The Spanish real estate market, in the doldrums for seven years, is “starting to go vertical” according to a group of US property investors whose turn-around firm plans to spend $200 million (€150M) on distressed, bank owned assets in Spain.
Real Capital Solutions (RCS) have established a new division, RCS Spain, to expand into the residential property market. They have already snapped up two prime location condominiums in the Costa del Sol for €14.95 million and are targeting other distressed developments in the area.
Cosmo Beach, close to Estepona was bought first, came back on the market and already half the 53 available, key ready apartments have sold to international buyers. In September Valley Heights, overlooking the famed La Quinta Golf Course will also be on offer through Walker Property Spain, with prices starting at €269,000 for a two bed sea view apartment. 14 units available in the first release can be reserved in advance in an exclusive new offer.
RCS managing partner, Peter Wells described Spain as very similar to Miami in terms of attraction to international investors. “With investors from the UK, Scandinavia, central Europe, Kuwait and the Baltic, buyers are seeing potential in Spain much as South Americans did with Miami.
“Spain is seeing rapid recovery from a down cycle and there’s over-growth right now. “The market is just now starting to go vertical.”
RCS agree with analysts who predict that the Spanish resort real estate market has hit the bottom of the downturn.
Ben Walker, sales manager at Walker Property Spain said: “RCS have great expertise is adding value to distressed residential assets. Marcel Arsenault, founder of RCS, has a proven track record in forecasting the market and deploying capital at the right time in real estate cycles.”
Author: Kevin Barnett, International Property Writer. 21 August 2014