- September 14, 2004 at 12:42 pm #51011
Many people have contacted me recently about investing in Murcia. So much so that I will have to produce an investment briefing on the area. However in the meantime bear in mind that Murcia is a long-term project and that off-plan investors with 2-year time horizons could have problems (trade rumour has it that some of the biggest developments have been struggling). There is a frenzy of building activity going on and one promoter I have spoken to estimates that around 20,000 properties are under construction in that area. People who buy now in the hope of selling on before completion when the project is ready in 16-24 months may find that they are one of many and that the demand can’t soak up the supply. Furthermore many of the developers are over-dependent upon UK buyers and have failed to develop sales channels into other markets. Over-exposure to one market is always a cause for concern – look what happened in Mallorca when German demand evaporated. If you are thinking of investing off-plan in Murcia over the next couple of years make sure you do your homework on which development to choose, what type of property and what your exit strategy will be. Never make a big investment without being clear about the target market you have in mind when you come to sell, how you will reach that market and what sort of competition you will face. Basic business common sense but very often ignored. If you want to receive the investment briefing when ready sign up for the news bulletins / investment briefings on the homepage.
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