Golf Property Sales Boost Recovery Of RE Market
9 September 2016 – Opp.today
Spanish property sales in major tourism areas have been starting to rise over the last year or so, with a little help from the golf sector.
In fact, the golf industry is a key driver of Spanish home sales, achieving nearly 3,000 transactions in 2016 alone – and buyers can benefit from prices that often rise faster than similar homes elsewhere.
Being close to a golf course can add up to a quarter to the value of a property compared to a regular home, says a new report from the Arum Group, which develops and manages luxury resorts in Spain including Abama Luxury Residences, La Manga Club and Eldorado Playa.
More than two-thirds (68%) of golf courses in Spain have a direct or indirect link with a real estate development, according to the data produced in conjunction with the Real Federación Española de Golf.
The Arum Group has seen strong demand at its Abama Resort in Tenerife with 45 sales in 2015, almost 50% more than predicted, and rising sales from sports enthusiasts at La Manga in Murcia, which has three golf courses.
Agustin La Rocca, Sales Director at Arum Group, says, “The Spanish property market is currently on an upward curve and one of the main drivers is the golf industry. We have certainly noticed the appeal that having world class golf courses adds to real estate developments.
“At both La Manga Club and Abama, we are graced with outstanding examples and there is no doubt that they add to the appeal for our buyers. For a start it means that their views will never be interrupted or built upon and also means that the peace and tranquility of the area will be preserved.”
Golf is a big draw for foreigners in Spain and it is estimated that 160,000 Britons in the country are close to a golf resort. In total, 234,500 properties enjoy ‘direct’ access to a golf course.
Most overseas demand for Arum Group Spanish golf properties comes from the UK, Belgium and Scandinavia, but it has buyers across the globe.
The EU Referendum vote has not affected UK buyer demand, says Agustin La Rocca. “Despite Brexit, British buyers will undoubtedly continue to aspire and want own their own luxury holiday homes in Spain. We have found that our clients are very focused and know exactly what they want from a second home. We do not have many competitors with the same standard of services and facilities and we expect UK demand to continue to grow.”
“The reason for buying depends on the project. Investors at La Manga Club are attracted to its renowned sporting facilities. The gated community offers world-class sporting amenities and wellness facilities perfect for second-homes investors looking for a home in the sun. On the other hand, Abama is more focused on luxury and glamour for those looking for the ultimate cuisine, golf and hotel facilities.”
With a high buyer demand, other developers are considering entering the sector, but it takes experience to be successful, says Agustin La Rocca.
“Over the past year, there have been a number of developers in Spain who have tried to develop golf resort but this is a science that needs lots of technology and it takes a lot of practice. It essential to have a highly experienced team behind the resort in order for it to be a success. In that sense, Arum Group has more than 20 years of experience in developing some of the top golf resorts in Spain.”
As well as boosting real estate sales, golf has also had a positive impact on the Spanish tourism industry with visitor numbers increasing 36.3% in the first quarter of 2016 compared to the same period in 2015, in the region of Murcia alone.
La Manga Club, a 1,400-acre resort in Murcia popular with sports enthusiasts, has seen strong sales thanks to its on-site sporting facilities including three golf courses. It also reports, a rise in visitors using the available rental accommodation. These findings are supported by the Murcia Tourist Board, which recently released data highlighting that tourists staying in private rented accommodation in the region has risen by 25.6% in 2016 compared to the same period last year.
There is a similar story at the Abama Resort in Tenerife, which features an 18 hole Dave Thomas designed golf course and tennis academy. 45 units were sold in 2015, almost 50% more than predicted, with all purchasers attracted by the lifestyle offered by the resort and its amenities. (…).
In May 2016, across all Spanish property sales, not just golf villas, 32,512 homes were sold, up 23% year-on-year, according to the National Statistics Institute. It is the highest figure since January 2013 and the fourth consecutive month of double-digit annual increases.
Original story: Opp.today
Edited by: Carmel Drake