Shortage of luxury property for foreign buyers propping up Spanish market
The number of properties purchased in Spain by foreigners rose for five consecutive quarters between 2011 and 2012. However, whilst they’re keen to take advantage of falling prices, agent Spanish Hot Properties fears there may not be enough luxury ‘stock’ to go round.
Quarter three showed the greatest rise in home sales to foreigners, 18% more than the equivalent quarter in 2011 - a total of 8,803 transactions. This came off the back of a 15.3% rise in Q2 2012 and 16.2% in Q1. Most demand was concentrated in coastal areas with Málaga, the setting of Spain’s Costa del Sol, posting the second highest number of home purchases by foreigners, beaten only by Alicante.
Nick Stuart, Director of estate agent Spanish Hot Properties, explains, “With the domestic market in hibernation, some of the responsibility for recovery has fallen on to international shoulders but, certainly in the Marbella area, they tend to want the very best homes on the market and these are in short supply. There are very few top quality modern villas or frontline beach apartments available and the old-fashioned Andalucian-style finca doesn’t have the same appeal any more. It really is slim pickings.”
Nick continues, “The truth is that since 2010 there has only been one developer on the Costa del Sol actively building luxurious new apartments and penthouses and none have been in prime locations. 2010 was a key year as various guidelines on energy efficient building became law; this made construction much more expensive leaving new builds overpriced in comparison to existing property - especially those with discounts attached. These so-called bargains can be bought below replacement value but, although there are thousands of them for sale, your luxury property buyer simply isn’t interested in them.”
Spanish Hot Properties also has to contend with a number of buyers who expect discounts that simply don’t exist. “Prime product in prime location is rarely discounted, constant demand puts pay to that, demand that will only rise if the Spanish Government follows through its plan to offer residency to non-EU buyers,” says Nick, “If they are realistic about price, there’s little available which is why for would-be apartment purchasers we recommend Doncella Beach, unparalleled in its frontline coastal location, modern design and quality finish, and for villa purchasers we suggest they consider a design and build on a plot of their choosing. For now, it could be a sensible option.”
Doncella Beach, Marbella, Costa del Sol, Spain
A deluxe residential complex of 85 beachfront apartments and penthouses ranging from one through to five bedrooms. Arranged across seven whitewashed buildings in neoclassical design, the properties are surrounded by meandering gardens, splashing fountains and quiet walkways – all adjacent to the Mediterranean Sea with views of Gibraltar and North Africa.
Residents of Doncella Beach have the pleasure of the Spa Olympia with a relaxing Jacuzzi, Turkish Bath with aromatherapy, sauna and special aromatherapy showers. There is also a gym with hi-tech cardiovascular machines as well as a yoga room and large outdoor swimming pool with poolside bar.
Each of the apartments has marble flooring with underfloor heating, hot and cold air-conditioning and satellite television. Security is of paramount importance with modern alarms and movement detectors in all rooms, perimeter cameras and a 24/7 guard at the barrier entrance.
Price for a three bedroom three bathroom penthouse of 358m² including a terrace of 171m² plus a rooftop solarium of 170m² and private garage and storage: 2.15 million euros. Other sizes/prices are available from 650,000 euros for a one bedroom one bathroom of 101m² including a 35m² terrace.
For more information, visit spanishhotproperties.com.
