A Place in the Sun Live

Property in Spain

Still the most popular place to buy abroad for British people, Spain remains the Big Daddy of the overseas property world and the market that all others are measured against. Reports in the press earlier this year reported the property market there was on the verge of a crash; in truth the market is only as fragile as it is here in the UK. Furthermore, figures from a recent ONS report (August 2007) show that Spain is the UK’s second favourite emigration destination, second only to Australia, so we’re still flocking there in our droves.

Bargain property in Spain may not be as widespread as a few years ago, especially in the well-trodden areas of the Costa del Sol, Costa Blanca, Costa Brava and the Balearic Islands, as prices there have risen in line with the UK. And, as in the UK, Spain’s market varies from region to region, so buyers looking for a bargain should seek out areas that have not become clinically over-developed.

One option could be the Costa Tropical, a lesser-known stretch of coast immediately to the east of Malaga, which includes the towns of Nerja and Almunecar. And inland from here, the foothills around Granada are presenting buying possibilities too, as is the area around Antequera, a little further west.

Similarly, looking west from Gibraltar, you’ll find much lower-valued property than on the Costa del Sol. This stretch of coast is the Costa de la Luz and includes the coast running from Tarifa to Cadiz as well as the stretch that runs from the Donana National Park to the Portuguese border. Along the latter, you’ll find the new Nuevo Portil resort, which is close to the beach and marina at El Rompido and two international golf courses, thus giving properties good rental potential. Further west still is the old town of Ayamonte, on the border with Portugal, where other developments are taking shape.

The Murcia region, which includes the Mar Menor lagoon, the Costa Calida and towns of Lorca, Caravaca de la Cruz, Cartagena and Murcia city, is arguably one of Spain’s most active regions in terms of development at the moment. A raft of self-contained golf resorts are springing up, aimed at the discerning international property buyer; developer Polaris World is pioneering this wave of development.

Transport links in Murcia are being improved: the new motorway structure will be complemented by a new international airport at Corvera (scheduled for completion in 2010), which will complement the airport at San Javier already served by low-cost airlines.

Almeria, south of Murcia and famous for its desert region is seeing development, notably around Roquetas de Mar and Aguadulce.

Encouraging for foreign buyers was the Spanish government’s move at the start of this year to reduce the Capital Gains Tax it charges foreign sellers; CGT levied on EU citizens in Spain is now 18 per cent, a 17 per cent drop from the 35 per cent that non-resident Brits used to pay.
On a final note, Spain has new markets such as Bulgaria and Egypt nipping at its heals but when all is said and done, it carries less risk than emerging markets and has a hardy economy – the fifth largest in Europe. The things that first attracted holiday-home hunters to the beaches of the Costa del Sol, Costa Brava and Costa Blanca all those years ago – plentiful sunshine, a laid-back lifestyle, great food and easy access from Northern Europe – are still very much there.

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