The term "vacation home" synthesizes two concepts that until now could be considered antagonistic: the second residence and residential tourism. Indeed, when we talk about vacation homes, we are talking about a property that is usually acquired for vacations but that, on many occasions, ends up becoming the first residence. This is an important market for Spain because the country has a series of characteristics that suit a buyer looking to spend their vacations or move permanently to a retirement area.
The study "The vacation home market in Spain: situation and perspectives", directed by IESE professor José Luis Suárez and carried out by Grupo i, reveals that sales of this type of housing will increase in 2008 to 150,000, which will also lead to a short-term increase in its price (an increase of 18.5% is expected between the second quarter of 2004 and the end of 2005). The reasons are clear: the growth of demand and supply, since municipalities with more than 10,000 inhabitants have built up to 80,000 more homes between 2000 and 2002, which represents 15% of national production.
The research focuses on the so-called VIVE area (Vacation Housing in Spain), referring to the islands and coasts of the country, with the Costa Blanca and the Costa del Sol at the head, and Girona, Murcia, Valencia and Huelva as the municipalities with the highest demand. In this VIVE area there are up to 950,000 homes, 37.5% of the total, and of these, more than 350,000 are unoccupied and, therefore, are likely to become vacation homes. It is estimated that, in 2004, demand will be around 116,000 homes.
According to the research, apartments or houses on the beachfront are no longer sought after so much, especially by foreigners, but rather they prefer them to have a favorable environment and higher quality services and infrastructures (shops, leisure areas, golf courses...).
The study divides the profile of the vacation home buyer in Spain into two large groups: on the one hand, the foreign client, exemplified by British and Germans; on the other, the national client.
The Costa Blanca and Costa del Sol are the preferred destinations for the British, while the Germans have a weakness for the Costa del Sol, Balearic Islands, Costa Brava and Canary Islands. In both cases, they are looking for single-family homes with 2 or 3 bedrooms and are willing to pay between 120,000 and 240,000 euros, although they can reach 300,000 euros in the case of new homes (most opt for the second-hand market).
The climate is, in 41% of cases, the decisive factor when deciding to buy in Spain, but the hospitality and the cost of living are also valued, in general, lower than in Great Britain or Germany. In many cases, in addition to the services and infrastructures mentioned above, good healthcare is also sought, especially in the case of British buyers, whose average age exceeds 50 years, compared to 31-40 years for German clients. In both cases, and due to ignorance of Spanish laws, the treatment and ease of purchase are also an element to highlight, while the language is the main disadvantage. The British are more likely to buy for habitual residence than the Germans, and only 7% plan to turn this purchase into an investment. The media through which these homes are known are the Internet and specialized magazines or tourism fairs.
With regard to the national client, they opt for a multi-family home, with two bedrooms and between 50-70 m2 of surface area in areas such as the Costa del Sol and the Costa Brava. Murcia and Almería are the destinations with the greatest growth potential for this type of client. Spaniards are willing to pay between 90,000 and 120,000 euros, and may reach 180,000 euros in exceptional cases.
Both Spanish and foreign clients ask, when acquiring a vacation home, that their needs are met with quality and efficiency and that this residence provides something more than a place to spend the holidays, hence the added services should be an element to take into account when planning future housing parks. As the authors of the study summarize, "Spain cannot afford to miss the opportunity to become the Florida or California of Europe".
Article published in IESE Insight and sent to LA VOZ by José Luis Suárez