Property in Spain
With the frequent news reports and documentaries regarding property in Spain it is easy to forget that it is easy to target the worst examples of over development. Fortunately not all areas and property in Spain has been in subjected to over development by taking some time to research areas which are not as well known it is still possible to find properties in Spain which would be a sensible long term purchase.
Spanish Property Crisis
The bubble has finally burst on the unsustainable over-development that has changed the landscape of many Spanish cities, towns and coastal areas.
The main surprise to us is that it has taken so long!
Drive around the outskirts of almost any city or town in Spain and the amount of new building work is clearly excessive and unsustainable. The coastal towns have been worst hit and especially those of the Costa del Sol. Over the past few years Spaniards and foreigners alike have been seduced by the easy money available from buying into almost any new development "off plan". Low interest rates together with virtually no capital gains tax and the seemingly continuous rising market in the past had made it a " no brainer" for both Spaniards and foreigners prepared to make a very modest initial down payment usually with no intention whatsoever of being the eventual owner of the property concerned. Now reality has set in and suddenly everyone currently still involved in this "off plan bonanza" is in trouble. They all now realise that easy money comes with a risk and it is not only those people currently committed to buying these off plan "bargains", but also the developers and banks financing them who are likely to find themselves in trouble for some time to come.
The press like to dramatise such happenings and we can quite understand anyone currently considering buying a property in Spain being very concerned. However the properties we are offering are in the mature residential areas of a town where where development has been rather better controlled. Since we moved to Salobrena in 1988 there have been no new high rise developments and the density rules for new building on the hillside where we live and the areas where we offer properties for sale, have remained unchanged. Over the past few years buyers in our area have been motivated mainly by their desire to acquire a nicely located property for their own use rather than just to make a quick profit. The established residential areas that we offer properties in have all been zoned for residential use for more than 30 years with no possibility of the regional government declaring them illegal from a planning perspective as has happened in some other parts of Spain. Right now, we have no unsold brand new houses but what we do have is an excellent selection of entirely legal re-sale villas in locations which in most cases combine great views with tranquillity and privacy.
The problems elsewhere are focusing the attention of discerning buyers looking for a property for their own enjoyment on the few remaining locations where there has not been excessive or "illegal" development. Salobrena is one of them and even people who would previously have been tempted by the prospect of easy money buying new properties off plan are now realising that for investment reasons they will be better off buying into those established residential areas where there will continue to be a limited supply of interesting properties.
Interestingly, most people contemplating buying in Southern Spain still do not know that there is a place with the best winter climate in mainland Europe which is largely undeveloped and where one can also enjoy snow skiing in winter just one hour away! With the motorways finally reaching Salobrena during the next couple of years bringing improved access to three international airports awareness of this unique area is set to change and with it so will demand for the limited number of nicely located properties here.
Take a look at the photo below of the view from one of our most interesting re-sale instructions and you will see one of the reasons why almost everyone who discovers this hillside is impressed.
The views from this property are over a preserved "green zone" that runs through the centre of Monte de los Almendros where much wildlife can be seen. Beyond there is Salobreña pueblo with it's castle atop (illuminated at night) and the beach and Mediterranean sea beyond. Not a bad view to wake up to each morning!
See our other information pages about procedures and costs for Spanish Property Sales