We have been contacted by our clients who have bought a property in Spain as they are worried by all the bad press recently predicting a price crash in Spain. This is like saying that there is going to be a housing price crash in the UK, how many times do we hear this? Certainly it may be the case in a few areas of the UK but in our areas of Shrewsbury and Birmingham prices are still rising, especially in specific areas such as barn conversions or redevelopment areas.
It is the same in Spain, our area ‘The Region of Murcia’ is not the area that that these reports are referring to, they are referring to Valencia and Marbella.
Firstly the demand for property in Valencia was hit due to reported scandals of ‘land grab’ these cases have now been passed by the European courts as being illegal. It will take time to sort this problem out for existing cases, but it should not happen again so long as buyers take every precaution before parting with their money - see below
Secondly demand for property in Marbella has been hit due to a problem with planning permissions not going through the correct channels at Town Hall. This is a political situation and may change when the next elections take place.
I would agree that property in both these regions have taken in hit in the last two years, but this should not prevent the buyer from buying in Spain, but it should make them more careful when choosing the area of Spain and also the company to assist them with their purchase – see below.
The Costa Blanca and Costa del Sol have had a long period of growth, development and increasing prices, unfortunately in some areas this has gone unnoticed by the planning departments and some areas have turned into concrete jungles – this will not happen in the Region of Murcia as it is an autonomous region and being a late-comer in the property development market, has benefited from the mistakes made by its more developed neighbours. In the Region of Murcia there is also strong representation of the Ecological groups who monitor all planned developments in the area and protest if there is likely to be any damage to the flora and fauna. It really is a beautiful area and offers everything that one could want when considering buying a property in Spain
In the Region of Murcia the Town Halls will not allow buildings any higher than 3 floors except on the La Manga Strip where property can go as high as 9 floors. This is the last place in Spain where you can buy a property on the beach. Developers in the Region of Murcia also have to give a percentage of land back to the Town Hall so that they can put in green areas, schools, hospitals, leisure areas etc to ensure the quality of life for the residents, having seen the problems that have been caused in other areas where the influx of new developments have over stretched the utilities and infrastructure.
If you have bought a property in Spain, don’t panic, sit tight and most situations will rectify themselves in time, if you need help, find a solicitor in the area as rules and regulations change from one region to another.
If you would like to buy a property in Spain, have a look at the Region of Murcia and follow the guide lines below, before putting down a deposit. Many news papers last week were printing doom and gloom about the Spanish Property Market but the Daily Express in their wisdom were not drawn into this panic mongering and they actually recommended as one of their top 5 places in the World to buy a property in a rural development called Monte Aledo which is in The Region of Murcia, it is similar to Centre Parcs. It is a fabulous development and where I would invest right now if the funds were available.
The main points to keep in mind when buying a property in Spain
- Choose a reputable estate agent that is registered with FOPDAC
- Only buy from a company that offers BANK guarantees not company guarantees
- Use an independent solicitor from the region
- Make a verbal reserve, but don’t be ‘bullied’ into putting a deposit down until your solicitor has checked with the Town hall for all the relevant permissions
- Don’t be fooled by ‘Rental Guarantees’ this is usually included in the price you are paying for the property and does not reflect the amount that you are likely to receive in future rentals
- Choose a company with a UK and Spanish office so you know where they operate from. Check that they are a registered company
- Choose a company that offers Aftersales and Property Management. If they have to deal with any problems after the sale they are going to make sure they offer you only trouble free properties with good rental potential
- Lastly after taking into consideration all of the above, don’t just dream it do it and enjoy the freedom of owning your own place in the Sun, with year round good weather and regular cheap flight from the UK.
If we can be of any further help, please contact Gill Hughes, email@example.com