Costa Blanca Property News

15,000 homes under threat

2006-05-19T11:12:00.000+02:00

15,000 ex-pats face losing homes

European Parliament urged to save their properties

Article by the cbfriday.com

MORE than 15,000 Costa Blanca homeowners have pleaded with the European Parliament to save their homes under threat from the controversial LRAU land-grab law.

Michael Cashman MEP, has challenged Sr Blasco, the Spanish minister in Valencia, over recent allegations that the European Parliament was exaggerating the number of petitions it had received from desperate citizens asking for help.

Mr Cashman has been leading the fight
for justice for EU citizens against alleged land grabs in and around Valencia.

Mr Cashman said: "Señor Blasco claims the EP is exaggerating as to the severity of the problem concerning the LRAU law in Spain.

"We have been petitioned by more than 15,000 EU citizens affected by the abusive implementation of this law in Valencia and we are acting on their behalf in order to ensure justice is done.

"I’d like to tell citizens affected by this law, as well as Señor Blasco and his colleagues in the ministry in Valencia, that the EP will not rest until this issue is resolved. If that means going to the European Court of Justice, so be it."

His vow comes as a Teulada couple are living a nightmare not knowing whether they will lose their property because of the land-grab laws.

Expatriate pensioners Tessa and Len Deacon said they cannot afford to pay the high infrastructure costs being demanded by the developers of the adjacent land ito their home.

They bought their home in 1993 but now a developer wants to build next door.

The couple would lose 700 square metres of land as well as having to pay 53,247 euros to the developer.

The Deacons said: We are UK pensioners and this is our only home which we bought in 1993 for our retirement.

"The LRAU has had a devastating affect on our lives and we would not wish the stress we have suffered for the past three years to be suffered by other people.

"We have been forced to spend money we had accumulated for our retirement on expensive lawyers and court fees just to try to retain what is legally ours."

• The association Ciudadanos Europeos has awarded its Golden Ensign to Abusos Urbanísticos No leaders Charles and Lisa Svoboda in a ceremony in Altea. The award was made in recognition of the Svobodas’ success in defending the rights of small property owners.

From this article - the cbfriday.com - we would like to remind persons looking to buy a property in Spain that not only is it advisible to use a well established Real Estate company that you can trust but you MUST use a solicitor in Spain - be it an independent solicitor or company solicitor to make sure that the property that you are going to buy is legal and there is not any complications with the purchase.

This can save alot of heartache and stress of buying in Spain - don´t get caught out...

Overseas property: Spain

2006-05-16T13:52:00.000+02:00

It is not just in the UK that house hunters are stepping up a gear as the traditional sales season gets into full swing. The same is happening among would-be purchasers in Spain, which remains the favourite overseas holiday home location for Britons wanting to buy into the sun.

The Government's Office of National Statistics says some 69,284 properties in Spain are owned by Britons, although these include those owned by people still officially resident in Britain and who declare their second home to the Inland Revenue. In reality, many more are likely to exist.

Full story on the Independent online.

Spanish Government in for coastal property

2006-05-16T13:43:00.000+02:00

Environment minister reserves the right to buy coastal property

Environment minister Cristina Narbona has declared the government has the right to buy coastal land or property offered for sale and that sellers must give first refusal to the coast department.

Sra Narbona said that where property or land is for sale on the coast, the government must be informed. This, she said, is a measure to ensure that unspoilt areas of coastline remain undeveloped and protected.

Under the law, the government has the right to carry out its own assessment of any property and fix a value. This, say experts, could cause problems because of the common trend of putting lower values on title deeds in order to avoid taxes - and then making up the true value in undeclared cash. If a seller refuses to accept the government's valuation of a property, the government can insist on buying at the value in the deeds.

In a separate move, opposition parties in Valencia have called the regional government's urban development programme ‘irresponsible’.

A report by the European Observatory claims Alicante Province is a vulnerable zone in terms of natural disasters. It says that intense construction over the last 10 years has left some places at risk, a fact ignored by regional government.

Opposition groups are demanding that regional president Francisco Camps ensures that marshland and risk areas are turned into development ‘no-go’ zones.

ARCHITECTS SPEAK OUT

The official college of architects in Valencia has urged regional housing and territories chief Rafael Blasco to suspend all building licences in coastal areas until such time as the new Plan Territorial del Litoral has been finalised.

President of the college Fabián Llisterri said that intense construction along the coast in recent years has in some cases caused damage and called for a public debate when the plan is ready.

Story from the Costa Blanca news

Spanish Country property for sale

2006-05-05T18:38:00.000+02:00

A Place in the Sun on Channel 4 last night featured "Jaen" which is becoming more and more popular with people looking to buy property inland - country property in Spain.

Inland country property is becoming increasingly more attractive due to the busy and over built costas, people whom have lived in Spain are also seeking to move away from the crazy summer crowds to enjoy the peace, beauty and tranquility of the Spanish countryside. Not only is the country villages and towns of the Spanish countryside beautiful and traditional but much cheaper to buy and the cost of living is considerablely cheaper as well.

So why not look for a Spanish country property - Central Property Bureau offers some excellent properties for investment and for permanent living in beautiful areas such as Granada, Murcia and Alicante. We also have property contacts in Albacete where you can pick up unbelieveable property bargains !!!

Start searching today !!!

Ex-pats behind Spains property boom

2006-04-22T11:54:00.000+02:00

Expats are emerging as a driving force in the Spanish economy, boosting demand for new housing, analysts say. House-buying by expats helps to sustain the country's construction boom, reports the British daily The Financial Times.

"There is no risk of a property crash in Spain in the short or medium term thanks to new demand generated by immigrants," says Angel Berges, a partner at Analistas Financieros Internacionales, a Madrid consultancy.

Berges told the paper he believes immigrants will buy some 170,000 homes in Spain this year – almost one quarter of total demand for new houses. In the past six years, Spain has seen a huge increase in its immigrant population.

The number of immigrants has risen to 4 million, making 9 percent of the population of over 44m. One in three immigrants moving to the European Union since 2000 have gone to Spain. Spain's rising divorce rate will also help to drive up demand for new houses.

Estate agents say people who have split up will buy up to 140,000 homes in 2006. Last year there was an 80 percent increase in divorces, to 87,000. It follows the introduction by the present government of the so-called 'express divorce'.

The number of separations fell by 51,000 as most people opted for divorce.

Strong property investments

2006-04-10T11:45:00.000+02:00

Property investment in Spain has sometimes been overshadowed in recent years by stories of the growth in Europe's emerging property markets.

Those in the know, however, Spain has rarely been out of mind, with conditions remaining excellent for capital gains & demand from locals & foreigners alike extremely high.

As reported today by Expatica, the desire to own property is still strong among Spaniards, even after interest rates were increased.

Mortgage loans increased by 37.7 per cent in January when compared with 12 months earlier, reflecting much higher confidence & a growing trend of homeownership in the country in general.

Expatica reports that the Bank of Spain has criticised the European Central Bank for the current rate saying that it is "expensive", but it is clear that families are willing to go through with property transactions all the same.

Demand from foreign investors is always likely to remain high and this has played a significant role in sustaining almost unrivalled house price growth over the last couple of decades.

Because of Spain's thriving reputation for sports & golf in particular, many choose to purchase holiday homes around developing golf resorts, with many intending to rent their properties out to holidaymakers who head back to the lush fairways & immaculate greens every year.

Of course, it is rare to discuss Spain's allure without mentioning its beautiful beaches & property investors have also been boosted on this front.

Over the years, many people have been tempted to construct buildings by Spain's celebrated beaches without having any kind of exit strategy or a real purpose for the property. It is an unfortunate trend that has left numerous dilapidated buildings blighting the stunning scenery of the coastal areas.

As reported recently by Expatica, however, this is being tackled with the decision to allow the Spanish authorities to demolish structures along the country's coasts, with 63 already torn down.

Adding investment appeal to the areas, it is hoped this will lead to renewed enthusiasm from those who have been put off by the accumulation of functionless bars, homes, walls & industrial buildings.

Almeria has seen much of the action, but nine structures have also been pulled down in Murcia, where investors have already been making significant gains in recent years.

Based on the Mediterranean coast of Costa Calida, Murcia is only 40 minutes from Alicante airport, while it is thought it will receive one of its own by the end of the year, providing yet another incentive to invest.

Spain property still the best!!!

2006-04-03T18:56:00.000+02:00

Despite the lower property prices, Bulgaria ranks after France and Spain based on the popularity of the country as property destination for British investors.

Nearly 43 per cent of the foreign property purchases occurred in the two countries, 999 Today reported. Australia ranks third with 11 per cent. Bulgaria remains fourth with 10 per cent, followed by the US with four per cent.

Most British investors look for holiday property abroad, the online publication reported. Additional factors, increasing the appeal of property, include the availability of cheap flights and easy access to resorts.

Bulgaria's expected EU membership attracts increasing number of property investors, representatives of Assetz real estate consultancy said.

Once Bulgaria joins the union, property prices there will rise significantly, 999 Today reported. Still, Bulgaria will need some time to achieve the investment level of already established property destinations, Assetz representatives said.

Now is the best time to buy in Spain..

2006-03-24T14:40:00.000+01:00

Welcome again, and with no great cheer being offered by Mr G. Brown in his budget for either those who already own their property or first-time buyers looking to get onto the property ladder, now is a better time than ever to make the move overseas to Spain or start building your property portfolio.

With hundreds of resale properties for sale on the Costa Blanca and many new property promotions in the area, why not take advantage of the huge reductions on properties here with Central Property Bureau.

We have property starting for only 79,000 Euros that is only 60,000 pounds sterling, now is the definatley the time if you have been thinking of moving to Spain. Due to the amount of property available, prices are beginning to drop and we have already seen the results in recent sales and enquiries, so contact Central Property Bureau or visit the Central Property Bureau website, for a quick property search click here.

Don´t get left behind !!!

Which overseas buyer are you ?

2006-03-18T11:09:00.000+01:00

People who buy a home abroad fall into categories, rich, poor, level headed, impulsive, plus a few in between, says Damian Barr.

Once upon a time there were those who owned a second home abroad. They bought it for pre euro peanuts and did it up slowly. It was something lovely, a farmhouse somewhere predictable, like the Dordogne.

There they enjoyed long holidays with their children and their friends and their children. They were the fortunate few. Now, it seems, everyone is doing it. More than a quarter of a million Britons have turned the daydream into a reality, according to Caxton FX, an independent currency company. Almost half of those have snapped up homes in Spain and France. But, as Provence becomes provincial, we're looking further afield with more than a third of homes now being bought outside Europe.

We now move quite comfortably between countries, not counties, and sometimes even between continents. A second home is a must have.

Some people even have two homes, or three or four or more. Others have a much,loved bolt hole in a tried and tested territory. For twentysomethings desperate to buy something, anything, anywhere, Bulgaria is better than nothing.

So are you an Intrepid Investor, a Level Headed Long Termer, a Jetsetting Bon Vivant, a Serial Buy to Letter or a Rampant Renovator? And will you all live happily after? Read on to find out.

Intrepid Investors

The Intrepid Investors are cash poor and time poor. They have "freelance projects" rather than jobs and have never even thought about a pension. They make lots, spend more and surf the bottom of their overdraft. Their busy lives are a series of deadlines and the next big one is finding a place to buy. Although they no longer live at home, their parents are piling on pressure to settle down.

Easier said than done when your natural habitat is edgy but expensive Shoreditch in East London. They've considered Glasgow but they're not sure how good the sushi is up there, and it's too cold. Despairing Mum and Dad are even offering a deposit of 50,000 GBP's.

The Intrepid Investor hasn't seen that much money since the last student loan. It seems a waste to put it straight into a property in Britain just as the market is levelling off. Why not buy abroad? At their local gastropub that night a group of Intrepid Investors discuss the possibility of finally getting on the property ladder and making some easy money. A friend freshly returned from travelling (again) believes Eastern Europe is a bargain. The beer is certainly good, and there are plenty of cheap flights.

Financed by their parents and fuelled by dreams of capital appreciation and potential rental income, the Intrepid Investors are off, scouring the internet for bargains on the eastern fringes of Europe.

Serial Buy to Letters

Such is their grasp of geography and global affairs, Serial Buy to Letters could well work for the UN. As it is, they are a lawyer or City worker with more money than time. They communicate by BlackBerry. When it comes to money and markets they know what's what.

What's more, they have the cash to take advantage of prevailing trends. They were among the first to buy off plan and they know their way around the most complex contract.

To spread the risk the SBTLs cast their nets wide. Yes, there are the corporate lets in big cities like Madrid and Frankfurt. But there are also the holiday apartments in countries such as Turkey and even Brazil. No single property costs more than 150,000 GBP's.

These are not homes, they're investments, each a carefully considered piece of a perfect portfolio. The SBTL hasn't seen them all but can tell you about the square footage and what they're worth.

The full story from Times Online

The crack down on "Black money"

2006-03-04T10:53:00.000+01:00

The Government in Spain is stepping up on new laws to help stamp out the use of "black money" in property purchases across Spain.

To help reduce tax liabilities for a seller, they will often ask a purchaser of the property to declare that they are buying at a price which is much less than the original price advertised, then pay them the difference in cash "black money".

The under declaring of purchase price benefits the seller if he has a Capital Gains Tax (CGT) liability & the buyer from a stamp duty perspective.

CGT is payable even on gains on main residences in Spain. Spanish residents pay 15 per cent & non-residents pay 35 per cent at the moment.

Better solicitors will always suggest that their clients don't agree to under declare. They will also work with the client to come up with a suitable compromise with the vendor which might involve paying a bit more but knowing there will be no problems in the future.

New laws, expected to come into force later in the year, property sellers & buyers will also have to disclose their tax identification numbers when buying a property in Spain.

This will help the Spanish authorities to see if homeowners do not register their properties & who do not pay tax on rental income on their property or when they sell their property in Spain.

The Government in Spain introduced measures last year to help prevent black money being used in property deals. Now, everyone involved in the property purchase has to state in the deeds of the property what the method of payment is.

It is also becoming harder to withdraw large cash lump sums from banks in Spain without raising suspicion. If you have suddenly withdrawn €20,000 in cash on the day you signed the deeds, then you risk being investigated.

However, the tightening of the regulation is unlikely to result in sudden attempts to claw tax back from those who have previously bought property using black money. It would be relatively easy for the Spanish authorities to track down those who had used black money. Quite often in the contract, both the declared price & the actual price are written there, so it wouldn't be difficult to trace people who had under declared.

There are also steps being taken to ensure landlords disclose rental income. Many landlords try to escape revealing this income, again to avoid paying tax on it. But tenants now have to include the property registry number on utility bills and other contracts, so it will be clear when a property is being lived in and when it is vacant.

You normally find it is when people are paying cash from their own purse or raising the money from their own UK properties that they can be drawn into this.

As well as risking fines by not declaring money during a purchase of a property, remember that there are other ways in which you can lose out.

Environmentalists ask for development halt in Mar Menor

2006-02-28T11:24:00.000+01:00

Ecologists & nature organisations have asked the government of Murcia to call an urgent stop to any projects for property development in the Mar Menor area.

Speaking to the press after a meeting with the regional president on Monday, Pedro García, the president of the nature organisation ANSE, said that Greenpeace, the World Wildlife Fund/Adena & SEO/Birdlife, all share his organisation’s concerns at the ‘intolerable foolishness of the development madness and hastiness which is taking place in parts of Murcia, such as the Mar Menor, Aguilas & Lorca.’

García asked the regional area president Ramón Luis Valcárcel at their meeting to call an urgent stop to any pending land reclassification for construction in the area & to not accept any new projects in the area.

The Mar Menor, Europe’s largest salt lake, is covered by five protection orders, four of them international. García has said that construction of up to 70,000 new homes has been authorised to be built there, as well as seven golf courses & a new road crossing the salt lake.

The ANSE president said that the regional government’s application to build 4,100 new homes & a golf course on protected land in the Sierra de La Almenara, in Aguilas, will have a serious effect on one of the last pairs of Bonelli eagles left living there in the area.

The government, which says it supports sustainable development for natural spaces, has now set up meetings with the ANSE representatives to review their report on the situation in hand.

Full story on typicallyspanish.com

Spanish land sell off for €120m

2006-02-24T11:11:00.000+01:00

The insurance group FBD Holdings announced today a conditional cash deal of up to €120m to sell a major portion of the building development land that it owns in La Cala Resort of Spain.

The buying company Desarrollos Lar Sol which is owned by Spanish property development company Groupo Lar SA & MSREF, a property investment fund controlled by Morgan Stanley.

Cash proceeds of the sale are estimated to be up to €120m in part payments. The FBD Board intends to distribute the proceeds of the sale by way of two special dividends.

FBD remains the majority owner & operator of the resort's leisure interests & will complete & promote its current residential building developments.

Philip Fitzsimons, the FBD Chief Executive, said the deal was very satisfactory, & that the potential identified originally at La Cala in Spain has been developed, with substantial value created for shareholders.

Shares in FBD closed up 5% this evening, adding 1.95 to finish at €40.15.

Record number of Brits leave for better lives in Spain & other countries

2006-02-23T10:46:00.000+01:00

New reports out show record numbers of people leaving Britain to live & work abroad. More than 350,000 Brits are emigrating every year, a rise of 30 per cent in the last 10 years, The Independent reports.

Experts are particularly concerned that the number of people in professional occupations leaving Britain has doubled since 1994.

And figures from the Office for National Statistics show that an amazing 359,500 people migrated from Britain to other countries in 2004, up from 236,500 in 1994.

While the outflow of people was offset by 582,000 foreigners coming to live in the UK for at least a year, there are concerns that Britain is proving less attractive to migrants, whom it desperately needs to plug staffing shortages.

Of the people leaving the UK, 207,600 were British citizens, the highest since current records began in 1991. The number of people in the professional classes emigrating almost doubled from 69,000 to 122,000 in the same period.

More detailed figures for 2003 show that the number of people going to live in Australia, for the first time, went over the 20,000 mark.

Nursing organisations have been warning that Britain's policy of recruiting nurses from abroad is backfiring as many of the foreign recruits are simply using the UK as a stepping stone before going to the United States, where salaries are much higher.

Figures from the Nursing and Midwifery Council show that, last year, 4,393 nurses left Britain for jobs in Australia and New Zealand, double the number who went in 1995.

Howard Caton, of the Royal College of Nursing, said: "It seems that nurses may be attracted to Australia and New Zealand early in their careers. But we are also seeing large numbers of nurses going to America. The opportunities for career advancement can be very good there.

"We have heard of foreign nurses being recruited by agencies to come and work in Britain, and then, six months later, they are approached by the agency to go and work in the US."

Poor workforce planning has also meant that hundreds of newly qualified junior doctors have found that there are no jobs for them in Britain, despite the fact that the NHS needs more staff. Andrew Roland, deputy chair of the British Medical Association's junior doctors committee said: "These are people who have trained for years to work in the NHS and have then found that there is no job for them.

"Doctors are not going abroad for an easier life, but to start their careers. The problem is about whether they come back or not."

A report by the World Bank last year found that one in six graduates leaves the UK, more than any other Western country. Professor Andrew Oswald, professor of economics at Warwick University, said: "We have a severe problem in holding on to our best graduates. A junior academic economist in Britain will earn about 25,000 GBP's a year; in America, they start on about 50,000 GBP's to 60,000 GBP's."

Observers said that the growth in ownership of second homes may also be both a cause and effect of the migration out of Britain.

Enquiries to the currency specialist HIFX about buying a property in Australia have tripled since the beginning of this year.

Mark Bodega, marketing director of HIFX, said: "The traditional markets for buying a second home are France and Spain, but we are increasingly seeing people buy in places such as Australia and Dubai."

Full story from Workpermit.com

Illegal Building: The Expat Nightmare

2006-02-21T10:35:00.000+01:00

Spain is notorious for illegal builders, but how bad is the problem really?

If it's not the state grabbing half your land, it's muggers grabbing your handbag; if it's not these, then it's the media telling everyone you live in a hell hole dominated by beer swilling expats, corrupt officials and murderous thieves.

Add to which, these days, an increasing number of tales of bad builders; at best incompetent, at worst criminal.

The bad shepherds are finding new ways to fleece their ever increasing flock of lambs to the slaughter. But how bad is it, really? The answer is, bad, but mainly only for those who fail to do their homework.
Sally and Joe Alden, originally from Bradford, in Britain, bought their home near Calpe, on the Costa Blanca, from a British estate agent, acting on behalf of a British vendor.

No, you don't need a solicitor, he told them, I'll do all the searches for you.

Betty Anggold was assured her house would be ready by October, 2005 but it wasn't. nor by November, or even by Christmas. It still isn't. It wasn't until they moved in that they learned that proposed development adjoining their land would cost them at least 25,000 Euros in infrastructure charges.

Furious at this apparent deception, they took both agent and vendor to court.

They lost, and had the defendant's costs awarded against them.

The reason for the court's decision? Simple, the oldest rule in the book: Caveat Emptor; Let the Buyer beware.

The onus, they were told, was on them to have researched the property; the agent and vendor, who both knew of the proposed charges, and did not tell them, walked away, and the Aldens were left some 50,000 Euros out of pocket.

Outside Spain, rules and regulations are to be obeyed. In Britain, for instance, they employ a solicitor to carry out searches when buying a house, even though it is usually safe to assume that full planning permission was originally granted.

However, when Britons buy in Spain, alas, all too often they make the same fatal assumptions, only to find that their new home is completely illegal, and should never even have been built. Frank and Billie Somers, from Sussex, in Britain, bought a tumbledown finca near La Herradura, Granada.

They were assured by the agent that they could demolish it and rebuild, anywhere on their 18,000 square metre plot.

Too late, they learned that they could only rebuild on the original site of the ruin, (which backs on to a dog pound!) right against a main road, and only to the original size.

Again, blind trust in what an agent told them had cost them dear.

Most agents are genuine and reliable; most builders trustworthy and dependable.

But enough are not, to have started a whole new genre of horror stories.

Full story from Expatica.com

New Construction now at 1999 levels

2006-02-17T12:24:00.000+01:00

News from the Costablanca-news says that the college of quantity surveyors & architects has said that the predicted slowdown in construction has finally arrived and that the number of new houses built in 2005 dropped by 11 per cent.

A spokesman said that in 2004 a total of 52,737 new properties were inspected; this fell to 46,687 last year. He also said that the number of projects involving large urbanisations dropped by nine per cent during the same period. These figures, say the college, now puts construction at the same level it was at in 1999.

In a report issued this week, the college also evaluates the type of homes being built. It says that constructors are building smaller properties in order to get more into the space available.

Although the report highlights a slowdown in construction, it also points out that in coastal towns such as Benidorm, Alicante, Elche, Pilar de la Horadada, Santa Pola, Orihuela and Villajoyosa building is still going on at a frenetic pace.

Resale Property on the Costa del Sol

2006-02-17T12:21:00.000+01:00

Resale property on the Costa del Sol is still a huge favourite for expats looking for a property in Spain, but not to the surprise of Estate agents in Spain and of course the Costa del Sol, resale property is more expensive in Marbella than anywhere else on the Costa del Sol, according to a new report from idealista.com.

The average figure is an amazing 3,000 € a square metre in Marbella with other towns where tourism is big business such as Torremolinos, Fuengirola and Benalmádena.

Where the tourism is domestic, in places such as Vélez-Málaga or Rincon de la Victoria resale property prices are much lower.

Six fold increases in 20 years

2006-02-14T15:56:00.000+01:00

In recent weeks the newspaper El Pais in Spain published figures released by the appraisers group, Sociedad de Tasacón, reporting that prices of Spanish property prices have rised a staggering amount in the past 20 years.

Even with the price increases over the years, the government are still confident that it will not affect on the property market. Jose Luis Esteves-Guillmain, the chairman of the appraisers group, estimates that house prices should rise by approximately 8% this year, confirming a slow-down in the market. "Since 2003, the increases have been decelerating continuously. What's more, prices in cheaper areas have been rising more, while they have moderated in the most expensive capitals." He estimated that house prices would continue to slow over the next three to four years, until they approach the inflation rate, which last year was 3.8%.

Barcelona has become the most expensive city to live in, average price per sqm is 3,700 euros, fractionally above Madrid, where the cost is 3,629 euros and San Sebastian priced at 3,585 euros per sqm. The cheapest of the provincial capitals were Badajoz and Lugo, where the price per sqm hasn´t exceeded 1,300 euros.
The largest recorded increases were in Lleida, Valencia and Coruna at 16-17%. The smallest were in Pamplor and San Sebastian at 6.5 and 6.8% respectively.
The Sociadad de Tasación estimated that 700,000 building projects commenced last year and supply is expected to remain strong this year, although less so in the centre of cities, land shortages leading to high costs.

Spanish Property still healthy

2006-02-06T16:03:00.000+01:00

Statistics from the government in Spain that buying a property in Spain remains one of the most sensible and attractive options for residents of the UK looking to enter the property market overseas.

It is quite clear that Spain is no longer dominates the market for buying a property abroad with British investors the way it did in the 90s, however the huge growth in the property market in Spain, the love affair the British have with Spain as a holiday resort and for buying a second home or holiday home make the country a very safe investment and investors continue to buy there.

The government statistics show that house prices have increased by an average of 12.8 per cent in 2005. This is admittedly down on the 17.2 per cent increase in 2004, but it has been welcomed by government officials and investors alike.

Director general of Architecture and Housing Policy, Rafael Pacheco, celebrated "more reasonable" increases while property investors appreciate that a 12.8 per cent rise shows that the market is remaining strong and has avoided a crash in Spain.

Also, with developing property markets such as Bulgaria providing increased competition, Spain now has to prove it can remain competitive, so the more sensible price increases may prove to be beneficial to the long-term strength of property investment within Spain.

It is obvious that Spanish property is made more desirable because of the decision by the European Commission to refer the Spanish government to the Court of Justice because of allegations of prejudiced property tax laws.

At the moment, Spanish residents are required to pay 15 per cent tax on gains from property sales, whereas non-residents are taxed at rate of 35 per cent. If the Court of Justice rules that this is indeed discriminatory, investors from abroad will look forward to much lower taxation levels which will clearly benefit those hoping to sell on properties in Spain.

According to many estate agents in Spain, it is currently an extremely good time to invest in a Spanish house, with high construction standards across the country creating a good reputation and making the process of reselling much easier.

Predicting that the lead price for a typical two-bed, two-bath apartment in a prime location will be around £113,000 during 2006, the company's Terry Walker has said conditions for buying a house or building a property portfolio are ideal.

"That is still very affordable for new buyers as the mortgage interest rate remains around three per cent, which when factoring in the still low inflation of Spain is actually much less in real terms," he said.

"The typical second home development is also better value as they are designed and built better, with specification and standards raised every year to a much higher level. Marble finishes, added air-con, two bathrooms, increased security and smart home technology are becoming the norm, while sunshine space such as terraces, balconies and solariums are bigger by demand," he added.

The likes of Bulgaria and Cyprus will inevitably chip away at Spain's dominance of the market, but UK investors have shown few signs of turning away from their favourite property investment country. With Barcelona and Valencia continuing to attract interest and the tourist industry in the Costa del Azahar growing in popularity each year, it would seem Spanish mortgages will remain prevalent for a long time.

Who we are and what we do...

2006-01-23T18:07:00.000+01:00

Central Property Bureau S.L. was formed by Miguel Angel Krysl Ramos and Caro Minas in 1987, and in this time the company has grown to become a leading Spanish Real Estate agency in Customer service and Professionalism.

The company is still represented by its two co-founders, Caro Minas, formerly in Professional Practice as Auditor (FACCA - Fellow of the Association of Certified & Corporate Accounts) in the UK and Miguel Angel Krysl Ramos, an active member of GIPE (Gestor Inmobiliario en Promociones de Edificaciones), the Spanish body which regulates the activities of intermediaries in the field of Estate Agency.

Central Property Bureau is your best choice for both New or Resale Properties, providing the seller the best opportunity for a quick sale the buyer the widest range of available Costa Blanca properties for sale.

Not only can CPB guide you through the field of Estate Agency in Spain, but we can also offer in related areas of Law, Taxation and Finance.

This blog will be where we post new property releases by CPB, bargain properties on the Costa Blanca, new developments, Spanish property news, Spanish tax / mortgage and financial news.

We hope you find our Blog of interest or useful to you.

Regards
The team at Central Property Bureau