Property Costa del Sol
The Costa del Sol continues to be the centre of property investment in Andalucia. It is not uncommon for investors to see rather surprisingly large gains in well-selected investments. As an example, some property investments in the Marbella area were reported to increase in value by 40 percent in 2001. Realistic expectations from investments in many areas of the Costa del Sol range from 25 to 40 percent increase per year (based on 2001 and 2002 figures). If you wish to invest in rentals, you can reasonably expect to earn 6 to 10 percent of your property's price during the first year.
Here are a few key points about Costa del Sol investing:
Types of Investment
The Costa del Sol investment scene is varied and includes plots, villas, apartments, townhouses and semi-detached houses with everything from sea to mountain to golf course views. While investments can be made in the second-hand market, buying from plans is a popular form of investment. To maximise profits, investors will often buy from plans and then sell when construction reaches the final phase, only to re-invest in other new property developments that are still on plans. It is advisable to take professional advice if you plan to become involved in this type of investing in order to ensure you are dealing with reliable developments that provide all the required guarantees.
Services for Investors
A number of real estate agencies organise chartered flights from the UK and other countries for potential investors. These are flown in for a weekend, during which time they tour numerous properties meeting their specifications.
Once you have invested in a property, there are also ample management services available. Specialised companies can manage your investment, whether it is a part time residence that simply needs maintenance and surveillance or a rental that requires more intense management.
Why the Costa del Sol is so Popular
There are many reasons why the Costa del Sol is such a popular place to invest:
The Costa del Sol's tourist industry is steadily growing. Important sectors within the overall industry are residential and golf tourism, both of which attract relatively high calibre tourism to the area.
Economic growth on the Costa del Sol has remained strong and constant for many years now. Presently the area is seen as relatively stable and flourishing. Click here for more information on Spain's economy.
Infrastructures have improved greatly on the Costa del Sol and currently meet the demands of northern Europeans. This Coast is well serviced by Málaga International Airport and an excellent network of motorways spanning from one end to the other. It also boasts one of Spain's best-managed public hospitals, Marbella's Hospital Costa del Sol, which is complemented by prestigious state centres in Málaga city and numerous private clinics and hospitals in the area. Both international and private Spanish schools offer excellent educational facilities, while the state system offers a quality alternative. The area is also fully equipped for telecommuting, with high-speed internet connections and all the necessary equipment to set up the satellite office. Finally, in addition to quality Spanish products, foreign imports are readily available in all market sectors.
A fast-growing leisure industry also fuels the local economy and makes this an attractive place to live and spend holidays. At the forefront are boating and yachting, with numerous ports, nautical clubs and centres for water sports along the coast. Golf also plays a key role with over 40 golf courses in the province and at least 7 more on the way (in 2003/4). New entertainment-only super malls are also an emerging force. Plaza Mayor in Málaga, offering over 70 restaurants along with gaming facilities, cinemas, a luxury gym and more is already spawning plans for a similar centre in Marbella. Sports facilities of all kinds abound, ski runs are nearby in Granada's Sierra Nevada and adventure tourism opportunities are offered inland at natural parks, in caves and down the area's rivers.
Add to the above a predominately sunny climate and highly sought-after beaches and you will cease to wonder why the Costa del Sol is attractive to so many.
