Newquay Holiday Cottages - Feeling the winds of change

Anyone who has been to Newquay lately will have noticed a distinct change in the air. Of course if you look out to sea, the glorious Atlantic rollers and acres of pristine sand that continue to make Newquay the surfing Mecca for which it is so famous, are still there. But I invite you to take a second and look - behind you this time, and take in a sky line that may not be quite what you would expect.

In the place of crumbling concrete and pebble dash soars a new breed of construction with towering cranes and steel and glass. Newquay has begun a Renaissance that strikes deeper than just a pretty face-lift; it is a town entering the world of Million pound penthouses, celebrity restaurants and luxury lifestyles - so what are the prospects of owning a holiday cottage in Newquay?

Well, there is and will always be a place for the traditional holiday cottages in Newquay, and many can still be found alongside their shiny new neighbours, and further back from the seafront where land is at less of a premium. Just as there is a place for the hostels and surf shacks to accommodate the purists that visit Newquay under no pretence other than to surf.

But at the other end of the rental spectrum are the luxury apartments with all mod cons and views to die for. Increasingly investors in rental property are looking to a new breed of self-catering accommodation in Newquay - to suit a new breed of visitor. Anyone looking to invest in property with holiday rental potential has to look at the market they are hoping to attract, and take into account the other changes taking place in and around Newquay, and they may find themselves moving away from holiday cottages as we think of them - and looking up.

Amongst all this optimism do lie some concerns - much of this development seems to be built on the "if you build it: they will come" principle, but will they? To what can this massive alteration and investment by attributed, and is it good news for the would-be holiday rental owner? Well after the initial interest in developing Newquay was established, it seems to have been self perpetuating ñ investment invites more investment, and success breeds success.

Newquay seems to have made a conscious decision to move onwards and upwards, literally. The development of residential buildings has been matched by the development of infrastructure, town centre and shopping quarter, communications and the aspirational lifestyle that Newquay exudes.

Newquay has cleverly made the most of the growing trend of UK residents looking for short breaks and last minute getaways. Vastly improved road, rail and even airport links have made Newquay far more accessible and opened it up to a much wider audience ñ one who wants to leave the office on Friday afternoon and catch a wave before dinner.

The draw of the celebrity chef should also not be underestimated - just look at Rick Stein's influence in Padstow or 'Padstein' as it has been dubbed by some. Houses in this tiny fishing village are now far in excess of the average for the area, and rental property can command a sizeable premium. The pattern can be seen repeated again and again: Damien Hirst's influence in the North Devon town of Ilfracombe; and Ludlow with its fleet of Michelin Star Restaurants have both enjoyed booms in popularity and prosperity due to the celebrity chef influence and Newquay it seems, is no exception. Jamie Oliver has established the fantastically popular restaurant 'Fifteen' just down the road in Watergate Bay, and Rick Stein (again) looks set to take over 'Fistral Blu' on Fistral beach. The impact on the number and type of visitors that the 'Food Factor' will attract is sure to be significant.

Critics of the changes in Newquay's architecture and demographics may be justified in feeling that even the lower end of the market is becoming unobtainable, but perhaps would do well to remember the devastation to hit British coastal - including Newquay itself - when the Costas of Spain were opened up to the British holiday maker in the 1960's. With budget airlines still operating at full capacity despite a shaky economy, sky high oil prices and the ever present threat of air born terrorism looming, Britain's coastal resorts have to make themselves noticed and desirable something that Newquay is managing to do in spades. In fact it is even turning the low cost flight phenomenon to its advantage, with the major developments at Newquay Cornwall Airport.

All in all, things are looking pretty rosy if you can afford to invest in one of these new luxury apartments, but what if your funds don't quite stretch to their luxury pricetags? Well, all may not be lost just yet. Yes: a penthouse in the Pearl Development will set you back over £1 million, but more modest options are available. Apartments in the Zinc Development start from £275,000 and a 'Surfpod' one bedroom apartment can be picked up from as little as £141,000.

Another option is to look slightly further back from the sea front where prices are more reasonable, but those with holiday rental in mind will have to consider that rental premiums will also be reduced. Polar extremes of luxury and budget look set to be getting further apart, and yet there does remain room for some middle ground. Essentially the range of markets for Newquay holiday homes is still wide open. The most significant changes being that the top end of the market is being maximised where previously it has been virtually non-existent.

There will still be call for the bargain basement accommodation - the hostels and surf-shacks will survive, because while there is surf at Newquay, there is still a significant market for them. Beneath the gloss and fashion and flashy restaurants are the fundamental reasons for Newquay's popularity: the sea, the surf, the beaches and the spectacular natural scenery and they are here to stay.