Who's to Blame in Spain?
February 12th, 2008
Potential overseas buyers might be put off by reports of land grabs and foreigners’ villas being demolished in Spain. But the news isn’t all bad and being properly advised could save you the nightmare of losing your investment
The recent reports from Spain of a retired British couple who had their home demolished has sent alarm bells ringing for Irish owners of Spanish property. Combined with stories of compulsory purchases, and a government review of illegal coastal developments, some people thought the bulldozers had moved in quicker than they expected. So what is the truth about what’s happening in the Spanish Costas?
Spain’s popularity appears unending with Irish investors due to the guaranteed sun, quality infrastructure and convenient travel times. This was reinforced in a recent Overseas Property Index, where despite recent travails, Spain was the fourth most popular destination for property buyers. However, recent issues are starting to take the shine out of Spain’s sun.
A major issue that surfaced last autumn followed the Spanish government’s announcement that they are going to review the majority of coastal developments. Effectively, this is the government acknowledging the mistakes they have made in the past few decades, in which unchecked development has damaged the coastline. In trying to put right some of the mistakes, the demolition issue rears its ugly head again.
In 1998, Spain sought to control beachfront development by passing the Coastal Law, which decreed that the Spanish government controls a coastal strip of 106 metres in which no private housing is allowed. Technically, any property built within 106 meters of the shore after 1988 could be earmarked for demolition. The reason development still happened in the protected coastal strip was because the regional governments chose to largely ignore this law and let the building continue. It is this law that the government in Madrid is proposing to enforce.
A recent report highlighted the huge extent of the development that has taken place and the high level of damage to the coastline. The recommendations were that a full-scale review of development along Spain’s western and southern coasts should be undertaken and where necessary, remedial measures used to remove illegal developments. What this means is that thousands of properties along hundreds of kilometres of coastline could potentially be threatened.
So should you be worrying about the threats to your Spanish villa yet? No is the short answer. If we look at some of the facts here, thankfully it shows the practicalities are much different:
- Firstly, this was a proposal only and not draft law; it is due to go through wide public consultation, which could take years.
- Secondly, the Spanish government has said that there will be no mass demolitions and that each situation will be dealt with on a case-by-case basis.
- Thirdly, there is a legislative issue here: the central government has little power over local planning, so proposals would need the support of regional councils.
Also worth noting is that there are elections due in the spring and the current government in Madrid could be using this environmental issue to capture attention and generate extra votes. So there is no need to panic just yet as this could all be politically motivated.
The sad story of the recent demolition is completely separate and should not be confused with coastal issue. In fact, the demolition happened inland, but sadly both are the consequences of lax planning and administrative control in some regions of Spain.
This came about following a judicial order that was recently granted in Andalusia concerning the demolition of 17 homes that were illegally constructed in rural zones. This led to the awful bulldozing of the retired British couple’s home near Almeira. The property did not have the necessary approvals, but it seems that it could have been entirely avoidable had a solicitor checked all the required notices were in place prior to purchase.
Another common issue that gets mixed in with the horror stories coming out of Spain is that of land grabs and compulsory purchases because authorities have strong powers to remove properties that are in the way of development projects.
A high profile instance was termed the Valencia Land Grab, which has now been deemed unlawful, but there have been other instances where owners of secluded villas found that their homes have been part of a larger development project, so exercise caution before buying.
If you are planning on buying in Spain, please get an independent solicitor to thoroughly check out the property before you pass any money over. Ensure you see confirmation that the property has all the correct planning permission and permits, that there are no current or past planning permissions granted covering the property, in much the same way you would do in Ireland. If buying a property near the coast that was built after 1998, ensure your solicitor provides confirmation it accords with the Coastal Law so that there is no threat hanging over your sunshine investment.
The positives to be taken from these issues is that Spain is taking more care in the way it permits development and is trying to ensure the mistakes of the past are not repeated. This should benefit the property market there over the long term.
Full story from The Irish Independent
