Spanish Property Investment Advice 

Brought to you each week by our property expert, Iain Maitland.

Posted on 07 April 2006

Illegal Homes in Marbella to be Investigated

The big news this week comes from foreign currency specialists, HiFX. Basing their findings on their currency transactions for buying property abroad, they say that Spain and France are still the top two overseas property markets for Brit investors. They account for 43 per cent of all of its transactions. Whatever research is done, Spain is always there at the top of any chart!

There are certainly lots of high profile developments being promoted this week. Lar Sol and Morgan Stanley are investing €500 million in what they are calling 'Costa del Sol's largest development'. They are investing in Spain's largest golf complex in the La Cala resort on the Costa del Sol. The development in Mijas will comprise 963,762 square metres of land with 1,445 homes. Properties will be small density to allow for larger green spaces. As well as bars, restaurants, tennis courts and a gymnasium, buyers will also have access to four golf courses and the Golf Academy, making this the largest golf complex in Spain. The seaside village of Mijas is well sited being 30 minutes from Malaga airport. It also has rail links to Madrid and Barcelona. Clearly, a hotspot!

The other big story this week is flagged up in the Times. Following the arrest of the Mayor of Marbella in the bribes for building licenses scandal, the paper estimates that some 4,500 of the 30,000 homes that were built illegally are to be looked at by the courts. Whether these properties will be demolished or legalised is arguable. Mark Wilkins, a Spanish Law Specialist at the Rights Group SL , suggests that they will be legalised.

"The innocent purchasers should have a strong case against any threats of demolition. The Junta de Andalucia, the Seville based regional government, have said that they'll review the position on a case by case basis. However, without knowing the precise circumstances of all Marbella properties in question, one must consider that as a local government agency issued a license, apparently valid at time it was issued, there must be some governmental responsibility if it proves to be false. Redress may therefore lie against the local authority. One may suggest that the local authority takes a proactive step to draw a line and regularise the planning position for the market's future security."

Warmest Wishes

Iain Maitland

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