The Truth About Buying in Spain

The Hondon valley, a mountainous, quiet group of villages including farms 40 miles inland from Alicante has been a peaceful break for plenty Brits which came looking for a place in bright Spain aside from the searing heat and concreted Costas. Except since the recession scores hit by the poor Euro exchange rate have been enforced to sell their villas at rock bottom prices or hand the keys back to the bank.

“Marbella is at its peak right now”

In spite of what we pick up about Spain’s dire financial situation, excessive unemployment figures and landscape cluttered with unsold homes you would be hard pressed to find a unhappy estate agent. In fact in few areas they are certainly cheerful.

Michael Lovett, director of Fine & Country Marbella says: “Marbella is at its tip currently not just because of the unfortunate weather in the UK but because the area is undergoing a real revitalization. Changes to the cultural scene and the transport process have currently been made to re-establish Marbella as the area to live and as a backwash, the future of the property market is favourable.”

Number one purchasers are Russians and Scandinavians.

Astounding perhaps but Spain is still the number one destination for Brits; even though according to British builder Taylor Wimpey Espana, their number one buyers are now Russians and Scandinavians. “On the Costa del Sol alone, 45 per cent of the total sales this year have been from both Scandinavian and Russian buyers,” says Marc Pritchard, Taylor Wimpey’s sales and marketing administrator. The developer is auctioning two-bedroom apartments as well as three-bed penthouses on its La Floresta de la Mairena scheme near Marbella, priced at €178,000. And at Avalon, also in Marbella close to the Los Arqueros golf course, it is selling two and three-bed apartments boasting sea and golf views from €250,000.

British estate agent Mercers are also very helpful concerning the property market in Murcia. “Prices appear to be holding steady,” said Chris Mercer, who has 29 year knowledge of selling freehold Spanish properties and sells primarily to retirees aged between 47 and 65. “The common age of our buyer is approximately 60 and spends between €110,000-€200,000,” he says. “They’re not just coming to buy a bargain; they want a good property they can enjoy. I boldly calculate our sales to develop by 25 per cent in 2013 over 2012.”

Problems for those seeking mortgages

He adds that houses priced at €195,000 are now selling for almost €185,000 nevertheless he does expect problems for those seeking mortgages.

“The main effect is that bank funding will continue to be a complication in Spain. If a client wants higher than 50 per cent loan to value and the property is not bank owned, it really is a no-go situation. This will limit the market to wealthier cash-rich buyers and steer people in the route of, often less preferable, repossessed homes.”

Nothing stopped Peter and Jennifer Siggers, both 62 (pictured left) from selling up and procuring a three-bed, three bath villa with personal pool in Camposol, Mazarron for just €155,000 which they found on Mercers’ website. “It was infeasible to match euro-for-euro elsewhere on the Spanish Costas or islands,” says Peter, a former supervisor of a timber merchant in Nuneaton, Warwickshire. “We’re not excluded, have views to the hills and the countryside, yet can reach the social bustle of the on-site restaurants, bars and shops on foot or via a quick car journey.”

Interestingly Spain’s infrastructure doesn't appear to have suffered since the downturn. Daniel Chavarria Waschke, who heads up Balearics Sotheby’s International Realty which has offices in Mallorca and Ibiza, reports that the airport in Mallorca has been extended and improved and that there are plenty of private hospitals and medical experts operating to excellent standards.

Sotheby's are positioning themselves to concentrate on the high net-worth buyer
“Health care equals or exceeds standards within northern Europe,” he says. “And two years ago new roads were delivered across Mallorca. We understand there are far more potholes in England.” Such is the confidence of Sotheby's that they are positioning themselves to target the high net-worth buyer. “We have adjusted our real estate portfolio to exclusively market only houses with a sale price going beyond €2 million and apartments more than €500,000 to fit our audience,” Daniel boasts.
Sadly none of this is of any comfort to those saddled with homes they can’t sell or walk away from like Diane and Bruce Bastin, who paid cash for their home (pictured above and below) 10 years ago.

We located Hondon quite by chance,” explains Diana. “We just stumbled across the valley after driving over the mountains and fell deeply in love with it. It was peaceful, and unspoilt.”

They bought their three-bed, two bath villa with pool from a builder along with a adjoining plot of land to guarantee their privacy.

It's just 40 minutes from the beach, in secluded spot, near the village and built from natural stone and sits on a large stretch of land. Nonetheless its €295,000 price tag has drawn few buyers. Now Bruce has decided to reduce it to merely €199,000.


Diane, 76, a retired company secretary and Bruce, 75, a former record producer, have decided to sell on account of Bruce’s poor health. He had a triple by-pass a year ago. Fortunately they've retained a home back in the UK on the Sussex coast.

“Our house would be suitable for a couple who wanted to run a business,” says Diana who's also happy to include several furniture pieces in the sale. “There is plenty of space for a workshop or office. I had thought of running a kennels.”

The roomy, single storey house stands in one-acre bordering an Almond farm and vineyard with views of the valley and mountains. It has a developed garden of fig and olive trees and oleander bushes surrounding a substantial pool.

This mountainous region has proved particular favoured by downsizers and retirees since the climate is cooler rendering it more endurable in summer.