Spanish Property Investment Advice 

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

Posted on 19 May 2006

Spain - Most Popular Retirement Destination for Brits

Spain is the most popular retirement destination for Brits and it surprises me that more property investors do not focus on offplan developments that will meet the needs of these folk. I receive stats most days that confirm that retirement migration as it is known is a fast growing trend. King Sturge, the property consultants, have just completed a study of what they are calling the new phenomenon and it is showing that older citizens are outnumbering families and younger folk, especially in the quieter, upcoming Spanish resorts. Maybe it is time to focus more on these offplan developments than on Costa del Sol holiday apartments and villas on or close to golf courses.

Mixed press reports are coming out of Marbella. The red tops are reporting that administrators who replaced the former corrupt regime are vowing to demolish all of the illegally built developments. Common sense suggests that wholesale demolitions are unlikely to take place. We also have a precedent this week with the hotel in Andalucia that was being built too close to the sea . Officials could not overturn planning licences and the government is therefore being forced to buy the hotel to demolish it. So far as Marbella is concerned, there is a widespread sense of déjà vu and no doubt rumour and speculation will come and go up to the 2007 municipal elections and probably beyond that too.

According to the financial newspaper Cinco Dias, the property boom experienced along the Costa del Sol is well and truly over. Last year, more than 180,000 holiday homes were sold there. It is a different story this year where overbuilding and high prices have pushed buyers out elsewhere along the Spanish coast. From my stats and feedback, it is clear that Marbella and Sotogrande have seen the biggest impact. Almería and Murcia seem to be the main beneficiaries. I have been in property for more than 20 years and it all goes round and round. Whenever one area steams ahead, it eventually flatlines and we see a ripple effect. After a levelling off period of a year or so, the area then moves ahead again. In the UK, we have seen it in London. In Spain, the Costa del Sol shows all the classic signs of a similar cycle. Use the current scenario to drive a hard bargain. Wait two years and prices will move on up again.

All for now

Iain Maitland

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