Holiday Home Prices Wilt In Euro Drought

By Roger Munns Spain and Portugal have suffered one of their worst droughts on record this summer, with consequences from empty swimming pools for the tourist to economic disaster for farmers losing their crops and livestock. Roger Munns, Managing Director of Tribune Properties, predicts that property prices in the two European countries could drop as much as fifteen per cent in some areas as more owners decide to put their villas and apartments on the market. ‘For many owners of second homes the original motivation to buy was to have somewhere they could spend time in a relaxing environment. Coupled with the thought of a good investment for the future, the market for overseas homes from buyers in the UK, Germany and Scandanavia has really taken off in the last twenty five years. But soaring temperatures and a strain on the water supply could have consequences for their rental returns next year, which many owners rely on to meet their overseas mortgage. Many holidaymakers want to rent a villa with a pool – but the attraction soon goes if the pool is empty. Some golf courses are having to cut down on watering their greens too, and it won’t take a big fall in tourism to mean the difference between breaking even and not being able to meet the mortgage commitments for some overseas property owners. This autumn could see more properties than usual being put on the market, with a consequential fall in prices’. Early warning signs of a potential fall in property prices have already been seen on the Spanish Mediterranean island of Menorca, which has enjoyed better rainfall this year than the Spanish mainland and no water restrictions, but some villas being cut in price by over ten per cent. Water restrictions on the mainland are having an impact on potential villa buyers, with many questioning the value of a swimming pool when they might not be able to use it. Portugal has recently asked Spain for 6 million Euros in compensation, as water levels in the River Douro which runs through both countries fell below limits established in a bilateral agreement,with Portugal coming close to accusing her neighbour of stealing her water. Good Time to Buy ‘For anyone considering buying a property in Portugal or Spain, this September and October could be the ideal time to buy’, say Tribune Properties. ‘Unusually many properties were being reduced in price in August, traditionally a good month for sales. We normally see villa and apartment prices being dropped mid September onwards when the tourists and potential buyers are thinner on the ground as some owners are keen to sell and don’t want to wait until the following Easter before having a real chance of selling again.’ The drought isn’t the sole cause of property prices falling add Tribune Properties, saying it has accelerated price falls and come on top of an already poor year for many estate agents in Europe. ‘A good barometer for European property are the tax havens of Monaco and Andorra which don’t rely on ‘tourist’ buyers, but usually have a steady supply of buyers interested in taking advantage of the zero income tax rate. Andorra is in the Pyrenees and has no water supply problem – but estate agents were twiddling their thumbs this summer waiting for buyers to show – and they didn’t. Monaco similarly has had no water supply problems, but has also seen a lack of buyers. The tourists are still visiting the Principality and hotels in Monaco and Monte Carlo have been as busy as ever, but again there is a lack of serious property buyers, and negative property inflation is quite possible in Monaco this year for the first time in a decade. With more property available on the market we would suggest buyers draw up a list of three or four villas they have viewed and liked, and then suggesting to the owners that they would consider buying at fifteen per cent below the advertised asking price to see which ones are prepared to consider it.’ Sea Water One possible answer to secure the long term tourist trade and consequential property market is to follow Malta’s example of building desaliniation plants, converting sea water to drinking water, sometimes known as ‘reverse osmosis’. The Mediterranean island competes with Portugal and Spain for the attention of second home buyers, and has a healthy tourist industry – despite having no rivers and low rainfall, allowing the island to function normally even in drought conditions. The water from this source can be used for agriculture and ensuring adequate reserves to fight forest fires for example - it might just be the answer too for the swimming pools and golf courses – and would allow a plentiful supply of high quality for domestic use.

Don't Worry, Go Traveling

 What card should you never leave home without? It's not the one you think. 

 It's the new Triple-A card-Attitude, Awareness and Attention tips, offered by authors Sheila Swan & Peter Laufer in their new book Safety & Security for Women Who Travel. Wherever you go, whatever you do, whoever you're with, no matter how far you stray from home, carry this card to remind you to stay alert in your surroundings. Trust your intuition and instincts. 

 Swan and Laufer, world travelers, help lay to rest fears as well as provide guidance for women to travel confidently anywhere in the world. Safety & Security for Women Who Travel offers specific and tested tactics and techniques to help women travel safely and securely. 

 This book covers the basics and so much more. Find practical information on what to do: 

Before you leave: pack a destination-specific medicine cabinet;

En route: remember the buddy system, find a companion on the plane or at the train station; 

Driving: lock your doors when you get in the car as well as when you get out of the car ;

Lodging: conceal your gender by registering at hotels with your last name and first initial only ;

Also find details about more complicated issues, such as: 

Money and scams: guard your PIN carefully as phone card thieves use binoculars ;

Dealing with officials: do not carry things that can be interpreted as illegal or threatening; 

When a threat is real: noise is effective; practice screaming before you leave home ;

 In all aspects of travel there is an element of risk which can be reduced with attention, attitude and awareness. Safety & Security for Women Who Travel contains memorable anecdotes as well as tips and wisdom. It will empower the most timid and most seasoned woman traveler. 

By Sheila S. Laufer

About the Author

Sheila Swan Laufer has been traveling the world for fun and business since the 1960's. From camping in Latin America to luxury resorts in the Old World, from long-distance buses across the American South to first-class airliner seats five miles high, from quaint pensions on the Iberian Peninsula to five-star hotels in Oceana, she has experienced the extremes travel offers-taking notes all along the way.