Is now the right time to buy a Holiday Home in Spain?

Spain is seeing record numbers of tourists arriving this year – until the month of May Spain welcomed some 19.8 million foreign tourists, a 3.9% increase on the same period in 2012. This May the tourism board recorded 5.8 million holidaymakers, a 7.4% rise on the same month the previous year. So should you buy a holiday home now, when prices are still falling?

There can’t be straightforward “yes” or “no” answer; as always, “location, location, location” is everything when it comes to investing in bricks and mortar. While a holiday home at the Costa del Sol, the Balearics or the Canary Islands is less likely to lose in value, the over-developed parts of Spain, such as Murcia and the Costa Blanca, are still seeing considerable price drops.

With a 10.7% increase in expenditure by holidaymakers coming to Andalucía, the third most popular region for holidaymakers visiting Spain after the Canary Islands and Catalonia, and an overall increase of 10.9% of expenditure on non-hotel accommodation in the first 5 months of this year, the Costa del Sol in the Andalucía region is still a pretty safe bet as far as holiday lettings are concerned. The Spanish government has just confirmed that holiday homes let out for 4 months or less during the year are going to be exempt from the new energy efficiency certificates, although investors will need to do some research with regard to new rules and regulations governing holiday lettings.

If your not concerned with investment portfolios and simply want a holiday home at the Costa del Sol to spend relaxing days in the sun with your family, you can’t go wrong with any of the resorts surrounding Marbella. Manilva, Benalmadena, Fuengirola and Estepona are family resorts where it is quite possible to pick up bargain apartments. With a little research and patience it is possible to stumble across 3-bed fully furnished apartments that are close to golf courses, close to the sea, close to schools and shops as well as being close to public transport in Estepona – all for less than EUR 100,000!

Marbella has always been a little more “upmarket” and prices are still higher than elsewhere, but even here a young couple just looking for a studio pad with easy access to beach and clubbing can find an apartment for EUR80,000 or less, provided you’re looking to the east of Marbella and don’t mind a 10 minute drive to the centre of town. In nearby Benalmadena 1 and 2-bed apartments can be purchased for around EUR 90,000.

At the other end of the scale there are properties in the Sierra Blanca, Golden Mile, La Zagaleta and El Madronal districts which require some serious money. To enjoy the tranquillity of the cypress forests of El Madronal a family looking for a holiday home typically needs at least a cool million before being able to hop into the refreshing waters of an infinity pool with views over the sea and mountains; if you wish to be surrounded by the landscaped gardens of a 4,000 sqm plot the typical 4-bed villa with all the luxury trimmings has to offer in this part of Marbella, you’ll need to pay EUR 700,000 just for the land.

For humbler holiday abodes, try Manilva, where EUR 95,000 buys you a first floor 2-bed apartment with a garage space underneath each apartment block. The gated development is located just 400 meters from the sea and boasts communal swimming pools, marble floors, fitted kitchens with all white goods included in the price and granite worktops to boot. Penthouses in this development come with large L-shaped sun terraces while ground floor apartments boast their own covered and uncovered terraces from 20 sqm upwards.

Family amusement parks, fantastic sports facilities, water parks, amazing beaches, 300 days of sunshine in the year and a huge choice of different style properties make Marbella and its neighbouring resorts a great location. If you’re planning on using your holiday home for the long-term, now is a good time to start your property hunt – in time, you’ll see prices rise again!