Is a Mediterranean Beachfront Property Now Off The Menu?

The chances are that every person considering investing in property has had a common dream location for that property in their heads at one point or another - a beautiful, sparkling white new-build that looks out over the clear blue Mediterranean Sea, with sand leading right up to the patio and big spacious rooms that feel warm and homely. It does not matter whether or not you plan to live in that property or purchase it solely for investment purposes, the dream is always the same (with a few minor changes of course).

There is now a problem with that dream though - a major one in fact.

The Coastal Zone Management Agreement

In a major piece of real estate investment news, there are to be no more new build properties within 100 metres of the coastline in the Mediterranean area. The Coastal Zone Management agreement (ICMZ) was introduced as a part of the Barcelona Convention to help remedy problems that the coastline has been experiencing in recent years as a result of extensive property development in the area. Experts had become alarmed at the rate at which the coast was actually eroding and the sheer volume of pollution that had been introduced to the area as well.

Here are some facts about the ICMZ for you:

• 14 countries located around the Mediterranean voted to ratify the ICMZ including Spain, Greece, Italy, Malta and Tunisia
• The agreement prevents both residential and commercial properties from being built within 100 metres of the coastline with no exceptions, although existing buildings are to remain in place
• The entire 29,000 mile shore of the Mediterranean is affected, meaning that Europe and North Africa will be obliged to follow the directives set out by the ICMZ
• The Barcelona Convention meets twice a year and it was not the first time that this kind of agreement has been discussed - it has been in the making since 1976 - but this is the first time that all participants have agreed on it

What the ICMZ means for investors and property owners

The ICMZ is undoubtedly a victory for the environment and a huge step forward towards sustainable property development. One question remains though. By taking steps to prevent damage to the environment of the Mediterranean, will the local economy decline as a result of this ruling and how will it affect the investor?

The Spanish and Italian real estate industries have been in decline in recent months anyway as a result of the fact that developers built too many properties. To this day, a number of them are actually sitting empty because the demand was slightly less than originally predicted. The amount of properties sitting empty undoubtedly damaged the appeal of property in certain areas anyway and forced prices down, but the most demanded were always the coastal properties and building more is no longer an option.

The ICMZ itself will do nothing to boost real estate and the local economies, despite the fact that it may enhance the environment and prevent further pollution. There will, however, be one major consequence in terms of investment potential. The price of purchasing a property on the coast will inevitably go through the roof. As these properties are in demand anyway, their worth will go up because they effectively become more exclusive than ever before!

Of course, property in the Mediterranean does remain popular on the whole, but it is wise to do your research in advance so you can gauge where the best investment is to be made. If you can get your prediction right, then now may well be the time to buy!