Bargain abroad? Spanish second homes much cheaper thanks to exchange rate

Taylor Wimpey España has claimed it’s possible to purchase a two-bedroom, two-bathroom apartment for £160,173 (plus VAT) in Spain – in marked contrast to the rising prices and rising cost of living that is currently being experienced in Britain.

While the UK goes through its biggest fall in living standards since the 1950s, with everything from food and fuel to energy bills on the increase, owning a second home in Spain has all of a sudden become more affordable over the past couple of years – thanks to the quietly falling exchange rate.

This means that a home at Amara – the brand-new development from Taylor Wimpey España, leading Spanish home builder – could be bagged for €190,000 plus VAT, which the developer says at the time of writing equates to £160,173.38 (plus VAT).

Once complete, Amara will be home to 120 apartments in Gran Alacant, in Cabo de Santa Pola, Alicante. Sitting close to the Clot de Galvany park and a short distance from the beaches of Carabassí, the homes are situated in a peaceful residential neighbourhood.

According to XE, €190,000 would have equated to £165,666.89 back on April 26 2021, while a few months earlier, on December 12 2020, it would have been worth £173,984.90. Meanwhile, three months before that, on September 12, it would have been worth £175,846.14.

Tayor Wimpey España says that, while there have been fluctuations in the exchange rate over the past couple of years, there has been a general strengthening of the pound against the euro since September 2020.

As a result, this means that a British family buying a second home in Spain will now be paying £15,000 less than they would a year and a half ago.

“The exchange rate has been working in British buyers’ favour for quite some time, meaning that owning a second home in this beautiful part of Spain has become more affordable. Buyers have been quietly taking advantage of this, with the result that Britons purchased more homes in Spain than any other foreign nationality buyer in 2021,” Marc Pritchard, sales and marketing director of Taylor Wimpey España, said.

Figures from Registradores de España show that Brits accounted for 11.01% of total home sales to foreigners in 2021, more than any other nationality.

What’s more, in terms of total home sales, the number of property purchases in Spain grew by 34.5% in 2021. Just over one in five sales (20.78%) during the year were in Andalusia, while the Valencian Community (which includes Alicante) accounted for 14.12% of total home sales.

Against the backdrop of this busy market, Amara is aiming to deliver two and three-bedroom apartments with communal pools, landscaped gardens and a playpark. Every home includes outdoor space in the form of a terrace or garden, while penthouse apartments come with a rooftop hot tub and sea views.

Taylor Wimpey insists the homes are being built to exacting environmental standards, including double glazed windows, pre-installation for charging electric vehicles, water- and electricity-saving measures in communal areas and aerothermal heat pumps for the production of hot water.

“Amara meets British buyers’ needs in multiple ways, from its eco-credentials to its location in a quiet residential area,” Pritchard added. “Though close to restaurants, leisure facilities, a shopping centre and supermarket – as well as being just 3 km from the beach and 12 km from the airport – it offers a way to escape the noise of modern life. This has become increasingly important after the stress of the past couple of years.”

The first apartments at Amara are due for completion in June 2024.