Renewed optimism in Costa Blanca property market

When the new international airport at Murcia City opens later this year property owners are likely to see an increase in bookings as visitors numbers increase for Spain’s Costa Blanca, it is claimed.

There is renewed optimism in the real estate sector with a number of new developments being proposed but not everyone is convinced that Spain’s beleaguered property market is ready for new off plan sales.

The airport is expected to triple the number of visitors to the area. It will have the positive affect of increasing competitive flight prices and also increasing rental incomes in the areas for landlords.

‘Rental occupancy should definitely show an increase after the opening of the airport although it is very hard to state hard figures in a market like this. The Costa Blanca has been through a challenging period but seeing the Government and financiers investing in the infrastructure of the province is immensely reassuring for both current and prospective property owners,’ said Ignacio Osle, sales and marketing director of Taylor Wimpey de España.

‘We have deliberately slowed our development pace in the area to mirror the economy but we are happy with the way our properties have been selling and we are quietly confident that as long as the current pace of enquiries and sales continues that by the end of the year we will be seeing a stronger flow of prospective buyers through the door,’ he added.

Spain is still a popular choice for holidays and planning approval for the Paramount Studios theme park is regarded as a big plus for the area. ‘We are naturally thrilled that the Costa Blanca has been ear-marked for this project and we are very confident that this will bring further wealth to the area, not to mention greater opportunities for our home owners,’ added Osle.

In recent weeks, two Murcia based property developers have announced grand plans for new build residential projects in 2011. One, Lake Argos, promises 500 ultra modern detached homes in a nature reserve setting whilst Polaris World is adding 400 new units to its vast golf led Murcia property portfolio.

Local real estate company, Mercers, wonders though if this could be premature. After 14 years on the ground in the established resort of Camposol Golf in Mazarron, director Chris Mercer has plenty of experience to draw on. ‘The positive news is that these brave developers are showing confidence in the Murcia property market and the return of the holiday home buyer,’ he said.

‘I imagine that both entities feel that the market has bottomed, prices are indeed 50 to 60% off bringing them down to levels of a decade ago, and from here the only way is up.  However, as an agent, we genuinely have little demand for off plan property and in fact haven’t sold one in around two years. My concern is that the Paramount Theme Park has, in part, prompted the decision to launch these new builds and we may be just a little premature,’ he explained.

‘Spanish media reports suggest the creation of 20,000 jobs, 15,000 new hotel beds and visits from almost three million tourists each year. But this huge tourist attraction hasn’t even broken ground, the master plan yet to be revealed, and realistically is several years from making a real impact. Whilst keen to speculate to accumulate, many buyers like to eliminate the risk and opt for a bargain priced completed property for the same price, or even cheaper, than off-plan and enjoy their purchase from the word go,’ he added.