Buying property on the Costa Almeria
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The Costa Almeria in southeast Andalucia is a hilly, barren area of Spain, which boasts the largest naturist beach in Europe, and – luckily for the nudists – one of the warmest and driest climates in Europe. It has also provided the locations for many memorable films, including Clint Eastwood epics A Fistful of Dollars and The Good, the Bad and the Ugly. Inevitably, where there is year-round sun, little rain and an association with classic Spaghetti Westerns, there are British property buyers – armed with their chequebooks.
The main areas to find property on the Costa Almeria are Mojacar, Albox, Vera, Almerimar and Roquetas de Mar. An agent from Escapes2 reports that average property prices in these areas start at £86,000 for a one-bed and £115,000 for a two-bed. A detached villa with pool costs around £179,000.
According to the website Kyero.com, property prices in Almeria are significantly less than the national average – 20 per cent below it, in fact. As of November 2007, the national average Spainish property price is £178,000; in Almeria, it is £143,000. The most popular type of property, according to Kyero.com, is a three-bed villa with pool, which is priced generally between £107,000 and £179,000.
Property price growth, like most of Spain, has slowed in the area. Escapes2 suggests prices have grown by eight per cent over the past 12 months, though another agent, who prefers not to be named, suggests prices have stopped growing at the moment.
That said, according to Conrad Bedford of Overseas Property Shop, the area is seeing a spike in interest from Brits, both buyers looking to relocate permanently to Spain and those looking for holiday homes.
“Interest in the Costa Almeria from British property buyers is far greater than any other Costa in our experience,” he says. “Over the past two years, the Costa Almeria has been our busiest area for property sales, due to the fact that it is not overcrowded. The reason it is growing in popularity is that it is quieter than any of the other Costas; it is more protected and the road systems are improving the access to the main coastal tourist towns. There are also more direct flights to Almeria International Airport from the UK, with Ryanair, Monarch and Easyjet flying there.”
“It is becoming popular with Brits who are retiring and want a quieter region of Spain to live,” adds Warren Byrne of Escapes2. “We are seeing more Norwegian and Dutch property buyers in the area, too.”
Paul Melhuish, who owns the website aboutcabrera.com, is one of the many Brits who have waved goodbye to the UK and moved to Almeria full time. “The past few years have seen a meteoric explosion of building in the area, and a similar increase in house prices. I have been part of that growth, having come here and built a house in Cabrera, a few miles inland from Mojacar,” he says. “There has been a feel-good factor with British homeowners seeing the value of their UK homes rising, and a desire to get away from the over-developed parts of Spain – such as Costa Blanca and the Costa del Sol – and come somewhere with more space and nature.”
Detractors of the region point out that the area is a significant agricultural base in Spain – mainly in the west of the country, where you’ll find enormous and not very attractive plastic-covered greenhouses producing fruit and vegetables to be exported to the rest of Europe. This does not appear to have affected the amount of properties being bought and rented out though, according to holidaylettings.co.uk.
“We have seen growth of a third since the beginning of the year in the number of holiday homes available to let there,” says Kate Stinchcombe, PR officer for holidaylettings.co.uk.
“Mojacar is the most popular place for holiday home investment in Costa de Almeria – we currently have 86 properties for sale in Majocar. In terms of holidaymaker demand, Mojacar is also the most popular. Properties there at present are attracting 4.2 enquiries per month on average, equating to 50.4 per year, which is 26 per cent above the average enquiry rate for the site.”
The fact that Mojacar, in the southeast of Almeria, is so rentable makes it expensive compared with other areas; a three-bed villa will cost around £240,000 here, for example. A similar-sized property in the town of Vera would cost, on average, £157,000.
For rental yields, assuming an occupancy of 19 weeks a year, it is possible in Mojacar to achieve five per cent, based on an average of the £240,000 purchase price and a rental income of £13,000 for the 19 weeks rental, plus additional cleaning, utilities and bills, according to holidaylettings.co.uk. According to the site, rental prices for a week in August in Mojacar range from £524 to £1,195.
Ross Elder, managing director of holidaylettings.co.uk, advises doing your homework thoroughly before deciding a rental price. “Many people under-price the high season – school holiday periods – and then try to compensate by over-pricing during off-peak seasons, the weeks that are harder to sell. Our advice is always to do your research, assess what others are doing in your location and how you fare alongside them.”
Vera may be cheaper to buy, but you’ll make slightly less rental yield also, at around four per cent. It is cheaper to rent here as well as buy – a week in August for a three-bed villa would set you back between £450 and £850. Demand is less than in Mojacar, too.
Read our other articles about buying property in Spain:
as well as our overseas property news affecting the Spanish property market or view our range of property for sale on the Costa Almeria.
First published in Homes Overseas Magazine February 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
