PROPERTY MARKET UPDATE VILLAS & FINCAS CASARES, ADALUSIA
13-05-2009
PROPERTY MARKET UPDATE VILLAS & FINCAS
This year will be one of the most difficult years for investors to anticipate where to invest and the volatile international stock markets has underlined the advantages of investing in bricks and mortar. Andalusia’s luxury second home real estate market has done extremely well the last 8 years and was a prime destination for celebrities and investors. Previously potential second home investors may have found this region out of their price range and now find that this is the time to buy within their budget. In the last few weeks an encouraging number of enquiries have been received from all over Europe. Many enquiries are obviously from clients who are looking and orientating at the moment, but with the intention to buy somewhere this year. Furthermore, the forecast for late spring/early summer looks promising with potential clients looking seriously to buy.
Country Properties and Prices
In this region, the investor will find a wide range of property from the traditional country houses, new built Cortijo’ s to stunning (historic) townhouse in the White villages of Casares, Gaucin, Ronda. Casares and Gaucin attract many artists and architects which produces a great deal of renewing atmosphere in the Andalusian designs.
In this region, the investor will find a wide range of property from the traditional country houses, new built Cortijo’ s to stunning (historic) townhouse in the White villages of Casares, Gaucin, Ronda. Casares and Gaucin attract many artists and architects which produces a great deal of renewing atmosphere in the Andalusian designs.
Prices range from around €150,000 for a townhouse to just under 500.000 Euro for a finca and over €1 million for a luxury villa and new built Cortijo’ s. That means you are buying around 1.200 – 1.500 euro per square meter for a nice townhouse and around 2.500 – 3.500 euro per square meter for a nice house. Depending the size of the land, sea views etc.
Crisis is not over jet but time to buy
The international property market might continue to slow down for another 12 – 18 months. However, we think you can buy real quality properties for a good price right now. In the booming period it was hard to find the better properties.
This spring has seen more positive market movement and inevitably there are some “bar-gain hunters” about looking for distressed sales which are not so prevalent and certainly not on the scale that might have been anticipated. For the moment prices are not dropping further. We settled around a 25% down from peak 2006, the market has found its level and stabilized and most property is now taking a year to 2 years to sell as opposed to one year at the market peak in 2006. There were not many real bargains in the country side. The few we had are sold. Rest a few well priced properties. British vendors can be very competitive at present when converting Euros back into pounds sterling. Clients who sell their houses do not panic anymore, they have the feeling the market will recover in the next few months. The predicted Armageddon’s of the economies did not happen. We will inform you correctly were we can negotiate and were not. Some properties on prime locations will continue to have their good value. However still 10-25% down from peak 2006.
Probably the main effect of the global financial crisis in this area is that the market is slower and there is less demand which represents less transaction, but here this factor does not lead to lower prices. There are many wealthy owners who simply do not need to sell and although there are less buyers looking for property the ones who are searching tend to be serious, and often cash buyers.
Continued investment in Andalucia
The Government in Andalucia is still improving the infrastructure, railways, and the new airport, renewing the road system and projects and enormous grants for new businesses.
The Government in Andalucia is still improving the infrastructure, railways, and the new airport, renewing the road system and projects and enormous grants for new businesses.
Still interest in Country Properties
We know it’s hard to predict that 2009 will be better than generally predicted. At the moment there is interest in Country Property from abroad and from many local people who live on the coast. When they sell their property we will have many prospected buyers. Villas & Fincas has a reputation for selling exclusive top end country properties. This is a real niche market. We counted around 0,1% of the general buyer in Andalucia. We will keep on focusing to find the right buyer for all our beautiful properties to maintain sales levels. The spring indicators of increased market movement, serious interest, cash buyers and the general fall in prices combine to make Andalucía’s finest properties at Villas & Fincas very attractive to the potential investor and lifestyle buyer more than ever. We hope to welcome soon our new clients. Please let us know when you have any inquiries.
Oscar Ernstsen
Director Villas&Fincas
