You can see North Africa from the Costa del Sol, Spain's southernmost Mediterranean coastline. But while Andalusia's exotic Moorish connections are in the past, British links are growing. Drawn by the climate - at least 300 days of sunshine a year - relaxed way of life and improved transport links, more than 60% of British people looking to buy property in Spain choose the Costa del Sol.
Levels of development have been high, to keep up with this demand, and government figures show that average property prices in Andalusia rose by 21.4% during 2004. There was a similar rise in the municipality of Malaga, and new build prices along the coast rose, on average, by 13% to 20%.
Will this boom continue? Reports suggest that on bog-standard developments, of which there is an over-abundance on some parts of the coast, prices are stagnant or even declining. This is partly due to unwise over-buying by amateur off-plan investors who, if they don't have the finances to complete on the deals, have to sell them at any price. On the other hand, at the top end of the market, and for properties in golf and country club settings with plenty of amenities, demand has held up better. The trend for buying inland is growing, and some developers are offering new properties in rural areas as an alternative to the full-on renovation project of an old country or village house.
You still get more for your money in Spain than in Britain, because land and build prices are significantly lower. Average property prices on the Costa del Sol are around £390,000 for a villa, £260,000 for a townhouse and £200,000 for an apartment, but you will pay much more than that for the swankiest bits of Marbella, and can find lower prices in less fashionable areas.
So the Costa del Sol and inland Andalusia property market still offers great opportunities for solid property investment, provided buyers seek out homes with features that mean they will hold their value.
Developments on the Costa del Sol
Arenal Duquesa
Martin Mendez Building
Arenal Golf
Villas del Arenal
Arenal Marina Golf
Other Arenal 2000 Developments
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