The fate of Spanish coastal property – bulldozers or just balderdash?

Legally, as defined by 1988 Coastal Law, the Spanish Government controls a coastal strip of 106 metres of which none can be dedicated to private housing. Technically any property built close to the shore after 1988, of which there are many thousands, could be earmarked for demolition.

Spain’s Environment Ministry predicts that 15 metres of beach shrinkage will take place by 2050 and they need protecting. But, with a General Election three months away, is this talk of demolition just that, talk?

Adam Gale, Managing Director of Costa del Sol estate agent Duchy Estates comments, “Whilst I applaud the environmental sentiment and feel that in certain isolated cases the bulldozers should be brought in, I cannot see this widespread demolition taking place for a number of reasons. For starters a budget of five billion euros to clear the illegalities of 776 kilometres of coastline is totally unworkable, that figure wouldn’t even touch the sides; for we’re not just talking the cost of the bulldozer here, but also the phenomenal legal bill that would hit the Spanish Government.”

“Coastal property owners will not see their life-savings or permanent place of residence razed to the ground without a fight. Whether individually or in groups, each will fight tooth and nail to prove that they bought in good faith and as the vast majority will have official local authority issued occupation and building licenses in their possession and in their favour, these cases could easily end up at the European Court of Human Rights. The legal costs would be astronomical.

Take Alcazaba Beach for example, a high end project of approximately 300 apartments set on 45,000m² of land perched right on the seafront near Estepona. Every single property owner will be able to prove that they purchased in compliance with the law and have access to the relevant official build licenses and occupation licenses. At an average market value of 700,000 euros per property that’s a potential 210 million euros-worth of compensation before the government’s even paid the bulldozer.”

“Whilst I would agree that the legislation which came into force in 1988 is correct, swathes of Spanish coastline should not become building sites and our beaches are as precious an asset to the economy as our construction industry, I cannot help wondering if the aim is truly environmental or if there is a political undertone. There is a general election penciled in for spring 2008 and the current PSOE government needs to try and regain popularity. Environmentalism is a ‘trend’ capturing global attention and any government keen to attract voters must give high profile to green issues. Maybe this talk of demolition is purely that, talk, and no action is planned. If mass demolition does take place, inward investment into property in Spain would fall dramatically. The Spanish government would be seen as a power that changes the law as and when it suits, very unappealing to investors.”

Adam finishes, “What we need to do as an estate agent is to ensure, alongside our lawyers, that every development we sell on the Costa del Sol conforms to planning regulations. If we have any doubt or question mark, we will not sell it, full stop. What the Spanish government needs to consider is how the local authorities fund themselves. If they hadn’t been clamoring for every euro from the developers to augment their budgets, maybe the coastline would be a lot less developed.”

On the market on the Costa del Sol:
Townhouse, Istán - This spacious three bedroom two bathroom townhouse was completed in 2006 and enjoys a unique lakeside position in a private community of only 65 houses on the shores of Embalse de la Concepcion in Istán, ten minutes inland from Marbella. Built in traditional Andalusian style, the house boasts southwest views over the communal pool, gardens and wooded valley below. All mod cons counting ADSL, satellite TV, hot and cold air-conditioning, under floor heating in the bathrooms and a fully equipped kitchen are included.
Built – 150m²
Price – 499,000 euros

Apartment, La Resina - This brand new apartment with some of the best views of the coastline is one of two similar units for sale by the same owner. These can be sold separately or together to be joined into a spacious ground floor apartment with private garden and terraces. Both units have two bedrooms and two bathrooms, large lounge-dining areas and south-facing terraces overlooking the pool. The development is on the doorstep of the 9-hole La Resina Golf and within minutes of Estepona Golf, Los Flamingos Golf and El Paraíso Golf.
Built – 96m²
Price – 250,000 euros

For further information, visit duchyestates.co.uk.