The recent collapse of the property market may have led to property closures but at the same time, this has opened up a new world of opportunities for those who want to invest in themed living. Up for grabs are repossessed apartments at nearly half the price. But what makes them more worthwhile is their location–the Jack Nicklaus-designed six Spanish golf courses.
Spain was swept by the golf construction mania in the past years, with 345 courses. The European Golf Association said that Except for Germany, Spain has built more courses during the said period than any of the euro region members.
Golf became part of the construction mania that swept Spain in the decade through 2007 as prices for privately owned homes tripled. The country built more courses in the period than any member of the euro region except Germany, according to the European Golf Association. There are now 345 in Spain, 92 percent more than in 1997.
Barcelona’s IESE Business School, and property website Fotocasa reported that the slump in Spain’s construction and real estate industry has resulted to a 78 percent drop in the number of homes being purchased by foreigners from 2006 to 2009.
Today, 128,000 euros or $180,000 can already buy a 796 square-foot, two-bedroom penthouse in Murcia, Southern Spain. Before the real property collapse, such property was worth 272,000 euros. The said property, which covers a 32-square meter terrace, air conditioning and a communal pool. is ideal for avid golfers since it overlooks Hacienda Riquelme’s 18-hole golf course.
“This shows how desperate the banks are to offload their real estate,” said Borja Mateo, author of the book “The Truth About the Spanish Housing Market.” “The properties still look overvalued.”
The price of an 85-square meter, two-bedroom ground floor apartment that overlooks the Mar Menor golf resort has also gone down by 28 percent to 159,000 euros this year compared to its 2007 price.
More than 1,500 properties as well as lands were surrendered by Murcia resorts builder Polaris World to lenders in May 2009 to cancel 970 millon euros worth of debt. The banks, which are now saddled with properties, are trying to outdo each other in selling these properties by giving out hefty discounts and favorable mortgage deals.
The largest of the six Nicklaus-designed courses is the Hacienda Riquelme. Three of the courses are now owned by IRM Estates which subcontracted the courses to Ola Golf. The IRM Estates got the assets in exchange for cancelling the debts of Polaris World.