Your Spanish holiday is almost over and, along with the good tan and souvenirs, you are also returning home with a small heap of property prospectuses: on shopping trips in town, you may have spent more time peering into estate agents’ windows than lounging in cafes. Next year, you hope you will be returning to your own Spanish bolthole. If you recognise this image, there is every possibility that you are about to join the army of Britons who boast their own Spanish home.
The way we holiday is changing. Ever since the first planeloads of package tourists hit the baking tarmac, the British have dreamed of a piece of Spain to call their own. Now package holidays are being replaced by “residential tourists”: people who own a bolthole abroad, attracted not only by the pleasures of having their own foothold, but also by investing money in something that can be enjoyed here and now. As many as 39-per-cent of property owners in Spain start their search while on holiday, according to Mintel, and though no official figures exist for the number of Britons who have bought a Spanish hideaway, the estimate is around 600,000.
If you are on the eve of such a decision, one of the first things that you must decide is where and what to buy. And the choice is immense: Spanish buyers can find brand new villas, off-plan apartments, farmhouses to renovate, or multi-million pound luxury properties. And years of development have produced a healthy stock of re-sale properties that can be snapped up at reasonable prices.
What’s more, the image of sun-drenched beaches is only a narrow view of what Spain has to offer. Look harder and you will find alpine ski resorts such as Andorra, bustling cities like Seville, verdant hills in Galicia, and barren deserts in Almeria.
In the past, British buyers have favoured new-build properties, and the Costa del Sol and the Costa Blanca each account for 30-per-cent of British demand. The Canaries comes in third place accounting for 13-per-cent of demand, followed by 9-per-cent in the Balearics, and 7-per-cent in Catalunia. The remaining 11-per-cent branch out to other parts of the country, where more buyers are heading in search of the “real Spain”.
Where and what kind of property you buy is as much about your own personal situation – whether you are retiring, or have a young family – as the size of your budget, and even your proficiency in Spanish.
Prices vary hugely. The Costa del Sol has more than 100 miles of coast and has the best year round sun in Europe. And with around 50 golf courses it is also a golfers’ paradise. Some argue that prices here have already peaked and some parts are very developed. The Golden Mile between Malaga and Marbella is the most expensive – a two-bed villa can cost you north of €550,000.
The rise in Costa del Sol prices has caused an overspill into other areas. The northern Costa Blanca, is dotted with exclusive private villas – the most pricey places are Javea, Denia and Alicante. But if your budget will not stretch this far and the coast is a must, properties along the Costa Calida, Costa Almeria and Costa del Azahar are less expensive. Or, the south side of the Costa Blanca has a good choice of inexpensive apartments. However, places such as Benidorm have suffered overdevelopment and may not be to everyone’s tastes.
Another way to stretch those euros a bit further is to look back from the coast in Andalucia where there are beautiful Moorish-style white-washed villages. Or, if you are after Costa del Sol’s long summers but not Costa del Sol prices, you can find cheaper properties east of Malaga, and west of Estepona.
On the Atlantic along the western-most stretch of Andalucian coast the relatively undiscovered Costa de la Luz, otherwise known as the coast of light, is also good hunting ground for a bargain, and some are hailing this as the next big thing. However choppier seas make it ideal for surfers, but not as good for the less athletic swimmers.
If it is rural Spain you are in search of and even the thought of baking summers brings you out in a sweat, there are plenty of tumbledown farmhouses in the regions on the northern Atlantic. Asturias and Galicia are a lot cheaper than the south - here you can still find properties at less than £20,000. These regions certainly have their charms, but with winters more akin to December in Bognor Regis, it is a far cry from the sunny southern coasts.
Tread carefully: the Land Grab (Ley Reguladora de la actividad urbanistica LRAU)
The LRAU, or land grab law, was introduced by Valencia’s Socialist government in 1994 to enable projects that would put good infrastructures, such as road widening, into rural communities. However, the wording of the law is so loose that it has been open to misinterpretation: “property developers” can submit a planning application to the town hall for land classed as rural (rustico), whether they own it or not. If no competing plan is submitted within six months, the developer can proceed with their plan. Affected home owners then must then give up part of their land, but they may receive as little as 10-per-cent of its value by way of compensation. In the worst cases, owners have found themselves liable for some of the cost of the new development. Unfortunately, the legal system offers little protection and other regions, such as Andalucia and Castilla-La Mancha, have their own versions of the law.
The law only affects land which is classified as rural, and in most areas this is not a problem – if you buy a property on land classified as urban (urbano) you will not be exposed to the risk.
Spanish lessons:
Buying a home in Spain needn’t be more complicated than in the UK, but there are differences in legal and tax systems, so:
Use a reputable estate agent and don’t be rushed into decisions – allow your self a cooling off period and ensure your lawyer has given you the go-ahead before you sign anything.
