How to Get Ahead on the Med
April 7th, 2009
Despite the weak pound, bolt holes in some of Europe’s best-loved regions can be had for less than £150,000.
Holiday homes abroad have dropped down the list of priorities recently, what with many of us being more concerned with paying the bills and holding on to our jobs. But for those with a bit of money stashed away – say £100,000-£150,000 – a property in an attractive European location could be a sensible long-term option for your savings.
“We’re talking about an amount of money that’s not enough to retire on or change your life, but may be something from an inheritance or a lottery win,” says Nick Barnes, head of international residential research at Knight Frank estate agency. “People aren’t willing to dive into the stock market, they don’t trust banks and may want to do something with a lump sum for their pension, so they’re putting money into tangible assets such as housing.”
Two years ago, when global property markets were booming, a £150,000 ceiling would have ruled out most places west of Warsaw. Now, with prices falling almost everywhere, Spanish property is once again within reach – and that’s despite the pound’s recent dismal performance against the euro. So what will £150,000 buy you in Spain these days?
Prices in the overdeveloped areas of Spain’s Mediterranean coastline are being cut by 50% or more, as developers try to offload unsold stock and British owners sell up, but you don’t have to confine your search to the built-up costas. In some of the country’s most beautiful regions, such as the Costa de la Luz, inland Andalusia and even Mallorca, you can buy desirable holiday homes in prime locations for less than Cristiano Ronaldo’s weekly wage.
In Andalusia, in the old town of Jerez, with its cobbled streets and sherry bodegas, is Plaza Mirabal, a new boutique development of eight flats set in a former palace that retains its ancient facade. High-ceilinged two-bedroom flats start at £151,700, with 30% payable before completion, through Mercers. “When the Spanish property market started to falter in 2007, Jerez was in a strong position, as prices were 46% lower than the Spanish average and rental demand was good. So it has proved a shrewd mid-to long-term investment,” says Chris Mercer, the agency’s director.
The Costa Blanca’s coastal market may have collapsed, but its northern stretches – particularly historic inland towns such as Xativa, 30 minutes by train from Valencia and barely known to international buyers – offer appealing options.
“Two years ago, it was impossible to find anything there for less than £150,000, but today traditional townhouses in the old part of town can be bought for as little as £60,000,” says Lisa Francis of the buying agency The Property Finders. “I’ve also found a three-bedroom villa with a pool and two and a half acres of land in Anna, six miles from Xativa. It would have cost £280,000 at the top of the market, but the owners will now take offers of about £140,000.”
Barbara Wood, who runs The Property Finders’ office in Andalusia, says: “For the first time in a couple of years, I can find well-located village properties for less than £140,000. They usually need restoration, but building costs are falling too.” In Villanueva de Tapia, a small town surrounded by olive farms, about 45 minutes’ drive from Malaga and the same from Granada, Wood has found a “gorgeous two-bedroom village house, recently renovated and very authentic, that needs nothing doing to it”. It is being sold by Britons in a hurry for £70,000.
In southwest Mallorca, where a househunter with a £150,000 budget would have been laughed off the island a few years ago, Cluttons has a one-bedroom flat in San Agustin on sale for £147,600. It’s fully habitable, though in need of a little updating, with a large terrace overlooking the seafront. “One would normally have to hunt around the east coast to find this sort of price, but this is right on Palma’s doorstep, in a popular area,” says Nick Russell-Hughes, director of Cluttons Mallorca. “This really is a bargain, and has been priced to sell,” he says.
Story from Times Online
