The Latest Spanish Property News from Kyero.com

New land laws aimed at cutting house prices in Spain will have the opposite effect, warn the country’s housebuilders.

Spanish property developers are warning that proposed land laws will push up house prices by 10 per cent - not reduce them, as is the intention of the Spanish government.

The law proposes developers must hand over between 15-20 per cent of land which has been classified for urban use.

Instead of helping to reduce prices, the land laws will have the opposite effect, say the Association of Spanish Property Developers (APCE).

They claim that land makes up between 40-60 per cent of a house’s construction costs and that the new law will put increased financial burdens on buyers as developers would pass on the extra costs to them.

Following recent property scams and alleged local authority corruption in Marbella, Costa de Sol, some developers in Spain also face new consumer protection legislation that is likely to increase their construction costs and prices to housebuyers.

Other developers, like Grupo Osuna, one of the country’s biggest property firms, say they already comply with the new proposed standards and their prices are unlikely to change as a result of new legislation.

Terry Walker of PropertyInSpain.Net said: “Buyer protection is now greater in Spain than in the UK despite the scams in Marbella and Spain’s 10-year construction guarantee is stronger than the UK’s NHBC guarantee. We already provide an independent Legal Surety on 8,000 off plan properties from all the leading developers. They have welcomed and joined our scheme that bridges a gap in Spain’s consumer protection laws.”

PropertyInSpain.Net, founder members of the Association of International Property Professionals (AIPP), are property partners of leading Spanish banks, La Caixa, Caja Murcia and Banco Sabadell/Solbank.

They have an extensive network of affiliate offices in 10 Costas, Mallorca and Ibiza.

The Spanish Housing Ministry said house prices in the past year to June had risen by 10.8 per cent, a fall from the previous 11.8 per cent.

Story from 999today

Statistics show Spain is emerging from a past low-confidence spell and is still a thriving holiday destination, as ripe for property investment as it was before. The figures are plain to see: the number of airline seats to Malaga has risen by 2.2 million this year, and an increase of nearly 40% in the amount of air traffic to Malaga alone underlines this increase. In addition, new figures from the Spanish Airports Authority (AENA) reveal that the number of passengers who arrived in Spain in 2005 on low-cost airlines nearly doubled that of 2000.

The European Navigation Organisation, Eurocontrol, has recorded 50 low-cost airlines operating from 22 different countries in Europe, 15 of which have as many as 50 daily flights to Spain.

Torremolinos on the Costa del Sol has recently been recorded as welcoming 10% more tourists than the rest of the Malaga area in May, making a very favourable situation indeed for property investments in tourist areas of the Costa del Sol.

Meanwhile other markets are opening up in the more rural locations around Granada, where investors are finding good value for money and promising returns when selecting in the right locations. The Atlantic Costa de la Luz is also currently receiving much attention while it is only an hour from the Costa del Sol and offers some outstanding natural beauty, lower prices and a natural, authentic tourist location.

With between 800,000 and 2 million European citizens forecast to buy property in southern Spain in the next five years, it is inevitable that investment in property in Spain will continue to benefit from some very impressive growth figures for the foreseeable future.

Story from Property Showrooms

With water shortages and global warming becoming a cause celeb with politicians and in the media these days, the environment is creeping up the agenda in most countries. In Spain, where post-Franco bureaucracy and the importance of tourism and economic growth previously overshadowed any thought of environmental impact, things are suddenly starting to go green.

In an unprecedented move, last week the President of the Junta de Andalucia, Manuel Chaves, proposed paying 2.3 million euros for the Algarrobico Hotel, in the Cabo de Gata Nature park, to demolish it. He described the partially constructed hotel as a symbol of how the coastline is being destroyed, and pledged to return the beach to its original state, despite the potential damage to the local tourist industry and the jobs it would have provided.

The term ‘eco-friendly’ is rapidly ditching its ‘added extra’ status in Spain, and is starting to be seen as a necessary requirement in a country that depends on the tourists choosing to visit it - instead of new competition from countries like Croatia - to bolster its economy.

But with eco-friendly not necessarily meaning cheap in terms of initial outlay, would people be prepared to pay any more for a property with genuinely green credentials?

Simon Ducker, of eco-friendly property developers Jones & Nash, says, “There has been a quite dramatic increase in people wanting to live a greener lifestyle. By buying eco-friendly the house will be warm and comfortable and have small, or no, utility bills and our houses are designed to breathe and are optimally situated to make the most of the sun, thereby ensuring a healthy living atmosphere.”

In 2005 alone, 55.5 million people arrived in Spain to enjoy the sun, sangría and siestas, the largest number in over five years, and 16 million of them came from Britain, by far the largest single source nation.

The balancing act between pleasing the influx of holidaymakers, who obviously put a strain on the scant resources, while attempting to provide residents with a continual supply of water and electricity, has led to some inevitable problems.

In the same week Chaves struck a blow for the environment, it was revealed in the press over here that there are close to an estimated 500,000 illegal boreholes siphoning off Spain’s underground water supply, and has led to the loss of enough water to provide for around 58 million people a year. They accuse farmers of buying the water on the black market to irrigate crops and developers of using it to keep golf courses green.

The news comes on the back of the existing controversy over the government’s plans to re-route the Ebro, Spain’s longest river, with 1,000 kilometres of pipeline. The National Hydrological Plan (NHP) will essentially be taking water away from the fertile north east of the country, and ploughing it into the arid, drought-prone inland and coastal regions, something the EU has deemed illegal and refuses to fund.

That Spain is addressing the problem at all, however, is a sign that things are moving forward. The economy is robust, property prices are rising - now sustaining the unspoilt beaches and natural beauty that attracts the thousands of Brits each year is the real test for Spain.

Story from World of Property

The Valencia Region of Spain is one of the most popular places for foreigners buying property. A recent report notes that approximately 22% of all property purchases last year in the Region were sold to foreigners. Salvador Villa, president of the Valencia Association of Real Estate Promoters indicated that of the nearly 150,000 homes sold, almost 33,000 of them were to foreigners.

Spain is the number one country for Britons to invest in foreign property, and the Valencia Region is very popular – even more so than the Costa del Sol to the south. In the Costa Blanca region alone, there are some 92,000 British property owners. Britons are by far the largest foreign purchasers of coastal property in Spain, buying nearly 40% of homes sold along the beaches and waterfront.

Property values in the region have continued to appreciate year-over-year. Last year, average prices were up nearly 16% in the region and 13% the year before. With its combination of modern cities and beachfront property, values in Valencia should continue to rise.

There are any number of reasons to invest in property in the region, with modern amenities, beaches and great weather. One new attraction within the city of Valencia is the Oceanografic, located within the Ciudad de las Artes y Ciencias – the City of Arts and Sciences. This spectacular aquarium boasts exhibits from around the world, spanning many habits and climates, including the Arctic and Antarctic, the Red Sea, Mediterranean, and Wetlands.

The Autonomous Community of Valencia consists of three provinces, Valencia, Alicante and Castellon. All together, the area has 518 kilometers of coastline along the Mediterranean Sea. With the coastal scenery and mild weather it is attractive for tourists and pensioners alike. The largest city is Valencia, with approximately 800,000 residents, and Alicante has a population of 325,000. Getting to this popular destination is easy, with two major airports in Valencia and Alicante. Direct flights are available to both airports from most major European cities.

Story from homesgofast.com

House prices in Madrid went up by an average of 11.9 percent in the past year, according to figures released recently.

This represented a rise of 1.2 percent compared with the 12 months between June 2005 and the same month in 2004, when house prices rose by 10.7 percent.

The Spanish Valuation Society said in a study on the first six months of the year that homes increased by 6.3 percent - or 1.8 percent more than in same period the year before.

In 42 provinces of Spain, the cost of a new home rose by an average of 5 percent, but it only rose by less than 4 percent in three other areas.

The most expensive cities to buy in were Barcelona (EUR 4,034 per square metre), Madrid (EUR 3,788 psqm) and San Sebastian (EUR 3,786 psqm) - showing rises of 9 percent, 4.4 percent and 5.6 percent respectively.

The cheapest cities in Spain are Lugo, Pontevedra and Badajoz, where the average price per square metre was EUR 1,400.

The areas of the country which showed the highest rises in house prices were Catalonia (8.8 percent), Aragon (7.7 percent), Castilla-La Mancha (7.5 percent), Andalucia and Valencia (both 7.4 percent).

The report said there was a steady slowdown in price rises, partly as more families are becoming laden with debt and cannot afford to buy a new home.

Story from Expatica

As prices continue to be out of reach for most under 30s in the UK, Spain is becoming the ideal choice for those who want to take a first step onto the property ladder but can ill afford to do so back home.

A recent survey by Atlas International confirms 22% of those aged 16-24 years were considering purchasing property abroad, with Spain topping their list. Over the past 5 years, Spain has been one of the largest economic areas of growth in the European property market. Continued success and low interest rates confirm that Spanish property is still a good investment. Its proximity to folks back home, budget flights and a healthy economy, make it all the more tempting to investors from the UK.

Coastal regions of Spain have plenty of work for young professionals in many service sectors, e.g. web and computer related technology, real estate, marketing, sales, hotels and catering, teaching, health & beauty, to name but a few and they often dont even need to speak fluent Spanish!

Amongst many other summer festivals, this month Granada’s internationally renowned music and dance festival is drawing more crowds towards the charms of Andalucia, and you can still find a number of fantastic property options available in the area of Granada to those on a budget.

In our view, it is inevitable that Spain will see increasing numbers of young British immigrants looking for new quality of life, at prices they can afford.

Story from Property Showrooms

If you are looking for hotspots on the Costa del Sol, check out Antequera, Campillos, Pizarra, Coín and Cártama. According to a new report from property consultants Salvago, prices here are rising at some 20 per cent a year, which is considerably higher than on the coast itself. There, we have been seeing some price rises of close to 16 per cent for the year, although prices have been slipping a little in the past month or two. The average per square metre price of an apartment on the coast is now at 2,574 euros, down from 2,620 euros three months ago. The Costa del Sol is, at long last, seeing more sensible pricing patterns.

The corruption in Marbella, where developers have long been given the go-ahead in return for hefty backhanders, has been described this week as being off the richter scale. Yet the ongoing crackdown is likely to see a positive outcome for anyone now looking to buy into Spain. The high profile of this corruption in the media means that, at last, some buyers will do the due diligence they should have been doing. Also, we are likely to see a more transparent market developing across the country. There is also talk that fewer developments will now get the go-ahead than before. With the current 12 million visitors to the Costas expected to rise to some 20 million in the next five years, that increasing demand and restricted supply should see prices moving upwards for some time.

If you are looking elsewhere for hotspots, you should pay a visit to Costa de la Luz which runs some 400 kilomotres from Tarifa to the edge of Portugal. I have tipped Huelva before but the whole coast offers potential from where I am sitting. The coast strikes a balance between some of the wilder coastlines and the more overdeveloped ones. It has controlled residential development and infrastructure and facilities that are keeping pace with these rather than lagging behind as has been happening elsewhere. The Costa Esuri golf resort seems to have appeared almost overnight and is the shape of things to come on this coastline which is increasingly attractive to golfers. I know many successful property investors who used to follow the low-cost airlines to spot upcoming hotspots but who are now looking to see where the next golf developments are going to be. That’s where they are now investing. You won’t go far wrong on this coastline.

Story from Eyeonspain.com

The Iberian Peninsula is full of picturesque towns set at the base of the hills, hidden in the heart of ancient mountains or set on the seafront. However, for all their beauty, many of them lack one important thing - a population. The INE’s survey of Spain’s abandoned towns and villages shows a high percentage of these are located in regions like Galicia, with 903, or Asturias, with 529. Some newcomers from abroad are all too happy to take advantage of this fact and have settled in remote spots, whose former inhabitants were forced to leave in search of a better life.

Examples can be found in the numerous deserted towns located in the Aragonese Pyrenees, such as Suelves. This town now belongs to a just one man, who has sold several houses to Belgian families since he first bought it. The first act of these new arrivals was to build a magnificent housing estate near the old town, with cottages, swimming pool and tennis courts. Many families have now chosen Suelves as their holiday residence and have also taken on the task of restoring the houses in the town which remain in a reparable state.

Not far away is another neglected area, Sarsa de Surta. Until recently, its sole year-round inhabitant was a young German man who decided to settle down in the otherwise deserted hamlet. Some months back, a Swiss couple also arrived with the intention of opening a hostel, and the area now sees regular visits from foreigners interested in buying a house there.

The town of Rodalquilar in Almeria first began to host English settlers during a brief goldrush at the end of 19th century. The gold was extracted initially by Germans, and later by English miners, who remained until the mines were nationalised in the fifties. However, their presence left its mark, and inscriptions in Shakespeare’s tongue can still be seen around the ghost town which it has become today.

At the other end of the country, Galicia has seen an influx of Scandinavians attracted by the natural landscapes. Locals in the rural area of A Rúa in La Coruña say several Swedes have put down roots in abandoned houses in the nearby hills. The houses are practically in the middle of nowhere, so if peace and quiet is what they are seeking, they couldn’t have picked a better spot.

Story from Spanish Promotions

Foreign property investors who have invested in Spanish real estate have been warned that the country’s authorities are taking a tough new stand on the non-payment of local property taxes.

Reports in the Irish media have revealed that the Spanish tax authorities are planning to ‘name and shame’ all property owners who are not up to date with their taxes. Their names will first be published in the government’s daily newspaper, the Boletin Official. Investors’ details will also be placed on local government websites in the regions.

It was estimated last week that 100,000 properties in Spain are now owned by Irish investors, but it is thought that as many as three quarters of these owners have not been compliant with Spanish tax regulations. Reasons for this include a general lack of awareness of Spanish tax laws by foreign investors, in addition to the language barrier.

Local taxes typically range from between EUR500 to EUR1,000 per property and are generally paid annually. However, homeowners face penalties of up to 300% of any outstanding taxes.

Failure by investors to pay their taxes can result in the Spanish authorities putting a charge on the property, and in certain circumstances, some investors have had their properties seized by the authorities.

Foreign buyers of Spanish properties are urged by professional advisors to seek out the services of an independent lawyer to check whether there are any outstanding taxes owing on the property.

Such taxes are levied against the property rather than against the owner, and it has been reported that the tax authorities may take up to three years to issue bills to new owners.

Story from Blevins Franks

This autonomous region of Spain is made up of several islands in the western Mediterranean lying between Spain and the north coast of Africa. The main islands, Majorca, Minorca, Ibiza and Formentera have long enjoyed a thriving tourist trade. The islands are well known for sunshine, beautiful beaches and exciting nightlife.

The islands enjoy a classic Mediterranean climate characterised by mild temperatures and year round sunshine. Minorca and the East coast of Majorca are exposed to cold dry winds and all the islands are subject to the occasional cyclone.

Ibiza boasts some of Spain’s largest discos and nightclubs, but is also home to the old walled town of Ibiza city - D’Alt Vila. Declared a Biosphere Reserve by UNESCO in 1993, Minorca is full of prehistoric relics and monuments. Majorca has an attractive old quarter and is also dominated by the beautiful Sierra de Tramuntana Mountains.

EU citizens do not need any visas or permits for travel to Ibiza and remain for 90 days. In order to remain for longer and work in Ibiza or anywhere in Spain EU citizens have to go to their local Spanish police station to register and obtain an NIE (tax number).

In the Balearics, as in mainland Spain, property buying is subject to a purchase contract or Contrato de Compra-Ventra which details the agreed purchase price, any extras that you have agreed to purchase, a declaration that the purchaser and vendor are legally in a position to buy or sell the property and a proposed completion date. Upon signing the purchase contract, buyers are required to pay a deposit of around 10%. If either party withdraws, the deposit will be lost or returned with 100% interest. Completion of sale takes place when the deed of sale is signed in a notary’s office and the new owner’s name entered on the deed.

Ibiza, the ‘clubbing capital of the Med’, though highly developed in parts, still has areas of unspoiled countryside which retain the air of provincial Spanish life. Prices range from around 270,000 euros for a one bedroom apartment to 2,625,000 euros for a six bedroom house with a pool.

Minorcan property prices generally reflect those on mainland Spain. The North offers spectacular scenery but current property interest centres on the Mahon area in the South which is home to better beaches, a warmer climate and superior facilities.

Properties in Majorca, the largest of the Balearics, are highly popular with British and German home buyers. There are many high-rise developments in the South West in resorts like Magaluf but it is still possible to find fine old properties ripe for restoration. The east coast has some nice beach side developments where you can enjoy quiet coves and relatively unspoiled countryside.

Full story at World of Property

Andalucia is widely thought of as quintessential Spain with its spectacular countryside, beautiful beaches, white-hot days, tapas nights, flamenco, bull-fighting, the majesty of Seville, the beauty of Granada and the breathtaking Mesquite at Cordoba, all combine to create an entrancing land. The problem is several thousand Brits got there first. Five years ago the campo, or countryside, was the domain of the intrepid foreigner i.e. cheap, but unfashionable. Now everything has changed. Prices have risen exponentially, but, more remarkably, the spread of foreign buyers has reached further and further into the interior.

Large amounts of equity at home have spurred the Brits on, and the dramatic change in the Andalucian land laws, whereby new-build has ground to a halt, has seen the previously village-shy foreigners embrace the traditional Spanish townhouse. The major Costa Del Sol agents are now in towns such as Loja, Comares and Antequera; soon they’ll be in Espejo and Cordoba.

So for many, the days of Andalucia as an attractive property buying market are long gone. Or are they? If you want to buy property in Andalucia and want a bargain, draw a line between Malaga and Granada, and head for the halfway point, a little town called Alhama de Granada.

It is a well-kept Andalucian secret. A picturesque town of a mere 6,000 souls, it perches precariously and dramatically above a vast slash of a gorge that dominates the countryside. Known in Spain for its hot springs and once a famous Moorish stronghold, the town still attracts a dribble of Spanish visitors who wish to bathe in hot sulphurous waters which reach over 44C.

The history of Alhama de Granada can be traced to the very beginnings of civilisation in the Iberian peninsula. Phoenician, Roman, Visigoth and Moorish influences all fuse with the architecture of the medieval Catholic kings. In the 14th century, Alhama and the neighbouring fortress of Loja were generally considered the keys to the Moorish kingdom of Granada and their capture went a long way to ensuring the overthrow of the last Moorish ruler, Boabdil of Granada.

Today Alhama is a mix of ancient and modern as it looks out over some of Spain’s most spectacular scenery. In winter, the majestic view to the snow-capped Sierra Nevada is uninterrupted; in summer, the locals spend evenings and weekends relaxing around the vast and beautiful Bermejales lake, a mere 5km from town and reached by a road lined with poplars and towering Mediterranean black pines.

The sierras of Tejeda, Almijara and Alhama make up a vast natural park. It gets a lot of sunshine, but at an altitude of 900 metres the air is fresher and the temperature a few degrees lower than the coastal areas, making it altogether more comfortable in the sweltering summer. The landscape is in places rugged and craggy with deep ravines; in other areas almond groves cover the hills. It’s a region peppered with prehistoric caves and formidable mountains such as the highest peak, La Maroma at over 2,000 metres.

With the shiny new Ryanair-serviced Granada airport a mere 30 minutes away, the coast only 45 minutes, and the large estate agents currently nowhere to be seen, now’s the time to make a move. A five-bed house in the little village of Cacin, 8kms from Alhama, with room to build a pool and views of the olive groves can be snapped up for a mere £80,000. Smaller village houses go for as little as £40,000. If you are truly determined to find something special, there are magnificent 18th and 19th century houses overlooking charming little squares, which are still boarded up and just waiting for a purchaser. In the Plaza Constitution there are two such three-storey houses with ornate iron balconies, superbly made wooden shutters and majestic 12ft double doors, just lying idle, waiting for someone to lovingly restore them.

But the keys to Alhama are the lake and its proximity to Granada. A vast blue expanse of crystal clear water surrounded by pines and gentle sandy beaches, this is where the locals spend their summers swimming, boating and barbecuing in a totally unspoilt natural environment. And as one local estate agent said to me, the Brits just don’t seem to realise it’s there. And Granada, with the spectacular Alhambra, offers not only sophisticated urbanity and history but winter sports on the Sierra Nevada ski slopes.

If you want a lakeside view, you can have it and it won’t break the bank. You’ll pay more than if you’re buying in the villages, and you won’t get as much house for your money, but what a location. If you live an hour from a UK airport, door-to-door, you could go from home in the UK to Spanish lakeside house in five hours.

In addition, in Alhama you’re not going to get the hard sell. The local agents are few on the ground; they’re part of the community and wish to stay so. They get few clients, so treat them and their vendors with the utmost respect. Deals are always there to be done. Their commission varies between 2 and 5 per cent, and cash is always welcome in Andalucia. One word of warning; if buying land, use a lawyer to check what the regulations are, because most new building is now prohibited. But apart from that, who says the Spanish property market is over?

Story from The Observer

Folk just fall in love with Spanish style houses and buildings and, be it for a holiday home or for permanent living, they decide they must have one of their own.

Spain offers something to suit all tastes and pockets, luxury villas with gorgeous swimming pools, modern áticos (penthouses) possessing spectacular sea views, pretty bungalows on new urbanizations, some even with private golf courses.

Perhaps it is the sleepy villages, cobbled streets and open, rural settings that call to you. Should that be the case, bargains abound, for rural Spain is bursting with forgotten properties in need of renovation.

Old fincas (farmhouses) surrounded by hectares of land, large goat houses desperate to be made into habitable dwellings, ruined cortijos (cottages) in need of renovation, abandoned town houses in quaint medieval towns and empty hunting lodges eagerly awaiting rebirth as hostals.

Whichever Spanish style houses and buildings appeal, do be cautious when buying! Perhaps the following guide will help you:

Although safer to buy property than it used to be, there is no actual law regulating real estate agents so, if you come-a-cropper, remember it is difficult to get money back.

Hire your own lawyer to check papers are in order but, whether you do this or just leave it to the estate agent, make sure of the following:

Make sure you check the seller’s escritura pública (deeds to the property). Are they, indeed, the owner? Obtain a nota simple from the Property Registry to ensure there are no mortgages on the property. Check the referencia catastral/certificado catastral. Is the description of the property accurate? For new properties on urbanizations, view the plan parcial at the Ayuntamiento (Town Hall). Is it legally registered?

For plots of land, check building permits. Ensure all past bills have been paid, including: Impuesto Sobre Bienes Inmuebles (IBI) on a resale property or a Declaración de Obra Nueva on a new property.

Also look into costs for any community charges, electricity bills, water bills, rubbish collection etc.

Costs will amount to approximately 10% of the value of the property, hopefully less. They include: Fee of notario, fixed by an official scale; Registro de la Propiedad, fee to register property in your name; Impuesto de Transmisiones Patrimoniales or Transfer Tax which will be 6% of value declared in contract if a second-hand property and 7% IVA (VAT) on new property plus 0.5% stamp duty; Plus Valía which is a tax on increase in land value since previous sale. Find out about this at the Municipal Tax Office. No law exists stating which party must pay which particular tax but nowadays, the purchaser tends to pay all the above costs, with the seller solely responsible for the estate agent’s commission which is usually about 5%.

The buyer often gives a deposit to reserve the property. This is best kept in a blocked account, called a Bonded Client Account. Should the seller withdraw from the sale, the buyer can claim back twice the amount of the deposit. If the buyer fails to complete the sale, they will lose the deposit. The Sales Contract or Escritura de Compraventa, takes place in the presence of a notario. The notario is a public official, not a private lawyer, and it is not his job to ensure statements made in the contract are true. After signing the Sales Contract, your title will be registered with the Property Registry, making it a Registered Title Deed or Escritura Pública. This will be returned to the notario, where you will collect an authorised copy, usually about 2-3 months after signing the Sales Contract.

If you buy a property from a non-resident, you will be asked to deposit 5% of the purchase price with the hacienda, in the seller’s name, as a guarantee that their taxes will be paid.

And after all that, hey presto! You are now the proud owners of some splendid Spanish style houses and buildings!

Story from justlanded.com

In short, the answer is a resounding ‘no’. However, due to the media hype surrounding ‘land grab’ (Ley Reguladora de Actividad Urbanistica or LRAU) and the high profile given to a few unpleasant cases, a degree of fear has been put into the would-be Spanish property purchaser, on whichever Costa that may be. Paul Rossiter, Managing Director of Carrington Estates, a real estate agency specializing in land for self-build, is only too aware of this publicity-induced fear. Having recently exhibited at the Grand Designs Live Exhibition at London’s Excel Centre, he spent considerable time fielding ‘land grab’ related questions.

Paul comments, “Many visitors to the exhibition were attracted to our stand as we offer affordable plots on Spain’s most fashionable and desirable Costa, but we received a consistent flurry of queries as to whether the land offered was safe from ‘land grab’ - basically defined as the right of local developers to compulsorily purchase rural land from the existing owners in order to convert it into urban land on the basis of installing mains water, sewerage and new roads. A good deal of clients were not fully aware of the constraints of the LRAU and believed it applied to the Costas in general. Only through our grasp of the facts were we able to reassure many an unsettled mind and confirm that LRAU does not apply to any of Carrington Estates’ projects on the Costa del Sol.”

So what are the facts? The LRAU was passed in 1994 to speed up urban development in the Valencian region. The Valencian region covers the provinces of Alicante, Valencia and Castellón and is controlled by a regional government. The reasoning behind the law was that urban development would benefit the community in general and prevent land-bank speculators from holding onto rural land thus hindering progress. Rural land close to the beach, the land in shortest supply, was and is exploited the most by the LRAU. In certain isolated cases where rural land was forcibly purchased from the owner at below market value, a bill would subsequently arrive to cover a percentage of the cost of the infrastructure improvement.

Until the law was changed in 2005 to an ‘objection period’ of 20 days to three months, the affected rural homeowners had just 15 days to object to the development. It’s feasible that an expatriate holiday homeowner wouldn’t even empty their postbox in those 15 days, let alone formulate a cohesive objection. Consequences in the most extreme cases meant a bulldozed home upon return to sunny Spain.

When it comes to the Valencian region, the LRAU has a certain shelf life. International pressure has been applied to Spain to amend the law and already selected cases are making their way through to European Court of Human Rights (ECHR). The European Commission has also recognized the fact that LRAU contravenes European law on individual property rights.

Back to the Costa del Sol. In short the LRAU only applies to the Valencian region, the Costa del Sol is not affected. In turn, the law only applies to rural land which has not yet been urbanized. Buy in an urbanized area of Valencia and you are secure from future development and therefore ‘land grab’. And finally, and perhaps most importantly, LRAU has only affected a minority in Valencia. In the scheme of things, the overwhelming majority of property owners in Spain have never experienced any significant problems in their many years of owning property on the Iberian Peninsula.

Rossiter concludes, “As is often the way of the world, a minority situation is tarnishing the reputation of many. The LRAU does not apply in any way to the Costa del Sol, and subsequently ‘land grab’ is just not feasible here. However, it is our responsibility as a reputable agent to put our potential clients’ minds at rest and offer them every kind of factual reassurance that their land here is safe.”

Story from easier.com

In a reversal of the rapacious development that has choked Spain’s coastline with concrete over the past few decades, Valencia has started building a neighbourhood based around ancient market gardens and irrigation systems. Bulldozers have moved into an area of rundown farms and scrap yards that is to become Sociopolis, a “revolutionary” locality that mixes the high rise and hi-tech with traditional agriculture. Sociopolis has taken its inspiration from the typical Valencian huerta, or market garden region, where small farms share irrigation systems to grow their fruit and vegetables. Irrigation channels dug by the Moorish inhabitants of the region more than 1,000 years ago are to be used to water Sociopolis and allow the residents to combine life in a tower block at up to 20 storeys, with allotment-style gardening. The project will provide about 2,800 “affordable” homes in a country where house prices have left many young people out of the market.

Plans for two of the buildings due to be erected over the next three years were selected for a recent exhibition at New York’s Museum of Modern Art, on the best of Spanish architecture. “We are proposing a new format for the 21st century”, said the architect Vicente Guallart, who is leading the project. “Twentieth century cities were built for the industrial age and for lives lived at machine speeds.” Water distribution, controlled by a 1,000-year-old body called the Tribunal of Water, will involve more than four miles of the old acequia channels, and fibre optic cables will provide internet services.

Sociopolis is a collaborative project between architects from several countries, including the architecture company Foreign Office Architects, which has an office in the UK.

In a country where allotments are a novelty outside traditional village communities, the 600 allotment plots are already oversubscribed by those planning to move into the neighbourhood.

“It is something that both the young and the old want to do,” said Guallart.

Privately funded, but providing cheap rental properties, Sociopolis is not considered an expensive project. With Spain’s traditional family structure changing, Sociopolis is also designed for the elderly and single people.

Politicians have taken much of the blame for the corruption and anarchy that has ruled new developments along the Mediterranean coastline. Guallart, however, says that one of the keys to Sociopolis, which started as a paper project for an architecture show, has been the support of city politicians and urban planners. The Valencia region’s head of housing and development, Rafael Blasco, said: “This is sustainable urban development combined with quality architecture.”

Story from The Guardian

The respective mayors of Benidorm, Alfaz del Pi and Altea last week signed a joint agreement with the regional government to protect a total 5,653 hectares of the Sierra Helada abutting Benidorm and Alfaz, as well as 4,920 nautical hectares off the Bay of Altea and the Sierra Bernia mountains. The agreement also covers Benidorm Island, plus smaller islands off the Sierra Helada’s seaward side and Altea’s La Olla beach.

In 2003, Benidorm Town Hall decided of its own volition to reclassify as green zones more than 500,000 square metres earmarked since 1957 for building development. Alfaz Council has reclassified 300,000 square metres of building land adjoining the Albir lighthouse and the La Mina inlets, while Altea has acquired protected status for 4,622,000 square metres of Bernia and 500,000 square metres of the Algar river.

Speaking at the signing, Sr Ortíz said that these initiatives by three neighbouring towns were not ‘idle wagers’ but ‘an unambiguous example of development planning that did not obstruct future progress’. Estéban González Pons, who heads the regional government’s Land and Housing Department, said the Sierra Helada was clear proof that it was possible for a national park to survive side by side with tourism and economic growth.

The Sierra Helada was declared a national park in July last year and over the last 12 months was the most popular in the Valencian Community, with 101,000 visitors viewing it from the land and 30,000 from the sea.

Benidorm, Alfaz and Altea have undertaken to combine efforts to maintain, clean and patrol it both on land and at the sea, assisted by volunteers from the three towns as well as local scuba-diving clubs.

Story from Euroweekly News

Prices have dropped by 1.7 per cent, but only in the last three months. From one year to the next the rise was 14 per cent on average.

The recent slowing down of the property market on the Costa del Sol has now made its way into the statistics on the evolution of prices. They show that, in the last three months, the average price per square metre of constructed property has dropped by 1.7 per cent, a situation that was unheard of in recent years.

The latest report drawn up by property consultants Salvago, and published on Wednesday, shows that the average price of a flat per square metre was 2,574 euros at the end of last month, compared with 2,620 euros in March. In both cases storerooms, garages and VAT are included in the price.

Experts believe that this stabilisation of prices - the first time that it has been so widespread in many years - shows that developers are, in the main, refraining from putting prices up, despite the drop in the volume of property sold. “The pace is not so positive as at other times, and that means that estate agencies are not putting up prices so fast”, comments Antonio Moreno of Salvago. In his opinion this does not mean that the value of property is going down. “It simply means that we are reaching a situation of normal growth, compared with the huge leaps in prices that we have seen month after month recently”, says Moreno. He adds that there is no question, however, of talking about a crisis.

In fact Salvago’s report shows that the average rise from one year to the next in the province of Malaga has remained around 14 per cent, the figure given in previous reports. From 2,362 euros per square metre of finished property in the middle of 2005, the figure has now gone up to 2,574 euros. Moreover, Salvago predicts that this rate of increase from one year to the next will continue in the next two years at around 12 per cent, mainly due to speculation by the owners of land who will be favoured by new town master plans.

On the other hand, the days of prices rising from one month to the next, and even from one week to the next, seem now to be over. This means that many property owners with the “for sale” sign hanging outside have had to adjust to the new market trends and bring down their initial asking prices, even to below those given by official valuers, as this is the only way they can find a purchaser.

So, the increase in prices on the Costa del Sol has now stabilised, reaching reasonable levels of an average of 9.3 per cent in the first three months of the year, according to Salvago, although from April this rise has turned to a decrease of 0.31 per cent. This falling off had already been seen in the first three months of the year in places such as Benalmádena, Mijas, Estepona and Manilva, among others. Marbella is the only place where the picture is somewhat different, with a rise of 2.9 per cent, something that may be related to the shortage of building land because the new town master plan is still in the pipeline.

On the eastern Costa del Sol, prices have risen by 3.9 per cent in the last three months and 23.4 per cent in the last year in Vélez-Málaga, confirming the boom in the capital of the Axarquía. On both coasts the rise in prices has been 16 per cent on average from one year to the next.

As far as inland municipalities are concerned, the main ones being Antequera, Campillos, Pizarra, Coín and Cártama, Salvago states that the rise in prices has been 20 per cent, four percentage points above the coast, although the total volume of sales is lower.

Story from Sur in English

A new scheme in Salinas, Alicante at last allows property buyers to buy a small piece of agricultural land, rather than the minimum 10,000 sqm required elsewhere in Spain. Not only that, but they will also provide help with growing small-scale crops on the land.

Current Spanish legislation to protect the future of the countryside has in the past left some prospective buyers mystified. To build on agricultural land, property must conform to 10,000 sqm plot sizes. This amount of land can be a daunting prospect unless you are a farmer, but initiatives in Salinas have provided a solution that may set a trend for other villages in Spain.

One inland Spanish village in particular, Salinas (Costa Blanca) have made it compulsory to purchase property with agriculture land. Land can be used to grow produce which can then be sold back to local farmers either for cash or goods (a year’s supply of olive oil, almonds or wine.) The local agriculture man (Emilio) is responsible for taking care of the land and collecting the produce. For many land owners this is an excellent prospect and means their investment is taken care of but they can tend to the land themselves if they prefer.

One Oxfordshire couple have taken advantage of the scheme by purchasing a 3 bedroom, 2 bathroom detached villa in Salinas on a plot of almond groves for 450,000 €. Shona (42) and Roy (49) plan to take early retirement in 6-10 years time. The plot will be tended to so they wont have to worry about maintaining it as they get older.

The couple both have high pressured jobs as police officers, so the slower pace of life was extremely attractive. Shona said: “We like the rural, relaxed, traditional Spanish lifestyle that you don’t get from the coastal areas. It also makes us speak Spanish more as there are very few locals that speak English.”

The buying process was even more relaxed. Roy said: “The whole process was fairly easy as we used a local Spanish solicitor and we already have a Spanish bank account.” The couple firmly believe a professional estate agency with a good aftersales department is a must. Their advice to potential buyers is to always: “use Spanish expertise such as local solicitors and banks and do your research before you commit to buying a property.”

So what are the benefits of the scheme?

Land owners are provided with a small, regular income or provided with a years fresh produce from their land. Views are protected by large plots of land around the villages. The plots are not left baron and cultivated land retains the beauty of Spain. Local people are provided with work and home grown produce keeps communities thriving. Small scale agricultural land is good for the eco system and the environment. By complying with this new initiative buyers of inland property are doing something good for Spain and are continuing an ongoing investment in their local village.

With many holidays in Spain to look forward to, Shona and Roy have already started adding home improvements. Roy said: “we have added some extra features such as underfloor heating and turned the garage into a kitchen/family room.”

Would they do it all over again? “Yes” beams Shona proudly.

Full Story from PRWeb

Traffic authorities claimed that the immediate results of the new penalty points system were evident this weekend as the number of deaths in accidents caused by reckless driving fell sharply with respect to the same weekend last year. The Government hopes that the penalty points system will act as a deterrent to dangerous and drunk driving which is so common in Spain.

As from the 1st July all licences have a total of 12 points except in the case of drivers who have been driving for 3 years or less; licences for those have just 8 points.

Points will be deducted from licences of drivers caught committing all kinds of driving offences - many new to Spain. Offending drivers will have from 2 to 6 points deducted from their licence according to how serious the offence is. Points can be recuperated for good driving (2 points for drivers who manage not to lose any points for two years), and for attending special refresher theory and road safety courses. Drivers who lose all their points due to repeated offences will have their licence taken away for 6 months, if it is the first time, or 12 months if it is the second. They will have to attend a special course and retake a driving exam before getting their licence back. When their licence is returned it will have just 8 points.

In theory the maximum points an offender can lose in one day is 8 points, although the new system does give traffic authorities the right to immediately withdraw the licence if the offence is considered to be extremely serious, i.e. driving under the effects of alcohol or drugs, refusing to do a breathaliser test or driving at 50 percent over the speed limit. This weekend one individual was stopped for driving under the influence of alcohol in Sevilla, and he is thought to have become the first driver to lose all his points (and his licence) at once.

Full Story at Euroresidentes.com

Spain is one of many countries suffering from water shortages. Part of the reason for this has been the heavy reliance on water, the consumption of which has risen due to agriculture and tourism in those areas of the south where water supply is at its least. Part of the problem has been that previous governments have avoided the issue.

Before the present Spanish Government came to power the Popular Party, then headed by Jose Maria Aznar, had a scheme in place to divert the waters of the Ebro which flows through northern Catalan into the Seguro. Because of environmental concerns for the plant and animal life in regions around the Ebro river, the ecologists objected and the scheme was quashed when the PSOE came to power. The diversion which was to be paid for with European money was to have fed the most poorly watered areas of Spain’s Valencia and Murcia with water. The cessation of this scheme abruptly created the ‘Agua para todos’ demonstrations which perennially arrive along the most drought related areas of the south coast.

A side issue has been that the droughts last year created many fires along the coasts which were unable to be extinguished.

Th PSOE socialist party created its own plan which was to create desalination plants all along the coast and power them with renewable energy. Wind power is in abundance along the Mediterranean and would appear ideal for the purpose of creating drinking water which can be stored in reservoirs to avoid peak daily or weekly usage.

However the plan has not yet been successfully put into action and so, for the next two years at least, the south coast is under the threat of drought.

Meanwhile the growth of Golf courses, swimming pools and luxury homes in response to an increase in foreign tourists, contributes to Spain’s water shortage. In the Murcia region the number of tourists increments by 15% each year and water dependent agriculture has increased by a quarter since 2005.

Clearly the current water consumption is unsustainable - with or without the desalination plants. The current policy of Spaniards is to increase water consumption by increasing home ownership i.e. buying second homes, and an increase in agriculture and water is presented as a cheap resource. According to reports from the UN Environment Programme Large Tracts, they estimate that up to 30% of Spain may become desert over the next twenty years.

Irrigation of the land with seawater desalinated by fusion power is ancient. It’s called ‘rain’.

It may well be that ecologists or not, the government may well regret cancelling the Ebro river project…

full story at Spanish Review

The biggest global housing boom in three decades may end not with a bang, but with an extended whimper that will keep the economy growing.

Markets for dwellings in the United States, France, Spain, New Zealand and parts of China are slowing down as home-price inflation slows in response to higher interest rates. So far, the rise in borrowing costs has been modest, giving builders and buyers time to adjust.

“We’re seeing a cooling-off of the housing market,” said Raghuram Rajan, chief economist at the International Monetary Fund in Washington. “We haven’t seen a bust.”

Housing prices in industrial countries have doubled in real terms in a decade, the Organization for Economic Cooperation and Development estimates. If prices ease rather than collapse, the world economic expansion may be able to continue without sustaining too much damage.

“The global economy should remain buoyant,” said Nariman Behravesh, chief economist of Global Insight. He sees world growth slowing to 3.3 percent next year from 3.8 percent in 2006.

The moderation in housing should help bring world trade back into better balance. The boom has been concentrated in countries with big trade deficits: In the United States, consumers have used the equity in their homes to finance a spending spree that included imported consumer goods. As the boom ebbs and consumers pull back, trade deficits will shrink again.

In the first quarter, the average global house price was 6.1 percent higher than a year earlier, according to an international real-estate adviser, Knight Frank. That is down from a 9.3 percent year-to-year increase in the first quarter of 2005 and a peak of 10.9 percent in the third quarter of 2004.

The odds of a debilitating price bust will rise if the Federal Reserve chairman, Ben Bernanke, the European Central Bank president, Jean-Claude Trichet, and other central bankers lift rates sharply to fight inflation.

Paul van den Noord, a senior economist with the OECD, concluded in a paper last month that a 1 to 2 percentage-point increase in rates would increase to 50 percent or more the chance of a home-price collapse in the United States, France, Denmark, Ireland, New Zealand and Spain.

That is what happened in 1980, when Paul Volcker, then the Fed chairman, raised the benchmark rate to 20 percent, sending the U.S. housing market and the economy into a tailspin. The Fed, which lifted its rate to 5.25 percent last week, also indicated that it might take a break after two years of increases.

U.S. home prices were 12.5 percent higher in the first quarter of 2006 than they were a year earlier, according to data compiled by the government’s Office of Federal Housing Enterprise Oversight. That was down from 13.3 percent in last year’s fourth quarter, and is the slowest rate of appreciation in more than a year.

“We’re right on course for a soft landing in the housing sector,” said David Lereah, chief economist at the National Association of Realtors in Washington.

Historically, just 17 percent of local housing booms in the United States go bust, according to the Federal Deposit Insurance, a government agency that regulates banks. And that typically occurs only when local regions are under severe economic stress, like Texas in the mid-1980s after oil prices plunged.

“Busts have been pretty rare,” said Richard Brown, chief economist at the FDIC in Washington. “The most common way for a boom to end is through an extended period of stagnation.”

Some of the hottest housing markets in Europe are also slowing down. Annual house-price appreciation in Spain declined to 12 percent in the first quarter from 15.7 percent in the first three months of 2005. In France, prices for existing homes rose at 14.2 percent in the fourth quarter from a year earlier, down from 15.7 percent in the first quarter of last year.

Even in markets like Ireland where prices are still galloping, a slowdown is likely as tighter credit begins to bite.

A region-wide crash does not look likely. Julian Callow, chief European economist for Barclays Capital, expects euro-zone house prices to rise about 7.5 percent this year after increasing 8.5 percent in each of the last two years. He said that a long-awaited revival of Germany’s economy and housing market should help offset weakness elsewhere.

Harvinder Kalirai, head of research in Sydney at State Street, said Asian housing markets would be helped as living standards rise to industrial-nation levels. “Countries are getting richer, and housing prices will rise with incomes,” he said. “It’s a multiyear, if not multidecade, view.”

Full story at International Herald Tribune

New transport links are opening up reaches of southern Andalucia to British home buyers, keen on the culture of the bodegas and the bullfight.

In Jerez, the three barrel signs of the sherry bodegas are as common as the oranges peeping out from the leafy trees on every street corner. Indeed, this faded, elegant city in southern Andalucia is more Spanish than a bullfight and as chic as a glass of chilled fino, a combination that is proving increasingly attractive to British holiday home buyers.

A square in Lebrija, north of Jerez: property prices are 30 to 40 per cent cheaper than Seville and Barcelona.

Until quite recently, this small city (population 200,000) was difficult to reach and property prices reflected this. Homes here are 30 to 40 per cent cheaper than neighbouring Seville and almost half the price of Barcelona.

The wealth from the sherry industry is evident in the faded elegance of the grand, 18th century buildings, now being refurbished and turned into smart apartments. One of the most popular areas is the historic quarter within the old city walls, between the Alcazar Castle and the main shopping promenade, Calle Larga. Here you will find a delightful maze of small streets, which meander past dusty courtyards, bustling squares and townhouses or “casa señorial de Jerez”, stylish older mansions, in which lawyers or doctors lived and are now, like the older bodegas, being converted in to spacious period flats.

Long term rentals are helped by the growing airline business and tourism. Apart from the bodegas, the horse fair, Feria del Caballo, in April, is one of the biggest events in the Andalucian calendar, as well as the motorcycle grand prix at the town’s race track. You can expect to pay £426 to £536 per month for a city centre apartment, £300 to £400 per week during peak times. Grander apartments can be found on the edge of the old town in Calle Porvera.

If you want a large family home with a country feel, then head for one of the burgeoning new developments. One decent bet is the affluent suburb of Altillo. Here a three to four bedroom detached villa costs roughly £450,000. In the nearby smart, but less expensive neighbourhood of Chapin, a three to four bedroom town house would be £150,000 to £200,000. Though you lose that tapas in the street lifestyle, you gain space and often a pool.

Only half an hour’s drive west of Lebrija, is the pretty seaside town of Sanlucar, famous for its Manzanilla sherry and langostinos. “Sanlucar and nearby Chipiona are two of the sweetest little towns of the Costa de la Luz,” says Wood. After spending a day at the beach, you can still nip back to Jerez for evening tapas.

“The key thing that will tip the balance in Jerez, is the coast. I do see it as a half way house,” says Wood confidently. “It’s not Barcelona and it’s not Seville but it is a very good long term punt. It will come good.”

Full story from the Telegraph

The Costa de la Luz, stretching for 417km from Tarifa to the Portuguese border, has been and still is often described as ‘the hidden Costa’ or the ‘undiscovered Costa’, although those on the ground would argue that neither of these descriptions are particularly accurate anymore. In fact the Costa de la Luz has been growing steadily and tastefully into what is now a well-rounded second home and tourist hotspot.

Three indicators of growth in more detail, golf, hotel beds and residential property. Huelva currently boasts six golf courses including Islantilla Golf Resort, Isla Canela Golf and Golf Nuevo Portil, although three more are due to open in 2006 including two at Costa Esuri, and a further four more are in the pipeline.

According to the Golf Federation of Andalucia, the province of Huelva is the fastest growing golf tourist destination in the region, with the number of rounds played increasing by an average of 16.2% over the last 12 years in comparison with 7.8% for the Costa del Sol. Last year over 250,000 rounds of golf were played on Huelva’s six courses. It is a certainty that as the new golf courses bed in and their respective marketing machines spring into action, this growth rate will accelerate.

Regarding hotels it is hard to believe that just two years ago there were only 300 hotel beds along the coastline from El Rompido to Punta Umbria, a stretch of about 20 kilometres. By the end of 2006 there will be no less than 5,000 hotel beds. Brand new hotels include the five star El Rompido Golf & Beach Resort built by the Set Hotel Group and the luxury hotel chain El Fuerte has just added Hotel Fuerte El Rompido overlooking the new marina to its portfolio.

Talking of marinas, this new 80 berth marina at the heart of El Rompido is the first of four that are planned for this stretch of coastline. The natural sand barriers in the region offer perfect natural harbours for yachts and fishing boats and the local authorities are also finalising a project to dredge a deep channel at the end of the sand barrier to accommodate large yachts in these new marinas.

The residential property market is gathering speed and quality is the key word. Huelva now offers luxury riverside townhouses set in botanical gardens at Mirador del Guadiana, a stone’s throw from Ayamonte, starting from €253,100, frontline golf villas overlooking the 18-hole course at Nuevo Portil starting from €617,000 and the highest quality apartments at Esuri Golf starting from €180,677 , to name but a handful.

The ambitious Costa Esuri resort, the largest golf property development in Spain, was, to be quite frank, just a large 6.5 million square metre expanse of untouched land two years ago without a bulldozer or brick in sight. Now, two years later, more than 1,000 homes are now ready for occupation and the two championship standard 18 hole golf courses are starting to take shape.

All of the above mentioned factors have catapulted the western Costa de la Luz from a seasonal tourist spot to a year round resort full of interest and action, suitable for permanent or semi permanent living, without having tarnished its natural beauty. Indeed 33% of Huelva province is protected from construction, a higher proportion than any other region in Spain. When the high speed AVE train becomes connected to Huelva from Seville and the proposed International Airport for Huelva is in place, indicators suggest by 2010, never more will the Costa de la Luz be described as ‘hidden’.

Full story from Easier NewsProperty News