Even in an economic downturn, golf property tends to hold its value – and its rental potential. Roderick Easdale finds out why

“Golf properties are always a good investment,” believes Ian Cunningham of escapes2.com. “In difficult times they hold their value better than other properties and in the longer term will always see a good return because a golf course ensures open views and low-density construction.” For this reason golf properties are also popular with non-golfers - James Wyatt of Barton Wyatt International says that 70% of the buyers of its golf properties aren’t golfers.

The non-golfer resident is also attracted by the ready-made sense of community a golf development brings, with focal points such as bars, restaurants and other leisure activities on site; and to the non-playing investor the allure is the rental opportunities - the golf season is normally longer than the holiday one. “We have examples where 40 weeks’ occupation and more, year in year out are possible. Portugal in particular is exceptionally strong in this respect,” says James Wyatt. Indeed many new-build golf properties now come with rental guarantees for the early years.

Key to renting your golf property is the attractiveness of the golf offering. For those who don’t play this can be tricky to gauge. One simple solution is to pick places where golfers are expected to go. Last November KPMG Golf Advisory Practice’s Golf Travel Insight Report declared that Portugal and Spain followed by Turkey and Dubai are golf tourism’s future hotspots.

Because of a change in Spanish law that stops residential property being built on new golf courses, Adam Gale, MD of Duchy Estates on the Costa del Sol, reckons that “when the market picks up again, Spanish golf property will ultimately be an endangered species. With the deals to be had on properties below one million euros, this really is the target area for the serious long-term investor.”

James Wyatt says this situation does not just apply to Spain: “In most markets, non golf property is very widely available and the second-hand market over saturated, so any exit strategy is likely to be difficult. Golf property is in more limited supply so it can offer a very good investment in terms of capital appreciation and rental returns.”

Read the full article in our June 2009 issue.