Britons looking for luxury bargains in the Costa del Sol have never had it so good. The dire state of the Spanish property market means that discounts of up to 40 per cent are now widespread. Moreover, the cash-rich, who can act more quickly, are negotiating even better deals. The results more than make up for the low value of sterling.

The most abundant hunting ground for top properties stretches from the “Golden Mile” between Puerto Banús and Marbella to the “Golf Valley” behind the latter. “Not even in the last recession of the 1990s have I seen so much quality in such numbers,” says Barbara Wood, the co-director of The Property Finders, a firm of overseas buying agents.

Wood has just returned from Marbella, where she showed a client a shortlist of 25 homes. The client made five offers of either €850,000 or €900,000 on properties listed at either €1.4 million or €1.5 million. After some negotiation, a deal was done at less than €1 million for a four-bed villa with a 10m pool and sea views just behind Puerto Banús. “To get such a property under €1 million would have been considered utterly impossible in the past,” Wood says. “It just shows what can be done when a cash buyer targets a serious seller.”

There are other deals waiting to be had, such as a couple of four-bedroom villas near golf courses behind Marbella that were originally priced at €1.6million but may well sell for under €1 million. There is also a four-bedroom house overlooking a golf course just outside Puerto Banús for €995,000 (down from €1.3 million) but which, according to Wood, could go for less after negotiation.

Price reductions can be even bigger when it comes to repossessions, such as a 7,500 sq ft mansion with a large garden overlooking La Quinta golf course. Houses in this area usually sell for at least €2 million, but the bank is looking for nearer €1.2 million.

So dramatic are the price cuts that Britons are better off buying now than they would have been when sterling was stronger but prices were higher. A two-bed flat by the beach in Puerto Banús recently sold for €460,000. In 2006 it was valued at €795,000 — then worth £545,000.

Buyers with good negotiating skills, a knack for research and ready cash should also scour the new-build market. According to Chelito Buckley, the sales manager at the Monte Mayor Golf & Country Club, discounts are “the first thing that people ask for”. Although the price list has not been altered (four-bed villas start at €930,000 and two-bed townhouses at €695,000) buyers are negotiating either straightforward reductions in the price or better payment terms.

Andrew Hawkins, head of international sales at Chesterton Humberts, urges buyers to be cautious. “There are some great deals to be done. But even with the most fantastic offers buyers should still ask tough questions and ensure that the developers have all the relevant planning consents and the right documents.”

CASE STUDY 1: THE PAIN IN SPAIN

Ian Middleton and Carole Rose, above, moved to what seemed the perfect property just outside Mojácar in Almería, last year, after they both lost their jobs. The couple, who wanted to set up a falconry business, paid €37,000 (£32,000) deposit on a €370,000 three-bedroom house. The owner allowed them to move in after contracts were exchanged; they were then given 12 months to complete and produce the balance. It never happened. “When it rained, there was water pouring through the walls and the roof,” Carole says. “The electricity was tripping every five minutes, mould started to grow everywhere and cracks started to appear.” The couple also found that the house came with 10,000 sq m of land, not 14,000 sq m as advertised, and that the access to the nearby main road, crucial for their business, was illegal. When they told the local bank, it withdrew its mortgage offer and the couple were forced to return home to Warrington. “We feel we have been mis-sold the house," Carole says. “We went out there to escape a situation but ended up losing all our savings.” They are now seeking legal advice.

CASE STUDY 2: THE GAIN IN SPAIN

Simon Jordan, right, is typical of a new breed of bargain hunters who are taking advantage of the dire state of the market on the Costa del Sol. He and his wife, Donna, who live in Guildford, Surrey, decided to back out of a deal to buy an off-plan home in Spain in 2007 when the property was not finished on time. Aware that prices had dipped, they continued their hunt. “I kept looking on the internet and I saw a few places I liked near Marbella,” says Jordan, an air steward. “I knew developers had to sell some properties at the end of their financial year so I rang up Taylor Woodrow and told them how much we could afford. They rang back in two hours and agreed to a deal.” The couple bought a two-bed flat in the El Bosque development in Elviria, near Marbella, for €155,000 (£136,000). It had been for sale for €275,000. “We are very pleased. We cannot believe it has really happened,” he says.

CONTACTS:

www.thepropertyfinders.com

www.chesterton-international.com

Monte Mayor: www.laperlainternationalliving.com

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