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Spanish property prices
Despite claims that Spanish property prices had slumped throughout the whole country, the picture is in fact more varied, writes Jo-ann Hodgson
Statistics from Spanish property portal Kyero.com recently showed that the national average property price remained the same in May, one month on from the Spanish stock market slump, at €250,000 (£169,463).
Kyero also revealed that the average property price in the Alicante province has continued to rise and is now up to €254,000, a 10 per cent rise since January and that the average property price in the Girona province has also experienced an increase, reaching €434,000, a 9.5 per cent rise from May 07. In contrast, average property prices on the Canary Isle of Fuerteventura have fallen to €235,000, an 11 per cent decline since January.
Recent increases in Spanish property prices may be related to current trends to come down hard on mortgage brokers offering false documentation and an increase of companies offering more transparency to the Spanish property buying process.
Last week the offices of a mortgage broker based on Spain's Costa Blanca were raided by authorities and the proprietor arrested on grounds of providing false documentation to banks. The bank involved heavily in this investigation, Caja Mediterraneo (CAM Bank), has now instructed its branches involved to accept no further non-resident mortgage applications for the time being.
Heather Chambers, Director of International Mortgage Solutions Ltd, Spain's largest non-resident mortgage provider said: "We are very happy that Spain is finally getting to grips with this practice. We have come across instances where clients, in the non-regulated environment that exists here, have been talked into presenting false mortgage applications to obtain the finance that they require. In these circumstances the broker has made no attempt to protect or care for their client, all they are concerned with is the commission they will receive from the bank. Last week's raid should be applauded."
Many Spanish developers are now offering more security to their sales to reassure buyers that buying property in Spain is not a risky business.
Polaris World is currently witnessing sales increase by 40 per cent this year, in part due to the security they offer buyers. The company has bank guarantees for all of its transactions and a full money-back agreement in place. There is transparency in all documentation with full planning consents and Spanish Law compliances on all resorts and properties.
Jose Luis Hernandez, CEO of Polaris World, said: "We read with both horror and disbelief the stories in both the British and the Spanish media of people who have lost their savings and their dreams by the unscrupulous dealings of some Spanish developers.
"We would urge anyone planning to buy a property in Spain to ensure they deal only with companies which are reputable; which has full backing of investment partners with international reputations and which offers guarantees. It can sometimes be tempting to try to cut corners or not seek independent legal advice or be pushed into a decision to buy. It makes sense to tread carefully and buy from developers who are trusted and have impeccable reputations."
Polaris World currently owns Mar Menor Golf Resort, La Torre Golf Resort and El Valle Golf Resort in Murcia and have seven further resorts under construction. One- to three-bedroom apartments at the Mar Menor resort range from 213,800euros to 272,869euros.
Alternatively, a two-bedroom and two-bathroom air-conditioned apartment is also available through ImoInvest as part of the Costa Galera country club. The apartment also has access to two on-site pools, a private underground parking area and a family pool bar and is priced at 265,000 euros.
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