4-bed villa, Desert Springs Resort, Almanzora, Almería province
Then: £534k Now: £267k
Why buy? – key-ready, 90-100% fi nance, free golf membership, established resort (
www.almanzora.co.uk)
They monopolise global headlines. Millions of lives depend on receiving
them, and then on following them to the letter. Bailouts have already changed the face
of Greece, Ireland and Portugal; and Cyprus, Spain and Italy are on the list. The issues surrounding bailouts lie at
the heart of the crisis in the eurozone, where economic growth has stagnated. The property markets have been
particularly hard hit by the euro depreciating to levels not seen for years, bank repossessions at an all-time high and a record number of “for sale” signs. Although this is doom and gloom for
many, for the house hunter it’s a great scenario. The combination of depressed markets and favourable exchange rates brings a world of good deals to your fi ngertips. Spain has, of course, the biggest
bargain basement, but other bailout countries are also ripe with opportunities. But a cheap price tag isn’t always
synonymous with value, and bargains can easily turn into white elephants. To combine a good price with a wise
purchase, you need market knowledge, careful research and a cool head. It also helps if you’re cash-rich and
not looking to make a fast buck — because short-term recovery is not on the horizon.
SPAIN’S BARGAIN BASEMENT T
he amount of property on the Spanish market is mind- boggling. Latest estimates calculate that there are around
680,000 new-builds plus tens of thousands of resale homes for sale. The surplus of supply coupled with lower demand has inevitably led to dramatic drops in prices, now between 40 and 60 per cent below those paid just fi ve years ago. Offi cial statistics pointed to a fall
of 12.6 per cent in the fi rst quarter of this year alone, and, with the Spanish economy still in recession, the depressed market looks set to continue. This makes for plenty of bargains,
such as the two-bedroom villa with sea views in Mijas on the Costa del Sol, just snapped up by a retired couple from Cumbria for €135,000 (£107,000), down €90,000 (£71,000) on its 2006 price. Or the Art Deco three-bedroom fl at in central Valencia recently bagged by a 35-year-old Londoner for €110,000 (£87,000), that was originally valued
at €200,000 (£158,000) in 2007. These bargains share several
characteristics – great location, good-quality build and easy access to amenities (all of which make the property saleable in the future, too). Their prices are around half their 2007 value, although those in the industry believe they’ve bottomed out. “Special properties in a great location are unlikely to drop further in price, because they’re scarce and always in demand,” says Mark Stucklin, the owner of Spanish Property Insight (www.spanish
propertyinsight.com), an information website on property issues. Graham Hunt from Valencia
Property (
www.valencia-property.com) agrees. “Prices for properties with key selling points have now stabilised, and there’s a strong market for them among foreigners with ready fi nance,” he explains.
In Marbella, Christopher Clover
of Panorama (
www.panorama.es) has noticed a similar trend. “Villas and apartments in high-
Latest estimates calculate that there are around 680,000 new-builds, plus tens of thousands of resale homes for sale
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