A market saturated with product, an economy built upon a once booming property development industry, a world wide economic recession, the pound losing ground to the euro, scare mongering in the European press, failing property prices, developers closing, corruption cases opening. All of the above and much more have recently being making headlines in the European press not to mention the Spanish press themselves.

So why would anyone buy in Spain right now?

Well as the saying goes ‘Every cloud has a silver lining’ and now is the time to cherry pick when looking at property in Spain. Of course we are all hearing the terrible stories about the Spanish property market, but in reality are things really that bad? Or is the market just emerging from its cocoon of youth and boom to a more mature and relaxed state?

In 2007 Spanish property sales fell by 12.4% in new homes and 15% in resales. The IMF have now announced that Spanish property prices will need to drop between 15% to 20% in real terms before they return to their fair value.

So with those thoughts in mind the savvy buyer can now snap up a bargain. As long as they choose the right property in the right location, Spain’s Pain can certainly become their own gain.

Since the boom began in the late 1990’s, property prices have increased dramatically, buoyed by a Worldwide economic boom that saw thousands of buyers from the UK and Ireland as well as other countries heading for Spain for a piece of the action. In fact it almost became an epidemic amongst friends and family all in search of a piece of the action, sun, sea, sand and a good investment. Agents rode the best waves meeting droves of interested clients off planes and taking them on weekends full of visits to half completed building sites, sales offices and finally back to head office to put down a deposit today, because if you don’t you will miss the boat.

So where did it all go so wrong? Many people believe that Spain got too greedy, town halls all wanted a slice of the cake and handed out building licences left right and centre, it would mean more residents under the local tax system, a great source of revenue to fund public works. Some became so greedy that large amounts of cash began to change hands and corruption was part of the daily lives of some of the more prominent local officials.

Cases such as the Ballena Blanca (White Whale) and Caso Malaya emerged; with high standing officials arrested as the tentacles of these cases touched many, from lawyers to notaries to current Mayors as well as their predecessors. The response was jail and bail for some, while others have had property seized and funds frozen. Still today, exactly two years since Julian Muñoz was sent to prison, he is now expected to be released on bail while ‘the mastermind’ behind Marbella’s corruption Juan Antonio Roca is also set to have limited freedom while the Malaya Case rumbles on. Properties without building licences, homes built in green zones or community designated areas. Where hospitals and schools should stand, are now luxury hotels and properties, fine for those visiting the seaside resort of Marbella, not so good for those trying to live here, needing access to public transport, local schools and the health care system.

Although Marbella is far wealthier than many of its counterparts, the fat cats got fatter as the margin between the local people and its ‘leaders’ simply got wider. But despite all of this, we must remember that Spain is still a very ‘young’ democratic country, one which only left the shadow of dictatorship in the 1970’s, and as we know, all youngsters have growing pains. 

The situation sent many buyers and investors packing, scaring those who were on the verge of purchasing a property into a ‘rethink’ mode. Many felt that they would not be able to trust the system and especially if it was in a different country where they did not speak the language.

If you speak to those who are located in Spain they will openly admit things are not good, yet, there are buyers out there, those who still do want to purchase a property, they are lifestyle buyers as opposed to investment buyers. These lifestyle buyers are looking to invest in Spain’s climate, sandy beaches, all year round sun, relaxed lifestyle and most of all high standard of living compared to many other Northern European countries.

Spain, a member of the European Union, offers those who reside there more than just the above in climate and good dining, it also offers a high level of education and a superb level of public health care, so much so that many people from other European countries travel to Spain to have procedures done, thus avoiding the horrendous waiting lists at home.

Despite the local level of corruption being unveiled, Spain’s political system is stable more than can be said for some of the other emerging property markets which people are now looking at investing in. The infrastructure is also one of Spain’s strongest points, with more and more highways opening between various regions, and high speed trains now linking the South of Spain to Madrid in less than two and a half hours, Spain is now becoming easier to access.

So much so  that there has been an increase in the amount of people who work Monday to Friday elsewhere in Europe and travel back to Spain for the weekend, where their families are based all year round, enjoying the weather, education system and high standard of living that this amazing Mediterranean country has to offer.

A country where children are important and treated like little kings and queens in restaurants, a country where grandparents are just as much part of the family as anyone else. A country where the inhabitants socialise and debate with one another, a country where the family is still the most important part of everyone’s daily lives.     

The difference between the buyers of today and the buyers from the boom era is that today´s buyers are really doing their research; they are opting for developments which are completed, where they can see the standard of the product and check the licences, original planning permits and with the help of a good lawyer work through all the necessary documents.

Plus with so much property available buyers also now have the once unheard of ability to negotiate on the price of their new home. They are able to ask the developer for simple modifications, or a discount in the price, some are asking for green fees or golf membership to be included, while others have furniture packs thrown into the deal. All these tactics assist the buyer in making a final decision as well as helping them settle in and enjoy their new home.

With so many properties available for sale it is easy for clients to pick and choose. It’s not just a case of getting a good property at a good price, it´s also a case of ensuring that the property they are opting for is the right one for them. Should you wish to look for a home in Spain, do your research and do it well, use the web, ask questions on forums, and sign up for monthly bulletins about property in Spain. Even if you are not living there you will soon begin to develop a clearer picture of the market place.  

There are many excellent developers in Spain, those who are backed by larger groups and have the ability to stay steady during these tougher times. When looking for a developer in Spain, it’s reasonable to ask what their reputation is like, how satisfied are their clients and also if possible visit a development which they have previously completed.

Visiting them in person will also help, asking the lawyer to check that all documents relating to the property are in place is essential.

Quality always sells

In boom times where demand out strips supply, anything sells. When these boom times are over, only the cream of the crop will rise to the top and survive. Products at the luxury end of the with unique features and qualities are still selling . Look for a property that gives you a high standard of living, one located within a Resort with access to a golf course, hotel or spa, a property in an area with many facilities, where it is easy to reach the main roads and  a local village for the basics in life. Look for a property which will stand out in style and design when it comes to selling in the future. Quite often properties on or near golf courses mean protected views and open spaces, which is always a bonus. Properties within a Hotel Resort location mean well maintained roads and communal facilities as well as  a little bit of life in the off peak seasons.        

With all this in mind you should be able to find that perfect property investment in Spain, albeit an investment in your quality of life……

There are a number of reputable companies in Spain selling property. Alanda Homes is one of them.

Alanda Homes is the Spanish development division  of Mc Inerney Holdings Plc. - Ireland's largest home builders supplying 1000 new homes per year with a total of over 55 developments in the UK .Quoted on the Dublin and London stock exchanges Alanda Homes as part of a Plc offer clients looking to buy a Spanish property  not only their wealth of experience in the development and sale of luxury, residential properties on the Costa del Sol but also the  trust , credibility and backing of a well established company, a PLC.

Alanda Homes specialise in smaller projects where location, architecture, innovative design and exceptional quality are the core elements.  They are committed to creating aspirational properties and providing unsurpassed levels of service.

Location is always of key importance and Alanda  developments benefit from being situated on golf courses, next to the sea or offer breathtaking views.

Alanda Homes  specialise in the construction and promotion of high end quality new developments here on the Costa del Sol and are proud to boast some of the best selling luxury apartments in Marbella and the surrounding areas. Some of our luxury Spanish properties can be found at Alanda Flamingos, Alanda Four Seasons and Alanda Tee 5 all located at Los Flamingos Golf Resort, as well as the stunning Alanda Cortesin at the luxury Finca el Cortesin in Casares.

For more details why not contact our local representative, David Groombridge, who is based in the Netherlands.

email:
davidgroombridge@gmail.com

Telephone: 

+31 (0)6 29179905

David has many years of experience in dealing with property on the Costa del Sol and is an Approved Alanda Homes Property Partner. As an Alanda Homes representative in Holland, David regularly holds seminars and one to one meetings, either at your office or in the comfort of your own home.

Should you be interested in learning more about Alanda Homes luxury homes in Marbella, why not contact David today and make an appointment for an individual and tailored service which will answer all your questions today.