Are the normally savvy British investors missing out on Benidorm?
There are very few genuine year round Mediterranean resorts, but Benidorm, Albir and now Cala de Finestrat not only offer year round destinations, but the number of “off season” visitors continue to grow. Norwegians have traditionally visited these areas especially Albir, but now there is an increase in the number of visitors from Scandinavia and the Benelux countries. In addition, more British retirees are visiting for two or three months to get away from the grey and gloom. This increase in numbers plus the continuing popularity of these resorts from April to November for overseas and Spanish visitors has created an increase in demand for quality holiday rentals.
Occupancy levels in these areas run at about 80% annually and in July and August 90% +, but it is at the 70€ plus per night type of property where the demand has increased most. A 2 bed apartment in a good area bought for 130.000€ all in can now generate an average of 110€ per night for 300+ nights which works out after costs and agency fees an annual return of 17.5%. This is not a one off, look on booking.com or Tripadvisor and you will see the prices that are being charged and are being got throughout the year. Yes, there are still a lot of cheap rental properties, but demand for those has stayed the same and are usually booked by the 4 night stag and hen parties.
Now for many Brits Benidorm has a reputation based on what they see on the TV, but that is only part of the story. The square and the Rincon de Loix end of Levante beach may be a bit rowdy and full of Brits celebrating and looking for a cheap breakfast, the rest of Benidorm, Albir and Cala de Finestrat are a bit different. Top quality restaurants, 5 golf courses, Terra Mitica theme park, Tapas Alley and Old Town, Poniente Beach, Las Marinas Shopping Centre, La Cala Bay are all attractions that many don’t realise are here. Add to that the various Fiestas and events that take place throughout the year and you have reasons for a very different audience to visit the area.
In the last two years there has also been an increase in new developments of a much higher quality than previously built. Detached villas, designer apartments and small quality urbanisations. These are selling at a quick rate and are being bought by those looking for a quality holiday home and investors alike. Many of those buying for their own use do not want to be here in July or August and have found that by renting their property out they can cover the annual costs and have some spending money left over!
Even with Brexit the guarantees of the Spanish government means very little will change so maybe it is time for the British investor to take a look at Benidorm.