Hi,

This is an interesting topic as the majority of the tiem I see matters from an alternative perspective as 60% of my time is spent representing buyers and sellers.

In my opinion the market cannot be looked at as a whole because so many regional variatiosn exist. Whereas tradiotnally people were buying and selling property on the Costa del Sol and making exceedingly good returns (especially off-plan) for many years this trend has for the large part come to an end. Buyers must now be exceedingly careful where they buy and what they pay - especially if they are looking for a relatively short term investment (for example to sell within a small number of years).

I feel that the situation on the Costa Blanca is very similar and many agents tell me that they feel that now is a time for consolidation. By the same token, property is certain areas such as Javea and Moraira remains popular but buyers must again beware what they pay. In addition, in Javea for example there is a glut of un-sold apartments which tends to in my experience put a downward pressure on the market.

In certain other areas I see real potential and I have had a number of clients who have purchased solely for investment in Valencia city. Relatively speaking prices remain low for good sized apartments (compared with places such as Javea for example) and with the arrival of the America's cup and Valencia's strengthening position nationally and internationally I can see that such an argument makes sense. Whether the economic reality backs this up only time will tell but certainly I have already seen clients successfully make a profit.

Beyond Valencia I frequently travel to Cataluna - espcially Girona. Principally this is for work but I also find it is one of the most agreeable places in all of Spain. Wise provincial planning regulations have ensured that the coast has for the large part remained unspoit and where development is allowed it is not piecemeal and what I would cosndier ugly. Located on the French border one can be skiing in an hour or on the beach in 40 minutes from Girona city centre and more and more British and indeed Americans are buying there.

During a recent visit I was talking to a developer at the Notary office and he commented to me on a recent interesting trend whereby people working in Barcelona were selling their properties to relocate to Girona. Principally they were able to do this because a fast direct train service exists between the cities and because with the proceeds of sale of their former property they could easily afford to buy in Girona. Combine this with far more pleasant surroundings and one can easily understand why such a move would be made.

In terms of the prices themselves a recent client of mine who purchased an apartment in the city centre off-plan for 181.000 plus costs has made nearly 70.000 euros in a year and a half. Recalling this I again ask myself why I ever became a lawyer!

Nonetheless, I hope that my opinion is of interest.

Glyn Moran
Partner
CB Legal & Fiscal Consultants
Tel.: +34 966 472 660 / +34 699 838 795 / Fax: +34 966 472 510
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