How does Spain stack up against its emerging rivals?

Property prices in the most popular parts of Spain have been rising steadily since the 1960s when the first package holidays were offered to travellers, and demand from overseas buyers for homes in Spain since then has really fuelled these gains and led to a situation today where real estate prices in certain parts of the nation now rival those in the UK.

Today, whereas the attraction and appeal of Spain remains undeniable, the cheap flights that have made more of the world affordably accessible have also introduced more affordable property markets to would-be buyers. Increasingly focus has moved away from so-called 'pricey Spain' to settle on the likes of the Black Sea coast in Bulgaria, the Mediterranean coast in Turkey or the islands of the Cape Verde archipelago for example.

Whilst emerging hotspots such as these appear tempting because their housing markets are in their infancy and offer low cost entry for would-be home owners, do these sorts of emerging markets really compare with Spain?

Well, there are five key elements that have to be reviewed when considering buying a home overseas, and if we examine Spain with regard to these elements and compare it with its emerging rivals, we can begin to build a better picture illustrating whether Spain really can still compete.

1) Accessibility – because Spain has been a popular tourism destination since the 1960s, it has built up a network of airports across the nation that are well serviced year round. Additionally, the Spanish authorities recognise the importance of having an open skies agreement in place and of maintaining investment levels into key infrastructure such as roads, rail links and airports too.

What this means is that Spain is one of the most accessible countries in Europe, and thanks to a continuation of money flowing into maintaining this situation, airports such as Malaga and Murcia are receiving significant upgrades. Murcia's Corvera airport is also receiving new access roads to cope with increased visitor numbers that this part of Spain will enjoy when the small airport becomes an international hub from 2010.

In comparison, Cape Verde, Bulgaria and Turkey's airports servicing the summer holiday scene see a significant reduction in the numbers of flights received out of season, making certain areas of each nation largely inaccessible for part of the year for those who wish to maintain homes in these countries. This is certainly a significant consideration that those thinking about buying abroad need to bear in mind.

Whereas someone buying in Murcia today can see that they will have increased accessibility options in the future, someone buying in Sunny Beach may be aware that the opposite is true.

2) Affordability – Spain has seen rocketing property prices in parts of the nation for years, however there are still pockets of the country that have remained affordable.

According to Martin Dell from CNBC award winning property portal Kyero.com: “areas of Spain such as the Costa Tropical and Murcia have not seen the property price appreciation that locations such as the Costa del Sol has experienced for example. This is due to accessibility issues that have restricted access and exploration of these locations. If you cannot access an area it is not going to be of interest to expats, holiday makers or retirees and this will of course keep prices deflated. Having said that, now that Murcia is getting its own international airport hub, this is one part of Spain where prices are predicted to rise.”

Comparing Spain price-wise to Bulgaria or Turkey one can see that the median price for property across the nation is far greater – but comparing a specific location such as Murcia to Sunny Beach or Bodrum, one quickly realises that you can get at least as much for your money in Spain if you look for emerging pockets of property based potential.

3) Quality of Property – So, if you can get property for similar prices to the emerging European markets in attractive corners of Spain such as Murcia, how does the property you can actually buy compare?

In Murcia one company called Casas de Lorca is selling custom designed, luxury detached villa properties on seriously substantial five acre parcels of land. These homes are customisable and come with stunning architectural features such as glass walls or courtyards; they start from as little as GBP 196,900 / EUR 265,000 for a four bedroom design.

This is certainly not the standard in Turkey, in Bulgaria, in Cape Verde or beyond because these emerging nations are copying the Spanish model of old – i.e., pack it in, pile it high and sell it cheap!

So you can actually get far more and far better value for your money if you shop wisely in Spain.

4) Ongoing Appeal – Spain's appeal is timeless and it is of equal appeal to those who want a holiday, a retirement home, a second property, an investment property or a brand new home in which to live full time. But how many people really want to relocate full time to live in Cape Verde? How many professional jobs are there in Bansko? And how well established is the expatriate retirement community on the Turquoise Coast in Turkey?

Spain is tried, it is tested and it offers locations of appeal to all types of holiday makers and expats – it has lasting and ongoing appeal that many emerging nations in Europe just cannot compete with.

5) Investment Potential – so far so good in Spain's favour. But how well can Spain compare as an investment property hotspot?

If you want to achieve the property investment abroad holy grail and buy a well priced property in a low risk setting, enjoy it and also let it out and earn an income from it, have the chance of realising an attractive capital appreciation and have a waiting market ready to buy your property when you offer it for resale, you have to again consider Spain and in particular Murcia.

You simply cannot achieve the same in emerging nations – you will miss at least one important element such as the 'low risk setting' or the 'waiting market ready to buy your property.'

Mike Hamilton, the Managing Director of Casas de Lorca sums it up: #
“Murcia is being considered an emerging market within the established and low risk market of Spain. Murcia is truly emerging because it is suddenly becoming increasingly accessible thanks to the major upgrade of the local airport and this is already having a significant effect on the numbers of investors moving in to the region. These investors are keenly aware of two things – firstly that tourism numbers are predicted to soar, and secondly that the low prices currently being asked for well located, well constructed, spacious properties like our own near Lorca will just not last.

“Demand for properties for relocation is increasing dramatically as more and more buyers choose Spain for a permanent residence and property prices will be the next thing to soar as more buyers enter the market than there are properties available for sale. Few buyers choose to retire in developing or third world countries therefore this large segment of the market is still focused on Spain. Whether you're an investor or not, our properties appeal – they have a strong point of difference (5 acres of land), they are luxurious, spacious, they will be easy to let, they are priced attractively and competitively and what's more, they are located in a stunning and unspoilt corner of Spain.”

For more information, visit casasdelorca.net.