Costa del Sol Tops Tourism Charts in April

The Costa del Sol was Spain’s top tourist destination in April, beating other popular tourist spots such as the Costa Brava and the Costa Blanca when it comes to the number of nights spent in hotels. The figures prove the Costa del Sol’s popularity with both foreigners and Spaniards.

Latest statistics released by the Spanish National Institute of Statistics (Instituto Nacional de Estadística), show that the Costa del Sol had a hotel occupancy rate of 50.63% during April with a rate of over 55% at weekends. Over the first four months of the year, the Costa del Sol achieved some of Spain’s best figures for tourism, fantastic news for investors interested in renting their Spanish property.

Once very much a seasonal holiday centre, the Costa del Sol is now an established year-round honeypot. One of the main reasons behind this is the vast range of activities on offer for the tourist. While the sandy beaches undoubtedly constitute its main draw, the miles of sands are just one of the Costa del Sol’s many attractions.

The abundance of first-class golf courses (many championship) have earned the area the title of ‘Costa del Golf’ since the year-round pleasant climate means that golf is also year-round – the winter months are high season for golf. Other world-class sporting events in the area include the recent Andalusian Tennis Experience attended by the world’s top women players and the forthcoming Davis Cup quarter-finals. Both these tennis tournaments are based in Marbella, one of the four European Cities of Sport this year and with a full calendar of events in honour of this.

Culturally, the Costa del Sol is also up there with the best. Malaga’s Picasso Museum is now one of the most visited in Spain and a major attraction within the Costa del Sol’s up-and-coming capital city. Summer festivals draw the crème de la crème when it comes to music. If Lou Reed was the star attraction at last year’s Terral Festival, this year it is the turn of Jerry Lee Lewis.

Those with families also find plenty on the Costa del Sol to keep them busy. Perhaps top of the attractions is the huge Selwo Wildlife Adventure Safari Park, one of the largest wildlife parks in Europe and situated between Estepona and Marbella. Other animal attractions include the award-winning Fuengirola Zoo and Sea Life.

With its wide choice of things to do satisfying a huge range of holidaymakers from golf fanatics to sun worshippers, the Costa del Sol has something for everyone. “This is undoubtedly one of the best short haul holiday destinations from the UK,” says James Gonzalez, Market Analyst at Obelisk Investment Property, “as confirmed by this year’s tourist figures. These also confirm the rental potential for the area.” James points out that the Costa del Sol’s excellent infrastructure, good weather year-round and choice of leisure activities makes it a favourite with relocators and retirees as well as holiday makers. This translates into potential for both holiday lets and long-term rentals, an important consideration for those considering property investment on the Costa del Sol, particularly when the area currently represents excellent potential for cheap property in Spain.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). From abroad: (+34) 952 820 319. Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com. Email: info@obeliskinternational.com or visit our website: http://www.cheappropertyspain.net

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Obelisk Shows its Hand

Obelisk Investment Property’s Market Analyst, James Gonzalez, is sticking his neck out and predicting that those who invest in the Spanish property market now, particularly the Costa del Sol, could be reaping rich rewards by 2010.

James says that a number of positive indicators over the last few months have convinced Obelisk that the market is on the road to recovery. “Until recently, prices were, on the whole, heavily inflated with oversupply in some areas,” explains James, “and it just didn’t offer the right kind of investment potential to feature on the radar.” But now, putting his cards on the table, James forecasts a 2.5% to 3% growth on 2009 prices for Costa del Sol property next year.

So what has changed on the Costa del Sol and why is Obelisk’s Market Analyst prepared to make this bold prediction when other property experts aren’t? Based in Marbella, southern Spain, Obelisk has its ear to the ground and its in-house research allows James to make this exciting forecast.

Part of the reasoning behind the predicted 2.5% growth comes from the logistics of property cycles. The newly awakened interest in Costa del Sol property means that oversupply will be consumed and availability reduced. Add to this the fact that new construction is virtually at a standstill with no major projects planned for the near future, the Costa del Sol property market will clearly bottom out this year and next year herald the start of an upward cycle.

Obelisk believes next year’s property growth will come from a combination of the kind of constants offered by few other locations and some subtle changes. Put together, these constants and changes make the Costa del Sol one of the best medium to long-term investment and lifestyle options available at the moment.

“Let’s start with the constants,” says James. “Spain is the world’s second largest tourist destination with the Costa del Sol a firm favourite. It’s been that way for some time and that really hasn’t changed, even in the face of global economic downturn. On the contrary, record tourism figures were recorded over the Easter period on the Costa del Sol.”

Spain’s high tourism profile alone is pretty significant but when you add extensive transport infrastructure investment to that, it all adds up to the kind of potential that would get any other property market well and truly noticed. In common with most other European countries, the Costa del Sol market has undoubtedly suffered a downturn, but it’s starting to stand out from the crowd again for both investors and lifestyle buyers.

Prices are now at an affordable level for the first time in five years. “You have to look carefully, but you can get some pretty impressive bargains on the Costa del Sol at the moment,” says James.

James warns against buying so-called ‘repos’ (repossessions) or ‘distressed properties’ in Spain. “They can mean months of paperwork and costs and what starts as a ‘bargain’ turns out not to be one after all.” He advises that one of the best sources of cheap property in Spain is buying directly from the developer, although this too should be approached with caution. In the past, some people have had their fingers burned with Spanish property and found they had bought properties without the correct licences in place. For example, only properties with a First Occupation Licence can be purchased with a mortgage, can be connected to mains utilities and are ready to move into. The key is to buy from a reputable developer in a small finished development and ensure that the First Occupation Licence is in place.

So, what does Obelisk recommend you buy to make the most of this fantastic lifestyle investment opportunity? “Look for the trio of high quality property, excellent value and peace of mind,” says James. “The usual location chestnut is not quite so important since most areas around Marbella fulfil your location criteria anyway.” With this in mind, Obelisk has cherry-picked a selection of new developments, all of which offer the very best when it comes to quality, value and due diligence (all have their First Occupation Licence and are ready to move into). Breathtaking views – a Costa del Sol hallmark – are a given in all the developments as are extras such as free lifetime use of a golf course or luxury furnishings. Mortgages of up to 70% or 80% are readily available for properties on all developments.

Buyers are realising that if they can find the right property at the right price, with the all the legalities in place, Spain and particularly the Costa del Sol, is worth looking at once more, with buoyant tourism leading the property market recovery. James says that just a year ago, he wouldn’t have expected to be predicting such fantastic news for the Spanish property market, but Obelisk’s research is showing consistent evidence that buying a discounted Spanish property now could be the best decision you ever made.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). International calls: 0034 952 820 319.

Email: info@obeliskestates.com or visit our website: www.obeliskestates.com

Just a Year’s Supply Left?

According to the Malaga Provincial Association of Builders and Developers, the Costa del Sol has a stockpile of just one year’s supply of new properties. This perhaps surprising statistic adds fuel to the belief that the property prices on the Costa del Sol are set to see a healthy increase from next year, proving beyond doubt that now is the time to make property investment in Spain.

Statistics from the Association estimate that there are currently slightly over 20,000 unsold new properties on the market on the Costa del Sol. The Association claims that this figure is not high since it is the usual demand for a year. Add to this the fact that there is virtually no new construction taking place on the Costa del Sol at the moment and it becomes obvious that the area is not far off a situation where supply meets demand. Once demand outstrips supply, prices will begin the inevitable upward trend.

Property experts are unanimous that one of the major problems currently facing the Spanish property market is the huge oversupply of unsold new properties. Although there are no definitive official figures, the numbers of unsold units throughout Spain range from one to two million, depending on the source quoting the figures. Within these national figures, it was generally believed that the Costa del Sol had a large stockpile of new homes, but the relatively low figure of 20,000 has surprised many analysts.

“Obviously, the demand of 20,000 is for a normal year and in the current market, we wouldn’t expect to see this met within a year,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “However, those of us based on the Costa del Sol have seen a massive increase in buyer interest and it wouldn’t surprise me at all to find that by mid-2010, supply starts to lag behind demand.”

James believes that these statistics confirm Obelisk’s forecast that prices next year on the Costa del Sol will experience a 2.5% to 3% growth on 2009 prices. “All the signs are there,” says James, “and the area is undoubtedly top of the investment spots at the moment.”

Spain Repossessions – Are They Really Cheap Properties in Spain?

‘Repossession in Spain’, ‘Spanish Repo’, ‘Distressed Properties in Spain’ ... These terms are now commonplace on websites and with estate agents dealing with the Spanish property market. For most buyers, these terms all mean one thing – cheap property in Spain. Thousands of bargains are currently available in the Spanish market – up to 50% discount in some cases – just waiting for the lifestyle buyer and investor prepared to purchase a carefully-researched and well-chosen property.

However, the buyer should also be aware that buying a so-called ‘repo’ in Spain can entail months of paperwork and costs. This could mean that the purchase may well turn out not to be a bargain after all.

Repossessions in Spain generally first enter the property market after the owner has defaulted for several months (usually at least three) on mortgage repayments and the bank providing the mortgage has started legal proceedings to repossess the property. The Spanish legal system means that a repossessed property cannot change ownership (i.e. full title cannot be bought by another person) until these court case proceedings have concluded. This typically takes around 18 months or in some cases, as long as 24 months.

While the proceedings are taking place, the buyer of a property under repossession can only buy the debt on the property, not the title. Buying debt can also be a potential minefield of bank-enforced penalty and timescale clauses.

With some repossessed properties in Spain, court proceedings have concluded and the title is free. However, it is worth bearing in mind that these properties have already been on the market for up to 18 or 24 months, during which time no prospective buyers have come forward. Reasons for this include other debts on the property, poor location, inferior construction quality and lack of investment potential.

Many repossessed properties are offered by Spanish banks, but purchasing directly from a bank has its disadvantages. Firstly, Spanish banks are cautious lenders and the approval of a purchase may take several weeks or even months as well as include complicated and time-consuming paperwork. In addition, prices for properties offered by Spanish banks are inflated since the bank adds its commission to the price. A possible advantage to buying from a bank is that you are more likely to get mortgage approval, but the mortgage will be on the bank’s terms, which may not be the best available on the market.

An alternative source of cheap property in Spain is to buy directly from the developer. Here the investor also needs to exercise caution as not all developers are offering completed properties or properties with the correct paperwork in place. For example, only properties with a First Occupation Licence can be purchased with a mortgage, can be connected to mains utilities and are ready to move into. Some distressed properties are on huge sites where there is no guarantee that properties will be occupied or that the community of property owners (vital for the maintenance and upkeep of the gardens and common elements) will be established.

On the other hand, developers are currently offering excellent price deals, often just slightly above the mortgage valuation price.

“The best scenario currently for the investor looking for cheap properties in Spain is to look in small finished developments being sold directly by the developer,” advises James Gonzalez, Market Analyst at Obelisk Investment Property. “In this case, the developer already has the First Occupation Licence for the property and is usually looking to dispose of the last remaining units to ensure that the development is occupied and that the community of property owners can be established.”

James believes if a cheap property or repossession in Spain does not fit these criteria, the investor would be wise to look elsewhere. “While southern Spain offers excellent opportunities for investment at the moment,” says James, “not all bargains are really bargains and there are plenty of potential traps for the investor not prepared to invest with due diligence. If there is a choice of property, I think repossessions in Spain should be avoided.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). From abroad:(+34) 952 820 319

Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at http://www.absoluteguideseries.com.

Email: info@obeliskinternational.com or visit our website: http://www.cheappropertyspain.net/