Which Province is giving some reason for cheer in Spain?

There is not much good news coming out of Spain currently. It is true that Spain is facing challenging times and has been considered an “at risk” economy, fuelled by a contracted housing market. Construction accounted for just over 10% of the workforce in Spain, so it has had a big impact on the economy.

However there are some areas, with a good news story. Murcia, for example, is proving to be attractive for British buyers, looking for a reasonably, priced holiday home with good transport links, in an area with one of the best climates in Spain.

So whilst property sale transactions are greatly reduced from the peak of the market, there have been some improvements in the last six months, due to an uplift in confidence in UK buyers.

Sales on the Mediterranean Costas are down 6.8% year-on-year to December 2010, according to Tinsa (a national valuation company). The property price decline has slowed and it is now more in line with other areas of Spain. Up to this point, the Costas had suffered more of a price erosion, possibly because these are the areas more popular with British buyers and it is those buyers who have not been hugely active over the last couple of years, thus depressing prices.

Murcia has one of the best climates in Spain – the Costa Calida or “Warm Coast” has warm dry summers and relatively mild winters.  Prices are still significantly below the national average, specifically 40% less. The average property price is €281,000, but for Murcia it is €168,800.

Golf is an attraction to the region, it has 20 plus golf courses.  However the unique climate, value-for-money and transport links are some of the key drivers for British buyers.

The Costa Calida has beautiful Blue Flag beaches, unique choice of two seas, a wide choice of leisure activities – numerous golf courses, top quality sporting facilities ‘La Manga Club’, numerous sailing schools and clubs.

It enjoys 250km of Mediterranean sea, as well as having a saltwater lagoon on its northern coastline, known as the Mar Menor (Little Sea) which has an area of approximately 170 km2 and is the largest of its kind in Europe. The Mar Menor is separated from the rest of the Mediterranean by a narrow strip of land known as La Manga (The Sleeve). La Manga is one of the best known sports resorts along the coastline ofSpain. The waters of the Mar Menor are renowned for being some 5 degrees warmer than the surrounding Mediterranean Sea, this makes the beaches around the Mar Menor very popular with holidaymakers.

Murcia was relatively underdeveloped, compared to some of its Costa Cousins, therefore oversupply of homes has not had such a great impact.  The biggest impact on house prices has been unemployment and mortgage lending. The majority of property sales in Murcia are to Spanish nationals and obviously these two factors have a direct impact on supply and demand and therefore house prices. 

What does the future hold?

For the region as a whole, a lot is dependent on how the measures, put in place by the Spanish government, work for the micro-economy. However bear in mind the good news on the horizon. Future development and investment will increase the economic wellbeing of the region:

·         In Cartagena, Repsol, a Spanish energy company is expanding their business and building a new gas plant, so need to bring thousands of new workers into the area. This has created demand for local rental property and a shortage for 1-2 bed rental properties. This is not a situation that seems to be widespread in Spain at the moment.

·        There is construction of a high-speed rail link between Murcia and Almeria, enhances the areas links.

·        The proposed Paramount Park near the airport will comprise hotels, restaurants, and shopping. Paramount Pictures is not a direct investor in the project, but will provide “intellectual property” of films and branding Negotiations are ongoing with contractors to develop and build the complex and area.

·         The new Chinese Enterprise, called ZEIC (Special Investment Zone Chinese) propose to build a commercial and business centre. The idea is to facilitate relations between Spanish and Chinese enterprise and serve as a blueprint for other parts of Europe. Murcia as region has been chosen because of its high demographic density, diversity in its activities and its connections to the rest of the surrounding regions.

With a proposed build start date of 2011, this huge new venue could be completed as early as 2014.

·        Murcia has very good transport links: San Javier Airport, AP-7 motorway north & south, Alicante Airport. The new Murcia international airport – Corvera - is under construction and expected to be operational Summer 2011.

Click here to see what Spanish property is on offer

Posted by Louise Reynolds, Property Venture^®  1st February 2011

Property Venture^® is an independent, UK-based agent. We help time-strapped investors and holiday home purchasers, buy abroad more easily and safely than they can on their own.

We visit the countries you buy in, so we can offer common-sense, grounded advice. Overseas members of National Association of Estate Agents (NAEA). This means we have been subjected to the membership criteria and have signed up to follow the professional Code of Conduct established to help you, the potential buyer or investor, buy overseas property with confidence