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Many people are experiencing great returns from
investing in property in Spain. There are good
and bad Developers on the coast; property price
inflation has consistently been between 20 - 30%
per annum for the past 5 years.
This year has seen a slowdown in the Marbella
housing market to around 14% p.a. but other areas,
like Torremolinos and Estepona are still growing
in excess of 30% p.a.
Los Granados Duquesa, a beachfront development
by Espacio Group, launched 2 bed apartments off
plan. They were all sold out within three months
at around 180k€ and are now changing hands
between 350 & 380k€!
Another Developer in Duquesa, Duquesa Golden Mile,
usually sell an entire off plan development within
2 or 3 days from launch!
One of their projects, Coto Real Duquesa, an apartment
complex for completion in December 2005 was launched
at 9.00a.m. on a Monday and sold out, all 238
apartments, by 11.00 a.m. The reason is that investors
who know the Developer are aware in advance of
new projects to be launched; they then lodge 6000€
deposit for each apartment to be reserved with
their lawyer; on the morning of the launch all
that is required by the sales staff is to allocate
names to apartments and to contact buyers to confirm
the prices!
Another large Developer, Aifos Group are the Developers
and operators of the 5 * Guadalpin Hotel in Marbella.
This Group currently have five off plan projects
on the Costa del Sol with prices from as low as
121,000€ for a 2 bed apartment - about 50%
below the average price and great for investors
as most of these projects are around three years
from completion.
At the other extreme, Laguna de Banus is a 5*
beachfront project in Puerto Banus. Apartment
prices range from 1.2 million€ for a 2 bed
unit to 4.7 million€ for a penthouse! One
Irish buyer who purchased a 3 bed corner unit
in November last year for 1.6 million€ sold
it in February to a buyer who wanted that particular
apartment for 2.6 million€! At this end of
the market location is everything - there is always
someone who will pay the price if they want something
badly enough.
One of our agents personally purchased a 3 bed
village house at the highest point in Jimena de
la Frontera, 20 miles inland from Gibraltar in
July 2000 for 50k€; he sold it in May 2002
for 282k€ in just three days! Why? Because
it had views for 50kms and was at the highest
point in a white village, just beneath the castle
- location, location, location!
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