Even in this dreadful recession, it is hard to imagine that the desire for apartments in Spain from North Europeans will subside. It is one type of Spanish property that will always be popular. Certainly, few things are more more desirable than owning a low maintenance, low cost (and safe) holiday home. Indeed, to have somewhere convenient and familar for breaks away in the sun is, surely, one of life’s ultimate luxuries?
The problem, as everyone knows, is that the Spanish property market is in crisis, which has been largely due to massive overbuilding. This is true of every sector – not least that of new apartments in Spain.
So, what makes one apartment in Spain better than another? How should you assess what you are buying - and how can you purchase something that will retain its value or (over time) become a sound investment?
Of course, ensuring absolute legality (see my book!) is one of the most fundamental aspects to buying a Spanish property and this is as true of apartments in Spain as it is of the more problem prone sector encompassing villas in Spain. However, apartments in Spain have their own particular danger and this revolves around the 1988 Coastal Law (Ley de Costas).
The Coastal Law was designed to protect the integrity of the Spanish coastline – and in particular the beach area and the first 100 metres from the nearest point reached by the sea. As I have written elsewhere:
The Coastal Law ‘divides’ the coastline into two areas of protection. The first is the ‘public domain’ which is, crudely, the area between the sea and the furthest point which the sea has touched in the worst known storm. This includes all areas of sand, shale and pebbles.
The second area of protection is divided into:
- The Protection Zone. This is the first hundred metres inland from the public domain (although this area can be extended a further hundred metres by the Spanish state, autonomous region or local town hall). No building of any nature whatsover is allowed within this area.
- The Zone of Influence. This area extends for 400 metres inland from the Protection Zone. Building is allowed - however restrictions are applied on a reducing scale of severity as you move inland from the sea.
Obviously, some properties in Spain were built within 100 metres of the sea prior to the Ley de Costas being passed. These can be subject to a ‘concession’ meaning that they can avoid demolition. However, any ‘concession’ must be treated with the very greatest possible care and should be subject to expert, independent advice from a Spanish land law specialist.
Needless to say, the Coastal Law has been erratically enforced over the years. This has resulted in the construction of a number of Spanish properties (including villas in Spain) that oftenly blatantly transgress the law. To put it mildly, this type of puchase could be disastrous - should the authorities decide (as they occasionally say they will) to enforce the law and demolish the offending buildings...
My point is that you must be very wary of buying an apartment in Spain that is too close to the sea and that could be deemed to come under the Coastal Law restrictions.
Of course, typically, the best apartments in Spain to buy are those that are ‘front line’. Everyone wants an unobstructed ‘sea view’ and quick, trouble-free access straight to the beach. As a consequence, it is these properties that are most in demand - and it is these that have retained their value and are excellent investments for the future. This is particularly the case if a ‘front line’ apartment in Spain is within easy walking distance of a lively area with shops, bars and other amenities.
Certainly, the importance of proximity to amenities should never be underestimated, if you want your apartment in Spain to be a sound investment (and to be able to really maximise its use). The Spanish coastline is long and there are countless coastal apartment blocks stretching for miles away from any coastal town or village. However, many are often far from any real amenities and (normally) cannot be compared in value or desirability to those reasonably close to a pretty, lively and permanently lived-in area.
A ‘permanently lived-in’ area is especially important, not least because many coastal apartment blocks are virtually ‘closed down’ out of season. Worse still, this is also true of the one or two surrounding bars or shops that are often open only during the Easter or summer period.
Without doubt, the glory of Spain is the all-year round, excellent climate and few things are more depressing than taking a winter sun holiday in an area that is almost completely ‘dead’ out of season. A canny buyer will always recognise this point and ensure that any apartment in Spain he buys - is not dangerously compromised for most of the year. This affects not only personal enjoyment of the property but also, obviously, its re-saleability and potential investment value. This, of course, is just as true for villas in Spain...1
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