Costa Blanca, Costa Calida,
Costa del Sol, Spain
1. Introduction & Services
2. Land – Rustic
3. Land – i. With Plan Parcial Status
4. Land - Agricultural
7. Buying Off-Plan
nethomes uk ltd cannot be held responsible for the accuracy of any property descriptions or representations. We rely on the information provided by our partner agents who in turn rely on detail provided by property owners and developers. We always recommend that buyers and investors employ suitably qualified professionals to undertake due diligence investigations as required.
Introduction & Services
Nethomes UK offers a unique service to investors searching for opportunities on the Costa Blanca, Costa Calida and Costa del Sol. We are the focus for a network of real estate agents based in coastal towns from Alicante and Almeria to Algesiras and inland to Yecla, Orihuela, Murcia and Ronda. The result is an unrivalled choice of properties and opportunities not available through normal real estate channels.
With our network of contacts we can tailor packages to investors’ requirements. Investors with unique or specialist investment strategies should contact Nethomes UK. We can then search for particular properties, investigate potential and create a portfolio which meets a given strategy. Nethomes UK has access to professional services based in Spain to provide investors with the best possible advice and guidance. These professionals include:
- tax specialists
- financial specialists
- civil engineers
The market in Southern Spain is very dynamic with good properties often being bought within days. The region still offers good value for money, but high demand has driven up prices. Mintel predicts that the UK Spanish property market – at present worth ?12 billion –
will reach ?21 billion by 2010. The result is that the investor can benefit in three ways, from the normal investment returns, a demand for the property when it is time to liquidate their asset and inflationary increases.
The following pages identify areas and schemes suitable for investors and a number of the properties available today which offer good returns. With some we make forecasts of what these returns might be. Many of the best properties are not advertised on the open market. To see open market examples that are currently available and other schemes/investment opportunities created by Nethomes UK please visit the web site at:
For closed market properties please call: Graham White on 0034 630 379 626
La Manga Club
Land – Rustic
Return on investment is achieved by gaining authorisation to build on the land (Plan Parcial). Profit of 50 per cent per annum over a two year period can be expected. In exceptional circumstances this can rise to 200 per cent per annum with careful selection of the land and reacting quickly to special opportunities when they arise. See Appendix 1 – Stages 1 and 2
for more detail about the costs and returns available from the example below.
Ref 29903: Jumilla – 600 Hectares - Price: 10,500,000 euro
600 Hectares of land, split into 300 Hectares of fertile rustic land and 300 Hectares of Mountain ridge (shown in the background of the first picture). The rustic land is virtually level and the gradient of the slopes on the ridge appears gentle.
Located 12 kms east of Jumilla this land is in the valley surrounded by the Sierras del Buey, Serral and del Carche with peaks rising from 826 m to 1372 m above sea level. A few buildings in need of renovation are on the site. The new motorway Madrid/Albacete –
Sax/Alicante is planned to pass within 3 kms of the land.
Jumilla has recently become an attractive area for developers. A sympathetic Town Council and the Mucia Regional Government are encouraging the economic development of the area. A number of housing schemes and golf course developments have recently been approved and work should start in the near future.
Initial indications are that approval could eventually be gained for a Golf Course, 1800 luxury villas, a commercial centre, sports centre and hotel. The lower slopes of the ridge could ultimately be developed to provide stunning views across the valley. Alternatively the ground appears very fertile with healthy crops of wheat and vines. This could be continued and EU conservation grants gained for the preservation of the mountain ridges.
Alicante is approx. 1 hour.
Selected recent Rustic Land Opportunities
Ref 29904 Mucia 230 Hectares Rustic – for Plan Parcial 67,000,000 euro
Ref 29902 Jumilla 400 Hectares Rustic – for Plan Parcial 9,100,000 euro
Ref 32903 Moratalla 475 Hectares Rustic – for Plan Parcial 3,420,000 euro
Ref 32909 Hellin 270 Hectares Rustic – for Plan Parcial 3,240,000 euro
Ref 29901 Jumilla 110 Hectares Rustic – for Plan Parcial 2,800,000 euro
Ref 30901 Yecla 150 Hectares Rustic – for Plan Parcial 2,400,000 euro
Land – i. With Plan Parcial Status
Land – ii. Urbanised
Following Plan Parcial approval the next stage is usually for the land to be Urbanised. This involves further investment in constructing the infrastructure (roads and water, drainage, electricity connections) prior to the building of houses, commercial property and amenities. Occasionally land with Plan Parcial approval, but not yet Urbanised comes to market. For the purchase price, plus the urbanisation cost ranging from 20 – 80 euro per sqm investors can
achieve returns of between 50 and 200 per cent. See Appendix 1 – Stage 2. Part of the
investment can be funded from cash flow and spread over a period of several years.
It is usual for the investor gaining Plan Parcial approval to increase their return by funding the Urbanisation of the land. Once urbanised, parcels of land are sold on to developers for the construction of houses, commercial property and amenities. At this point investors realise their returns which can start as early as year 3. Developments and the opening of amenities can increase the value of unsold land by making the area more attractive. Such is the demand on the Costa Blanca that all urbanised land has a ready market and is usually sold very quickly. As such, buying urbanised land can make a solid investment for the investor who is looking for steady, long term growth.
Examples recently available include:
Ref 32908: Villamartin – 25,000 sqm - Price: 20,000,000 euro
25,000 sqm (approx. 6 acres) of land with building permission in the highly popular Villamartin golf area. Authorisation granted for four storey constructions, 1st, 2nd and penthouse floors for accommodation, ground floor to consist of commercial units which can provide on-going returns. Price: 800? per sqm.
Ref 33920: Caravaca de la Cruz – 320,000 sqm - Price: 6,500,000 euro
320,000 sqm (approx. 80 acres) with expired planning permission for 170 residential units, commercial units and social centre. Authorisation granted for 117,800 sqm of construction. Simple and short process to renew licence.
ndBenedorm – 2 line beach 38,000 sqm Licence for 12 tower blocks 210,000,000 euro stAlicante – 1 line beach 1,000 sqm Waiting for building plan 10,750,000 euro stOliva – 1 line beach 3,324 sqm Waiting for building plan 2,600,000 euro
La Marina – 700 m to beach 9,000 sqm Waiting for building plan 1,900,000 euro
Land - Agricultural
Returns on productive agricultural land in Spain are generally unspectacular. But profits on the produce along with EU subsidies can produce a solid income for the patient, long-term investor. Agricultural land can offer many other opportunities. The income from produce can be useful while these are developed. Rural tourism (see next page) in Spain is a fast growing market with many country areas suffering from a lack of accommodation. Country sports such as horse riding, shooting and walking are particularly popular. Ultimately, it may be possible to apply for Plan Parcial approval on all or some of the agricultural land. The view of the authorising council can be obtained prior to purchase. Examples currently available include:
Ref: 32901 – Sax – 100 Hectares Farm - Price: 4,400,000 euro
Country house, with two other houses and estate buildings on 100 Hectares farm producing Cherries, Olives, Wine Grapes and Almonds. The estate is well maintained and is being sold as a going concern with the option of employing existing manager and staff. All buildings appear structurally sound and in good condition.
Main house on three floors with rooms around a central stairwell, room in tower with 360? views of the estate and surrounding countryside. House needs some modernisation and redecoration. Many rooms and ceilings on ground floor have unique wall paintings. Lawned garden and large swimming pool. Ideal for use as a prestigious country residence or an exclusive small hotel and/or restaurant.
4 bedroom Manager’s house.
1 bedroom ‘Architects’ house.
Communal accommodation for estate workers.
Large two storey storage building.
Building for machinery and equipment. All equipment included.
Mains water and large emergency supply, three phase electricity supply.
80 Hectares of land is used for agriculture producing an income of 150,000? per year. Trees and vines appear healthy and well maintained. Modern computerised irrigation system. 20 Hectares on a ridge are of natural pine and scrub.
For many years tourism has been one of the mainstays of the Spanish economy. Although the coastal areas have developed considerably, the countryside has remained untouched. Many rural Town Halls are seeking to benefit economically from tourism and are pursuing policies to encourage the development of amenities and facilities for tourists. Planning decisions sympathetic to applications for such developments and, in some cases grants, are being made to assist projects.
To the investor such attitudes can bring benefits when looking for good returns. Quicker decisions and a more relaxed approach to development applications, support and some payment for infrastructure projects, help with promotion and marketing. Examples of property where the investor can buy into this environment include:
Ref: 32902 – Ayora – 508 Hectares Hotel & Farm - Price: 4,500,000 euro
Winner of Valencia region’s Best Rural Hotel of 2003, this Finca is also a working farm. 508
Hectares of land , of which 150 Hectares are used to cultivate cereals, legumes, almonds, lavender, sheep, goats and horses. The remainder of the land consists of mountain ridges, pine forests and scrub which qualify for EU conservation grants.
Main house has 6 bedrooms en-suite, 2 dining rooms, sitting room and kitchen. Decoration is fresh and in rustic style.
Attached to the main house are two additional houses with 4 bedrooms each used as guest accommodation. Further guest accommodation is provided in a terrace of five modernised houses – 2 with 4 bedrooms, 2 with 2 bedrooms and 1 with 1 bedroom. Additional buildings around the main house are suitable for renovation to provide further accommodation. Large swimming pool, sun terrace and tennis court.
Approx. 15,000 sqm of farm buildings, in good condition, house the animals, modern milking parlour and machinery.
Modern three phase electricity supply. Water supplied from own underground sources. All animals and equipment included. Option to employ existing managers and staff. Licence to build a Golf Course already granted.
Funds from government available to asphalt 1.2km road from entrance to buildings. This finca is sold as a going concern. All the existing sources of income can be developed further and the existing buildings enhanced. There are also available various options for the development of new sources of income dependent on the level of future investment into the property.
Commercial property in the main resort areas has rapidly increased in value as more Northern Europeans live, as well as holiday, on the Costa Blanca and Costa Calida. Opportunities exist for investors from both capital growth and rental income in excess of 7 per cent per annum.
Good commercial properties are available off-plan, particularly those in developing resort areas, as well as resales of established businesses with premises that are already fitted out. Examples include:
Ref: 32923 – San Pedro del Pinatar – Restaurant - Price: 750,000 euro
Restaurant in popular and busy seaside town recently refurbished with all new equipment and furnishings. 200 covers inside area with stage, modern kitchen, services. First floor function room for 200 guests. Basement for conversion to disco, etc.
Ref: 32924 - Algorfa – Hotel – 17 yr Lease - Price: 2,200,000 euro (+ 3%)
Hotel opposite golf course entrance fully renovated in 2003/04. 32 double rooms en-suite with air con and under-floor heating, restaurant, covered pool area. Full access for disabled. Existing contract with company sending guests with net value of 220,000 euro annually.
The Nethomes UK web site contains many other examples of commercial properties.
Nethomes UK has an arrangement with some developers to delay the payment of on projects with a long completion schedule. The following are a couple of examples:
Ref: 1153 - Blocks of 6 Apartments – 989,266 euro
Two bedroom apartments of exceptional quality and fine details. Five minutes drive to sandy beaches and 3 golf courses.
Reservation Deposit: 18,000 euro
20 per cent Deposit: in 9 months
30 per cent Deposit: in 18 months
Completion: in two years
Selling-on at anytime at no extra cost.
Ref: 1151 – Single Quattro Houses – 214,500 – 222,300 euro
Three bedroom, two bathroom Quattro houses of exceptional quality and fine details. Five minutes drive to sandy beaches and 3 golf courses
Reservation Deposit: 3,000 euro
20 per cent Deposit: 9 months
30 per cent Deposit: 18 months
Completion: two years
Selling-on at anytime at no extra cost.
191,000 Britons emigrated in 2003, most notably to Spain
Office of National Statistics 2004
Britons bought 84,000 second homes in Spain between 2001 and 2003.
Britons bought 40 per cent of all new homes built on the Spanish Costas during 2003.
Telegraph Group Ltd July 2004
The UK Spanish property market – at present worth ?12 billion – will reach ?21 billion within
The development of the South East of Spain is some 10 to 15 years behind the Costa del Sol region. Growth rates in the Costa Blanca, Costa Calida and Costa Almeria are well in excess of the more developed areas of the Iberian peninsular. A combination of lower prices, unfulfilled demands, vast tracts of undeveloped land and sympathetic planning authorities means there are many early stage opportunities for investors. The consequences for the shrewd investor are lower initial outlay, greater assurance of success and higher returns than available elsewhere.