New Developments in Costa Cálida

Costa Cálida, the 'Warm Coast' of Spain, is currently experiencing a dynamic and compelling real estate market. The allure of sun-drenched beaches, championship golf courses, and a relaxed Mediterranean lifestyle continues to draw international investors, making it a sought-after destination for both holiday homes and permanent residences. The market is characterized by a blend of robust demand, increasing property values in specific sectors, and a constant influx of new developments designed to meet the evolving needs of a discerning international clientele. The region has emerged as a true hotspot, not just for lifestyle seekers, but also for investors looking to capitalize on strong rental yields and long-term capital appreciation. The region’s appeal goes beyond just sun and sand; it's about the accessibility, the infrastructure, the relative affordability compared to other Mediterranean hotspots, and a supportive local environment that welcomes foreign investment.

Market Trends and Prices

The Costa Cálida real estate market is generally experiencing upward price trends, although this varies significantly depending on location, property type, and proximity to the coast. While certain areas have seen substantial increases, others offer stable or moderately increasing prices, presenting opportunities for diverse investment strategies.

• General price trends: Overall, prices are rising, but at a more moderate pace than in previous years. The initial surge following the pandemic has stabilized, but demand remains strong, particularly for high-quality properties in prime locations. New developments and renovated properties command a premium.

Comparison of prices

• North vs South: The northern part of Costa Cálida, around the Mar Menor, generally offers more affordable prices compared to the south, particularly in areas like La Manga del Mar Menor, where prices can vary greatly depending on the location and views. The southern area, closer to Águilas, tends to have higher average prices, influenced by a higher concentration of luxury villas and exclusive resorts.
• Coastal vs Inland: Coastal properties invariably command a premium. A beachfront apartment will be significantly more expensive than a similar property a few kilometers inland. Inland towns and villages offer considerably lower prices, representing an opportunity for investors seeking value and a more authentic Spanish experience.

What you get for your money

• €150,000 - €250,000: This budget allows for a comfortable apartment with 2-3 bedrooms, potentially with a shared pool, in a town slightly inland or a smaller apartment closer to the beach. Resale properties in established urbanizations are common at this price point. It can also buy you a small townhouse in a village.
• €250,000 - €400,000: This range opens up options for larger apartments with sea views, townhouses with private gardens, or smaller villas with a private pool in some areas. New developments start to become a viable option, offering modern amenities and energy efficiency.
• €400,000 - €750,000: This is where you can secure a spacious villa with a private pool, possibly with sea views, in a desirable location. Luxury apartments in prime coastal areas are also within reach. New build villas with modern design and high-quality finishes are plentiful in this segment.
• €750,000+: This budget allows for top-end luxury villas with stunning views, private beaches, and exclusive amenities. Properties in this range often feature designer interiors, state-of-the-art technology, and prime locations in sought-after areas.

New Build vs Resale

The Costa Cálida market offers both new build and resale properties, each with distinct advantages and disadvantages. The choice depends on individual preferences, investment goals, and risk tolerance.

• The surge in new developments: Costa Cálida has seen a significant increase in new developments, particularly in coastal areas and around golf resorts. These properties offer modern designs, open-plan living spaces, high-quality finishes, energy efficiency, and often include amenities such as communal pools, gyms, and landscaped gardens. Developers are increasingly focusing on sustainable building practices and smart home technology.
• Charm of resale properties: Resale properties offer a different appeal. They often have character and history, reflecting the traditional Spanish style. Many require renovation, offering the opportunity to customize the property to personal tastes and potentially increase its value. Resale properties can be found in established urbanizations and traditional villages, often at more competitive prices than new builds.

Why new builds are popular with foreign investors: New builds are particularly popular with foreign investors for several reasons

• Modern amenities: They offer the latest in design, technology, and comfort.
• Energy efficiency: New builds typically have higher energy efficiency ratings, leading to lower utility bills.
• Low maintenance: New properties generally require less maintenance in the short term.
• Guarantees: Developers offer warranties, providing peace of mind.
• Investment potential: New builds often appreciate in value quickly, particularly in desirable locations.
• Financing options: Developers often offer attractive financing packages.
• Rental appeal: Modern amenities and design make new builds attractive to holiday renters.

Popular Locations for Investment

Costa Cálida offers a diverse range of locations, each with its unique appeal and investment potential.

Top 3-4 towns for rental yields

• Los Alcázares: This coastal town on the Mar Menor offers strong rental yields due to its popularity with tourists and its wide range of amenities.
• Santiago de la Ribera: Another Mar Menor hotspot, Santiago de la Ribera is popular with families and offers a good balance of affordability and rental potential.
• San Pedro del Pinatar: Located on the northern edge of the Mar Menor, San Pedro del Pinatar is known for its beautiful beaches, natural parks, and strong rental market.
• La Manga del Mar Menor: Whilst prices can be higher, the unique appeal of La Manga as a strip of land between two seas ensures consistent demand and good rental yields, particularly for properties with sea views.

Top 3-4 towns for luxury living

• La Manga Club: This exclusive resort offers luxurious villas, apartments, and townhouses, along with world-class golf courses, tennis facilities, and a wide range of dining options.
• Hacienda del Álamo: Another prestigious golf resort offering high-end properties and a tranquil environment.
• Camposol: While Camposol has a reputation for affordability, certain sections boast large detached villas that command premium prices and offer a luxurious lifestyle.
• Águilas: The coastal town of Águilas, in the south of Costa Cálida, is increasingly attracting luxury buyers seeking a more authentic Spanish experience.

Emerging areas

• Sucina: This inland town is experiencing a surge in popularity due to its proximity to golf resorts and its affordable property prices.
• Torre Pacheco: Another inland town with good transport links and a growing expat community.
• Cartagena (outskirts): While Cartagena is a major city, the surrounding areas offer attractive property prices and potential for capital appreciation.

Buying Process for Foreigners

The buying process in Spain is relatively straightforward for foreigners, but it's essential to understand the key steps and requirements.

Brief overview of NIE, bank accounts, notary

• NIE (Número de Identificación de Extranjero): This is a tax identification number required for all foreign residents and non-residents who wish to buy property in Spain.
• Bank account: You will need to open a Spanish bank account to facilitate the purchase and pay local taxes and utility bills.
• Notary: The final sale is completed at a notary's office, where the title deed is signed and registered.
• Golden Visa mention: The Spanish Golden Visa program offers residency to non-EU citizens who invest a minimum of €500,000 in Spanish property. This is a popular option for investors seeking residency rights.

Taxes and fees

• ITP (Impuesto de Transmisiones Patrimoniales) / IVA (Impuesto sobre el Valor Añadido): ITP is a transfer tax paid on resale properties, typically around 8-10% of the purchase price. IVA (VAT) is paid on new build properties, currently at 10%.
• Notary fees: Notary fees are typically around 0.5-1% of the purchase price.
• Legal fees: It is advisable to hire a lawyer to represent your interests during the purchase process. Legal fees are typically around 1% of the purchase price plus VAT.

Rental Potential

Costa Cálida offers excellent rental potential, catering to both tourists and long-term residents.

Tourist rental market

• Summer peak: The summer months (June-September) are the peak season for tourist rentals, with high demand and strong rental yields. Properties with sea views, swimming pools, and proximity to beaches are particularly popular.

Long-term winter rentals

• Snowbirds: Costa Cálida attracts a large number of "snowbirds" - retirees from northern Europe who spend the winter months in Spain. This creates a strong demand for long-term rentals (typically from October to April).

Legal requirements for holiday rentals

• Tourist license: In order to legally rent out a property for holiday rentals in the Murcia region, you need to obtain a tourist license. The requirements vary depending on the municipality and property type. It is imperative to ensure full compliance to avoid fines.
• Registration: You must register your property with the regional tourist authority.
• Tax obligations: Rental income is subject to Spanish income tax. You will need to declare your rental income and expenses to the Spanish tax authorities.