CONJURE AN IMAGE of Spain or Portugal and the chances are that you will picture sun, sea and sand. But for increasing numbers of British buyers this perception is being replaced by one of cafés, culture and the cosmopolis.
More concerned with the search for urban adventure than a suntan, Britons are buying property in cities where they can mix with local people, order tapas and lose themselves in another way of life — pleasures not always as accessible on the more anglicised stretches of coast. Charles Weston-Baker, of Savills, says: “Around 20 per cent of overseas inquiries are for cities — two years ago it was more like 5 per cent. Where and what to buy is very much a lifestyle choice.”
Jan Westwood, of The Property Finders in Majorca, says: “In the last year I have had a noticeable increase in people asking about the city of Palma. I have just registered a lady wanting an apartment in the city centre for up to €300,000 (£200,000) — she likes the idea of not having to use a car at all.”
Buyers looking for a pied-à-terre that can be let out to tourists are being spurred on by cheap flights and the increasing popularity of city breaks, which Weston-Baker sees as an important factor in our property-buying habits because it has bolstered demand for tourist lets. Buy in the right area of town and your bolt hole could go part way to supporting itself. But as Barbara Wood, of The Property Finders in Andalusia, says, location is key. “By UK standards Spanish cities are small in area. People purchasing for regular weekend use and for letting potential should consider being very central,” she says.
For investors who want to let on a longer-term basis, Mike Boles, of Savills Private Finance, says: “City centres are more likely to get long lets of six months up to three years, which makes the rental income safer.” Some people, whose stories we cover below, have wed profit to pleasure by buying investment and holiday properties in Barcelona. Others have relocated from London to Lisbon to get a first step on the property ladder; and still more have fallen so in love with Palma that they have bought their own pad there.
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BARCELONA
PETER & PAM ROOKE — WHAT THEY BOUGHT & WHY: When Peter and Pam Rooke, above centre, were deciding where to buy an overseas bolt hole, their priorities were clear from the outset. “We didn’t want to be stuck on a beach or golf course — some people who buy into big developments get a lot of comfort that everyone is English-speaking, but for us that is a downside. We just love city life so we thought, why not get where the action is? In Barcelona you have easy access, museums, art galleries, restaurants, beaches, and skiing,” Peter says. Three years ago they took the plunge and bought an €800,000 penthouse on the harbour for their own use, as well as two investment properties — one of which they have sold at a profit. Peter says: “We let the remaining apartment for about 65 per cent of the year — we thought it would be a good investment and it has been fine.”
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PRICES: Willem Boerhof, of Your House In Spain (www.yhis.com, 00 34 93 215 3110), says: “A two-bed apartment in good condition in a good location costs €300,000 and up; prices have doubled in five years.”
PROPERTY: One and two-bedroom suites at the luxury Paseo de Gracia 99 city centre development range from €735,000 to €1,830,000. Savills, 020-7016 3740.
LISBON
KATIE MALLETT & MIGUEL GARVAO— WHAT THEY BOUGHT & WHY: Katie, 27, and her boyfriend Miguel, 30, below left, moved from London to Lisbon a year ago in search of a better way of life. Katie says: “We were getting to the age of settling down and we decided that London wasn’t the right place to raise a family. We chose Lisbon because it would be easier to find jobs and my boyfriend is Portuguese. I am a city girl and although Lisbon is a capital, it is still relatively safe — there is not the stress of London here.”
Katie is a buyer for a gifts company and Miguel has started up a marketing and advertising company. They are about to exchange on their first home, a three-bed apartment outside the city centre that they bought for €140,000. Katie says: “It wouldn’t have been possible to buy in London unless we had a big deposit; I’ve arrived in Portugal and already bought myself a car, and we’re buying the flat now. It’s the kind of thing we’d never really dreamed of.”
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PRICES: Marco Carminatti, of Luxus, says: “A new 100 sq m apartment with parking could cost from €250,000 to €450,000. In the past two years values have remained the same — the economy has been weak, so the real estate market has behaved similarly.”
FOR SALE: New two-bed flat in the well-heeled Lapa district, €492,000 through Luxus, www.luxus.pt, 00 351 213220340.
PALMA
DAVID HAWORTH AND DEBBIE VEARNALS — WHAT THEY BOUGHT AND WHY: David and his partner, Debbie, from Manchester, bought a two-bed flat with a roof terrace for €265,000 18 months ago. “There are three concert halls in Palma. I can go and watch a play, listen to Mendelssohn or go and see some street theatre,” says David. The couple were keen to integrate with the Spanish way of life. They use their property for weekend breaks and, although they do not let it, their family use it. “We didn’t buy the property to get an income stream, but in 18 months it has gone up by 25 per cent,” says David.
PRICES: Dominique Carol, of Kühn & Partner, associate of Savills, says: “In Palma apartments start at around €280,000. But three-bed apartments range from €400,000 to €1,000,000. In Majorca prices are rising by 15 per cent a year.”
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FOR SALE: Two-bed penthouse with terrace in the Paseo Majorca, below, €745,000. Kühn & Partner, 00 34 971228020, www.kuhn-partner.com