Euro Weekly News - Costa del Sol Property Guide Issue 1734

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Remember – style sells

INDOOR OUTDOOR: Get the best of both worlds.

OR many people buying a property on one of Spain’s beautiful Costas or islands is not simply a matter of finding somewhere to live, it is also a question of buying into a lifestyle.

This is something that needs to be taken account initially when finding the perfect location for your Spanish home. Factors such as privacy or proximity to facilities like restaurants, bars, doctors and schools need to be thought about.

Do you want to be near the beach or in the mountains, in a quiet spot or near a vibrant nightlife also needs to be considered.

Fortunately in Spain there is plenty of choice to suit whatever lifestyle you feel most comfortable with. But this idea of lifestyle is not just about where you live - it comes into your home too.

The best architects have long understood the lifestyle concept, and also know how this is a constantly changing theme, which evolves through the years.

At the moment the trend for new built homes is for light and airy interiors.

These are often open plan with spaces that flow naturally from one living area to another

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OPEN PLAN: Light and airy is on trend.

RELAX: Glass makes you feel you are in the garden when still inside.

and eventually out onto expansive terraces and balconies. It is the very definition of the ‘indoor-outdoor’ lifestyle so many people aspire to.

With construction well into a new boom the most desirable properties account for this, with crisp lines defining the outside and open spaces defining in the inside.

For those wishing to sell a property that is perhaps not ‘on trend’ there are some things you can do to help.

Your real estate professional should be able to help you with advice, and indeed many offer a ‘home dressing’ service to help you achieve a timely sale at the best possible price.

It costs nothing to ensure your home is clean and tidy before any viewings. De-clutter too.

Put into storage any furniture that takes up too much space.

For the light and spacious feel, think about repainting in pale colours or white. It doesn’t cost the earth but can make all the difference to the desirability of a property.

Older floors can be boosted with well chosen rugs, but don’t hide a beautiful marble floor.

Whatever you do, make sure you present a stylish, modern home to prospective buyers.

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Homeowners seek a profit O

VER the last 10 years, the international market for second homes has changed drastically, according to a new survey, and owners with properties in Spain are now expecting them to reap rewards.

Real estate advisor Savills and HomeAway, claims that today’s buyers are prioritising rental income over the luxury of purchasing exclusively for their own use.

Today, more than a third of all additional homes are bought as solely rental properties, compared to 14 per cent in 2000.

A company spokesman said that in a low interest rate environment, investors are seeking out income generating assets. He added that buyers are increasingly looking not just to cover costs, but to turn a profit.

The findings suggest British second home buyers shop more widely than all other nationalities, with only 24 per cent of second homes located in the UK. Spain accounts for 16 per cent of properties owned, with the top three location choices by international owners being the Algarve (5 per cent), Costa del Sol (4 per cent) and Costa Blanca

INCOME BOOST: Second homes are now expected to generate additional income.

(4 per cent).

The Spanish, Italian andPortuguese, all countries favoured by holidaymak-

ers, prefer their own countries, with less than 5 per cent of their additional homes bought overseas.

The research surveyed 4,300 property owners from across Europe, North America and the rest of the world.

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Read the small print - if you can!

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F your bank tries to penalise you for running foul of their multitude of legal clauses, check the small print. Not for what it says, but for the actual size of the letters used in the document you signed.

A judge in Sevilla has just annulled a debt of €3,000 because the bank had used print where the letters were just half a millimetre big. It is a little known fact that there is actually a legal minimum size for small print.

The General Law for the Defence of Consumers and Users establishes in article 80 that the requirements of contract clauses must be accessible and legible, and must have a minimum size of 1.5 millimetres.

And this is the argument used by a court of first instance in Sevilla, which has cancelled a debt of €2,989 claimed by a bank from a client for late payments.

In his case, the letter in

TOO SMALL: There is a minimum size for written clauses.

which the conditions for financing his credit card had small print three times smaller than stiplulated by law. The judge decided that the conditions were abusive because of

their lack of clarity - quite literally.

This particular case may relate to a credit card agreement, but the regulations are thought to apply to all financial

legal documents including home insurance and even mortgage agreements.

This is not the first court to invalidate a contract for including an illegible letter, with

the Provincial Court of Castellon annulling a similar clause because the letters could only be read with a magnifying glass.

The Banco de España itself published a circular in 2012 stipulating that the size of the characters in any financial contract must be at least 1.5 millimetres.

“Contractual documents shall be drafted in a manner that is clear and comprehensible to the customer. In particular, the size of the lower case may not be less than 1.5 millimetres high. The contract must faithfully reflect all the stipulations necessary for a correct regulation of the relationship between the client and the entity, avoid the use of technical terms and, if this is not possible, explain their meaning adequately.

“The contract shall not include any concept that is unnecessary or irrelevant for its correct application and interpretation,” explains the financial regulator in the circular.

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THE most expensive property in Spain is said to be in Palma, and on the market for €65 million.

Villa Solitaire in Son Vida, was designed by the Italian Matteo Thun and boasts outstanding views over Palma Bay. With its eye-watering price tag, it is significantly more expensive than two other properties in Mallorca which have previously been highlighted because of their cost, a mansion in Bonaire, Alcudia, and a country estate with a house in Puigpunyent.

Villa Solitaire is apparently ahead of them both by some €30 million.

The luxurious, modern mansion which occupies 2,300 square metres, has seven bedrooms, six bathrooms and rooftop terrace with open-air cinema.

A gymnasium, parking for six cars, a botanical garden and lift are just some of the other features.

The interior is said to have been designed in harmony with the Mediterranean environment and the exterior’s natural spaces.

As expected, everything is of the highest possible quality.

Villa Solitaire is on the market with the John Taylor real-estate agency.

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Highest price tag in the country

MOST EXPENSIVE: The creation of Italian designer Matteo Thun.

Positive signs A STUDY of Spain’s positive economic development is providing the local real estate market with an ‘ongoing tailwind.’

According to research by mortgage bank, Deutsche Hypo, the sectors for office, retail, hotel and logistics real estate are on a growth curve and show signs of maintaining the trend.

It claims Spain’s appeal, especially in the major cities of Madrid and Barcelona, is reflected in high demand for prime commercial real estate. The supply is becoming increasingly scarce, leading to an increase in peak rates.

As a result of competitive tourist numbers, the country is also seeing signs of prosperity in the hotel retail market.

A Deutsche Hypo source said the findings are a positive indication of the future of property take-up in Spain.

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HE Blackstone fund has bought just over half of real estate company Testa Properties for €984 million.

Banco Santander, BBVA and Merlin Properties agreed to sell shares worth 50.01 per cent for the company which owns more than 10,000 homes for rent.

This values Testa at €1,895 billion. In a press release, Testa reports that ‘shareholders representing more than 99 per cent of the share capital’ received a binding offer to purchase shares. Santander, which has 36.9 per cent of Testa, BBVA, which has 25.24 per cent and Merlin Properties, which has 17 per cent, agreed to sell.

The latter company is disposing of its entire holdings for €321.12 million and BBVA does the same with its 25.24 per cent for €478 million.

Meanwhile, Santander is selling only part of its stake, 7.82 per cent, a package valued at €184.9 million, so that Blackstone completes becomes the controlling shareholder of Testa. Acciona, owner of another 20 per cent of the company, is

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Blackstone’s €1bn property deal

RENTALS: Company has more than 10,000 rental properties.

not involved in the deal.

Tropic Real Estate Holding, SL, a company managed by Blackstone funds, is buying a total of 66,148,328 Testa shares at a price of €14.33 per share. The first payment will be made next December and the rest will be made in two payments in March and September 2019. At the end of the transaction, only Blackstone (50.01 per cent), Santander (29.8 per cent) and Acciona (20 per cent) will be shareholders of Testa.

Testa is a real estate investment company (socimi) dedicated mainly to residential rentals. It has a portfolio of more than 10,600 homes for rent, with annual revenues of €85 million and an average occupancy rate of 91.4 per cent.

With this transaction, Blackstone is strengthening its position in the Spanish real estate market, in which it has made several deals since its entry in 2013. One of its most important transactions was the purchase of half of Popular’s real estate assets for €5 billion. It currently controls assets in Spain worth around €13 billion.

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Checks to make when buying a property WHEN buying a property in Spain bear in mind the golden rule that you should follow in any country - let the buyer beware!

There are certain checks that should be made before any money is handed over if you are to avoid an unpleasant surprise later on.

For this reason we would always recommend you engage the services of a property professional or suitably qualified lawyer to look after your interests.

But the following is a list of the main things you should ensure are checked for. It is by no means an exhaustive list your professional advisor will be able to tell you more.

The main four things to check when buying a community property to avoid potential pitfalls and problems are: 1) You or your representative should go to the ‘Registro de la Propiedad’ (Property Register) and ask for a ‘nota simple’ of the property you are interested in. They will provide you with an accurate description of the building including who the current owner is, if it is mortgaged or has an ‘embargo’ (seizure order) and all the community guidelines of

the property. The cost is minimal.

2) Talk to the manager or president of the community of owners to ensure that the seller has no debts against them: because if he does not pay, the debt goes with the property and the new buyer will be liable to pay outstanding community fees.

3) Read the rules of the community, if any, as it may include limitations and restrictions on what you may want to do with the property.

4) Finally, ask the seller to show you the Suma IBI receipts (equivalent to local rates) to make sure they have all been paid. Again, the debt is on the property so if you buy a property with debts outstanding you will have to pay them off.

PROPERTY GUIDE BUYING: Make sure you are careful.

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No Brexit effect on the Costa del Sol THE upsurge in Spain’s housing market, especially on the Costa del Sol, can be explained by a number of varying factors. The record number of tourists, falls in unemployment for the first time in a number of years, growing GDP, and an improved international credit rating all contributed.

Such is the state of the property market that a new ‘golden age’ is predicted to last until at least 2022, and the steady increase in the number of cranes on new sites and incomplete ones being finished are testament to the confidence.

The local market is being led by Marbella, Benahavis and Estepona,

GROWING TREND: Marbella leading the Costa del Sol property market. and in the past 12 months, estate agents in the Malaga Province are reporting a 100 per cent rise in the amount of homes bought by British buyers. The ‘Brexit effect’ hasn’t had any effect here...

Confirming the growing trend, Sales and Marketing Director of Taylor Wimpey España Marc Pritchard said that he’d seen “far more UK buyers over the past 12 months.” But it’s not just property and construc-

tion experts that are noticing a change. The BBVA bank has forecast a 5 per cent increase in the price of property, and thus once again makes Spain a must for international purchasers.

Exchange rates are always a contributing factor in the Spanish housing market, and as soon as there is a favourable £ / € rate, a rise in the number of British purchasers is obvious.

Even though the rate is low compared to previous heights of the past, the fact that it’s been relatively stable for a few months and a growing interest in the Costa del Sol as both a holiday and ‘second home’ destination, have resulted in the greater demand.

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Last bastion slowly falling WOMEN labourers on a building site?

Last year the Fundacion Laboral de la Construccion (Construction Labour Foundation) trained 4,600 women to work in construction, 16 per cent more than in 2016.

Female presence is limited compared with service industries and manufacturing but as construction starts to pick up, women themselves are showing interest in working in the sector.

A seminar organised by the Red Cross and the Foundation underlined the need to increase women’s training for the building trade and enable them to find employment.

Representatives from construction companies and trade unions as well as official bodies including the Institute for Women, were present, analysing the challenges that women face.

These cannot be overcome until the prejudic e s and g e nder ster e o typ e s that k e e p women off building sites are removed, said the Foundation’s director general Enrique Corral.

According to the government’s latest Labour Force Survey (EPA), 6.28 per cent of all employees in Spain work in construction, but women make up only 8.7 per cent of the total.

Despite this negative panorama more young women are showing an interest in Formacion Profesional vocational studies related to the building trade.

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DURING the economic crisis the Spanish government began offering residence permits to foreign buyers investing at least €500,000 in property.

The building boom had collapsed and with property prices falling by up to 40 per cent, the government’s offer was a variation on a retailer’s ‘Buy one, get one free.’

The idea was not limited to Spain as Portugal, Cyprus and Greece all introduced the same scheme and Malta has been making a similar offer since 1988.

The success of the arrangement is demonstrated by the thousands of non-EU nationals who have bought Spanish properties, enticed by the prospect of a hasslefree residence permit.

Although Portugal’s is the most successful Golden Visa scheme with foreign nationals pouring €3.8 billion in the country’s economy, Spain is not far behind

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Doing it the easy way

LUXURY: Golden visas led to billions of spending on high-end property. on €3.026 billion.

By the end of 2017 a total of 41,094 investors and their families obtained Spanish residency after spending more than €500,000 on property, depositing more than €1 million in a bank

account or spending more than €2 million in government bonds. Permits have also been issued to ‘highly qualified’ professionals.

The scheme got off to an unsteady start in 2013, but jumped from

14,804 Golden Visas by the end of 2015 to 27,301 a year later.

Most went to Chinese and Russian investors and 77 per cent of that €3.026 billion was spent on luxury villas and apartments.

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Married with no children WHERE once the driving force for young couples to get on the property ladder was the desire to start a family, now a growing segment of the market is devoted to people with no intention of ever having children.

For these people lifestyle is the driving factor and has led to the emergence of so called ‘dinks’ or Double Income No Kids couples.

And there are a lot of them in Spain, with the National Statistics Institute saying around four million homes in the country are owned by young couples who not only have no children, but have no intention of ever having any.

Across Europe around 53 million homes are owned by childless couples, a figure that has grown by 14 per cent in 10 years.

Their importance to the market is increasing year by year in line with their spending power.

‘Dinks’ are defined as being between 25 and 40 years old, and their lifestyle is based on leisure.

They live in the city and have good incomes and high educational levels.

Their lifestyle is based on travelling, going out for dinner, buying the latest technology and enjoying unique experiences, the typical philosophy of Generation Y, people born between 1980 and 2000 who seek passion, challenges and happiness in everything they do - as long as no children are involved!

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CREDIT: WATG URBAN DESIGN.

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DESIGN: Impression of a 3D printed house.

A VALENCIA start-up called Be More 3D plans to build six houses in Cuenca using a 3D printer.

Once completed, the small company intends to move on to projects in South America and the near East, improving on the technology it is currently using to add a second storey.

First, Be More 3D must finish the 24-square-metre pilot project on a plot of land that adjoins the Valencia Polytechnic University’s School of Fine Arts.

The fledgling company’s four young partners built the concrete printer, which is six metres high and three metres wide, and produced the house inside three months with €25,000 received through the Ac-

Quite some print job ciona start-ups initative.

The house was printed out, layer by layer, in 15 hours. “It could be done in eight, increasing the speed of the machine,” said Vicente Ramirez one of the Be More 3D founders.

During the house-building process, a printer will be used on-site, taking three hours to set up.

Nevertheless, there are limits to what the printer can do. “Afterwards it needs a roof made from prefabricated panels, plus windows and

doors as well as taps and weatherproofing,” Ramirez admitted.

He insisted that 3D technology is competitive compared to traditional building methods or prefabrication.

The basic structure of a 70-squaremetre house could be put up in under a day, and when ready to occupy would cost an over €50,000.

“Building with a 3D printer is up to 35 per cent cheaper,” Ramirez maintained.

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Pay to stay in a prefab

CREDIT: LUIS DE GARRIDO

THE I sleep hotel was built in Zaragoza’s La Muela district for the city’s Expo 2008.

The 54-room property is now located in Africa because it was prefabricated in modules and although it was Spain’s first hotel of this kind, it was not its last.

Outside Spain the Hilton chain is including prefabricated hotels in its expansion plans, banishing the assumption that modular construction is synonymous with low quality.

There are now four Hilton prefabs in the UK, with plans for another three.

“Prefabricated hotels are environmentally-friendly, bioclimatic, low-cost and selfmanageable,” said Luis de Garrido, the Spanish architect who designed the Zaragoza hotel.

It required five months to put together, although 10 years later this would be carried out in three months, he added.

Constructing a prefabricated hotel takes a quarter of the time required for a conventional building and although I sleep cost €1,400

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MODULAR: Hotel has been taken down and reassembled in Africa. per square metre, De Garrido is currently working on a similar hotel costing €900 per square metre. Another, using shipping containers will be even cheaper at €750 per

square metre.

Business models have changed as well as construction methods, De Garrido said.

“A prefabricated hotel goes

where occupation is guaranteed,” he pointed out, although transferring a building does not come cheap.

“Every long distance move is the equivalent of a year’s

profits, so it should remain at least two or three years in the same place, although this is cut to a year if a hotel is transferred to a neighbouring country.”

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Discovering Andalucia with MC Experiences HEN looking to buy property in Spain there are many reasons to look at Andalucia and the Costa del Sol. The iconic Marbella Club Hotel and Resort explains several of the best reasons, saying: “Andalucia is the second largest region in Spain and occupies almost the entire south of the Iberian Peninsula.

“Its impressive historical legacy and multiculturalism help make it a unique and unforgettable holiday destination. The city of Marbella boasts a privileged location, ideally situated so you can discover all the wonders and hidden treasures of this spectacular region.

“Not many travellers are aware that from our beaches you can see the coast of Africa or that you can go skiing so close to the Mediterranean Sea, or that some of the most spectacular monuments in Spain such as the Alhambra in Granada or the Giralda in Sevilla are nearby.

“No matter the time of the year,

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SEVILLA: The Giralda.

ICONIC: The Marbella Club Hotel& Golf Resort. our privileged and warm weather will allow you to always find a plan.”

For those thinking to buy a property on the Costa del Sol, it is a good idea to ‘try before you buy’ and the Marbella Club which is one of the main reasons Marbella became such a favourite destination for people seeking a luxury property - is the

perfect place to do so.

They offer a series of plans designed to help you discover all the best of Andalucia while being based in luxurious surroundings.

You just need to choose from their range of activities, get your camera ready and prepare yourselves for a fantastic experience.

More information: www.marbellaclub.com.

GRANADA: The Alhambra.

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Perez doesn’t park his dreams

DREAM: Stadium renovation just the first step.

WHEN it comes to property, football clubs are becoming major customers for the nation’s construction companies.

As befits a club run by the boss of a civil engineering firm, Real Madrid’s latest project goes far beyond renovating its stadium.

While members approved plans to renovate the team’s home ground, the Santiago Bernabeu stadium plans are afoot for further expansion.

The club will take on a total debt of €575 million for a maximum period of 35 years it was agreed for the stadium itself - but more is needed for other schemes.

The Madrid president Florentino Perez, who is also president of the ACS civil engineering company, revealed that he has not yet found anyone willing to finance his dream of a theme park at the club’s Valdebebas training ground.

The theme park is not a new project and Perez revealed some time ago that he had in mind ‘a kind of Real Madrid-Disneyland.’

Together with remodelling the Bernabeu, the theme park has been a principal objective since Perez was re-elected as the club’s president and he has now been given the go-ahead for both.

“We are continuing to work on this theme,” Perez said, referring to the theme park. “It needs a huge investment and we have yet to find someone willing to provide it. We have 90 hectares of land that we could have sold to finance the stadium but preferred not to,” he said in answer to a shareholder at the recent Ordinary and Extraordinary General Meetings.

The contract for the new stadium, due to be allocated at the beginning of next year, involves an initial cost of €525 million that will be financed over a maximum period of 35 years.

This will cost the club an annual €25 million, which Perez pointed out was “less than 4 per cent” of the club’s present earnings.

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