During the last year, the English Pound has risen by around 10% against the Euro, and in the same period Spanish property prices have fallen by around 25-30%. With these favourable economic conditions, the attention of many real estate investors will have been caught by the Spanish market conditions. If you are considering investing in a permanent home or a holiday home in Spain, this article provides an overview of what you may expect to get for your money.

The Costa Blanca region of Spain is one of the most popular areas for foreigners purchasing property in Spain. The region has 2 major airports, Alicante and Murcia, both of which are served by a number of low cost airlines such as RyanAir and Easyjet. Many of the airlines operate all year, so winter travel is an easy option.

One of the most popular regions for investors looking for a bargain is the Torrevieja region located midway between Alicante and Murcia airport. Torrevieja is one of the fastest growing towns in Spain, and many British ex-pats live in the area permanently, so it is easy to make friends and contacts in the area.

Villa Martin is a new development within Torrevieja which has become a very popular location for English buyers. With a beautiful plaza surrounded by shops and restaurants, a golf course and easy access to beaches, it is easy to see why Villa Martin appeals to property buyers. The area will be very busy during the summer months. A few kilometres outside Torrevieja is the town of Algorfa which is also popular with foreign buyers.

Due to over-supply and bank repossessions, the Costa Blanca currently has some of the best value properties in Spain, and is an ideal location for purchasing either permanent or buy-to-let property. There are many local property management agencies available to manage holiday sub-lettings if you are considering this option.

Below are some typical property prices for the Costa Blanca region:

1/2 bed apartment: 75-90,000 Euros

2 bed villa with garden: 85-110,000 Euros

3 bed villa with garden 95-130,000 Euros

Most properties will have balconies/sun terraces and access to a communal pool. Villas will generally have a small, low-maintenance garden. Many of the properties are in gated communities which may be a consideration if the property will not be occupied all year. If you are prepared to buy property in land, the prices will reduce by around 10%. However the climate inland is hotter in summer and cooler in winter due to the moderating effect of the sea on the air temperature.

To obtain a Spanish mortgage, you will generally require at least a 40% deposit, and also allow around 10% on top of the selling price for buyer’s taxes and fees. English mortgages are a possibility, but interest rates tend to be slightly higher than for the Spanish mortgage. With Spanish property prices unlikely to rise in the near future, investment in real estate in Spain should be considered as a medium to long-term investment opportunity.

Author Bio: Matt May is an internet writer and owner of Blue Valley Car Hire who provide car hire at Alicante Airport in Spain

Category: Real Estate
Keywords: Torrevieja, Alicante, Murcia, Spain