Aside from the terrific climate, the relaxing environment and the cheap flights, favourable exchange rates have traditionally made holidays to Southern Spain’s Costa del Sol an extremely attractive proposition for holidaymakers and Costa del Sol property hunters.  Recent times, however, have seen the euro exchange rate drop, a fact which has inevitably impacted on the tourist industry throughout most of Europe as the costs of food, drinks and other holiday essentials have risen.  Determined not to be set back by the world’s money markets, however, Spanish businesses are responding by cutting their prices, making the area once again a truly competitive choice.

With holidaymakers suffering a drop in exchange rates which has seen the pound and the euro almost evenly matched at times, compared to the rate of around 1.5 euros to the pound a few years ago, some European countries have just crossed their fingers in the hope that things will improve or set their sights on attracting tourists from some of the higher income nations such as the Scandinavian countries.  As an area which has consistently been the number one destination for UK holidaymakers, however, the Costa del Sol is extremely keen to ensure that it looks after the Brits.

The cost of drinks and eating out will, in many cases, see reductions of up to around a massive 33% in 2010, making Costa del Sol holidays much more appealing than those to many other European destinations, where holidaymakers have not only been hit by poor exchange rates but price rises which have been intended to compensate for dwindling business.

Holiday accommodation in Southern Spain is also very competitively priced this year, with holidays in the Marbella area offering exceptionally good value.  With all those extra savings, visitors to the Costa del Sol can expect more fun than ever for their pounds sterling!

There is no denying that the Spanish property market, like many others around the world, has been hit hard by the current recession, but if the figures just released are anything to go by, it looks as though things may be turning the corner.

Last Friday saw the Spanish government report the first increase in house sales in three years.  In the final quarter of 2009, property sales rose by 4.1% against the same period of last year, making it the first year-on-year rise since 2006.   With a total of 130,572 properties finding their way off the market between October and December, this represented a 21.4% increase on the period between July to September.

With the recession in Spain really starting to bite towards the latter end of 2008, the property market during the whole of the year 2009 was never likely to be anything other than fairly dismal.  Indeed, with just over 413,000 sales throughout the course of 2009, this represented an 18% decrease over the previous year and a drop of 46% on 2007.

Reports indicate that the national statistics seem to be suggesting, however, that Spanish property prices may well be bottoming out, making this an excellent time for investors to make their move.  Although recovery may still be slow to arrive, as is always the case, it is bound to happen, and it is those who get their timing just right who will undoubtedly make the greatest gains.

Of course with its great climate, ease of accessibility and the cheap cost of flights into Malaga Airport, the Costa del Sol has continued to be a firm favourite for holidaymakers despite uncertain economic times.  As the pressures begin to ease, it is also almost certain to continue to be one of the most popular choices for those in the UK who are looking to emigrate or invest in a holiday home or rental property.