Properties Costa Blanca - Blog

The recent BIG TIME real estate scandal in Marbella (read more: http://news.bbc.co.uk/2/hi/europe/4864566.stm ), where bribes seemed to be the norm and construction activity didn’t care much about legislation on what soil should have which destination (http://www.buypropertyspain.info/spanish_property_guide/land_sale.aspx). The result is that houses have been build on agricultural land and even on land destined to be natural preservation parks. Considering the risk that houses will need to be torn down, absolute caution is recommended.

Buying a costa blanca villa still very popular with foreigners. At the same time, with all the stories about what can go wrong, it is recommendable to do some reading first. The information provided in www.PropertiesCostaBlanca.org is a must read =for free= for all those that consider buying a villa at the Costa Blanca”.

Investing a small amount of money, you could also consider to buy the book: “You and the Law in Spain” by David Searl, one of the most popular books on the subject (now in its 12th edition).

The increased aging of the Northern European population has led to a constant demand for “a place in the sun”. Where an apartment in London of 100 square meters would costs you 425.000 euros, 3 bedroom villas in Spain can still be obtained for 200.000 euros. Not surprisingly many brits either emigrate or take a mortgage on their house in the Uk, to finance their second home in Spain.

The real estate business in Spain (traditionally one of the engines of the Spanish economy) is slowing down a little (15% growth in 2004, against 10% in 2005) although growth for this industry is still bigger than the growth of the Spanish gross domestic production (3,7%).

During the last decade, the prices Spanish real estate prices have sky-rocketed. Between 1987 and 2004, prices have increased with 400%. In 2005 prices went up 10% and now in 2006 7,9%. Of course, this increase still beats inflation (now standing at 4.2%)

So, whilst there are enough places under the sun left in Spain, one DOES need to make sure to get professional advice prior to signing any real estate purchase.