Despite strikes and various drastic changes among international air carriers, Spain’s housing market remains a favourite among foreign buyers. Sunny climate, fantastic water sports, tennis, motorsport and golf facilities as well as far lower property prices than at home have convinced many bargain hunters from Germany, Britain and Russia that it is time to return to the Costa del Sol and find investment opportunities.
The Costa del Sol remains one of Southern Europe’s most accessible regions with budget airlines like Monarch, Ryanair, Easyjet and Vueling for example offering hundreds of flights per week to Malaga, Gibraltar and elsewhere.
Now IAG, the parent company of Iberia and British Airways, has announced a takeover bid for Spain’s low-cost carrier Vueling at the same time as introducing a massive restructuring program for debt-ridden Iberia. Despite the record numbers of tourists Spain has welcomed over the past couple of years, Iberia has performed poorly and is now fighting for its survival.
How 4,500 job cuts will impact on Vueling and Iberia’s passenger services is yet to be seen, as is how potential new owners of Vueling will change pricing and routes.
Vueling has bases across Spain, from Barcelona and Madrid, Seville and Bilbao, Ibiza and Mallorca to Malaga and Alicante. World-wide the airline has more than 100 destinations, which include many major cities in Europe, North Africa and the Middle East.
EasyJet, Britain’s largest airline, has just introduced allocated seating on all their flights from 27th November 2012 onwards, which followed on from an announcement on 22nd November that a strategic partnership had been struck between the budget airline and Paradores de Turismo de España, a hotel institution in Spain, showing the country’s growing importance to the airline’s profits. From next year onwards Santiago will be added to the airline’s Spanish city destinations.
Budget airline Monarch also flies to Malaga and Alicante, Mallorca and Tenerife as well as to Barcelona. Virtually every couple of months one or the other international carrier announces improved routes to Spain - what better reason to make an arrangement for Fly and Buy visits to hunt for property bargains in Spain?
Marbella and its neighbouring towns have long been a favourite with buyers from Russia, China, Germany and Britain. Increasingly, property bargains are harder to find as less houses are being built in the present climate of austerity. Some areas of Spain are particularly targeted because they have plenty of international schools or a reputation for being a low crime area, something that benefited Ibiza’s property market greatly this year.
Meanwhile, in the UK some 3.25 million Brits plan to sell their UK residence to fund their retirement, with only 13% of working adults considering downsizing their home and 4% planning to sell and not purchase another home in Britain at all. Nearly 1 in 8 people are hoping to have enough equity in their UK home to fund part or all of their retirement.
While some of those asked may at present not even contemplate to up sticks and leave their country of origin, when retirement finally happens, others are already planning ahead and are property hunting in Spain already, while prices remain low.
In Marbella’s easterly districts Elviria is fast becoming a firm favourite thanks to relatively low property prices and excellent quality builds in either sea or golf frontline developments; Eliviria’s close proximity to Marbella’s city centre, hospital and golf courses are all adding to Elviria’s appeal.
In Benehavis discerning buyers are heading inland into the hills, where some of the finest luxury developments are not really that far from the beaches, but far enough to stay clear of tourist crowds. Benehavis is just a short drive from Marbella and a much sought after location for golf enthusiasts and gourmets, thanks to a plethora of excellent restaurants.
A recent meeting of Leading Property Agents of Spain saw Marbella’s Mayor Angeles Muñoz address the function at the Don Carlos Hotel with more promises that past issues over corruption in governmental planning departments and oversupply of holiday homes in the region would be tackled alongside introduction of better guidelines and regulation of the estate agency sector.