Why Some Property Developers Choose the Boutique Over Bulk

It has long been said that quality counts for more than quantity, and never has this been truer than in the real estate business. Spain in the last decade has seen a boom in the construction industry; it began on the popular Costas and soon spread to the larger cities such as Barcelona and Madrid. The positive economic cycle which boosted countries such as Ireland the UK brought forth thousands of buyers to holiday resorts such as Marbella looking for a slice of the property market action. Buyers and investors were promised wonderful returns on the off plan developments which were going up on every scrap of land between the beach and the mountains.

As more and more people showed interest, developers began to seek permission to ‘stack ‘em and cram them in’, this attitude, in the long run would cause the ruination of the industry. While driving along the coasts main road it’s hard to miss the hundreds of apartment blocks balanced precariously on steep hills, miles from any immediate facilities. These developments contain about 300 to 400 units, multiply that with all the developments of a similar elk and you have major product saturation of typical two bed and two baths, 60m2 apartments with no unique features.

But who is responsible for building all these generic units, is it the developer? Well yes, as their work is all about margins. They are interested in making the maximum profit for the company. Could the local town hall be to blame for granting the permits? Yes. Again here is a situation where, the more people living in their area, the more they will contribute to local taxes benifiting the community which is already dependent on tourism. But now the market has come to a stand still and we are all left sitting looking at empty apartment blocks which should be paying taxes into the town hall coffers.

But there are some exceptions. Not all developers have taken their land and packed in as many units as possible, an elite number have made sure that they do not build more than 60 units, spaciously placed out over the development. Thus making them unique and almost a niche product within such a competitive market place.

These developers can proudly say to owners ‘well if you do decide to sell, you are not in competition with 1000 other identikit units, or fighting with 500 families to get to the pool when you come to spend your holidays!’

To set themselves aside even further from the cheap and cheerful front line motor way projects, boutique developers have looked for land in locations which have added value, such as located on golf courses, or front line to the beach. Most look for facilities in the immediate area, a hotel, shops, restaurants, and entertainment near by.

Boutique developers look at each unit individually and ensure that the architecture and style of the unit is individual and designed to maximise its location and orientation.

So what is the future of the holiday home property market in Spain? There is a huge amount of excess product at all ends of the market. But as time goes by and most developers, including the boutique developers react to the current situation by becoming more flexible on price, now is the time to catch a real bargain. The cheap and cheerful units will be most heavily discounted, but will not sell. The savvier buyers will find the top quality boutique developments and those will sell.

So when it comes to quantity over quality, guess which developer is feel less of a pinch right now? The boutique one….

For more information visit http://www.alandahomes.com/resale-property-marbella.html