Hi Chris
We purchased on Al Andalus Hills back in 2004 and have never regretted it. Like you, we were in for a ten year plan, but well . . .who could have predicted! Generally, prices have dropped, but not as low as our original off plan purchase price (I don't think). Having just returned from a fantastic holiday, I was suprised to be leafletted about an apartment on Residencial, 2 bed, going for just 42k euros. This was a bank repossession. So there must be some huge bargains around.
My question to you is, why on Thalassa? We rent ours out enough to pay the bills and find the proximity of the sea and ability to walk to a supermarket and several dozen restaurants is very important. Also the bus service is just over the road. Thalassa is just that bit further up the hill making it a bit inaccessible for those with young children or mobility issues. The newly placed Cositas is fabulous, for us all I hope. Residencial is in the same position, although the Happy Gnome seems to open in season.
Have you spent much time out there in the off season?
In concurrance with both Spanish and English neighbours, I think we were all in agreement that the area was generally on an upward trend. I cannot substantiate this, just a general feeling that the area was moving on. The lovely new pleasure boat harbour and chiringuito area in Garrucha, the newly finished square at the top of Mojacar Pueblo, the return of Creamfields in its Dreambeach format, and the fact that large chains of restaurants (Lua) have invested in the area by opening stores. Also, closer to Thalassa is empty roads, actually being top-tarmacced during our stay when they had been empty for so long that we have been giving our teenagers driving lessons on them for the last three years. We were also amazed at how quickly the Buganvillas/Laguna Beach areas have recovered/been rebuilt after the horrendous floodings last September. Very encouraging.
So perhaps prices might have hit their low - hindsight will tell, but we did say that we would definitely be interested to buy again in Spain at this time, probably purely for the rental market though.
I would also caution - we purchased a second property locally in 2006 and it never received its final licence - despite us having all the normal solicitor checks, and we are still fighting through the courts with many others, for the deposit return. At least in the UK, you can check yourself, although we are not naive purchasers and did a lot of double checking and reading of spanish contracts ourselves. Just the law is so different.
Hope my personal views help.