The Best PlacesTo Buy Property on the Spanish Islands

Sunday Times, 15 January 2006

In part two of our guide to househunting in Spain, Mark Stucklin looks at property on the Balearic and Canary islands, both long favourites with British buyers

Island life can be really wonderful. Communities are strong, crime is low - and you are never far from the sea. So if you fancy fleeing the rat race and basking on a small island in the sun, then you won't find better spots than Spain's Balearic and Canary islands.

The Balearics

Of all the Mediterranean islands, the Balearics have always been the most popular with the British. It is easy to see why: as well as sporting all the usual attractions of beautiful coastlines and sun-drenched climates, they are easier to reach than Greek alternatives and are more open to foreigners than places such as Corsica and Sardinia.

Mallorca Property

Although you can argue about which is the most attractive of the islands, you can't argue about Mallorca's preeminence. This has always been the most affluent and sophisticated, with the best infrastructure. Its airport is one of Spain's busiest, so access is unbeatable, and its increasingly cool capital, Palma, gives Barcelona a run for its money.

Mallorca's historical affluence also means it has some great housing stock, so if it is luxurious, rustic charm you are after, it has some of Spain's finest, both with and without sea views. New-build quality is high, too, as the Germans used to dominate the market and instilled a culture of building to high standards before they disappeared under the weight of Germany's economic woes.

Easy-to-reach, high-quality properties in exquisite, sunny surroundings with awesome views don't come cheap: Mallorca is one of Spain's most expensive destinations and a firm favourite with supermodels, movie stars and Formula One drivers. Its marinas also draw the boating set, including Spain's king, who spends every summer here.

Mallorca's appeal to upmarket buyers means it has had a good 12 months, while cheaper destinations on the mainland struggled. According to Joanne Hilton of Vida Balear - Knight Frank's partners in Mallorca - says: "British buyers with good budgets who can afford Mallorca are definitely around in reasonable numbers." Good-quality coastal flats cost about  300,000 (£200,000); rural properties with land but needing work, from £440,000.

Many detached properties are more than £680,000; some are £7m-plus.

Minorca Property

The northernmost island is also the furthest from the mainland. The weather, especially on the north coast, is slightly fresher and windier than the others, but many regard this as an advantage in the summer months.

Mahon, the capital, has an extraordinarily deep, protected natural harbour of great strategic value that the British, French and Spanish fought over in the 18th century. The British governed Minorca for much of that period, and their influence can still be seen in the architecture, language, economy and customs.

Partly because of this legacy, Minorca developed a robust, diversified economy, and could protect its coastline and its culture from mass tourism. Quiet and family-oriented, it is unravaged by overdevelopment.

Properties and prices are on a similar scale to those on Mallorca. Buyers tend to be wealthy Spaniards and Brits. "The market for properties of  2m- 3m (£1.4m-£2m) is very buoyant, but below  1m (about £680,000) it's slow," says Colin Guanaria, of Bonnin Sanso estate agency. You can, however, also find small, modern two-bed flats from £140,000 and new summer-rental villas from £280,000.

Ibiza Property

Ibiza is about 75 miles east of Javea on the Costa Blanca. Its southerly location means excellent weather and, though less than half the size of Mallorca, it has a lovely interior.

Ibiza is certainly famous, but not always for the right reasons. It has always been one of the most tolerant places in Spain, even under Franco, which is why 1960s hippies flocked here. By the 1980s, it was a wacky but glamorous destination for the jet set; then, in the late 1990s, came British ravers, drinking hard, popping pills and behaving badly in public.

So long as you avoid San Antonio, on the west coast, you won't be ashamed to be British. The island's population has a good mix, and many Brits living here are couples in their forties or younger. Many inland properties can be reached only by bumpy dirt tracks.

The island as a whole hasn't lost its sophisticated and youthful, upmarket appeal. Stunningly beautiful, it has a funky, world-famous nightlife: Jade Jagger and Kate Moss are regular visitors.

"Modest detached properties start at £270,000. Sought-after rural properties with land go for well over £680,000 and are snapped up," says Deborah McNeill, of Cecilio estate agency. Basic two-bed flats walking distance to the beach start at £150,000.

Formentera Property

This tiny isle is almost completely protected from north winds by Ibiza. It's 25 miles long, but just a few miles wide in most places, so it's hard to find a spot where you can't see the sea. It is also difficult to reach: you must fly to Ibiza first, and then take a ferry across, which adds to both time and cost.

The island is hugely popular with Italians, but there aren't many Brits; those who own property tend to have done so for decades, even generations, keeping the secret of Formentera to themselves. Shopping and nightlife are limited, so tranquillity and great beaches are its selling points. More than anything, it attracts people looking for pure relaxation in beautiful surroundings. Out of season, the population drops to a few thousand, and most places are shut, so many people would find it a challenge to try and live here all year round.

It's also Spain's most protected coastal area, with very little new development. Limited stock in such an unspoilt setting means that everything sells quickly, and prices can only go up.

The few available apartments - in places such as Es Pujols and La Sabina - start at £150,000, but will nearly always be a walk away from the beach. Simple country homes with land but without mains utilities start at about £400,000. High-end properties cost between £1m and £2m, but rarely come up for sale.

The Canaries Property

The biggest selling point of this volcanic archipelago in the Atlantic, off west Africa's Saharan coast, is warm weather in the dead of winter. Europe's only genuine winter-sun destination, it is just four hours' flying time from the UK. Blue skies, sunshine and beaches keep the tourists coming all year long.

Though there are seven islands in the group, only the four biggest - Tenerife, Gran Canaria, Fuerteventura and Lanzarote - really count for overseas buyers. The others - La Gomera, El Hierro and La Palma - are spectacular, and may become popular, but are too difficult to get to at present.

Gran Canaria and Tenerife Property

Gran Canaria and Tenerife are the biggest and most developed islands of the chain, and thus the easiest to reach by air.

Gran Canaria is almost perfectly round, with a motorway encircling much of it and a mountain in the middle. Thirty-odd miles away, Tenerife isn't quite as round, but again all the action is around the edge, with nothing much but spectacular mountains in the centre. With peaks reaching more than 11,000ft on Tenerife and 6,000ft on Gran Canaria, you can be sunbathing on a tropical beach while it snows in the mountains nearby.

There has been a British community on Gran Canaria for 150 years, but the island has been taken over by the Germans in the past 30 years. The best beach is the somewhat inappropriately named Playa del Ingles, (English beach), which the Germans dominate, though the British are making a comeback.

Tenerife, on the other hand, is much more British. Its lack of great beaches keeps the Germans away, but its good resorts are popular with the British and Irish. However, one always has to tread carefully, as it is still the worldwide headquarters of the timeshare mafia.

Lanzarote and Fuerteventura Property

Further east, just over 60 miles from the African coast, are Lanzarote and Fuerteventura. Partly laid waste by volcanic eruptions in the 1730s, Lanzarote is one of the most tortured yet beautiful places on Earth. However, it is well protected from Spain's latest blight - overdevelopment - largely due to the vision and influence of an architect called César Manrique, Lanzarote has controlled both the quantity and quality of new development better than anywhere else in Spain. In the long run, controlling the supply of stock should help to keep property prices stable or rising.

Property lawyer Mario Izquierdo says Lanzarote is fast becoming a popular choice for younger, more active retirees, in their 40s and early 50s.

"Environmental protection, a quiet, laid-back atmosphere and beautiful natural parks make it a great place to spend an active retirement, while escaping the cold winters of northern Europe," he says.

It is also one of the most popular destinations for Irish tourists and, latterly, homebuyers, so the Irish expat community is much more important here than elsewhere in Spain. Comfortable resorts draw both Irish and British buyers.

Fuerteventura has lovely beaches, which of course attracts Germans, but unlike Lanzarote the authorities seem keen to promote as much development as possible. Resorts and golf developments are being built and there is plenty of new or off-plan property to choose from on the island.

Stephen Eade, of the Horizon Property Group, says the Canaries have had an excellent past 12 months, better than the previous two years, and are bucking the mainland trend towards stagnancy.

"Demand from British buyers continues to be very strong," he says. "It might have something to do with the hurricanes battering competitive destinations, such as the Caribbean." Apartments in the Canaries can be bought from about £55,000; detached properties start at £120,000. In Lanzarote, a small, detached property with its own swimming pool can be had from about £170,000.

Comparative Table for property buyers

© Mark Stucklin (Spanish Property Insight)

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