The Costa de la Luz is a region of Cadiz on the west coast of Spain. The region has a long wine-making tradition and high quality sherries are still made in the local bodegas. The area is also famous for its seafood dishes, fish and shellfish.

Report prepared by local real estate agents

The region’s mild, sunny climate and famous Playa de la Barossa, which features 8 kilometres of fine sandy beach made it an attractive tourist destination in the boom years of the 60’s and 70’s and led to the development of towns such as Nova Sancti Petri, which is located along the coast from the town of Chiclana.

Novo Sancti Petri is an upmarket, modern resort with a range of low-rise hotels and apartment and townhouse complexes. The marina is a great base for all types of water sports and it has a windsurfing school. The town has a clinic and a number of commercial centres, with plenty of bars and restaurants. Properties close to the sea and the town’s excellent beaches tend to be apartments or villas, inland, properties tend to comprise of detached villas.

Novo Sancti Petri is centred around a top 36- hole golf course designed by Ballesteros, which is considered to be one of the best in Andalucia. In addition, there is a 9 hole course Club de Golf Campano, which is located just south of Chiclana. There are plenty of good tennis, padel clubs and football clubs (many European teams train here off season). Novo Sancti Petri also has a riding school, the Hipica Novo Sancti Petri or you can use any of the private riding clubs.

There is excellent access to this area via a selection of nearby airports, the closest is Jerez de la Frontera with regular daily fl ights from all over Europe. The main highways link this region with the rest of Spain and onto Portugal.

The Buyer

The market here is dominated by British clients (40%) followed by Spanish (30%), Germans (20%) and Scandinavians (10%). Clients are looking for all sorts of properties from apartments to villas and fincas. The average spend tends to be in the region of €250,000.

Locations close to the sea or golf course is essential and the most requested areas are Novo Sancti Petril, Conil de la Frontera and Vejer de la Frontera. This is a great place for holidays and retirement which is refl ected in the average time clients spend in the properties of approximately 6 weeks – 4 months per year.

Property Values

In comparison to other parts of Spain, this area is well priced and its infrastructure, excellent sports facilities and good climate makes it increasingly popular with buyers. Prices in the last year reflect this trend as they have increased by 15-20% across the board.

Rental Market

Only 10% of clients are interested in letting either for long rentals if they have bought as a buy to let investment or for summer rentals when they can expect rental yields of around €1,100 per week for a villa and €800 per week for an apartment, which are the most requested rental properties. Long term rentals yields demonstrate a steady yield of around €1,000 per month for a villa or house and €600 per month for an apartment.

Investor Tips

All this area is ripe for investment, particularly inland around Vejer de la Frontera, Arcos de la Frontera and La Sierra where you can find authentic “fincas” restored or to restore.

 

Costa de la Luz Property

TYPE	BEDS	M2	AV. PRICE €	PRICE INCREASE 2001 – 2005	PRICE INCREASE 2006	€ AV. MONTH RENT HIGH	€ AV. MONTH RENT LOW
Villa with views	4	350	1,000,000	18%	10%	–	–
Villa no views	4	350	750,000	18%	10%	–	–
Apartment with views	2	100	350,000	18%	10%	–	–
Apartment no views	2	100	275,000	18%	10%	–	–
Country house	3	350	650,000	18%	10%	–	–
Townhouse	3	180	280,000	18%	10%	–	–
Plot price €/m2	–	–	180	18%	10%	–	–