Shane's Property advice

With prices for villas and apartments so high, why not take the plunge and build your own dream Spanish home?

This Month: Going It Alone In The Spanish Sun

Despite a general downturn in the Spanish holiday property market, Spain remains an attractive option for many as it still has the facilities, sea and sun that the majority of buyers are looking for. However, a more exciting option than just buying in one of the generic developments across the country would be to consider the less-expensive choice of buying a plot of land (a parcela) and building your own home. Not only is it your own personal project but the returns as an investment can prove plentiful.

There are a number of agents and companies offering plots, many with planning permissions and building permits included.

Cristina Sanchez at property firm 1Casa (www.1casa.com) says: “We have seen a rise in interest from buyers of land only. People are still keen to find their very own piece of Spain, but not everyone can afford the increasing property prices. Buying a plot of land is a cost-effective option for many.”

When it comes to buying land, prices can vary greatly depending on the province. For instance, www.properazzi.com has a 728m² plot in Murcia on sale at €6,000, while in Marbella plots start at €450,000.

So if you think building your own home could be for you, here’s what to look out for.

Location: decide which province you want to live in. Do you want to be near a village, town, the beach or mountains? Also check what access is like, such as whether there are good roads and how far it will be from the airport. Is there any public transport? Is the land zoned for residential use? What is drainage like?

Do your research: check what the average prices are in the area and talk to locals before buying, as you don’t want to get ripped off because you’re a foreigner.

Get a good Spanish lawyer: they will be able to help you check the land use status, sort out taxes and arrange a build contract. Also find out if the land has been given a building permit – a permiso or licencia de obra – from the local authority.

Choose the right plot: approach the urbanismo department of the local town hall with your lawyer and view the Urban Plan. This will tell you if the plot has any building restrictions in place, and whether it’s in a green zone or has any public access routes. Spanish property law can vary slightly between provinces. Also remember to check future plans for the area to see if these will affect you.

Get a survey: this is standard practice in the UK and Ireland, and should also be carried out on your land in Spain. Also get a land surveyor to measure the exact number of square metres of the plot and compare this to the land register to ensure that the official measurements and boundaries match up.

Owner registry: it is not uncommon in Spain for some plots to be inherited by more than one party. Check to see if the vendor is the only person with the rights to sell.

Expenses: make sure you have budgeted for costs such as architects’ fees (6%–10% of the build cost), aparejador (project manager who oversees the build) fees (1%-2%), building permit (4%–5%), the declaration of new building (0.5%), safety study (0.8%), geological report (1% if required) and a first occupation permit (0.5%). Depending on location, there may also be the cost of extending utilities such as water, electricity, gas and telephone lines

It sounds like hard work, but it can be well worth the future returns as many people are increasingly looking for individual and unique properties rather than the conformity of resorts.