (£352,046 or USD 564,413) investors are happily snapping up 3 bedroom/3 bathroom garden apartments that may not all have the amazing sea views but offer plenty of space for family holidays with terrace sizes of 80 sqm and living space of 135 sqm per apartment.
Featuring air conditioning and double glazing, satellite TV and communal pool, landscaped communal gardens and boasting fully fitted kitchens with all the required quality white goods, marble flooring, fitted wardrobes such apartments offer great value for money. Within a short walk of both sea and golf, Bahia de Marbella apartments in Los Monteros also offer a tennis court, beach restaurant and fitness room as part of the amenities and services on site.
Compromising in favour of sea or golf views can slightly back fire when the apartments aren’t suitable for year-round occupation because they are not energy efficient and do not feature heating/air conditioning. Properties too cold in winter and too hot in summer are not going to win a second season through “word of mouth” promotion.
In the east of Marbella in the sought-after residential district of Elviria weekly rents for a 4-bed penthouse can be as much as EUR 1,500 per week, while a 3-bed apartment can be let out for EUR 900.00 per week for the right property. Garden apartments with 3 bedrooms and 2 bathrooms might fetch as much as EUR 850.00 per week. Buying a property in Elviria, however, is nowhere near as expensive as the first glance might suggest.
There are plenty of existing apartments for sale for under EUR 360,000 that offer luxury and creature comforts without compromising on sea or golf views. Resale penthouses start at just EUR 275,000 for 3 bedroom properties on 9-hole golf course developments with spa, tennis court, sauna, gym and restaurant. Penthouses close to the beach and with large roof solarium are as little as EUR 290,000 and a duplex penthouse in a gated community starts from around EUR 299,000 in leafy green surroundings.
When buying resales it is important to check what is actually included in the price and, if the sale includes furniture, to ensure the furniture is of good quality and will hold out for several more seasons or the “bargain property” will soon require a serious amount of spending.
Holidaymakers paying an average of EUR 1,000 per week are looking for the same level of luxury they would find at a hotel. No matter how spectacular the views are from the sun terrace, shabby fixtures and fittings are no recommendation for a holiday let.