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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 building work going on 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 involved in this is in trouble. They all should 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 we are offering properties in the established residential areas of a town 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 had no "off plan" developments and even new individual spec. built houses have been few and far between. Right now, we have no unsold brand new houses but what we do have is an excellent selection of resale villas in locations which in most cases combine great views with tranquility 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 development. Salobrena is one of them and some people who would previously have been tempted by the prospect of easy money buying new properties off plan are now realising that even for pure investment reasons they will be better off buying into those established residential areas where there is and will continue to be a limited supply of interesting properties. 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 coming of the motorways and Granada airport improving access to this area this will no doubt 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.
(Click here to see our current properties)
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