That's fantastic news for people like me. Last spring, standing on a
cliff overlooking some of the more extraordinary villas near Es Cubells
beach in Ibiza, I promised myself that one day I was going to own a vacation
home. Maybe it would be on one of the enchanting Balearic Islands, or
possibly in south Florida-Miami or Naples-where hot weather is guaranteed
most of the year (though the charming hills of the Scottish Highlands and
the desolate islands off Croatia have also stirred my heart).
At the time, I
did not think I could begin to look at options until several years down the
line. But now, with the market for second homes softening fast, even
freelance journalists like me can start realistically toying with the idea.
I've got my eye on the stunning Zen Vida property in Majorca, which boasts
five bedrooms with en suite bathrooms, three al fresco dining areas and a
designer kitchen, as well as spectacular views of the Bay of Palma. Then
again, it's tough to pass up Théole-sur-Mer, the estate built in 1925 on a
private peninsula near Cannes by the architect Barry Dierks, which offers an
infinity pool and direct diving into the Mediterranean.
Marc Cohen, director of Ledbury Research, the London-based luxury
consultancy, says that those who would normally not be able to afford a
second home may gain the most from the global economic downturn. "The
second-home market has suffered considerably," he says. "If there is an
active buyer, the type will have changed from the typical 65-year-old
retiree who has sold his business or retired from a high-salaried job to one
who is much younger who has seen this become more of an opportunity."
The New Year seems to be the perfect moment to start looking, says Lucy
Russell, managing director of Quintessentially Estates. "Some of the very
top-end properties have dropped significantly in most of the major European
destinations," she says. "[And] we have seen houses in the Caribbean drop by
half a million dollars, giving the buyer a good rate of return." In places
like Spain, Malta and Portugal, there have been price drops of up to 30
percent for vacation homes.
Three-bedroom, eco-friendly beachfront villas in
the Joia das Dunas development northwest of Lisbon are selling for between
€625,000 and €895,000. And in speculative markets-residences that are still
under development, or areas like Dubai that are relatively new to
second-home splurges-prices have dropped by up to 60 percent. Not that
everything is a bargain; currently on the market in the Emirates Hills
neighborhood of Dubai is an 8,170-square-meter, seven-bedroom,
eight-bathroom villa complete with gym, cinema, sauna, steam room and two
maids' bedrooms for €5.8 million by Quintessentially Estates.
Sotheby's Kraft says that for the last decade a villa with an ocean view
in Cap Ferrat rarely stayed on the market for more than a week. Now such
properties take much longer to sell. "Lots of sellers are getting flexible
with prices, and owners, especially those from emerging economies, are
willing to make a deal like maybe they would not have in the past," he says.
Take, for example, a lovely Tuscan home, on the market through Savills. The
property, which overlooks Lake Montedoglio near Arezzo, has four fully
restored buildings, a large swimming pool and oodles of privacy. But the
owners are so keen to sell; they have already dropped the price by €1
million, to €2.2 million. "Over the past three years we have seen very
substantial price rises in key destinations-and a corresponding drop in
sales volume-so I think the readjustment was needed," says Savills' Charles
Weston-Baker. "Each of us has an innate sense of value perception, and a lot
of properties have just gone beyond what people are comfortable paying."
Weston-Baker speculates that those who can afford it will hold on to their
second homes until the market rebounds. "But those who do need to sell will
do so for substantially less than they would have six months ago," he says.
Es Cubells residents, watch out-my moving van may be speeding down the road
sooner than you think.
***********************
Alexander Kraft
Sotheby's International Realty France
Corporate Headquarters Kernserstrasse 31 6061 Sarnen Switzerland
Phone: + 41 - (0)41 - 662 05 10 Fax:+ 41 - (0)41 - 662 05 11
http://www.sothebysrealty-france.com
Email: info-france@sothebysrealty.com
