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New rules have been unveiled in the south of Spain designed to eliminate the problem of developers to abuse the system and take large amounts of land for themselves.

A new law being debated in Valencia could bring an end to the so called ‘land grab law’, which has been abused by Spanish developers for many years, to the detriment of many property investors forced to pay the prices demanded by the land owning developers.

Corruption and misapplication have been blamed by Rusticasa property consultants as one of the main reasons for the exploitation of the current law and it is thought that the changes proposed could wash away these problems and provide far greater openness in the Spanish property market. The negative impact of the media campaign surrounding the old LRAU law has led to some people finding it difficult to sell their property, because investors have become increasingly wary as to the potential for unscrupulous developers to take land.

In the past, developers have been able to take advantage of the LRAU law allowing them to appropriate land for the “public good”, using a range of arguments to claim that what ever they are using the land for comes under the “public good” requirement. However, such moves have led many investors to shy away from the region because of the reputation for developers to sweep away investments at a stroke by invoking the LRAU.

Therefore, many will welcome the news that the Valencian courts are currently looking at proposals for a new rule, the LUV, which could take the place of the current system and reduce the threat of developers taking over investors’ land.

Even better for investors is the news that the courts are understood to be taking into account European Union rules on the right of the individual. The region is conscious that it does not want to be taken to the European Court of Human Rights over the issue and therefore is looking to incorporate European law into the rules so as not to infringe on the rights of individuals.

That can only be good news for investors, who are likely to be protected by such an approach far more than under the current system, which seeks to assert the right of the public over the right of the individual. Rafael Blasco, the minister responsible, has promised to take action on all the points made by the European Union’s Petitions Committee.

The changes will be a welcome relief to many investors, for although the current law has in reality only affected a very small percentage of the Spanish property market, its threat has been enough to put many people off, having a negative effect on the property market and making it difficult for Spanish property investors to make headway in the rural Spanish property market.

story from Assetz News

The LRAU, the law used as a vehicle for property development abuses in Valencia, is being replaced by a new municipal law, the LUV. This is very good news for those concerned about the media stories of land grabbing by unscrupulous developers.

The new LUV is currently being debated in the Valencian Courts, and the minister responsible, Rafael Blasco, has promised that it will take action on all the points raised by the delegation from the Petitions Committee of the European Union. He has taken on board recommendations from all parties, and is hopeful of preparing a new document satisfactory to all in the near future.

The organisation ‘Abusos Urbanisticos No’ has been responsible for bringing the abuses of the previous law to light, and campaigning for justice for those adversely affected. However, in the light of a comment made by the founder, Charles Svoboda in his personal blog, it appears as if the extent of the problem may have been exaggerated.

He writes that the organisation has only been able to ‘secure about a dozen cases’ to put forward to the European Court of Human Rights, some of which will be ‘support cases’ as they may ‘not be as well qualified’ because of ‘technical reasons’. This is a far cry indeed from the many thousands of affected people quoted by the media.

An unfortunate side effect of this sensationalist media reporting has been that owners of properties (which have never been at any risk at all) have found it difficult to sell. It is also important to realise that even while the LRAU was in force, amicable solutions to disputes have been reached, and cases have been taken to court and won by those adversely affected.

Now, with the emerging LUV and the spotlight on the Valencian Community, it looks safe to say that the old LRAU ‘Land Grab Law’ is a thing of the past and those who wish to enjoy rural life in that area can do so with confidence.

More information from Rusticasa
View a selection of properties in Valencia from Rusticasa

Those looking to invest in southern Spain have long been concerned about the issue of relatively high crime rates in the region.

These fears have sometimes resulted in people being put off purchasing a property in Spain for fear of losing out on their investment because of the cost involved in ensuring the place remains secure and is not targeted by criminals. Many criminals see the region as rich pickings because of the fact so many people who own properties there live in other countries and therefore cannot always be around to prevent crime.

However, the Spanish authorities have now recognised the problems that have been endemic in the region, and are cracking down on crime in an effort to clean up the region’s reputation. Police on the Costa del Sol are becoming increasingly active, according to Andalucia.com, with the province of Malaga now accounting for a quarter of all arrests in Spain of foreign criminals.

The region had built up a reputation as something of a sanctuary for overseas criminals, leading to the nickname of “Costa del Crime”, but that is now an outdated view of the area, according to the police, who have worked hard to deliver safer streets and provide the region with a more attractive reputation.

In the first nine months of this year alone, the Spanish police have detained 50 foreign criminals in Malaga and officers believe that the efforts are having a deterrent effect by making foreign fugitives less likely to go to southern Spain in the first place.

The efforts by the police are bound to help the Spanish property market, as people looking to invest in property overseas are now more likely to consider the area because they will be aware of its new initiatives to crack down on crime.

This will mean that people choosing to spend large amounts of time in their foreign property will feel much safer when there, while those who intend to use their investment as a rental property for large parts of the year will have peace of mind from the fact that their property is now much safer even when they are thousands of miles away from it.

Crime concerns are always a big feature of anyone considering investing in a property overseas, but the Spanish market looks set to continue its growth as it starts to shake off its old reputation and becomes a much safer place for investors to place their money.

Story from Assetz News

The area of Los Guajares lies to the South of Granada. Cut off from modern Spain until recent years when a road was built to reach the villages, this mountainous community resides within a sub tropical valley, through which the Guadalfeo river runs. Only 20 minutes from the coastal resort of Salobrena, this is Moorish Spain at its best.

With the ancient Muslim terracing and irrigation system still used to this day, Los Guajares is sandwiched between the mountain ranges of Sierra del Chaparral and Sierra de Los Guajares.

This area boasts spectacular scenery, an abundance of wildlife, and is one of the most unspoilt environments in Granada. Running away to the south is the Sierra Nevada, stretching to the Costa Tropical, a 100 kilometres stretch of relatively undiscovered coastline that’s full of hidden coves and resorts such as Salobrena, Motril and Almunecar. For those seeking low prices and a rural retreat, Los Guajares is ideal.

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Why buy there?

This stunning valley offers a temperate climate that’s warm during the winter months but slightly cooler than inland areas due to its proximity to the coast. There are many species of deer, birds and mountain goats, along with a number of hiking and walking trails.

The valleys abound with orange, chirimoya (custard apples), almond and olive groves, while the narrow streets and houses are covered in geraniums. The area is also easily accessible, only 20 minutes from the coast and Motril, and only an hour from Granada, which now receives direct flights from the UK.

This is an old part of Andalucia where the villages are whitewashed and the streets are narrow and winding. There’s culture and history at every turn, with the Alhambra Palace in Granada, the Alpujarras, the swathe of coastal towns, and the ruined Arab castle in Los Guajares itself. Add authentic tapas and fresh seafood, and you’ve got an unspoilt slice of traditional Andalucian life.

Where to buy

In Los Guajares itself, you have the three villages of Guajar Faraguit, Guajar Fondon and Guajar Alto. This old rural community offers a handful of bars and restaurants, and spectacular scenery. A two bedroom house can be picked up for a mere 67,000 euros, while 72,000 euros can secure you a fully renovated, traditional townhouse.

Further to the southeast is the whitewashed hilltop town of Salobrena. Surrounded by sugar cane fields, Salobrena is a picturesque seaside town, with many shops and resturants. Its maze of cobbled streets are overlooked by the ruins of a Moorish castle. Spend 145,000 euros and you can pick up a four bedroom apartment in the centre of Salobrena, while 155,000 euros will buy you a traditional house in the old town.

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Molvizar is another traditional village. Situated on the edge of the Sierra del Chaparral, it lies in the stunning Lecrin valley, which is covered with almond and olive groves, and enjoys stunning views.

Molvizar is becoming popular with people looking for a quite village location but with access to the lively coastal town of Salobrena. There are many pretty, typically Spanish town houses for sale. A two bedroom cortijo here costs 284,000 euros, while a three bedroom townhouse is 106,000 euros.

View properties for sale in Molvizar

Located near Motril, the village of Velez de Benaudalla nestles at the foothills of the Sierra Nevada and is a typical mountain village, with sugar cube houses, mountain views and a traditional church. A new feature to Velez is the newly constructed dam, which promises water sports, picnic areas and more. In the not-too-distant future it will also be a haven for bird watchers and walkers, providing many aspects of rural tourism.

Property here starts at 116,000 euros for a one bedroom townhouse, while a two bedroom townhouse requiring some work can be purchased for 99,000 euros.

View properties in Velez de Benaudalla

The property market


Granada is relatively unknown compared to much of Andalucia. Currently, over 48 per cent of property here sells for between 50,000 euros and 150,000 euros, and a quarter of all homes sold are village houses. On average, property sells for 85,000 euros less than the national average price of 245,000 euros.

The market in Los Guajares is very different from that of a few years ago, when people were buying everything from renovation projects to off plan investments and luxury villas. Over the last five years, prices have increased dramatically, at a rate of 15 to 20 per cent per annum. A property such as a cortijo, or village home, has risen in price from 30,000 euros to over 100,000 euros. Nevertheless, there are still bargains to be had, especially in villages such as Jete and Otivar.

There has also been an increase in the number of people buying and investing in the area. The market is very international, although recent months have seen more properties being sold to Spanish clients than in previous years, more city based Spaniards are looking to the Costa Tropical and inland areas of Los Guajares for second homes, especially those from Madrid and Barcelona.

This has helped to keep the market for 2005 successful in what appears to otherwise be a sluggish year, particularly in terms of the number of British buyers. 2005 is seeing a mix of buyers seeking both property to let and also property for permanent relocation. Although there are still bargains to be had, this could all change when the motorways are finished and Los Guajares becomes more easily accessible.

The lettings market
Due to the longer winter season than in the coastal areas, the short term lettings season in Los Guajares is shorter than it is in much of Andalucia. The region is more suited to those looking for a walking holiday, rather than a beach vacation. However, some owners do let their property during the summer, and most do this privately via the internet. This shows the quieter nature of the lettings market.

The income generated is less than you’d expect along the Costa del Sol, although prices are rising in conjunction with increased interest. There has also been a significant turnaround in the number of clients looking to secure a long term rental in the Los Guajares area prior to buying. This trend started in 2004 and has grown significantly over the last eight months.

In terms of rental returns, a one bedroom traditional property in Guajar Alto can generate 210 euros per week in low season and 320 euros in peak season. A two bedroom townhouse in Velez de Benaudalla can secure between 205 euros to 365 euros. In the more popular coastal area of Salobrena, a three bedroom villa can generate between 500 euros and 850 euros per week, depending on the season.

Living in Los Guajares

There is much to recommend this area, not least the tradition, culture and awesome scenery. However, there are negatives too. The region has a limited infrastructure and the remote location of many villages means limited resources, such as schools and hospitals.

The streets are often steep and narrow, which can hamper access by car, and the weather can also be harsher during the winter months than on the coast. If you’re looking to buy here, you must be prepared to learn Spanish, and to respect the locals and their traditional way of life.

There is a strong local presence here, with a growth of Spanish second home buyers investing in the area. Foreign buyers tend to be semi retired couples and middle aged families who are looking to escape the busy coastal resorts. There are still relatively few British people here, and the foreigners who have bought property are a cosmopolitan mix of Canadians, Scandinavians and Americans. There’s also a thriving artistic community keen to take advantage of the area’s natural beauty.

Salobrena and the surrounding resorts are more touristy and built up than the inland villages, but the level of development remains acceptable. There’s more of an expat community here, and certainly more attractions, but again, it hardly reaches the levels seen further west in the Costa del Sol.