Buying property on the Costa Azahar
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The, or Orange blossom coast, spreads fragrantly across Valencia's northernmost province of Castellon, from the Costa Dorada in the north to the border of the Costa Blanca and Gandia in the south. Its name derives from the lush orange trees that dominate the coastal strip, dotted with uncrowded sandy beaches, while inland the terrain becomes more rugged and hilly. This costa has come quite late to the attention of the international property market, which doesn't mean it has little to offer, but rather that its treasures are still to be discovered.
It is not wholly undeveloped though. Holidaymakers and second-home buyers can choose from the resort of Peniscola, on a rocky outcrop that juts into the Mediterranean, or the even less developed nearby towns of Benicarlo and Vinaros, with beaches, fishing port and true Spanish charm. Further south, the popular port town of Benicassim is famous for its indie music festival, but equally for its six kilometres of beaches and the protective mountains that afford spectacular sea views.
The market for property for sale on the Costa Azahar that has begun to flourish slightly outside the spotlight of the international gaze is a more measured one than the hectic boom of the Costa Blanca and Costa del Sol heyday. Of course, developments are springing up along the coast and inland to keep up with a burgeoning demand for property, but the Costa Azahar seems to have learnt a valuable lesson from its overcrowded cousins, and is keeping rampant development at bay.
The upshot of a considered approach to development is, something many visitors and house-hunters agree, one of the costa's most endearing assets: that this is still the true Spain. The coast has maintained its culture, which appeals to second-home buyers who want to immerse themselves not only in the 300 days of sunshine a year, but also in the flavours of Spain that may have disappeared under a deluge of foreigners elsewhere.
Miguel Martinez of Bancaja Habitat, the property development arm of Spain's third-largest savings bank agrees. "The area is still up and coming, and the bank has made an investment [in the Costa Azahar] in the belief this is an area of growth. Once the airport at Castellon is opened it will allow easy connections to the whole region. This is still the real Spain; here they are keeping an eye on construction so the area doesn't get overcrowded."
There are plenty of ways to get to the Costa Azahar, including the airports at Valencia, Alicante, Reus and, from around 2008, Castellon. And about two hours drive way is Spain's second city of Barcelona. This proximity is another drawcard for the orange blossom coast, with speedy access by train or car to the cities of Barcelona and Valencia, when you finally tire of the peaceful life.
The financials make sense too. Miguel Martinez explains: "This part of the coastline has been relatively undiscovered and hence property prices have remained reasonable compared to the other costas. In general, property prices are still rising; however, property in this area still represents good value for money."
As the more developed coastlines reach saturation point, price rises have slowed. The country as a whole finally dipped below ten per cent property price inflation in 2006, the third consecutive year of slowdown in growth. And the costas are not immune to the downturn, experiencing their own slowdown in what was admittedly rampant growth (reaching the heady heights of 30 per cent a year in some cases). That said, the Costa Azahar is around ten per cent cheaper than its near-neighbour Costa Blanca, and in the third-quarter of last year saw prices rise 9.1 per cent year-on-year, compared with 4.4 per cent for the Alicante province.
So what can you get for your euros? Frederick de Souza of Carobtree explains that a renovation project in a traditional village just 20 minutes from the coast, in places like Cervera del Maestre, Sant Jordi, Calig, Chert, and Canet Lo Roig, can start from as little as €40,000 (£26,900). Coastal properties remain popular though, with two-bedroom apartments starting from €130,000 (£87,400) or detached villas from €235,000 (£158,000). Alternatively, there is still good value to be had ten to 15 kilometres inland, where you can buy a large detached country villa from around €400,000 (£269,000).
"These spacious villas are built to a high standard and usually come with over three acres of land. They are located in rural settings and there is a pleasant mix of German, French, Swiss, Dutch, Austrian and British owners. There is also an interest in buying plots of land in these locations and choosing to have your own villa built using the services of a local architect and builder," Frederick adds.
The general slowdown in phenomenal growth of the Spanish property market is seen as a soft landing for an overheated market, but there are still good returns to be had, and of course it comes with sun, sea and sand too. The Aldea Golf development on the Nova Panoramica Golf and Country Club is being built by Bancaja Habitat. Situated around ten minutes from the beaches at Vinaros and Benicarlo, the development is built around the Bernard Langer-designed championship golf course but also includes a commercial centre that will be completed with restaurants and shops, as well as a sports centre with tennis courts and a pitch and putt course.
The Aldea Golf development is due for completion in June 2007 and will consist of 13 semi-detached townhouses and around 120 apartments, the former starting from around £158,000 and the latter from £84,300. Miguel Martinez says buyers who bought off-plan could expect capital returns of ten to 15 per cent in one year, while buyers now should also be looking at around ten per cent within 12 months.
Further down the coast, the Lar Playetas development within the Torre Bellver urbanisation close to Benicassim is just a stroll from the beach and 40 minutes from Valencia airport (and 15 to 20 minutes from Castellon airport when it opens in 2008). Lar Playetas consist of four blocks of two- and three-bedroom apartments and penthouses, and four-bedroom duplexes with solarium. Prices for two-bedroom apartments start from €251,000 (£169,000), with the four-bedroom duplexes starting from €493,963 (£332,000). The development is due for completion in September 2007 and 80 per cent of the property price is payable on completion.
Staying with new-build developments, El Palmeral is located on the front-line to the Prat de Cabanes nature reserve, 200 metres from the beach at Torreblanca, and just four kilometres from the city centre. The development comprises two- and three-bedroom apartments and penthouses with open terraces set around landscaped gardens and communal pools. The second phase of 176 units is due for completion at the end of June 2007 and two-bedroom apartments start from €211,000 (£142,000) through New Skys.
The penchant for off-plan buying has been spurred by the competitive prices and the possibility, in some cases, to sell the property before completion (also known as flipping). But there is also a case to be made for resale, not least because there is the possibility of renovation projects that may afford good profits, or because you don't want to wait to enjoy your second home in the sun. Carobtree is selling a pretty town house in the centre of Canet lo Roig, about 20 minutes from the coast and Vinaros. Its not a total ruin but there is a considerable amount of work to be done. With three to four bedrooms and a roof terrace, it's the price, at just €45,000 (£30,250), that may attract a savvy buyer.
If you want to take advantage of the unspoilt Spanish nature of the Costa, Carobtree recommends a traditional country property on a large private plot planted with olive trees. The three-bedroom house comes with some original features like terracotta flooring and wooden beams and is for sale for €185,000 (£124,000). Carobtree is also selling a large villa with two apartments that are fully independent but can be used as a single home. The villa has unobstructed views along the coastline and of Peniscola castle and old town, and is on sale for €450,000 (£302,000).
Lynda and Dave Hinton chose to buy their second home on the Costa Azahar after looking around the Spanish islands and other coastlines. They chose Spain in particular because of the ease of access (with a choice of airports), and it was a relatively 'safe' country. "The Costa Azahar seems quite Spanish, with a good coastline and unspoilt countryside. There are also interesting fiestas and good access to Barcelona and Valencia by train," Lynda says.
They bought their link-detached two-bedroom villa last July near the Castellon province border near Peniscola for €189,000 (£127,000) before taxes. They are now adding a swimming pool for a further £20,000. Their urbanisation of about 40 villas is around one-fifth Spanish, two-fifths English and the remainder German and theirs was the last villa to be built so the estate is now finished.
The Hinton's say investment, leisure and retirement were all as reasons for their purchase, but ultimately the priority was retirement. Lynda, a civil servant, is 52 and landscape gardener Dave is 54, and they hope to eventually retire to their Spanish idyll from the West Midlands. Their advice to prospective buyers is to look in as many resorts and villages as possible as they are all different, and not to discount inland. "Also go at different times of the year as the coast is very busy with Spanish holidaymakers in August." Oh yes, and be prepared to drive around out there (although the inland roads are very quiet).
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First published in Homes Overseas Magazine April 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.