Real Estate & Construction News in Spain from Propertyshowrooms.com

New port to be built in Spain

Wed, 8 Jun 2011 00:00:00 GMT

Plans are in place to transform a port in Marbella in the hope of attracting the rich and famous from nearby Puerto Banus.

La Bajadilla marina is due a 400 million euro makeover thanks to a consortium led by Qatari Sheikh Abdullah ben Nasser Al-Thani, current owner of Malaga Football Club.

Plans for an additional 500 berths arranged on a spectacular circular pier, 200-metre quay for cruise liners, a waterfront five-star hotel as well as a raft of bars, restaurants and shops will catapult La Bajadilla into the spotlight.

Hadleigh Bolt, director of boltpropertygroup.com, said: "This new marina is a great initiative and I believe it's a correct decision to create a fresh new landmark for Marbella rather than to simply remodel near-neighbour Puerto Banus.

"With the old industrial estate set to be demolished and the AVE high speed rail link destined to stretch to Marbella in the not too distant future – Port Al Thani will undoubtedly change the face of Marbella."

Housing approvals rise in Spain y-o-y

Fri, 15 Apr 2011 00:00:00 GMT

The number of approvals for new homes in Spain increased by seven per cent in January compared to the previous year, the latest statistics have revealed.

According to figures released by the Spanish government, there has been an increase in the number of housing developments year-on-year.

However, the level of planning approvals in Spain fell by 15 per cent to 6,784 compared to December - an indication that the market is still not in the full throes of recovery.

Mark Stucklin, of Spanish Property Insight, is more upbeat about the long-term chances for the Spanish property market, forecasting that building activity will increase this year.

"In my opinion, 2011 will mark the bottom of the cycle for planning approvals, though I should stress that is just a hunch. If it is not this year it will be next year, so it’s not as if I’m taking a wild guess," he said.

It follows comments from European finance minister that Spain is not expected to follow in the footsteps of Portugal and seek financial aid.

Balearic Islands lead Spanish recovery

Wed, 16 Mar 2011 00:00:00 GMT

The Spanish property market recovery is being led by the Balearic Islands, with home sales in the region up 14.5 per cent in 2010 compared to the previous year.

New figures released by the Public Works Ministry show that for the first time in three years there was positive growth in the market, with a 5.9 per cent year-on-year increase in transactions across the country.

Official government data shows that some 491,000 properties were sold across the whole of Spain last year, with 10,860 of those sales on the Balearic Islands of Ibiza, Majorca, Minorca and Formentera.

Ignacio Osle, sales and marketing director of Taylor Wimpey de Espana, said that he had seen interest in the Balearics rise over the past 12 months, with buyers particularly keen on property in Majorca.

"The largest Balearic Island offers something for everyone from amazing sandy beaches to stunning scenery, idyllic coves, traditional architecture and wide range of sports and leisure activities," he explained.

However, despite this apparent turnaround for sales, last year was the worst on record for Spain's home-building industry, with planning approvals down by 17 per cent in 2010.

'Worst year on record' for Spanish house-builders

Tue, 15 Mar 2011 00:00:00 GMT

Last year was the worst on record for Spain's home-building industry, with just 91,662 planning approvals in 2010, down 17 per cent on 2009 and 89 per cent on the record 865,561 in 2006.

The news could be welcomed by individuals looking to buy property in Spain, with there still plenty of opportunities to pick up a bargain.

Indeed, the market's collapse since reaching its peak in 2007 has been mainly a result of a severe oversupply of properties available for sale.

Commenting on the fall, Mark Stucklin, head of Spanish Property Insight, said: "This figure is dramatic, it tells a story of an industry that has all but collapsed.

"And not just any industry; residential construction was responsible for much of Spain's growth in employment and GDP over the last decade."

Meanwhile, Amanda Lamb, presenter of A Place in the Sun, recently claimed that Spain is one of the top five countries for individuals to invest in property abroad.

Spanish property market sees planning approvals decline

Sat, 12 Mar 2011 00:00:00 GMT

The Spanish property market has seen planning approvals decline by 89 per cent in the last four years.

Indeed, there were just 91,662 approvals last year, compared with the record 865,561 in 2006.

While this is still bad news for the construction sector in Spain, it does at least suggest that the market is now bottoming out. Mark Stucklin, from Spanish Property Insight, said that this could be "the beginning of the end of this crisis". He added: "I forecast that 2010 will mark the bottom of this cycle for Spain's residential construction industry.

"New home construction will start growing again in 2011, albeit weakly and from an exceptionally low base."

Meanwhile, Spanish property prices are still declining with a drop of 4.5 per cent recorded in the year to February 2011. According to Kyero, there are new factors beginning to affect the market after the major changes in taxation implemented in 2010.

This year, the rise in inflation and the increase in mortgage rates are likely to be the main issues in the Spanish property market.

Developers showing greater confidence in Spain

Tue, 8 Feb 2011 00:00:00 GMT

As developers start to show greater confidence in the Spanish property market, buyers are beginning to return, one local real estate company has claimed.

Chris Mercer, director of Mercers, explained that many holiday home buyers are returning to the market in order to take advantage of the fact that the market has bottomed out.

As a result, he said that a growing number of developers are starting to embark on new projects.

"I imagine that both entities feel that the market has bottomed, prices are indeed 50 to 60 per cent off bringing them down to levels of a decade ago and from here the only way is up," Mr Mercer added.

"As always, price is king. Resales offer stunning value for money, generally they are furnished, in established areas and easier to mortgage."

Recently, the Organisation for Economic Co-operation and Development claimed that unemployment in Spain needs to be tackled if the country's economy - and property market - is to recover.

Developer sees property sales increase in Spain

Tue, 18 Jan 2011 00:00:00 GMT

One major developer in Spain has revealed that it saw an increase in sales of 50 per cent over the course of 2010.

Taylor Wimpey de Espana has announced that the official end-of-year figures were particularly bolstered by sales to those looking to buy property in the Balearic island of Mallorca.

"Mallorca has seen particularly positive figures due to two important factors," said Javier Ballester, managing director of the firm.

"Firstly, we were not hugely overstocked as the recession hit so the supply and demand was always in our favour. Secondly, Mallorca is still considered a unique place and in many ways superior to some of the mainland destinations."

Mr Ballester added that foreign buyers had been convinced to enter the Spanish real estate market as a result of the price adjustments that have been experienced in the sector.

Some homes in Mallorca, for example, have seen reductions of up to 25 per cent, he added.

Spain prices have 'bottomed out'

Fri, 17 Dec 2010 00:00:00 GMT

Individuals looking to buy property in Spain will be pleased to hear that the market in the country has bottomed out and prices are beginning to stabilise, Overseas Property Professional has reported.

According to the Property Industry Report published by Instituto de Practica Empresarial, one of the primary contributing factors behind the stabilisation is the lack of fluctuation in the number of approved properties and the number of started properties.

Indeed, the news provider reported that, at the end of 2010, approved properties in Spain stood at 117,000, while the number of developments started was 160,000.

The organisation has forecast that home values will continue to stabilise, adding that some regions of the country could even see prices increase because of a decrease in supply.

Jose Antonio Perez, director of research at IPC, told the news provider: "Now is the time to start working on new plans of action and getting projects and developments underway because otherwise we could find ourselves faced with another collapse in demand in 2012-13 and the subsequent price falls."

Theme park to boost Spanish property prices

Fri, 22 Oct 2010 00:00:00 GMT

A new theme park opening in Spain is likely to give the nation’s hard-hit real estate market a much-needed boost, it has been suggested.

The park, which is expected to attract as many as three million tourists every year, will be built by Paramount Pictures and will be the first one that the US giant has constructed in Europe.

Chris Mercer, director of Murcia-based estate agents Mercers, believes that the development has the potential to have a big impact on the Spanish property market.

“During construction phase, which realistically has to be three years plus, there will not be any momentous shift in house prices, especially as Spain as a whole continues to undergo a tough correction process,” he said.

“I also think it’s fairly safe to say that prices will not fall further in this area and for those waiting on the sidelines, my advice is simply to not wait any longer. Prices will inevitably start to rise as this project gets off the ground.”

Indeed, Mr Mercer used the individuals who had purchased rental property in Florida near Disney World as an example of the opportunities open to investors.

America’s Disney resorts said that the park could boost equity and rental potential by at least 25 per cent, like at its other parks.

Spanish construction sector output falls 24% in September

Mon, 24 Nov 2008 00:00:00 GMT

Spanish construction sector output in September fell by 24% compared to the same month last year, the biggest fall of all the EU countries analysed by Eurostat – the EU’s statistics office. On a monthly basis, construction activity fell 7.8% in September compared to August, the second biggest fall in the EU after the UK...

Have A Safe Buying Experience In Spain

Wed, 12 Nov 2008 00:00:00 GMT

Ensure your dream home in Spain has been built in accordance with local planning rules and regulations...

Survey uncovers new build improvements

Wed, 5 Nov 2008 00:00:00 GMT

New build property in Spain has shown some qualitative improvements in the last two years, a new study has concluded.

InspectaHomeSpain's new Snagging and Buying Trends 2007/2008 survey has found that the number of flaws per property is less for every kind of dwelling than in the previous research in 2006.

The study also found that the legal requirement for developers to supply a certificate of habitation before the completion of a property is being adhered to in 83 per cent of cases, compared with only 11 per cent two years ago.

Such findings may reassure investors that the quality of new build in Spain is on the up.

Another boost may come in the form of tourist numbers in certain parts of the country.

The total of passengers passing through Alicante Airport in July, August and September was up on the 2007 total in all three cases, Spanish airports operator Aena has revealed.

Spanish construction sector output falls 8.4% in August

Wed, 22 Oct 2008 00:00:00 GMT

Spanish construction sector activity fell by an annual 8.4% in August, according to the latest figures from Eurostat, the EU’s statistics office. Spain’s construction sector decline was, once again, the largest of all the EU countries tracked by Eurostat. On a monthly basis, however, there was a glimmer of hope. Compared to July, activity rose in...

Spanish Villa Receives Award For Architecture

Tue, 21 Oct 2008 00:00:00 GMT

Casa Mexicana's quirky features and modern design wins 'Best Architecture Spain' at European Property Awards...

COUNCIL REDUCES NEW HOUSING

Mon, 13 Oct 2008 00:00:00 GMT

Some local councils are beginning to realise that the days of “bricks and mortar” are over. Pizarra’s local council has reduced the number of new houses to be built over the next ten years from 7,000 to 1,300, The Junta de Andalucia objected to the original figure because it was over the limit of the...

BARRANCO BLANCO PROJECT NOT VIABLE

Mon, 15 Sep 2008 00:00:00 GMT

The Environment Ministry has declared a project to build 1,446 houses and apartments in Barranco Blanco, in Alhaurin el Grande municipality, “non-viable”, putting an end to months of controversy. The Junta de Andalucia had already objected to the project but Alhaurin Mayor Juan Martín Serón re-presented it, this time with fewer houses and all the...

Crisis in the Spanish Construction Industry?

Wed, 10 Sep 2008 00:00:00 GMT

There has been much controversy since the beginning of the year, over the decline in the housing market in Spain, created by the continued instability of the economy. However, this has continued to beg the question, “So why do they keep on building?” A recent report conducted by the Association of Spanish Developers (APCE) suggested that the Construction industry may not be in such dire needs as feared. Its investigations have revealed that the vast majority of the 1.7 million properties built over the last three years are already sold. The announcement has come amid claims that over 1.2 million newly- built properties in Spain continue to stand unsold.

Allegations have also been made that construction of some 800,000 homes continues to commence every year, exacerbating the existing problem, and needlessly defacing the little area of undeveloped coastline which remains. The Valencia, Almeria and Andalucian Regions are said to be the worst affected. Where these new properties remain unsold, constructors are allegedly abandoning projects until further investment will allow the work to continue. The APCE report also disputes this notion saying that it is a completely unsupported exaggeration, and that these figures relate to initial planning approvals, a high proportion of which are never initiated.

Comparatively, the Spanish Housing Ministry’s figures reveal that 665,000 new properties were started last year, while only 597,600 have reached completion. The PSOE political party has undoubtedly highlighted this problem in the Orihuela Costa area, where the construction of over 25 new urbanizations has been started and remains unfinished and deserted after several months. This has affected hundreds of people, the majority of whom are British investors who now wonder if they will ever see their Spanish dream come to fruition. Foreign investment in Spain hit its peak during 2003, when a staggering 2.925 billion euros was ploughed into the Spanish property market from overseas investors.

Although fluctuations have been witnessed since, figures have remained continually high in relation to other parts of Europe. Figures from the Royal Bank of Spain continued to register an increase in foreign investment in Spanish property of 19.2 per cent during the first 5 months of 2007. By May, a total of 2.252 billion euros had already been invested, which is almost equal to that of 2005, and almost double the figure for the same period in 2006. Interestingly, the amount of money which Spanish nationals invested in properties outside of Spain had also doubled during the same period.

This is all relatively confusing, as concerned reports from those working within the housing sector continue to denounce a downward trend, with the proclaimed instability of the industry heightening on a monthly basis. So is the industry at crisis point, or is it all just a myth? A possible explanation for the seemingly positive figures might be that those sales witnessed during the busier periods of 2004 and 2005 are only just reaching completion, so that the exchange of monies is now being officially recorded - it is not until contracts are officially exchanged before the notary that the investment is logged among national investment figures.

However, it would still seem that recent damning reports have yet to deter foreigners from selecting Spain as the country where they would most like to spend their future. According to a recent study, 78 per cent of Brits claimed that if they were to relocate overseas, sunny Spain would be their preferred destination. Further statistics formulated by the end of the year should confirm whether foreign demand is back on the increase, or if the figures are merely as a result of the successes of previous years.

Story from Round Town News

Planning approvals fall 57% in year to May

Thu, 7 Aug 2008 00:00:00 GMT

Planning approvals have fallen 57% , to 144,000, in the first 5 months of the year, compared to 336,000 in the same period last year, new figures from the Ministry of Development show. This is the lowest level of planning approvals since the year 2000. Approvals for apartment blocks fell by 60%, compared to 43%...

Developers and banks to offer discounted properties in Madrid

Wed, 6 Aug 2008 00:00:00 GMT

What to do about 25,000 newly built homes in Madrid that can’t find a buyer? On present trends that will be the size of the Spanish capital’s housing overhang at the end of the year, according to developers. Finally, it has dawned on developers that the only way to shift their stock of newly built properties...

Proposed amnesty for Malaga's 50,000 illegally built properties

Mon, 4 Aug 2008 00:00:00 GMT

A planning amnesty has been proposed for 50,000 illegal properties in the Malaga province of Andalucia. The planning amnesty has been suggested by a regional branch of Spain's Popular Party (PP).

Andulucia's Malaga province has suffered from "relentless growth in the number of illegally built homes" and politicians now recognise that a solution to the issue must be found, reports Spanish Property Insight. 8,000 of the properties that would be covered by the proposed amnesty are in the Mijas municipality.

While the PP has suggested an amnesty for the illegally built properties in Malaga, the PSOE party (which controls Andalucia's regional government in Seville) opposes any mass legislation. The PP argues that a blanket approach to legalising rural properties would avoid unnecessary demolitions.

"The problem with demolitions as a solution is that the Government of Andalucia probably can't afford it," the website argues. According to cbnalmeria.com demolitions can cost between €30,000 and €36,000 each, which would be primarily covered by the government, as home owners "would never pay" for them.

However, it is pointed out that although home owners are obliged to pay demolition charges if their property is illegally built, retired expatriates on a UK pension below the Spanish minimum wage of €600 per month would be exempt from paying the costs.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

Spain Stops Reassurances as Crisis Deepens

Mon, 21 Jul 2008 00:00:00 GMT

Spain's finance minister Pedro Solbes has stunned the markets with an admission that his country faces the worst economic crisis in its history as the full effects of the property crash spread through the economy.

"This crisis is the most complex we have ever lived through given the plethora of factors on the table at the same time," he told Punto Radio in Madrid, breaking with past efforts to put a reassuring gloss on events.

Mr Solbes said the Madrid bourse had suffered an "earthquake", crashing 27pc since the start of June. He blamed the toxic cocktail of high oil prices, the global credit crisis and the sharp slowdown in the key export markets of North America and Germany.

The comments follow this week's bankruptcy of Martinsa-Fadesa, Spain's biggest corporate failure. The property developer - with an empire of housing estates, hotels, shopping malls and hotels - collapsed after failing to refinance €5.1bn (£4bn) of debts. The company's demise was a textbook story of aggressive over-expansion at the top of the cycle, driven by high debt gearing. It has €11bn of assets.

Mr Solbes has pursued a rigorous "no bailout" policy, saying Martinsa-Fadesa took "excessive risks" and must now face the consequences. He has reportedly clashed with cabinet colleagues, who are now searching for any means to stop the downward spiral in the economy.

El Pais reports that house prices crashed by 20pc in the second quarter compared with a year earlier, based on 183,000 completed transactions.

The Martinsa-Fadesa collapse has sent tremors through the whole property and construction sector. The share price of giant developer Sacyr has halved over the past month.

The two banks with most exposure to the Martinsa-Fadesa are Caja Madrid, at €900m, and Banco Popular, at €400m.

Goldman Sachs has issued "sell" recommendations on a clutch of Spanish banks, including Bankinter, Banco Popular and Banco Sabadell, warning that the sharp turn in the credit cycle could prove worse than the recession in the early 1990s. "The consumer is more leveraged today than in any of the previous cycles," it said.

The ratings agency Standard & Poor's has not yet taken a decision on whether to downgrade Banco Popular and Caja Madrid.

In reality, this is unlikely to be the worst economic crisis in Spain's history. Philip II defaulted on his sovereign debts three times in the 16th century after he bankrupted the Spanish Empire to pay for his Counter-Reformation wars against Protestants. He crippled the Italian banking system in the process - much to the benefit of London and Amsterdam.

Full story from telegraph.co.uk

Developers fear domino effect from Martinsa-Fadesa bankruptcy

Mon, 21 Jul 2008 00:00:00 GMT

The Spanish press reports that owners and managers of Spanish property developers are worried that Martinsa-Fadesa’s bankruptcy could set off a domino effect that engulfs the sector. Various sources in the Spanish property business have told the press that more bankruptcies are now inevitable. The G-14 lobby group of the 14 biggest developers in Spain, which...

Valencian developer Obradis files for bankruptcy

Sun, 20 Jul 2008 00:00:00 GMT

The Spanish property crisis has claimed another victim. The Valencian developer Obradis has been forced to seek protection from its creditors in the face of plunging sales and rising financial costs. With 5 developments partly sold and under construction, including its Balco de la Vila building in the popular resort town of Javea, Obradis has run...

Ibiza introduces controversial 3-year building moratorium that includes existing urbanisations

Sun, 20 Jul 2008 00:00:00 GMT

The local government of Ibiza, run by a coalition of the PSOE socialist party, the United Left party, and the Greens, has introduced a controversial 3-year moratorium on building licences in 13 areas of Ibiza, designed to protect some of the islands most attractive landscapes. In all some 400 hectares of coastline and hills...

The worst is yet to come say builders

Sat, 19 Jul 2008 00:00:00 GMT

Juan Lazcano, president of the Confederación Nacional de la Construcción, a Spanish constructors association, recently told the Spanish press that for unemployment in the construction sector “the worst is yet to come”. Lazcano explained that many of the new developments stated in the last 18 to 24 months are still being finished, so many construction...

Spanish construction output suffers biggest fall in the EU

Fri, 18 Jul 2008 00:00:00 GMT

Spanish construction sector output fell by 10.8% in May compared to the same time last year, according to the EU statistics office Eurostat. This was the biggest fall in the EU, and came after a 19% drop in April, when Spain also lead EU countries with construction sectors in retreat. On a monthly basis, however, Spanish...

Spanish developer files for protection, cites “radical stagnation” in property market

Wed, 16 Jul 2008 00:00:00 GMT

Spanish developer Martinsa-Fadesa’s move into administrative protection is sure to send shock waves through the Spanish property market. Described as the “largest ever bankruptcy process” in Spain since the introduction of new rules in 2004, the property company listed more than €5 billion, or $8 billion, in debt. The Spanish banks carrying the bulk of...

Spanish developers urged to exploit surge of interest in eco property

Mon, 14 Jul 2008 00:00:00 GMT

Eco homes could be the answer to Spain's failing property market, experts believe. Developers should take notice of the surge in interest and offer some kind of 'green' element in their buildings...

19 homes in Cantoria under threat of demolition

Mon, 14 Jul 2008 00:00:00 GMT

The public prosecutor is seeking the demolition of 19 homes in the El Fas district of Cantoria, in Almeria. The detached homes, most of which are owned by British families, were illegally built without construction licences, in a non-residential zone, and lack licences of first occupation. The properties were built and sold by the company Southern...

Fadesa teeters on brink as shares are suspended

Mon, 14 Jul 2008 00:00:00 GMT

Trading in Fadesa’s shares have been suspended this morning after falling 27% in the first hour of trading on the Madrid stock exchange. Martinsa-Fadesa’s shares have now fallen by more than 50% in 2 days, and the regulator of Madrid’s stock exchange has not said when trading in Fadesa’s shares will resume. Fadesa is struggling to...

Construction completions on course for all time record in 2008

Sat, 12 Jul 2008 00:00:00 GMT

An increase in the supply of new homes is not what the doctor ordered for the ailing Spanish property market, but that is exactly what the patient is going to get. The number of new homes finished in 2008 will beat all previous records, adding to the glut of newly built homes already languishing on...

Leading Spanish developer Fadesa against the ropes

Fri, 11 Jul 2008 00:00:00 GMT

Martinsa-Fadesa, the biggest developer of private housing in Spain, and one of the biggest players in the holiday home sector, is today struggling to avoid going into administration. The company’s shares have collapsed by close to 30% since the Madrid stock exchange opened this morning, on news that the company has not secured rescue financing. Fadesa...

Spain Property Market More Transparent

Thu, 10 Jul 2008 00:00:00 GMT

A bit of good news for once. The Spanish property sector has made some progress towards cleaning up its act, according to the latest bi-annual report on real estate sector transparency published by Jones Lang LaSalle, an international property consultancy.

In the 2008 edition of Jones Lang LaSalle’s Global Real Estate Transparency Index, which measures corruption in real estate sectors worldwide, Spain has risen two place from 18th in 2006 to 16th today. As a result, Spain is now rated 10th in Europe, and 16th in a world ranking of 82 real estate markets.

Corruption is not the only variable measured by the index, which also takes into account other factors such as legal frameworks, respect for private property, levels of professionalism, and the availability of reliable market statistics. The improved availability of information, plus greater professionalism in the Spanish property sector lie behind Spain’s rise in the rankings.

The Index, which Jones Lang LaSalle says provides a rigorous framework for comparing the level of real estate transparency across world markets, shows that nearly half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency score two years later.

“Transparency levels globally are improving as governments seek to streamline regulatory and legal hurdles to aid cross-border movement of capital and corporate facilities,” says a press release from Jones Lang LaSalle. “Only Venezuela posted a lower transparency score this year compared with 2006, principally due to changes in government regulations and new taxation policies targeting foreign investors.” In keeping with historical results, Anglo-Saxon real estate markets remain the most transparent in the world. Top of the ranking are Canada, Australia, the US, New Zealand, and the UK, in that order.

Full story from www.spanishpropertyinsight.com

Facelift for Costa Beaches

Mon, 7 Jul 2008 00:00:00 GMT

The Junta de Andalucia’s Tourism councillor, Luciano Alonso, said last week that he was looking at ways to give the Costa del Sol a facelift. He told a meeting of the Tourism Journalists’ Association (Apertur) at the Parador de Golf that these would include widening the beaches, recover disappeared green areas and create a variety...

Andalucia Limits Golf Development

Thu, 3 Jul 2008 00:00:00 GMT

In a move that some have described as revolutionary for golf-happy Spain, the regional government of Andalusia recently approved a sweeping new law restricting the development of golf courses.

The regulations, approved in February after months of heated debate, dramatically limit the number of houses that a developer can build around a course and require new courses to use recycled water for irrigation.

Throughout the country regional governments are approving similar measures in what is largely seen as a backlash against rampant golf course development. More than 100 courses have been built in Spain in the past eight years, most accompanied by high-density residential developments targeting foreign buyers. “I don’t have anything against golf,” said Juan Area, editor of El Observador, a newspaper here. “But I think there are too many golf courses.”

In Andalusia – home to the popular Costa del Sol, which is sometimes called the “Costa del Golf” – there are 118 courses, accounting for more than a third of the courses in the country. Nine new courses opened in the past four years alone, according to data from Real Federación Española de Golf, an industry group.

Critics say the golf courses were used as a Trojan horse, employing fairways and greens as an excuse to build rows of villas on environmentally sensitive land. “Probably in the last 10 years there have been more houses than golf,” said Ramón Dávila, president of Promotur, a tourism group in Andalusia. “And the government wants to re-balance this relation between the houses and golf.”

Full story at the International Herald Tribune

New Hope For Buyers in Spain

Wed, 2 Jul 2008 00:00:00 GMT

Buyers of illegal homes in Catral, Valencia, have high hopes for the future thanks to the AECU.

As homeowners on the Costa Blanca face bills for infrastructure, a consumer’s association has stepped in to save the day.

Torrevieja-based consumers’ association AECU has launched a bid to force the builders of 1,300 illegal homes in Catral to foot the bulk of the bill to install crucial infrastructure such as the installation of sewage systems and street lighting.

The AECU’s president Honorio Fernández say innocent property buyers should not be ones to pay up, stating that the people responsible for constructing the illegal homes should meet the costs.

“Our way defends the buyers who are the victims in this, and not the builders,” he says.

“We will be asking the mayor to fine the builders and in this way reduce the amount that the home owners have to pay.”

In 2006 regional councillor Esteban González Pons estimated that promoters had made €80 million in profits from the illegal building in Catral.

To date no builder has been charged with any criminal offence over the construction scandal, but as Sr Fernández continues to speak on behalf of the unfortunate British buyers, this could be set to change.

Full story from homesworldwide.co.uk

Vicios Cultos in Spain

Tue, 1 Jul 2008 00:00:00 GMT

Last year, a Property Pulse subscriber sold an old town house in the Valencia region. Some time later, she was contacted by the estate agent, saying that the new owner had recently discovered that the beams in one of the bedrooms were rotten. He had spent money on repairs, and wanted her to share the costs, citing the law of vicios cultos.

When the previous owner of the property contacted me , I asked experts, Mark Wilkins of The Rights Group and Campbell Ferguson of Survey Spain for their comments and advice. Here's what "vicios cultos" means to you if you're buying or selling property in Spain.

The liability lasts up to 6 months after the sale. It appears that the seller of a property is liable even if the defects cannot be seen and they are unaware of them. However, if the buyer can be shown to have any property expertise (or perhaps if they employ a surveyor to inspect the property for them) then the buyer becomes responsible and the seller has no more liability. It appears much more relevant to buying a TV, heater, loaf of bread from a shop, but the act does not exclude property.

The seller is obliged to remedy, or compensate for, any hidden defect or flaw that the sold article could have if that defect makes it unsuitable for the use to which it is intended, if it diminishes that use, and that having the buyer known of their existence would not have bought it or would have offered a lesser price for it. If the buyer is an expert or a qualified person due to their job, occupation or profession, the seller would not be deemed as responsible for those defects or flaws either if they are evident or visible, or if they can not be seen, being that that person should have been able to recognize them easily.

The buyer could opt to annul the contract, being the seller obliged to pay the buyer all the expenses that they have incurred or to reduce an amount proportional to the price that should be ascertained by experts. Moreover if the seller knew about the hidden defects and did not warn the buyer regarding them, the buyer may claim for a compensation for the damages and harms if the buyer opts for the contract annulment.

If the article which had a hidden defect is lost for any fortuitous cause or because of the buyer's fault, the buyer might claim the price they paid for the thing, deducting any reduction in value that the article might have had when it was lost, plus damages and harms if the seller acted in bad faith. These provisions expire six months following delivery of the article sold.

As a seller, specific wording can be incorporated within a sale document which effectively excludes this liability and means that the property is being sold 'as seen'. As a buyer, watch out for this clause in the contract as a possible indication that the seller might be aware of defects which you haven't noticed.

Even though a property survey is not always required by the mortgage company, it makes sense to use a qualified surveyor before making any commitment to purchase a property.

Martin Dell, Kyero.com

Vicios Ocultos in Spain

Tue, 1 Jul 2008 00:00:00 GMT

When the previous owner of the property contacted me , I asked experts, Mark Wilkins of The Rights Group and Campbell Ferguson of Survey Spain for their comments and advice. Here's what "vicios ocultos" means to you if you're buying or selling property in Spain.

Even though a property survey is not always required by the mortgage company, it makes sense to use a qualified surveyor before making any commitment to purchase a property.

Martin Dell, Kyero.com

Construction Slows In Alicante

Fri, 27 Jun 2008 00:00:00 GMT

Only 489 homes started across the province in the last four months showing the extent of the construction slowdown in Spain.

The extent of the real estate and construction slowdown in Alicante is evident from the latest figures which show only 489 homes were started across the province during the first four months of this year.

The website Typically Spanish reveals how the Provincial Association of Real Estate Promoters (PROVIA), has reported that this number is 96 per cent down on the average for the past seven years, when around 13,000 new homes were started every four months.

Adding to the situation is the fact there are 50,000 unsold new homes in the province, which have already been completed, or which are about to come onto the market.

Last year's numbers for builders in Alicante were already the worst for eight years, with 25,619 homes started and 32,125 homes completed, which is down significantly on the 45,000 homes which were started during the property boom in 2004.

Full story from Homesworldwide.co.uk

Wind Farm Blight on Sierra de Gata?

Fri, 27 Jun 2008 00:00:00 GMT

One of Spain’s last untouched landscapes, the Sierra de Gata in north-western Extremadura, may shortly be inundated with up to 19 wind farms.

Ecologists are increasingly concerned about the impact these “parques eólicos” may have on the varied wildlife of the region – and, not least, on its pristine landscapes. Currently, Extremadura is popular with nature tourists, particularly walkers and birdwatchers from all over Europe.

For centuries this region was so off the beaten track that many people in the Spanish cities had never heard of it. Now the Sierra is waking up to the 21st century, and it threatens to be a rude awakening.

Wind power is currently de rigueur in Spain. Major wind-power schemes have appeared in Navarre, Aragon, Galicia and Andalucía. Now is the turn of Extremadura, the western region bordering Portugal, where a total of 91 wind farms are planned.

The Sierra de Santa Olalla, a sub-range of the Sierra de Gata, is a prime site for the projected wind farms, with five companies competing to erect as many as 25 windmills along its length. The mills, which are 130m in height, will dwarf this chain of low hills carpeted in oak and chestnut woods, where the only visible buildings are shepherds’ huts and dry stone walls. Inexplicably, Santa Olalla enjoys no protection under Spanish law.

Locals in the nearby villages of Hoyos and Cilleros are puzzled by these developments, pointing out that the area has relatively little wind. Others simply repeat what most extremeños already know – that Extremadura is already more than self-sufficient in energy, and anything produced by the wind farms in Sierra de Gata will immediately be “exported” to the power-hungry cities of Madrid and Barcelona.

Traditionally dependent on agriculture, and supported largely by generous grants from Brussels, Extremadura must now look for alternative sources of revenue. One idea is to use its greatest resource – unpopulated landscapes and biodiversity – to attract green-minded tourists.

This strategy seems to be working, not least in the Sierra de Gata, where a new breed of casas rurales (hotels in working farms) are proving popular with birdwatchers, walkers and amateur naturalists. The new wind farms, which will be seen and heard for miles, may well prove a major setback for the region’s nascent tourist industry.

Miguel Muriel, of the Casa Rural Finca el Cabezo, believes his business will suffer, and accuses local politicians of “selling the Sierra de Gata for a few crumbs of bread”.

The wind farms are especially worrying for ornithologists, who see Extremadura as one of Europe’s most important refuges for bird life. The Spanish Ornithological Society includes the Sierra de Gata among its “important areas for birds”, citing rare species such as the Black Stork, Egyptian Vulture, and the most endangered bird of prey in Europe, the Imperial Eagle.

Wind farms are notorious killing grounds for birds, which can easily fall victim to the mills’ 45m blades. Recent figures from Navarra reveal that 7255 birds (including 409 vultures and 432 birds of prey) were killed in 11 wind farms over a 12-month period.

The process of authorizing Extremadura’s wind farms has been clouded in confusion, with scarce information and little public debate at a regional level. Local pressure groups have accused the Junta de Extremadura of a lack of transparency in the authorization process. There is money in wind-power, that much is certain, as Spain rushes to fulfil its EU quota on sustainable energy. But how much money, and who exactly is receiving it, are not quite so clear.

As the deadline approaches (June 23) for the public to submit objections to the scheme, local wits are recalling the famous lines from Spain’s greatest novel, Cervantes’ Don Quixote:

“Take care, your worship”, said Sancho; “those things over there are not giants but windmills…”

“It is quite clear”, replied Don Quixote, “that you are not experienced in this matter of adventures. They are giants, and if you are afraid, go away and say your prayers.”

Full story from Timesonline.co.uk

Spain's Trains on Speed

Fri, 27 Jun 2008 00:00:00 GMT

The bad news is that if you don’t board the AVE, Spain’s high-speed train, two minutes before departure, the doors close and it will leave without you. Mildly irritating, too, is the electronic security procedure, which can take as much as 60 seconds to complete. All this means that, to be on the safe side, it is as well to arrive at the station with a good five minutes to spare.

The good news – all right, the even better news – is that the AVE always, always leaves dead on time. And arrives on time, or before.

Since the Madrid-Barcelona service started up in February — adding to existing lines linking Madrid to Seville, Malaga and Valladolid — more than 3,000 journeys have been made, 40 per day, and the punctuality average has been in excess of 99 per cent. That figure applies to both the direct runs — 400 miles (about the same as London to Glasgow) in two and a half hours – and those that stop up to four times along the way.

All this has been, for me, a cause of much joy. I have been living in Sitges, just outside Barcelona, for 10 years and have travelled to Madrid by plane countless times. The air shuttle between Spain’s two largest cities is the busiest route in Europe by far, according to EU statistics, and busier, too, than that between New York and Washington DC. But already the AVE — which is invariably packed, despite running 25 trains a day — has taken more than 20 per cent of Iberia’s customers. Count me among them.

I have nothing against Iberia, which I fly everywhere all the time and have found to be as reliable as any airline can be these days. But since I’ve discovered the AVE, aircraft feel so clunky and cramped, so dinosaurishly outdated and, for reasons that are not always to do with the poor old airlines (for instance, having to take off your shoes at the security line), such an incredible pain.

A few weeks back I did the trip to Madrid by air; the return next day, by rail. I left my home at 11.15am. and arrived at Barcelona airport 25 minutes later, an hour before departure – cutting it a bit finer than most people do.

Everything went swimmingly. The check-in and security procedures were quick, the plane left just five minutes late and arrived in Madrid on time. Because it was late morning, the traffic from Madrid airport to the city (often appalling) was reasonably fluid and I made it to my city-centre destination at 14.30.

Three and a quarter hours, then, from point A to point B, in optimal conditions. If you were to allow for a typical delay and rush-hour traffic you could, without being ungenerous, add another hour to that. The problem with planes, and with motoring from airports to big cities, is that there are so many variables that you never quite know.

With the AVE you always do know. First, the chances are you would travel to Barcelona’s Sants station (or Madrid’s Atocha) by local train. This, let us reasonably assume, would take you half an hour. Give yourself 10 minutes before you board the AVE; then the 2½-hour trip on a dedicated AVE track and, since you arrive in the very centre of the cities, let’s say another 20 minutes, at the outside, to your eventual destination. That would make it a total of 3½ hours, 15 minutes longer than your best-case aeroplane scenario.

Maybe you are the sort of person for whom 15 minutes means a great deal, but more likely what matters to you more is arriving on time. What the train allows that the plane does not is the ability to plan – reliably, accurately.

If you are a business traveller from Barcelona and you have a meeting in Madrid at 11am or a lunch at 2pm, you know exactly what time you have to catch the AVE in order to be there at the appointed hour. If you are going by plane, better, just in case, to take one that leaves an hour or two earlier.

I travelled club class, which would be the equivalent of first on an aeroplane. There is also a business class, called ’’preferente”, and tourist. I went club because my travelling companion was Abelardo Carrillo, who happens to be the top man at AVE, its director-general, and because he promised that he would get me into the cabin with the driver.

I had travelled on the AVE several times before, in all three classes, and told him that I did not detect all that much difference. Carrillo did not entirely disagree. The main reason you pay more for one than the other is that the food and drink gets appreciably better the higher you go.

When you enter the AVE the first thing that strikes you is its space-age airiness. The second thing that struck me on this trip was seeing four men in suits sitting across from each other at a wooden table having a business meeting, in English. This prompted Carrillo to say: “The point about the AVE is not just its speed, not just the chronometer factor, but the fact that it allows you to make so much better use of your time… We offer people the chance to get going with their working day in an office space that is enticingly different, placid and agreeable. On a aeroplane it is time lost.”

And the stress factor is virtually nil. You board without any of that boiling irritation that you (or I, at least) often feel having just had to face down the habitual battery of airport indignitie. No one is ordering you to fasten your seat belt or giving you detailed instructions on what to do in the zero-probability event that your conveyance crashes and you survive.

Nor do you have the screech of revving engines, nor the tension as you disengage from mother earth, nor the turbulence on high. Nor the big neighbour digging his fat elbows into your ribs, nor the knees imprisoned hard by the seat in front, nor the drainingly abrupt shifts in atmospheric pressure on short trips, nor the ear pain when you have a cold, nor the vomiting, if you are thus genetically inclined.

Plus you have the sheer pleasure of idly watching the landscape pass by. In the case of this trip, it ranged from the savannah-like meseta of Castille, to the crumbling castles of Aragon, to the mountains on the approach to Zaragoza, to the flat desert after it, to the green fields, ancient towns and grapevines of Catalonia, to the blue of the Mediterranean. And then, whenever you feel like it, there is the liberation afforded by the AVE’s bar or, if you are in club class, a three-course meal. All this at a speed of 300km (186 miles) per hour, which is what Formula One cars do at full pelt.

You get little sense of just how fast you are going until you enter the cabin, where my initial sensation was one of pure terror, as if we were hurtling along on a wild fairground ride. My sense of alarm was not diminished by Carrillo’s informing me that the man at the helm wasn’t actually driving the train at all; the train was. Or, rather, the train’s computer system, which determined whether to accelerate, slow down or brake on the basis of information received, and then decoded, on board, from a sequence of little yellow boxes placed every 12km (7.4 miles) between the rails. The boxes transmitted all the information the train needed — how far ahead the train in front was, whether (highly unlikely) some obstacle might have appeared on the track — for a safe ride.

“The driver’s job,” Carrillo said, “is to supervise the computer, that’s all.” Just as well, because during the last half hour of the trip it started to pour with rain, so much so that visibility out of the cabin’s giant, sloping windscreen was practically zero. No matter: all the “driver” had to do was keep his eye on an uncluttered dashboard consisting of three large computer screens. These reassured him that communications with the yellow transmitter boxes remained clear and told him, among other things, whether the train was running on external power from the cables above, or whether it had reached a point, as it continually did, where it was manufacturing its own electricity. That’s another advantage the train has over the aeroplane: it emits five times less carbon dioxide into the atmosphere.

Yet another is that when you arrive at your destination you already have your luggage with you. Oh, and there’s the price. A return in tourist class Barcelona-Madrid costs €180 (£142), compared with €390 (£308) on the Iberia air shuttle. If you travel club class on the AVE, the price is €358 (£283).

It’s a no-brainer, really. Given a choice on trips within Europe of between, say, 100 and 500 miles, flying is a sadly passé option. As Carrillo put it: “This is pure Darwinism, technological Darwinism. Over these sorts of distances, the aeroplane cannot compete.”

Plans are afoot to extend the AVE network to Valencia and Alicante by 2010, at which point Spain will have the most extensive high-speed train network in the world. Then to Girona and France in 2012 and, after that, via Valladolid, to Santander, Oviedo and Bilbao.

Meanwhile, the Madrid-Barcelona run is going to be a nice little earner for the AVE. So confident is Carrillo of this and of the reliability of his service that he offers passengers a guarantee no airline would dare give: if the AVE arrives at its destination more than 15 minutes late, you get half your fare back; if it is half an hour late, you get a full refund. No such luck for me. My train to Barcelona arrived six minutes ahead of schedule.

Full story from Telegraph.co.uk

Illegal Building Problems in La Axarquia

Fri, 27 Jun 2008 00:00:00 GMT

An article over the weekend in the Spanish daily EL Pais, entitled ‘La Axarquia, a building and whitewash catastrophe’, shed light on the urban planning and illegal building problems in the La Axarquia region of the Costa del Sol, where hundreds of foreigners, especially Britons, have unwittingly purchased illegally-built homes.

La Axarquia is a county of 29 coastal and interior municipalities in eastern part of Malaga province, and is also part of the Costa del Sol. The number of illegal properties in La Axarquia depends upon who you talk to: 10,000 says the Regional government of Andalucia (Junta), and 21,500 say local environmentalists. The villages a little bit inland are the worst affected.

Illegal constructions on rural land have surged in the last decade, driven largely by demand from British buyers for a life of sunshine in the countryside. For example, the village of Alcaucin has gone from having 1,015 properties in 1998 to 1,538 in 2007, an expansion of 52%. Many of the new properties built in the region over the last decade do not have utility connections.

Uncontrolled urban development has degraded the region, perhaps irreversibly, says the article, and it has all taken palace before the very eyes of the authorities, who have been unable, or unwilling, to intervene. Many small municipalities lacked the resources to put a stop to illegal building, whilst local mayors found that giving free rein to building was a vote winner amongst locals, who could sell their small rural holdings, formerly worth very little, to British buyers for hundreds of thousands of Euros.

Many properties have been built with planning permission that exploits a loophole for agricultural housing, though local farmers now appear to have names like Ronald, Terry, Michael and Patrick.

In one case, dozens of properties have been illegally built on protected land around the reservoir of Viñuela, feeding sewage into the province’s biggest reservoir.

Incompetence and delays by the Junta in finalising definitive urban master plans have exacerbated the problem. Hundreds of properties built on rural land are excluded from the plans, and at risk of demolition. As a concession to local authorities that will have to deal with the problem, the Junta agreed to set up a body to evaluate the legalisation of 85% of illegally built properties in return for compensation from owners. However, nothing has been done to this end.

Despite the problems, all local political parties agree that construction – until recently the engine of the local economy – must be allowed to continue.

Full story from spanishpropertyinsight.com

Inland Spain attracts investors

Fri, 30 May 2008 00:00:00 GMT

Overseas property buyers are increasingly shunning the Spanish coastline and moving inland, it has been revealed.

The Spanish Property Owners Guild (Spog) stated that many coastal areas have become overdeveloped by mass tourism.

However, it believes that foreign property buyers can still find an unspoiled environment if they move away from the sea.

Paul Bradley, spokesperson for Spog, suggested that prospective investors look towards places such as La Vinuela, which is just 20 miles away from Malaga.

This means that property buyers could live in a more peaceful and natural environment while still having easy access to the Costa del Sol.

Mr Bradley commented: "Real Spain still exists - ten miles inland and it is still how it has always been."

A recent survey of foreign property owners by A Place in the Sun magazine found that Spain was still the most popular destination among Britons.

Rental investors 'should look to the future'

Wed, 2 Apr 2008 00:00:00 GMT

Investors in buy-to-let accommodation have been encouraged to think about how the market is likely to develop.

The Sun stated that overseas property buyers need to consider what may take place in their chosen location in the next few years.

According to the newspaper, the level of supply and demand in a certain place could determine the overall success of any investment.

For example, it said that a rental property is less likely to appreciate in value if it is located in a place with a large number of available residences.

By contrast, a house in an area with limited supply would be far more likely to become highly sought-after.

The Sun commented: "Many buy successfully, but only because they follow the golden rules."

This comes after BuyAssociation recommended that short-term investors come up with an exit strategy if they wish to make money from their property.

According to the website, people are less likely to make a profit if there is not a sizeable resale market in their chosen location.

Mediterranean investors set for possible windfall

Tue, 19 Feb 2008 00:00:00 GMT

Owners of property along the Mediterranean coast could be set to see significant capital growth, according to specialists.

The Foreign Property Buyer website stated that several countries have recently pledged to restrict the rate of building in the area.

Specifically, the guidelines prohibit developers from creating new structures less than 100 metres from the area.

The online portal has stated that while this is likely to be good for the local environment and its overall beauty, it could also be highly lucrative for those who have a house behind the lines.

Foreign Property Buyer commented: "The new legislation will be good news for investors who already own property inside of the 100 metre area."

The website predicted that demand for coastal accommodation would begin to exceed the level of supply, pushing up prices as a result.

According to Holiday-Rentals, countries on the Mediterranean coast such as Spain are still the most popular destinations in which to buy a foreign property.

The country accounts for nearly one in three British-owned overseas residences in Europe.

Spanish authorities inspired by London Underground

Thu, 25 Oct 2007 00:00:00 GMT

A transport system inspired by the London Underground could be set for construction in Spain, it has emerged.

It is understood that the regional government in Andalusia is considering introducing a Tube-style rail network across the province.

This would result in quicker access to major cities such as Malaga, Granada and Seville, a move that would directly benefit both local people and tourists.

Holiday home owners and investors in rental accommodation in Andalusia would also be likely to reap the rewards.

The move is being planned as part of a scheme to develop a more efficient transport network that can tempt people out of their cars.

Authorities stated that the London Underground, which is been in operation since the late 19th Century, was a highly cost-effective way of transporting large numbers of people across a busy area.

Figures show that the Tube network carries about three million passengers each day.

Spain and France 'popular with younger people'

Mon, 1 Oct 2007 00:00:00 GMT

Spain and France are both highly popular destinations among younger people, according to an expert.

Mike Jones, business development director at Bank of Scotland International, stated that four in ten Britons were interested in buying property abroad, while these two countries were among the most highly sought-after.

Many of those who were interested in investing overseas were said to be below the age of 55, thereby disproving the "general misconception" that most foreign buyers were retirees or people nearing the end of their working life.

Speaking to Mortgage Solutions, Mr Jones commented: "Last year, a survey conducted by Banco Halifax Hispania found that of the people who would most like to live in Spain, nearly seven in ten were under the age of 55."

He added that people tended to invest in France and Spain with different objectives in mind, as some wanted to move abroad permanently while others wanted a holiday home.

According to travel writer Stephen Morgan, foreigners have been tempted to relocate to the country because of factors such as its good climate and attractive scenery.

Valencia market 'benefiting from sporting prestige'

Mon, 20 Aug 2007 00:00:00 GMT

The property market in Valencia, Spain, has been boosted by the number of visitors attracted by major sporting events held in the region.

The America's Cup has seen the redevelopment of the city's fishing port into a new £350 million marina, while the arrival of Formula One next year is also expected to bring in the crowds.

Recent developments have begun to change people's perceptions of Valencia, Graham Hunt, spokesperson for Valencia Property, argued, claiming that property prices have risen as a result.

"People are coming here because it's a nicer place and they can work and bring their children here," Mr Hunt remarked.

Most homebuyers are looking to purchase flats in the area, with young professionals choosing to live in the city, he added.

Earlier in the month, Mark Stucklin, spokesperson for Spanishpropertyinsight.com, urged buyers to look for "liquid" markets when investing in property overseas.

Valencia 'becoming a property hotspot'

Thu, 16 Aug 2007 00:00:00 GMT

Valencia is becoming a property hotspot thanks to the restoration of many old buildings in the centre of the city, Valencia Property has said.

According to the real estate agency Spain's third largest city holds some excellent opportunities for investors looking for typical Spanish properties at lower prices.

Spokesman Graham Hunt said Valencia has many good facilities and is easy and cheap to get to with low cost airlines flying direct to the city.

"In the centre of city they're spending a lot on restoring old buildings, this is happening a lot. A lot of the old palaces in the Rufaza area are currently being restored.

"A lot of them have been restored as flats but quite a few are restored as full family houses for the rich people," he said.

And with lots more regeneration to come there is plenty of potential in the market, with luxury second home buyers driving the growth.

According to an article in The Telegraph investors can pick up renovated apartments in Rufaza with two or three bedrooms for around £160,000.

Developers plan new Spanish golf resort

Wed, 8 Aug 2007 00:00:00 GMT

Plans to build a new golf course and 2,000 homes are underway in La Alpujarra in Spain.

The region's Olive Press newspaper has quoted a local councillor, who claimed to have seen the urban extension plan.

Real estate companies are also reported to be advertising property in the area in land around the town, mentioning the future development of the golf course.

Almost one million square metres of land will be used for the construction of new property, according to Spain Real Estate.

Ugijar mayor Bienvenido Ortega said: "There are plans for a couple of urbanizaciones housing developments."

However, plans for the Spanish Golf resort have "not yet been approved by the Junta de Andalucia", he added.

News of the development follows the advice of Spanishpropertyinsight.com, which last week urged investors to "look for something different" when approaching the market.

"Look for liquid markets … one that is well-established and you know you'll be able to sell and get out quite quickly because people want to buy there," spokesperson Mark Stucklin said.