Spain Property News

Demand for property in Murcia surges by 78pc

Demand for property in Murcia surges by 78pc
Demand for property in Murcia has surged by 78 per cent this year, can reveal.

The region has long been mooted as the fastest recovering area in Spain, with the upcoming international airport and Paramount theme park boosting its potential for property investors. But interest in the region's real estate has already started to grow on the overseas portal, with enquiries between March and May this year 78 per cent higher than the three months from December to February.

The increase in interest follows official reports that property sales across Spain have risen too. Real estate transactions grew by 21.9 per cent in the first quarter of 2012 compared to the last quarter of 2011, the Spanish College of Property Registrars revealed this week. This boost in sales has been attributed to the country's "intense lowering" of house prices, as holiday homes become even more affordable for international buyers.

Spain's financial woes and historic bank bailout continue to dominate news headlines, but the country's unemployment has also driven rents up, with rates growing by 0.7 per cent in April compared to last year. Now, investors are looking to take advantage of the falling prices and higher rents, and Murcia is one their main targets. During May so far, the region's enquiries on are already 45.2 per cent above last month.

And a development launched this week in Murcia's most-visited golf resort is set to make them climb even higher.

Las Lomas Village, with prices below 50 per cent of the market's peak value, is a chance for investors to make the most of the high yields that come with having La Manga Club next door. Owners are guaranteed 35 per cent of the gross revenue for the village, explains the development's agent, UK Murcia Investment, while operating costs are covered by management. In addition, buyers get 30 days usage per year at no extra cost.

As well as La Manga Club's famous fairways, Las Lomas boasts its own golf facilities, plus 8 football pitches, 28 tennis courts, a hilltop spa, swimming pools and an on-site beach.
Released directly from the bank, the heavily discounted apartments (both studio and two-bedroom) are eligible for up to 100 per cent financing, meaning that a total capital outlay of only 12,000 to 15,000 euros is needed to invest.

Too good to be true? Not so, says UK Murcia Investment. Even's Managing Director Dan Johnson has decided to invest.

Johnson explains why the deal turned his head: "As a fan of sports, sunshine and the odd glass of sangria, these fantastic properties at La Manga tick all the important boxes for me. Dig into the deal and it just keeps getting better and better. A solid management package delivers good rental income from day one, while a really generous usage scheme lets you regularly enjoy the resort with family and friends."

"I have no hesitation in recommending this deal," Johnson adds. "I'm even buying a unit myself."