Mercers adjusts Jerez property portfolio to match demand
10.02.2010
Whilst there’s little doubt that life is returning to the Spanish property market, it still remains utterly price sensitive. Overpriced homes simply won’t sell. For real estate agent Mercers, this has meant a conscious shift in its Jerez property portfolio towards the best value, and most profitable, options for this economic climate.
Chris Mercer, Director of Mercers, comments, “Mercers runs two Spanish real estate offices, one on Costa Cálida and one here in Jerez on the Costa de la Luz. Whilst the former has never felt a lean time, and in fact thrives in a downturn, the Jerez office has stuttered. The reason for this is quite simply price. Whilst two bedroom terraced villas on a golf course priced from just 55,000 euros have been flying off the shelves on Costa Cálida, we hadn’t been able to match that in Jerez. Our sophisticated historic city centre conversions did not capture the mood of the moment. But now we have city investment apartments from 63,000 euros, we’re back to our busy best.”
Many real estate agents in Spain are guilty of ‘ostrich syndrome’ and have been waiting for things to pick up and the good times to return. Mercers on the other hand have over 27 years experience in selling Spanish property so are just as familiar with ‘boom’ as they are with ‘lean’ and know how to adapt accordingly.
Chris continues, “We are making it our business to find realistically priced property from motivated sellers for serious buyers who are in a genuine position to make a purchase. The reality is that decent investment properties are out there, whatever the market, it just takes some expertise and effort to find them. Our message right now is quite clear. If your property is overpriced you won’t sell – you’re wasting your own time and our time, whilst also giving the buyer an unrealistic view of the market. If you’re a motivated seller able to accept a realistic price for your home, we’ll find a buyer.”
Mercers now has some ideal investment properties in Jerez which can be snapped up for around the 70,000 euro mark (about 60,000 pounds). These are ideal for rental to locals for approximately 450 euros a month, 5,400 euros per annum - a return of 8% or so. If you’ve got a 20% deposit then the rent will comfortably pay the mortgage and, as you’re truly buying at the bottom of the market, you have an asset that will certainly appreciate in years to come.
Jerez is a wonderful city and wildly undervalued compared to near-neighbours Seville and Cadiz. Most famous for being the spiritual home of flamenco, the birthplace of sherry and a centre for Andalucian dancing horses - Jerez has much to offer the globetrotter. Its ‘Casco Histórico’ with a walled medina concealing cobbled streets, authentic tapas bars and the period palaces of the sherry dynasties draws year-round attention whilst the unblemished beaches of the Costa de la Luz are a swift 20 minute drive. Easy to reach, Jerez’s modernized International Airport is set to serve four million passengers each year by 2012 (up from 1.4 million in 2006) and will crucially have its own AVE (bullet train) station connecting it to Spain’s major cities.
For more information, visit www.spanishproperty.co.uk
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