 Is property in the Costa Brava a good investment?
The Spanish property boom, which was largely fuelled by cheap credit, is now over. Post boom, it is unlikely that property prices on the Costa Brava will rise in the next few years - if anything they might fall. But for the time being (Q1 2008), asking prices on the Costa Brava are still out of line with the new market realities, which means there is a lot of overpriced property on the market. Anyone who buys now without doing their research, and pays yesterdays prices, will not being making a good investment in the short or medium term, though over the long-term, say more than 10 years, history suggests they would still get a reasonable return.
Timing is everything when it comes to investing, and paying too much on the way in can wipe out investment returns for 5 years or more. The housing market is just starting to turn down on the Costa Brava, so now is not the time to invest if financial returns are important to you. Nevertheless, it is worth looking around in 2008, to get yourself in a position to buy when prices start to offer better value, which could be in 2009 (it depends how severe the downturn is, how much economic distress is on the way, and how quickly prices fall, if they do). There will also be the odd distress sale in 2007, where vendors of attractive properties have to accept a low but reasonable offer for a quick sale, and it is worth being in the market for that reason alone.
Regardless of the ups and downs in the market, the long term prospects for property on the Costa Brava look reasonably good. The best parts of the Costa Brava have not been terribly over-developed, and the market is not awash with newly built properties, so the market is not fundamentally flawed. It is an upmarket destination that attracts affluent buyers from both Spain and the rest of Europe, so demand is reasonably well diversified. And when the AVE fast train reaches Girona, which it will do in the next year or so, that could give demand in the region a boost. When the fast train links up to the French rail network, which it is expected to do in the next decade, it could get an even bigger boost.
If you are not that concerned about financial returns, and just want a home to use and enjoy, then late 2008 going into 2009 could be a great time to buy attractive property in the Costa Brava at a reasonable price. And don't confuse cheapness with good value.
Everything you need to know about Costa Brava property
© Mark Stucklin (Spanish Property Insight)
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What about estate agents in the Costa Brava?
I publish a list of estate agencies in the Costa Brava, which you may find helpful if you need to deal with one. But before contacting any of these estate agents, it is important that you understand the criteria I use to draw up this list, and accept my disclaimer. + Costa Brava estate agents
What about lawyers / solicitors on the Cost Brava?
Whenever you buy property in Spain it is vital that you use an independent lawyer to do the legal searches and conveyancing for you. You can find a list of independent, English-speaking lawyers in the Costa Brava here: + independent lawyers
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