Spanish Proprety

MURCIA SAVING ON THE COSTA

With most of Spain a mature market, sun-starved northern Europeans and savvy Spaniards are finding that the Costa Cálida is one of the hottest places to buy at the moment, says Shane McGinley

FOUNDED in 825 AD, the area is popular with sunseekers and holidayhome buyers. Just over 8.5 million Britons live in the area and, according to property company Polaris World, it is the third most popular destination in Spain for Brits hoping to buy property. In 2006 alone, there was a 46% rise in the British residential population. There are many reasons for this influx, including the fact that the area is still relatively underdeveloped. There are also strict planning regulations on 80% of its coast, and the World Health Organisation claims it has one of the healthiest climates in the world. Situated on the Costa Cálida, this 250km stretch of Mediterranean coastline is one of Spain’s fastest-growing. Its microclimate also means it has hot temperatures and relatively low rainfall
– hence the name the “Warm Coast”.

The location
Located near the Segura river in south-eastern Spain, Murcia is the country’s 12th-largest city and is a sister city to Miami, Florida.

Potential
A study by the Barclays IESE group found that while areas such as Alicante, Malaga and the Balearic Islands are still popular, last year the number of Brits buying there dropped by 30%. Many, it seems, are choosing Murcia instead, particularly because it is less developed. The area has about 52 homes per km2, while areas such as the Valencian region have a density of more than double that.

There are plans to construct almost 90,000 homes in Murcia and, over the next decade, the region’s population is estimated to increase by 35%. “Among the 70,000 British people who annually explore the possibility of acquiring a residence in Spain, we predict that in 2007 Murcia will be the most popular destination,” says James Dearsley, European sales manager at overseas property specialist Atlas International.

Who’s who
While Murcia is a popular getaway for the Spanish royal family, some sports stars are also rumoured to own homes there, including Scottish former footballer Kenny Dalglish. Formula One legend Nigel Mansell and English former cricketer Derek Underwood have played at the La Manga Club’s Festival of Cricket, which is also a popular drinking spot of Sean Connery. Mar Menor was where a number of spaghetti Westerns were filmed and some of the sets have been turned in to theme parks. However, exotic singer and actress Charo is Murcia’s most infamous daughte

Property market
“Murcia is the current up-and-coming Spanish property hotspot,” says MRI Overseas Property sales director for Spain Steve Canueto. “The unspoilt coastlines are now proving a really desirable area to buy in. The America’s Cup has almost certainly raised the profile and property prices are still relatively inexpensive compared with the Costa del Sol.”

In 1999, the market in Murcia really began to take off and one of the biggest attractions was price. Today Spanish property website Kyero.com reports that prices in Murcia are 13% below the Spanish average. While the international banks have warned that the Spanish market is overheating, the Murcia region continues to perform well. Spanish government data shows prices have risen by 134% in five years, and property inflation was at 26% in 2004. Even though prices cooled to 11.6% in 2005, prices are still healthy and stabilised.

Buyers’ guide
A popular local newspaper is La Verdad, while Costa Cálida Leader (www.costablancaleader.com ) is a free weekly English newspaper. If you’re looking for an agent, the Association of Multiple Listing Agents (www.amlaspain.com) or the Asociación Empresarial de Gestión Inmobiliaria (www.aegi.org) are both good sources. In the UK, the Association of International Property Professionals (www..aipp.org.uk) is a reliable place to start.

“When buying a property in Spain you can expect to pay about 10% of the property price on fees and VAT, based on a €150,000 property. This includes a lawyer’s fees of about €1,500 and notary’s fee of about €2,200, including the registration fee,” advises Canueto.

You will also need to hire an Englishspeaking abogado (lawyer), who is registered with the local Law Society. You will also need a notary to draft the deeds. The whole process should take about two to three months. Spanish mortgages have been liberalised recently, making them much easier to obtain.

Hot spot
Spanish government figures report that the population of Los Alcazares is expected to increase by more than 80% in the next seven years and, with the new golf course, airport and many Spaniards moving to the area, it is the safest bet.

Rental
Owner occupation in Spain is still one of the highest in Europe, and a Spaniard’s number one priority is buying their own property. Therefore, rental return is aimed mainly at tourists from Madrid or overseas. Long-term rental often comes from Europeans of colder climates, dubbed “snowbirds”. With improved transport and infrastructure links, rental yields and potential should increase. Murcia also has two universities, so rental to students is an option.

Types of property
The Costa Cálida offers a range of properties, from villas to penthouses and studio flats; perfect for people wanting a second home in the sun. There’s a lot less building in Murcia and the market for resale is almost stronger than for new properties. Many Spaniards, such as those from Madrid, are buying up ruins and renovating them for a profit or to use as a second home. Kyero.com says the most popular properties sought in Murcia are three-bedroom villas priced between €50,000 and €150,000.

Asking price
The average price of property in Spain is €244,000, while the average price in Murcia is €212,000. One-bed properties are, on average, €132,000, two-bed properties €180,000, threebed properties €240,000 and four-bed properties €272,000. Five-bed properties are, on average, €316,500, 23% below the national average.

Murcia facts

Getting there: Ryanair flies to Murcia from Dublin, Shannon, Glasgow, Liverpool, East Midlands, Stansted, Luton, Frankfurt and Bremen airports.
Area: 881,860km2
Population: 424,362
Currency: euro
Language: Spanish
Weather: mild, ranging from 30°C in summer to 18°C in winter.
Transport: the new Covera International Airport development has been approved and the AVE highspeed train link will reduce the journey from Madrid to just two hours, making it easy to get around.

Around town

Going out:
Murcia is a modern, beautiful city, with Moorish, medieval and baroque architecture. The Zig Zag building is full of discos and bars, while the city centre is packed with student hangouts. At midnight, the young clubbers invade the city.

Eating out:
there are many international restaurants and dozens of bars where you can eat tapas. Murcia is well known for its gastronomic delights and Spanish celebrities often come here to feast. After clubbing, it’s tradition to eat churros dipped in hot chocolate at Malecón park.

Shopping:
Juan Carlos I and Juan de Borbón are the main shopping avenues, Calle Trapería and Platería have interesting antique shops and there are large shopping malls located at Atalayas.

Do:
visit Fuensanta monastery to see panoramic views; gamble on a trip to El Casino; watch life-sized sculptures carried around the city at Holy Week; go support Real Murcia and swim in Mar Menor, Europe’s largest coastal saltwater lagoon.

Don’t:
use mobile phones on buses, as they’ve been banned!

Useful contacts

Murcia Convention Bureau:
www.murciacongresos.com
Tourist Office:
tel: +34 902 101 070,
www.spain.info
Invest in Murcia:
www.murcia-inversiones.com
Murcia City Hall:
www.murcia.es
ICEX (Spanish Institute for Foreign Trade):
www.icex.es
Property Lawyers Abroad Network:
www.plani.net
The Economist (on Spain):
www..economist.com/countries/spain