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The real estate market of the Costa Brava in Spain

The real estate market at the Costa Brava is one of Spain’s best. Since the end of the last century the combination of lots of unspoiled nature, a clear sea and beautiful beaches has attracted a lot of Spaniards and foreigners. Therefore the region is sometimes called the “Spanish Riviera”. Amongst other things, this international setting makes it very attractive to buy, build or let a house in this area.

In recent years it became obvious that buying a holiday home at the Costa Brava can be a very good investment. The flourishing tourism is still steadily increasing and there also is a still increasing demand on holiday houses, especially from the northern countries of Europe. Of course this also has its influence on the price of real estate.

The English form the biggest group of buyers in Spain at the moment, followed by the Germans, the Dutch, the Scandinavians, the Belgians and the French. The German demand has decreased substantially since 2002. Due to the steady British and Norwegian economies the English and Norwegian demand is still substantial. The Dutch demand decreased somewhat during the past few years.
The price level at the Costa Brava is not one of the lowest you could find and in recent years the sellers were obviously the ones who had the most power. The recent recession led to the present situation wherein the real estate market has become somewhat distressed again. The potential buyer can take more time to decide now. Houses are for sale for longer periods of time.

Building plots – because of stricter legislation amongst other things – are clearly offered less at the moment. Due to the higher prices that were a result of this, constructing on self-purchased building plots has become more difficult and more expensive.

For a lot of property owners it is also interesting to let their property, thus generating extra income. The average returns in letting holiday homes are very good.

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