Victor Sague, sales and marketing director of Taylor Wimpey de España answers your questions on this popular stretch of Southern Spain
How is the market in the Costa Blanca?
Like the whole of the Spanish market, the Costa Blanca itself is segmented when it comes to property. There are areas which have suffered in the downturn more than others. From Torrevieja to Santa Pola there are a high number of units available on the market and so prices have dropped in these areas considerably whereas along the northern coast of the region, from Calpe upwards, development over the years has not been so prolific and so prices have held much better. It is in this part of the Costa Blanca that Taylor Wimpey de España has focused its developments and having adapted their pricing to fit the weaker demand plus importantly their high quality of build and specification has resulted in a consistent level of sales to an international audience.
Is there much British interest?
The British market is still one of our most important, second only to the local Spanish market. 39% of all enquiries this year have come from the UK.
Are people still wary of buying in Spain after a)market dip b) land grab/planning scandals c)continued economic climate in Spain etc?
People are more wary about purchasing in Spain, and purchasing abroad generally, however, I think there are in fact many positives to this. Buyers coming over to view homes are much better informed on the market, the properties themselves and the purchasing process; they are looking for quality products and established developers from which to purchase. Clients are not simply looking for a bargain, they want value for money and most of all the security of knowing they are buying from an established and reputable developer.
The Spanish property market took a further knock in May – June of this year with the Spain / Greece market comparison which was grossly exaggerated in the British press. However, the results of the recent bank stress tests and the government plans to reduce deficit have helped reestablish confidence in the market and now buyers are confident in Spain recovering from the crisis.
Are prices still falling? Stable? or indeed rising?
Pricing in the Costa Blanca is very localised, it varies from region to region, even town to town… The prices for new homes in secondary locations where there is a significant over supply are still falling, whilst homes in the best locations are in short supply and already we are seeing some price rises to keep pace with demand.
This year Taylor Wimpey de Espana has sold out in several of our developments, with availability of units in others down to the last couple. We are also one of the only developers to be launching new developments at present.
How far would you say prices have fallen in the last five years on the Costa Blanca (ballpark)?
Between 25% and 35%. Official figures don’t really show the reality of the market
Is the Costa Blanca a market all of its own, or does it mirror the other Costas – del Sol etc?
The Costa Blanca is a different market from Costa del Sol and attracts a different type of buyer. Currently there are more properties on offer at cheaper prices. This part of Spain also seems to attract the people looking to permanently relocate compared with a greater proportion of holiday home owners attracted by the year round sunshine, lower cost of living and excellent infrastructure.
Specific advantages of buying on the Costa Blanca?
For many the Costa Blanca offers greater affordability than the Costa del Sol for example, buyers can get more for their money here. This is one of the drivers for buyers in this region. It is an established region with British buyers, offering many a ‘home from home’ experience, however those seeking the Spanish lifestyle are equally able to live out their dreams here. We are finding that increasingly it is not only people of retirement age purchasing in the Costa Blanca but families are attracted to the blue flag beaches, abundant amenities and excellent accessibility by air, 44% of all our enquiries are from people aged between 35 and 45. It also has to be said that the Costa Blanca has a unique micro climate recognized by the World Health Organisation and for those suffering with arthritis and other rheumatic problems living here can greatly improve health.
Off-plan sales have taken a bit of a hammering in recent years, with buyers increasingly worried about losing deposits if sites/developers go bust. Are the British still looking to buy new, or more at re-sales?
We are finding that many people are choosing to purchase stock units – turnkey homes where there is no risk of losing the property. However we are still experiencing interest in off plan products which we believe is down to our reputation as an established and trustworthy developer in Spain.
Presumably having such an established global name and brand as Taylor Wimpey (especially being British) gives a lot of comfort to UK buyers?
In today’s climate a well known brand is more relevant than ever. When the property market was thriving any company seemed to be able to jump on the property sales bandwagon however, with the economic shake up, and with so many developers experiencing financial problems and even bankruptcy, buyers are choosing to purchase from reliable brands that they know will be there after the crisis. Sadly for every developer that has gone bust there are plenty of problems left for buyers who are struggling to get their money back amongst other issues. We are contacted everyday by people who have paid deposits to bankrupt developers and are seeking assistance of how to get their money back.
