Increased Confidence in the Costa del Sol

Property investors are slowly regaining their confidence in the Spanish property market, particularly around the Costa del Sol area, with the news that many properties that were illegally built will not be demolished after all.

Around 18,000 properties were built without the property building licenses in and around the Costa del Sol over the past few years. Instead, the Spanish properties were built with fake licenses after corrupt council officials accepted bribes from property developers to bypass parts of the planning application process.

A final decision on the ‘illegal’ properties is expected later this year, however it is anticipated that the majority of these properties – which many property investors bought in good faith and without knowledge of the dodgy deals behind the scenes – will not be razed after all. Instead, the developers found to have obtained bogus licenses will be pursued.

With discounts of up to 40% and overseas property buyers slightly mollified about the property situation, investors are slowly flowing back to the Costa del Sol. The most popular areas for buying real estate is the so-called ‘Golden Mile’ between Puerto Banus and Marbella. Many properties in the area have or are in the process of being repossessed and these can represent an even bigger bargain with many selling for thousands under the typical asking price.

As an example, a two-bed flat in Puerto Banus will currently set you back in the region of 450,000 Euro. A similar flat in 2006 would have cost around 800,000 Euro. A repossessed 7,500 sq foot mansion has recently been put on the market for 1.2 million Euro by the bank, however similar houses in the area have typically been sold for around the 2 million Euro mark.

Cash is currently King so if you are able to buy a property outright, you should be able to negotiate hard with the property seller.

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  1. From Champneys Apartments in the Costa del Sol | Spanish Property | Properties in Spain | Overseas Property News | Buying Foreign Property | Jun 15, 2009

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