For anyone considering taking advantage of the dramatic price reductions that are currently available, beware: there are some very important factors to consider. The adage that you get what you pay for still applies, nevertheless, you can get a lot more for your money.
In the days when demand outweighed supply, property was built in third, fourth and fifth rate locations and was being sold quicker than it was being built. It is in these locations where I have been seeing the biggest reductions. It really was a case of anything would sell, and people were buying apartments in developments in the middle of nowhere, at least 20 minutes drive inland with no decent infrastructure and where every property looked the same.
If you are looking for a property that has a little more to offer with regards to local amenities, views, beaches and a safer long term investment, while it’s not entirely impossible to find reductions of 50%, you are more likely to find them with discounts of around 35%. In general, resale property IS what is selling, in established residential areas where over supply is not a risk.
In recent years, some of the more up-market areas on the northern Costa Blanca demanded well over €400,000 for a 3 bedroom, 2 bathroom detached villa with pool on a plot of around 1,000 m2 that probably needed some cosmetic updating. This price range is now more applicable to 4 plus bedroom property with pool on a far larger plot. Smaller detached villas with pools, perfectly adequate for holiday homes or for a small family in excellent locations are now available from €250,000.
Currently on the market for €260,000 in Moraira, a pretty coastal town with its own marina an hour south of Valencia or an hour north of Alicante, is a detached 3 bedroom 2 bathroom villa with private pool, sea views and just a 20 minute walk into the town or to the beach.
There is much more to the Costa Blanca than Benidorm and the overdeveloped areas around Torrevieja. The northern Costa Blanca more than compensates for its less appealing resorts. The region is quite mountainous which has restricted overdevelopment, it has a number of lively towns dotted along the coastline, each boasting their own marinas, and traditional Spanish villages just 20 minutes from the coast remain untouched by large developments.
Seafront properties in the northern Costa Blanca are available at a fraction of the cost of a Marbella equivalent. For example, on the market at the moment in Javea in one of its more exclusive locations is a detached villa with panoramic views over the bay towards Ibiza. The property has 4 bedrooms, 4 bathrooms, a heated pool, garage & work shops and is built on 3 levels with an internal lift. 2 floors are currently split into two, 2-bedroom separate apartments and the property is on the market for €950,000, while the bank values it at €1.8m. It does need updating but these properties, once updated, sell for around €2m. This is an excellent example of what a property in a truly prime location can be acquired for in the northern Costa Blanca at the moment.