The southwest is generally regarded as the area with the highest density of top value properties with an average spend of €1 million by new investors. Regardless of what is happening outside the island the level of investment has not changed in this area and if anything it has slightly increased. Furthermore, there is little evidence of “bargains” and owners have accepted that they will have to wait longer to sell their property in the current market conditions.
There has been a great deal of new development over the past five years mainly focused around one of the four golf courses in the area and the extension of the marina at Port Adriano. There has therefore been a generous supply level of second home property available and this has impacted the current market situation.
People are attracted to this area because of the excellent facilities, international feel and it is extremely popular with the British, German and Scandinavians. Since the middle of 2008 prices have come down 8-15% depending on the property, location etc… However, much of this is down to a price re-adjustment from the inflated highs of 2007.
A four bedroom villa with views will sell for approximately €1.250 million and well located, high quality 2 – 3 bedroom apartments, in the new communities built 3 or 4 years ago now start from around €350,000, although property might take longer to sell (between 12-18 months). Plot prices have fallen the most as investors “wait and see”. Urban land is currently valued at around €350 per m².