Property prices in Murcia are attracting overseas buyers
Although property prices are still falling in Spain, the Costas are seeing less of a decline than the rest of the country.
Tinsa, a leading appraisal company, show that in the last 12 months the regional capitals where they are down the most by 8.1%, urban areas followed with a 7.5% drop.
The Mediterranean coast and the Balearic and Canary Islands have seen declines between 3.4% and 6.9%. Market prices are now down 30% on the coast and 20.5% inland since the peak.
Meanwhile, the latest Official House Price Index from the Department of Housing, shows that prices fell 5.6% over the 12 months to the end of quarter three.
Prices only rose in two regions; Tenerife they increased 1.7% and in Extremadura they rose 1%. Whilst other regions saw a decline including Murcia, which decreased by 8.3%.
However lower prices are attracting international interest including Russian, Scandinavian, Dutch and Belgian buyers. Although British buyers are down.
There are signs that property prices in Murcia will rise due to the new Paramount theme park, the international Corvera airport and the AVE train network extension. Property prices are still down in the region at the moment which is attracting smart overseas buyers who are confident that with the expansion in the area prices will rise again.
‘We are bucking the general Spanish trend here in Murcia as not only are we selling plenty of houses but we’re also generating many positive headlines. As these three huge changes in infrastructure progress, our property sales will only get stronger as a wider global audience comes to hear of the grand plans,’ said Chris Mercer, director of Mazarron based Mercers.
The Paramount theme park was viewed with skepticism until the plans were released earlier on this year. The work will begin 2012 and the park should be open by 2015.
With San Javier airport due to return to military use only, the opening of the new international Corvera airport is ever more important. Services are due to start in spring 2012 and is expected to be fully operational by the end of summer 2012.
Spring 2012 is also said to be the date that construction work will commence on the AVE rail link. If all goes as planned the AVE will stop at Corvera airport making it the first Spanish airport to be crossed by a high speed railway. The Regional Government also hopes that the rail link will provide direct transport the Paramount theme park.
‘All of this exciting large scale development is creating huge momentum for the private purchase of holiday homes, especially within the Camposol Golf Resort which is ten minutes’ drive from the Theme Park,’ said Mercer.
‘Murcia will be viewed as a secure investment, particularly for rental income with the considerable job creation in the area. Paramount alone is said to require 22,600 construction workers, great news for the Region and of course this influx of workers will require accommodation, so our investment clients are looking forward to a profitable near future unlike most other areas in Spain,’ he added.
Source - http://www.propertycommunity.com/property-in-spain/falling-property-prices-in-spain-attracting-overseas-buyers.html 22.11.11
Date posted: 22 November 2011
