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Irresistible deals of 25pc or more off on a selection of new homes in the Ribera del Marlin luxury development in Sotogrande’s Marina. The very best Spain has to offer at a price never seen before.

Sotogrande Ribera del Marlin

Sotogrande Ribera del Marlin

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Developers in Malaga province (home to the Costa del Sol) sold 10,000 new homes in the course of 2011, almost half the stock of 25,000 new homes on the market at the start of the year, according to the Association of Builders and Developers of Malaga (ACP).

Lower house prices have helped boost sales, and a huge drop in housing starts over the last 3 years, most acute in popular tourist resorts like Marbella, means that the housing glut is shrinking fast.

Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now.

Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. Unemployment or fear of unemployment is keeping many potential buyers out of the market.

45pc of Malaga’s 200,000 unemployed are young adults who be first time buyers looking to start a family if they could afford to.

Much of the blame for this sorry state of affairs lies with politicians says José Prado, President of the ACP. “In recent years they’ve done nothing but earn a fortune from construction and made no effort to attract investors.”

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Valle Romano is a gated, residential-community and golf resort at the heart of the Costa del Sol, just 5 minutes from the popular town of Estepona and 30 minutes from Marbella. It is one of the most attractive resorts on the coast, not to mention one of the best looked-after residential communities in the region. As a result, the case for buying a home at Valle Romano is straight-forward: At current prices, it is simply great value, and the resort is expected to go from strength to strength. Read more

Some of Spain’s leading estate agents (to the extent they still exist) forecast that home sales will start picking up in 2011.

Chains of estate agents like Alfa Inmobiliaria and Don Piso plan to open more offices this year, reports the Spanish press.

Estate agents in Spain have taken a beating during the property market crash. More than 40 chains of agents disappeared, including Fincas Corral, Era, and Coldwell Banker, with a loss of more than 15,000 jobs.

Costa del Sol house prices to blast off

José Prado, President of Malaga’s Association of Constructors and Developers, claims that house prices on the Costa del Sol are about to blast off as the stock of homes for sale starts to decline.

“There are very few new homes coming onto the market, which will bring down the total number for sale and drive up prices 20pc to 30pc in 2 years,” said Prado, quoted in the Spanish press.

According to Prado, there are just 22,000 homes on the market in Malaga province, which includes the Costa del Sol.

But 75pc of property executives say prices will continue falling

On the other hand, the latest survey from real estate consultants CB Richard Ellis reveals that 75pc of property sector executives expect prices to continue falling everywhere outside of city-centres, especially on the coast.

As usual, plenty of conflicting information coming from the Spanish property market.

An article today at the mailonline tells the story of a retired British couple in Torrox, on the Costa del Sol in Andalucia, who have been sentenced to 8 months in prison for flaunting Spanish planning laws and ordered to demolish their illegally-built house. Judging by the comments at the bottom of the article, they aren’t getting much sympathy back in Britain.

Constructed nine years ago but plot had permission for home just one-tenth of the size

A British couple have been sentenced to eight months in prison and ordered to demolish their Spanish villa for breaching planning regulations.

David and Janet Hartshorn illegally built a large house on protected land near the Costa del Sol town of Torrox, a judge ruled.

The couple appeared before a judge at Criminal Court number eight in Malaga last October 14 for a one-day hearing, with the court’s sentencing published yesterday.

The judge is expected to suspend the prison sentence, as jail terms of two years and under are usually suspended for first time offenders in Spain.

Speaking at the property under threat of demolition, Mrs Hartshorn said she had not yet been informed of the judge’s ruling.

‘This is terrible news,’ she said. ‘I am very upset by this. We haven’t been told anything about the result of the court case. We have a meeting with our solicitor tomorrow..

‘The house was built nine years ago and people are still building houses illegally round here.

Read the full article at the mailonline

Why doesn't anyone want to buy this?

Stock markets are surging, gold is glittering, government bonds are holding up, and even property in parts of the UK and the US has shown modest gains in the last 6 months. But property on the Costa del Sol is still deep in the doldrums, if a recent article in the local paper Sur is anything to go by.

The article reveals that demand for holiday homes on the Costa del Sol has practically disappeared, as confirmed by developers and other property professionals interviewed for the article.

Demand has been zapped by the economic crisis and a substantial fall in the value of the Pound, which has lead to an exodus by the British.

As if a collapse in demand wasn’t bad enough, the supply of property on the market has increased by a factor of 5. Many owners are being forced to sell because they can’t afford to maintain a holiday home in times like these.

If you want to see the distress for yourself, all you have to do is take a stroll along the coast and count the number of ‘for sale’ signs (‘se vende’ in Spanish). Formerly middle class holiday homes have been become “luxury items, out of reach for most households,” explains Alfredo Martínez, provincial boss of the ‘Association of Bank Users’ consumer group.

40% of the 46,000 homes built on the Costa del Sol in 2006 were holiday homes, explains José Prado, president of the Association of Constructors and Promoters (ACP). “Today, in contrast, the percentage is so residual it’s almost disappeared,” he told Sur. “Not only are we touching bottom, we’re heading for the basement.”

Sales of holiday homes are down 80% according to Cayetano Rengel, head of Malaga’s estate agents’ association. “The problem is the supply of property has grown so much that competition is brutal, on top of which the banks have turned off credit,” explains Rengel.

British exodus

One of the big problems is the exodus of British vendors and buyers, who have been driven out by the fall in the Pound. “They have lost 40% of their purchasing power, and now living in Spain does not make sense for many of them,” explains Prado.

“Many of the vendors are British people who used to be able to afford a couple of months on the Costa del Sol, but their pensions now don’t cover that kind of a holiday,” a local real estate agent is quoted in the article as saying.

Rising costs

Whilst the falling pound causes problems for Britons, rising taxes and community charges are causing problems for everyone. “Town halls tax these properties more and more, by raising local rates or rubbish charges,” explains a local estate agent. “The situation is so dramatic that the supply of properties on sale has risen by a factor of 5. I haven’t seen anything like it in 40 years.”

At least vendors on the Costa del Sol can take some comfort from the fact that they are not in Dubai. The Costa del Sol’s problems pale in comparison.

And bear in mind that some market segments will be doing better than others. For more information see my article on Spanish property market segments in the crisis.

Simon and Donna Jordan

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Simon Jordan, a Guildford-based British Airways cabin crew member, his wife Donna, and son Oliver, 12, had long dreamed of owning a holiday home in Spain. But having had their ‘fingers burnt’ once before purchasing off-plan from a Spanish developer they were understandably nervous about starting the process again. However, it seems that every cloud has a silver lining, as the couple have now been able to take advantage of unbeatable prices available at Taylor Woodrow de Españas’ ‘El Bosque de la Mairena’ development in Elviria, Costa del Sol.

Simon explains: “We had always wanted to purchase a holiday home in Spain so in 2004 we decided to take the plunge and buy a one bedroom apartment in Benalmadena from a Spanish developer. However, as time went by it became apparent that the development wasn’t progressing as it should and we became concerned about the amount of money we had invested in a property that simply wasn’t being built. So in 2007, with further delays to the development’s completion date announced, we were forced to cut our losses and invoke a money back guarantee.”

He continues: “Whilst, we were bitterly disappointed with the way things had panned out we were still keen to pursue our dream of purchasing a home in Spain and were determined not to let this set back stand in our way. Indeed, we had always been fans of new build homes when purchasing properties in the UK and were keen to carry on down this route when house hunting in Spain. However, this second time round we wanted to deal with a UK house builder for added security and Taylor Woodrow de España fitted the bill.

The couple had looked at homes built by Taylor Woodrow de España when they first started their search in 2004, but had found that the homes were a little out of their price range. However, roll on four years and a downturn in the economic climate and the homes were no longer out of reach. In fact, they could now afford a quality two bedroom apartment rather than the one bedroom apartment they had previously purchased off-plan.

Simon comments: “It is amazing what cards fate deals you, if we hadn’t suffered at the hands of the Spanish developers we would now have been the owners of a one bedroom apartment. However, as fate would have it we are now the proud owners of a two bedroom, two bathroom apartment at El Bosque de la Mairena that is situated in a fantastic location, within close proximity to Marbella. We are truly delighted.”

El Bosque de la Mairena in Elviria is a residential complex built in the style of a Mediterranean village in a peaceful setting yet only seven kilometres from Elviria beach to the east of Marbella. The two and three bedroom apartments available at the development vary in size between 83.5m2 and 113.20 m2 and boast generous terraces with views of cork tree woods and the sea. Additionally, the homes come complete with a communal pool, gardens and external parking spaces.

El Bosque de la Mairena, built by Taylor Woodrow de España

Simon comments: “As soon as we visited the development we fell in love with it. The development is a small community located in a perfect position allowing us to benefit from the best of both worlds – beautiful views of the forest and sea, away from the hustle and bustle, but at the same time within close proximity to Marbella. On top of which the apartments are built to a high specification and benefit from a nice spacious layout –perfect for the needs of our family. And last but not least, the development is set within a gated community providing extra security for people who wish to use the apartments as a second home.”

It took the Jordan’s 12 weeks to complete on the purchase of their apartment. Simon says: “The sales process was straightforward and we found that nothing was too much trouble for the Taylor Woodrow de España team. After our previous bad experience it was really refreshing to do business with a company with no hidden agenda, the company’s ethos is fantastic.”

Simon and Donna have now owned their holiday home for over eight months and have been making great use of it. Simon concludes: “Already in 2009, we have visited our home at least 6 times whether it be for a long weekend, in the half term or with another family member. We are getting to know our neighbours and there seems to be a lovely mix of people. We are truly grateful that things have turned out this well after a dire start, it seems that everything happens for a reason.”

Prices at El Bosque de la Mairena start at 173,000€.

All of Taylor Woodrow de España’s quality homes are endorsed by Safe Buying Experience. This partnership with the international accreditation scheme provides a double reassurance to buyers of a Taylor Woodrow de España home as they are guaranteed a quality home complete with independent endorsement as to its ‘integrity, legality and safety’.

With a reputation for trust, Taylor Woodrow de España, the only major UK house builder in Spain, provides a specialised service and dedicated team within the UK and Spain who can help and advise homebuyers through the entire process of choosing, buying and settling into a new Spanish home.

For more information on the great deals available from Taylor Woodrow de España call 08000 121 020 or visit www.taylorwoodrow.es

Sotogrande Marina

Sotogrande, the world’s finest residential development and sporting estate, has teamed up with international estate agents Savills to offer an exclusive package for viewing property in Sotogrande this summer.

The invitation includes a stay at either the Almenara or Sotogrande Hotel – both world-class hotels – at a special rate with a round of golf and a spoil-yourself session at the spa thrown in.

This is an unbeatable opportunity to enjoy a summer sun break in one of the world’s most attractive destinations, whilst finding out more about what Sotogrande has to offer home buyers and investors.

Sotogrande is the world’s best endowed residential estate set in spectacular surroundings near Gibraltar, with views over the Mediterranean towards North Africa. At Sotogrande you will find:

• Harbour & delightful marina with hotel, shops, and restaurants
• 2 beach clubs
• Various world-class hotels
• Numerous restaurants and shops
• International school
• Highly cosmopolitan ambience
• 6 superb golf courses, including Valderrama (’97 Ryder Cup), Real Club de Golf, and La Reserva
• Golf academy
• 15 polo grounds
• Tennis clubs
• Paddle Tennis
• Riding and sailing
• Spa
• Wide choice of activities for children

Sotogrande is located:
- 20 minutes from Gibraltar airport
- 1 hour from Malaga and Jerez airports
- 30 minutes from Marbella and Puerto Banus
- Easy access to fascinating cities like Seville, Granada, and Cadiz

Beach club at Sotogrande

Take up this generous invitation to view property at Sotogrande and:

• Fly to Malaga or Gibraltar
• Enjoy the private Beach Club
• Play golf, tennis or watch polo
• View the Marina and golf properties
• Visit Jerez, Seville or Ronda

For further information please do not hesitate to contact David Vaughan on +44 (0) 20 7016 3740 or email dvaughan@savills.com

www.sotogrande.com

Marbella was the first to face up to this. An amnesty for close to 20,000 illegal properties in Marbella has been in the works for several years, but yesterday signs emerged that the authorities in Malaga province are finally moving towards forgiveness for the majority of illegally built homes in the Axarquia and Mijas too. Salvador Pendón, President of Malaga’s Provincial Council, told the Spanish press yesterday that it is not unreasonable to expect some sort of planning amnesty there, along the lines of Marbella.

Pendón explained that the majority of homes are “not built on land that is protected in some way,” meaning that an amnesty is “possible.” In “some concrete cases”, however, where properties are built on protected land, no forgiveness will be possible. In those cases demolition is the only option.

At the same time Antonio Sánchez, Mayor of Mijas, has announced that the town hall will no longer fine owners of illegal properties who fail to carry out demolition orders. Owners will be given breathing space of around a year and a half, before a new town plan is passed that legalises many of properties. There are an estimated 3,000 properties in Mijas with planning problems.

Estepona harbour, Costa del Sol

Undaunted by Spain’s property crash, Asturion Foundation, a Lichtenstein-based company linked to the Saudi royal family, has signed an agreement with David Valadez, the new Socialist mayor of Estepona (the former mayor is in jail), to build a luxury development of close to 1,500 properties on 590,000m2 of land in the municipality, to the west of Marbella, on the Costa del Sol.

In return, Estepona’s town hall will get close to 50,000m2 of land for building social housing, and 8 million Euros for infrastructure projects and buying land.

Valadez expects the building work to start in 2010 and provide employment for 1,000 people over the following years.

The development, which will be built on land bought by Asturion Fondation in 1978, still needs to clear some planning hurdles before construction can begin.

Negotiations between Asturion Foundation and the town hall were held up when former Socialist mayor Antonio Barrientos was arrested on property-related corruption charges in June last year, on the same day that Asturion Fondation paid the town council 1 million Euros.