Tourist/population numbers on CDS

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This topic contains 11 replies, has 6 voices, and was last updated by Profile photo of katy katy 9 years, 9 months ago.

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  • #52665
    Profile photo of Anonymous
    Anonymous
    Participant

    I have seen some discussions here about the plumetting property market on the CDS.

    I would like to know how much of an impact this has had on tourism/populaiton levels on the CDS.

    I am looking at setting up a business on the CDS. I have been living here for most of February and while it is not dead, I am not sure if it is busy enough to sustain a business.

    Ideally I would like to invest in a small hotel maybe 15 to 20 mins inland which would include a full service restaurant.

    But, with all the negativity surrounding Spain right now I am wondering if this is a good idea.

    How much do tourism numbers pick up as the year progresses? I have never been here in peak season. And even then, are two or three months of tourism enough to sustain me year round?

    Basically, is the CDS a good place to start a business right now?

  • #69534
    Profile photo of Inez
    Inez
    Participant

    No – and many existing ones are going rapidly out of business. Including Spainsh owned ones – if the Spainiards start to suffer then there will be problems all around.

    Good luck – if you have a niche market you may be ok, and a small hotel offering for example heath breaks, yoga, walking that type of thing may appeal to the English who will fly out for that.

    Over the past 5 years I have noticed a remarkable downturn in holidaymakers – I also have a rental/management business which is suffering greatly.

  • #69537
    Profile photo of Anonymous
    Anonymous
    Participant

    @inez wrote:

    No – and many existing ones are going rapidly out of business. Including Spainsh owned ones – if the Spainiards start to suffer then there will be problems all around.

    Good luck – if you have a niche market you may be ok, and a small hotel offering for example heath breaks, yoga, walking that type of thing may appeal to the English who will fly out for that.

    Over the past 5 years I have noticed a remarkable downturn in holidaymakers – I also have a rental/management business which is suffering greatly.

    Thank you for your reply. Do you see this downturn as cyclical? Or could the holidaymakers be gone for good?

    I was out on the boardwalk in Marbella on Sunday and to be honest it was quite busy and most places had business. But, that seems to be the only area where i saw much traffic.

    The question then is, if not CDS, are there other areas that might be better, Barcelona for example?

  • #69540
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi
    You only have to look at the various forums on this site to tell you how bad things really are
    There are several that have many years experience on the Costa del Sol so listen to them.
    That’s what I and probably thousands upon thousands of others are
    doing right now.
    Property prices will plummet as there are thousands of investors with serious financial problems and numerous people have been stitched up by sharp practises
    The rental market has had its day with apartments renting for silly money
    Take note of all the negative vibes and consider another area of Spain as this part has had its day for at least 10 years.

  • #69541
    Profile photo of katy
    katy
    Spectator

    Which area of spain would you suggest ❓ because I don’t know any that hasn’t been blighted by third-world apartments, crooked Mayors/developers/agents. Maybe Extremadura but then only a monority would want to move there.

  • #69544
    Profile photo of Inez
    Inez
    Participant

    Couldnt agree with you both more. Only buy in Spain if its for personal use or retirement purposes.

    Otherwise go to other countries7/markets!

  • #69551
    Profile photo of Anonymous
    Anonymous
    Participant

    There does seem to be a lot of horrible, shoddily built apartments all over the Coast.

    I suppose it depends what you’re looking for from Spain.

    I have no experience of the Country apart from that gleaned on numerous trips, talking to residents and the information obtained through the Internet.

    There is a lot of doom and gloom in these areas about the long term sustainability of the regions, the house prices plummeting, natural resources becoming a factor, corruption and general viability for the future. The current rate of development is unsustainable and sooner or later would fail. perhaps we are seeing this now.

    However, with all such crisis, there is a recovery around the corner. The wide boys will move onto more lucrative markets and the regions will mature. Your house today is worth exactly the same as it was yesterday unless you decide to sell.

    If you have invested for a short term return, then you can cut your losses or hold onto what might be a long term investment opportunity. If you have moved out for a long term personal reason, then there should be very little impact apart from the fact things may settle down and prices stop being so inflated.

    If I had investment in Spain (thank god I haven’t) I would be very nervous but moving out to Spain as a long term life choice feels me with no trepidation whatsoever at the moment as a) I’m looking into more rural traditional areas and b) The market needs to mature and be more regulated and accountable.

    I appreciate that I am very new to the forum, and to Spain, and would certainly not presume to know more than people with infinitely more experience in the country but from reading a lot of threads leads me to believe that this is what a lot of people are suggesting as well.

  • #69553
    Profile photo of Anonymous
    Anonymous
    Participant

    This site will give you, more ofen than not, the downsides of property, tourism and the CDS economy. Nothing wrong with that – it’s just that many posters here overpaid, got ripped off or got defrauded, and were overoptimistic.

    Take a look at other sites to get some balance. Malaga, Granada and other airports in total, for example, reported increases in traffic year on year – not declines.

    Research a variety of sources. Talk to the banks, or their managers. They generally don’t like to lend to failing business and will give quite good opinions. If you are going into the hotel business, research the accounts of Spanish quoted companies in that area and read their annual reports for their views.

    Good luck with your business!

  • #69608
    Profile photo of Anonymous
    Anonymous
    Participant

    Knock On
    We are both new to the forum and I share your views 100%
    Its a lovely part of the world to live and hopefully most of the sharks have gone to other more lucrative waters.
    Bulgeria Dreams Homes or Croatia Dreams Homes ??
    Same applies to a share portfolio its worth today only the amount you wish to cash in.
    Think in time that when the corruption thingy starts to kick in these new so called growth markets many will be back to this area which hopefully then will be alot more stable.
    What goes around ,comes around.

  • #69626
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for all of your informative replies.

    Despite all the reports of doom and gloom in Spain, I still remain quite upbeat about Spain as compared to a lot of the new destinations that have become fashionable.

    If we look at the CDS, it has the best climate amongst all the new destinations, with the exception of maybe Morocco. The weather here remains quite good throughout the year. Bulgaria is cold in the winter. Dubai is unbearable in the summer…etc.

    It is within very easy commuting distance of the UK. Dubai is quite far, as is Cyprus.

    Spain has the infrastructure to support the British expats. I am not sure any of the others have such a well developed support structure.

    One of the main reasons I am upbeat about Spain is also because I am very upbeat about London in particular. The world’s financial centre is moving from New York to London as E Europe and Asian economies of China and India develop. The beneficiary of this shift in London. It is much more central and accesible than New York.

    Spain and the CDS, ticks all the boxes.

    I think the present shake out in the property markets here is a very good thing. It means that pepole that are seriously looking for opportunities here have a window to get in.

    Spain is down, but I dont know if it is OUT.

  • #69630
    Profile photo of Anonymous
    Anonymous
    Participant

    A.J
    When you break it down like you have and short term financial gains are not an issue then I think you are spot on.

  • #69633
    Profile photo of katy
    katy
    Spectator

    If its a good price in a good location spain is always a good long term investment. A friend who had an apartment on the CDS had just sold it in 3 days (privately to a neighbour’s friend, the are moving to Australia). It was purchased mid-eighties for around 25,000 pounds and they sold for 150,000 pounds app. and now needs updating. The apartment has been let for 3/4 months av. every year (2006 at 300 pounds a week) which has more than paid their small outgoings and also funded the 4 or so flights over each year. They are very satisfied. It is unique though, 2 storey block, own garden full of lemon trees and a short walk to beach and restaurants (not like some of the complexes they are building now).

    The market will take a long time to recover as for the last few years many people have been buying in order to flip them. There was never enough demand for the amount they were building. Compare it to pyramid selling, the only demand for the product was the stock bought by people hoping to sell it on, eventually the bubble bursts.

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