Spanish Property Investment Advice 

Brought to you each week by our property expert, Iain Maitland.

Posted on 12 May 2006

Costa del Azahar - Bargain Property in Spain

The question I am asked most often by Brits looking to invest in Spain goes something like this, “Where can I buy an affordable property in a quiet and beautiful location that nobody else has spotted yet?. “And”, they usually add, “has an upcoming trigger that will drive property prices upwards?” There can only be one answer – the Costa del Azahar!

Costa del Azahar runs from the Catalonia in the North towards Valencia in the South. Best known for its orange groves, it also offers sandy beaches, parks, nature reserves and mountains. It has long been viewed as a big draw for the Germans as the coastline is little more than a day long drive from there. Yet the main buyers at present remain the Spanish.

That helps keep property at affordable levels. After all, it is foreign investors who tend to drive many markets. You only have to look at Bulgaria and Dubai to see that. At present, and despite recent price rises in the region, property is affordable. As a rule of thumb, you would expect to pay about 30 per cent less than you would on the Costa Blanca. A typical apartment here, so far as one exists, would cost you about 100,000 to 130,000 pounds. That will rise.

The area is actually accessible to the Brits. You can fly into Valencia, Reus or Barcelona and then self drive or take the train. Even so, it is not obviously accessible. That is set to change, An international airport near Vilanova d’Alcolea is said to be opening in 2007. A highspeed rail link from Madrid to Castellon is due to be completed as well.

Where to buy? The places tipped most often are Peñiscola and Benicasim on the coast. Sea view properties remain affordable and should price rise most of all. One or two more speculative investors are looking inland towards the Maestrazgo mountains on the basis that, as with other Spanish Costas, the ripple effect eventually sees the property money move inland. Although prices can start for as little as 30,000 pounds, such investments can only be viewed as highly speculative long-term punts. Stick to the popular towns along the coastline and wait for the Brit invasion in the later part of this decade.

All for now

Iain Maitland

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