Population migration to the Costa del Sol – The last few years have seen both a major increase in the population of foreign owners on the coast, and also an important change in the demographics of that population.
Once mainly considered a holiday or retirement destination, the Costa del Sol is now increasingly attracting a younger profile of families moving to the coast to enjoy a new and much envied lifestyle. This is in addition to the retirement and holiday home clients who continue to visit the coast throughout the year, as they have been doing for so long.
With the changes made possible by technology and improved communications and travel, this trend is set to continue, as more and more people migrate from the inhospitable northern European climates to the sunshine lifestyle of the Costa del Sol.
Land between the mountains and sea on the Costa del Sol is limited and much in demand.
Interest rates generally in Europe are at low levels and would seem to be fairly stable.
Future investment returns
What the future holds we cannot guarantee. We can, however, chance some predictions based on past performance, current trends and objective forecasting.
Any investment decision is a choice between alternatives: the stock markets? Investment funds? Commodities…? The list of alternative investment opportunities is extensive.
Ultimately, the rock that property investment stands on, is past performance. Generally it has always provided a safe haven, and has over the mid and long term, always shown good capital growth.
With the Costa del Sol being so much in demand for its enviable lifestyle opportunities, we believe that demand will continue to be strong, and that this will underpin prices and growth.
Buying Off Plan
By buying off-plan you can reserve your property often up to two years before the building project is scheduled for completion and handover.
In this way, the forward thinking investor has the opportunity to secure the property at a significant discount to the final price and thereby reap the benefit from the increase in market value during the construction period.
The payment required to the developer on signature of the purchase contract can be between 10% and 40% of the total price. The balance can then be paid either in instalments during the construction period, or otherwise deferred until the building is finished and ownership is transferred to you ready for occupation.
As with all investments, choosing the right product and getting the timing right, is the key to making sound investments and maximising returns. We have many years experience in this field and can advise on the most appropriate off-plan investment to suit your specific need.
These must inevitably vary with different types of property and different usage profiles. One thing is, however, certain. With an average 320 plus days of sunshine every year, the demand for rental holiday accommodation has been, and will continue to be, very strong, offering good rental return potential throughout the year.
Please ask us for details.