The Spanish property market continues to offer great investment potential. Marc Pritchard, sales and marketing manager at Taylor Wimpey de España, stated in an interview in U.K.’s Independent newspaper that there are big investment opportunities for any buyer who is willing to do due diligence.
At the top end of the market lies the Balearic island of Ibiza. According to Amanda Marti, director of the Ibiza Sotheby’s International Realty office, the market has been highly active in the last six months, with many buyers using cash to fund their purchases. Property prices have fallen in the apartment market on Ibiza over the past four years but not to the same levels as on mainland Spain. Ibiza will always be one of the favorite summer vacation destinations for young, northern Europeans who need places to rent during the festival season, from May through September.
Sitting at the opposite end of the market from Ibiza, languishes Murcia. In May 2012 Idealista (a Spanish real estate site) suggested that Murcia had 11 property repossessions per thousand inhabitants. Murcia is a hot, dry region where blue skies are almost guaranteed, one of the reasons why the region was chosen as the location for a new Paramount theme park. At the beginning of October 2012, construction of the latest Paramount theme park will begin in the town of Alhama de Murcia. The bank Santander has a repossessed, three-bedroom apartment in Alhama de Murcia listed on its property site Altamira. The 98-square-meter apartment is on the market for just 36,000 euro. The Paramount site will cover 1.8 million square meters and, in addition to the theme park, will have a lifestyle center with hotels, shops, restaurants, offices, and bars. According to local real estate agent Chris Mercer, “Buying a house nearby now will be like buying in Orlando prior to Disney’s arrival.” Due diligence in Spain could reap future rewards.