How much are caves?

So how much is a cave worth? How long is a piece of string? is the answer, last year I wrote an entry (in the archives) title "caves, investment or caution?" Since then, only a few months ago the prices have risen quite dramaticly. Two years ago a reformed cave over €100k was sure to be at the top end of the market and a superb cave too, now though these properties are regularly well over that mark and the reason is.....popularity and that they are simply - unique.

This 6 bedroom fully furnished monster is very reasonable @ €125,000

So is now the time to buy? Well yes it is if you are after an investment or a property that will have a large amount of equity in a short time.

Here are some examples:

Cave purchased July 2004 for €87k, sold in Feb 2006 for €122k
Cave purchased Aug 2004 for €32k sold in June 2006 for €86k
Unreformed cave (owned by a local) asking price - 2002 €40k, 2003 €45k, 2004 €50k 2005 €55k this year..€60k

Also what tends to happen is that a reluctant seller or someone who wants to test the water puts thier cave for sale 30-40% over its real value, someone comes to view it, falls in love with its location and originality etc and the offer is accepted - this sets a benchmark and prices rise overnight. This situation is rare mind but has happened twice in the local area over the past 4 years.

So are people getting priced out of the market? Eventualy, yes this will happen as with any property boom but at the moment my answer would be that it depends on how hard you are prepared to work. Bargains are still around - they are all unreformed and require work but it would not be unrealistic to say that for €30-40k (doing the work yourself) you could be the proud owner of a property valued at €100k+ when the works are completed. Act sooner rather than later though, as I said in my other post caves have no visible price cap and in a few years could be commanding fortunes.

For more information and to have all your cave questions answered click here


DCveR said...

Real estate prices are something quite strange... sometimes the simple fact that someone famous buys a house somewhere makes the prices rise.

Stef said...

God, I want one now! my girlfriend and I just bought an apartment in London who's probably as big as one room in this cave. You make us want to move to Granada! and there's my favorite tapas bar there too.

cave renovator said...

Dc: Same could be said about cars..problem is that cave prices could rise and rise..that would be a shame for people who want a nice unique property within a restricted budget

Stef: well my friend...fav tapas bar, fantastic views, super living and sketches.....dont forget to pencil my cave if/or when your back again :) CR

cream said...

Property prices rises in Spain have slowed down a little because there are so many developments! As one area gets saturated, they start on another one.
On the Costa Blanca prices haven't budged for the last year or so.
But all the difference lies in whether one buys a property as an investment or to retire to.