As we put together this month’s newsletter the local press is telling us that, according to a census of local town halls, the number of foreign residents now living on the Costa del Sol has doubled since 2002. As you would expect, we’re unsurprised. To use an acronym coined by NatWest, there is now a whole new generation of British AHA’s or those who feel ‘At Home Abroad’. Looking for a better quality of life and a lower cost of living many of those AHA’s choose Spain with our very own province of Málaga ranking fifth for foreign residents just behind Madrid, Barcelona, Alicante and Valencia. If you want to join us expats in the Spanish sun, now is the time, our buyer’s market won’t hang around forever... Adam Gale, Managing Director, Duchy Estates. Click the headlines to read more... High-Speed AVE Brings Madrid Closer to Málaga - Trains set to compete with planes for this popular route Passenger Numbers Increase for Málaga Airport - The current airport extension cannot be completed too soon Case Study – Tracy Stratton-Smith and Richard Choo - Taking advantage of a buyer’s market Golfing Goodies - Four properties to have you reaching for your six iron State-of-the-Art Marina Comes to Mijas - A Puerto Banús for the 21st century The Duchy Estates Team - One More Name to Remember High-Speed AVE Brings Madrid Closer to Málaga Madrileños own a large proportion of holiday homes on the Costa del Sol, a proportion that could be as high as 40% in pretty coastal towns such as Mijas just to the west of Málaga. Sadly they have traditionally only enjoyed one dose of sunshine per year in the month of August when Madrid turns into a ghost town, businesses shut up shop and they migrate south like swallows. The reason for this is the grueling 1,100km 12-hour round trip by car. At other times throughout the year Mediterranean cities such as Valencia have been a better mini-break prospect via a less punishing seven-hour 700km round-trip. But, thanks to the brand new high speed AVE train connection (Alta Velocidad Española), the Madrileños will be able to see a lot more of their Costa del Sol homes. Inaugurated on 23 December 2007, the Madrid-Málaga AVE floats along at speeds of up to 350km and covers the distance between the cities in just two and half hours. Adam Gale, Director of Duchy Estates, comments, “Whilst it’s fair to say that Spaniards are creatures of habit and the ‘August-escape’ mentality may never be eroded, I am certain that with the new AVE Madrileños will be visiting their southern Spanish holiday homes with greater regularity. Not only this but Costa del Sol virgins will soon discover that we have 50 or more fabulous golf courses, a stunning year-round climate and they too will be boarding the AVE for weekends away with family or friends. Property prices here are also lower than in the salubrious suburbs of Madrid so they may be pleasantly surprised with what they can get for their euros.” Spanish rail company RENFE agrees. In the first year of service they expect 1,650,000 people to use the AVE Málaga service and by 2009 a total of two million, double the number carried by the previous Talgo 200 service. Civil Aviation has said that they expect airline passenger numbers between Madrid and Málaga to reduce by 40% because of the AVE. Both Vueling and Spanair have already cut back on their services between the two cities in direct response to the cost-effective train service which is currently priced at 76 euros for a single fare but can be secured for as low as 30 euros if booked online in advance. In a policy which will seem alien to British people used to the United Kingdom’s less than perfect rail service, the AVE also puts its money where its mouth is on timekeeping. RENFE is currently refunding half the ticket price for delays of as little as 15 minutes and the full price if the train is delayed by more than half an hour. Once the service is fully tested and minor glitches ironed out, refunds will be made in full if the train arrives more than 5 minutes late, this is common policy for established AVE routes. With immaculate service like this maybe some Costa del Sol dwellers will be lured off their sunloungers to nose around the Prado Museum or the 80,000-capacity Bernabéu. Málaga Airport Shows Another Increase in Passenger Numbers The Spanish Airport Authorities, AENA, have released their latest round of figures which show that yet again passenger numbers are up for Málaga International Airport. 13.5 million visitors used the airport in 2007, that’s 3.9% up on 2006, and of those 2.5 million were from the UK, 0.3% up on the previous year. The greatest increase in numbers was courtesy of three European nations namely Germany, France and Ireland. They recorded growth of 5.7%, 15.6% and 6.8% respectively. Domestic passengers from other Spanish AENA airports also jumped by 4.05%. It wasn’t all growth though, it seems that one nation has spurned Spain and that’s Switzerland. Swiss arrivals were down 7.6% on 2006. At Duchy Estates we have some predictions for 2008 and those are more arrivals from the USA and from Russia. Delta Airlines has recently announced a non-stop service between New York’s JFK and Málaga starting on 4 June 2008 with three flights a week rising to five flights a week by 8 July, whilst Russian airline Aeroflot has already added a Moscow-Málaga service four times a week by A320 aircraft. The Minister for Industry, Commerce and Tourism, Joan Clos, has responded to this heightened interest in the Costa del Sol by pledging a 100 million euro budget to help revitalise eight key towns on the western Costa del Sol. The funding, 20 million more than was expected, will be spent on specific projects over the next four years in Torremolinos, Benalmádena, Fuengirola, Mijas, Marbella, Estepona, Casares and Manilva. Tracy Stratton-Smith and Richard Choo Take Advantage of Spain’s Buyer’s Market A slowing property market has its winners and its losers. The losers are the vendors who want to achieve a quick sale at a high price; the winners are the buyers who want to shop around for a deal. Partners Tracy Stratton-Smith and Richard Choo from Polperro and London respectively certainly fall into the latter category having just picked up a four-bedroom villa near Marbella for 100,000 euros below its asking price. Tracy (36) and Richard (41) have lived on the Costa del Sol for five years but always in rented accommodation. With demanding jobs, Tracy as a Mum and freelance hairdresser, Richard as an IT Consultant, they never had the time or the inclination to house-hunt and frankly felt that property was overpriced. As the market cooled towards the end of 2007 and daughter Lylla (3) settled into school in San Pedro just to the west of Marbella, Tracy and Richard decided that they’d take the plunge and go bargain-hunting. Tracy picks up the story, “Our criteria started off rather vague, a townhouse or a villa maybe with a budget of 500,000 to 700,000 euros thanks to the proceeds of a house sale back in the UK. The only definites were that we needed a big garden, so apartments were out, and wanted to stay to the west of Marbella close to Lylla’s school. Independent of each other Richard and I did some Googling and both made an online enquiry with Duchy Estates who seemed to be the local specialists. We were emailed a selection of properties, many of which were exclusive to the agent rather than pulled off a multiple listing system, and as they seem to understand what we were after we agreed to conduct some viewings.” Peter from Duchy Estates began by asking Tracy and Richard to “not be polite but be honest” so he could save everyone from having their time wasted and quickly zero-in on what was floating their boat. Peter was achieving some success when there was a twist to the tale. Tracy continues, “Richard and I spotted a ‘for sale’ sign on a beachside villa at El Saladillo between San Pedro and Estepona available direct from the owner. We fell in love with it and put in an offer but were warned that another couple had been interested in the property for several months. So we went in at asking price, transferred the deposit to our lawyers, and started decorating the rooms in our heads. Mentally we’d already moved in so we gave Peter a quick courtesy call to break the news. He took it well, wished us luck and whilst he hoped it wouldn’t, asked us to remember his name if the sale fell through. Sadly Lady Luck wasn’t on our side and the vendor cruelly snatched the deal from under us having bartered a better commission arrangement with the other interested party. Our fantasy was lost and we dug out Peter’s business card. He greeted our call with a breezy “I’m gutted for you, but delighted that it now gives me the opportunity to find you a property to match your dreams”, so on we pressed.” By now Tracy and Richard’s budget had crept slightly higher and a villa that hadn’t featured in Peter’s game plan before suddenly became an option as the vendor had dropped the price from 890,000 to 790,000 euros. The four bedroom villa in Cancelada was on a 940m² plot, had an immaculately maintained garden with swimming pool, partial sea views, and so Peter arranged a viewing. Tracy resumes the tale, “Richard was immediately impressed with how well the property was built. The French architect had opted for 600mm thick walls and at nine years old the property had had plenty of time to settle so anything structural that was going to fail would have already done so. The current owners, a couple from West Hampstead, had lovingly looked after the villa and no major works on the kitchen or bathrooms was needed. In short we loved it, but not for 790,000 euros, it was too much. After some negotiations our initial offer of 660,000 euros was nudged a little higher to 690,000 euros but for that we also got most of the furniture and cupboards full of bed linen and crockery. Our journey was complete but we had one more headache to come, or rather I did. Richard took a six-week work contract in Moscow so I had to sign at the notary and move the contents of two apartments single-handedly. I can see now why they say that moving house is up there with divorce and bereavement for stress!” Tracy, Richard and little Lylla cannot envisage moving from their villa for many years to come and with all that space they might even extend the family, provided Richard doesn’t disappear off to Moscow for too long again. To take advantage of our buyer’s market contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. Golfing Goodies South Facing Apartment Living – a three bedroom three bathroom apartment with sea views frontline to one of the Costa del Sol’s most popular golf courses – Guadalmina Golf. Inside the specification is high with hot and cold air-conditioning, marble flooring, satellite TV and ADSL plus a fitted kitchen. Outside, the development boasts four swimming pools, an on-site gymnasium, 24-hour gated security and lush Mediterranean gardens. Price 485,000 euros. Direct Golf Access from Buggy Garage – a three bedroom two bathroom villa set within a gated community in the residential area of Nueva Andalucia, a stone’s throw from chic Puerto Banús. Arranged on one storey the villa is frontline to the super-exclusive Las Brisas Golf Course and the buggy garage takes you straight to the fairways. Completely re-wired and re-furbished to include a sunny glazed terrace and brand new kitchen, the villa is south-west facing and has a private pool in gardens of 1,450m². Hot and cold air-conditioning, satellite TV and ADSL complete the picture. Price 1,220,000 euros. Ground Floor but Breathtaking Views – a two bedroom two bathroom apartment within the ever-popular mega golf resort of Los Flamingos complete with its own Ritz Carlton hotel. With a fully fitted kitchen, hot and cold air-conditioning, satellite TV and alarm system, this south-facing apartment, despite its garden level location, still enjoys panoramic sea, golf and mountain views. Price 395,000 euros. Bargain Golf Villa – a totally reformed three bedroom villa frontline to the established Guadalmina Golf Course. In excellent condition the property has a brand new kitchen, a Jacuzzi and only eight neighbours who all share a large communal swimming pool. Double glazed and with an entry phone as well as alarm system, this villa has stunning golf and mountain views. Price just 590,000 euros. Contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. State-of-the-Art Marina Comes to Mijas The province of Málaga has 150km of coastline housing 11 marinas sharing 4,240 berths between them. The EPPA (Empresa Pública de Puertos de Andalucía or Public Company of Andalucian Ports) estimates that there is a deficit of 4,300 berths in Málaga alone, a shortfall of more than 100%, and if anything waiting lists are getting longer. Compared with other major yachting centres in Spain the Costa del Sol is simply ill-equipped, even the petite Balearic island of Mallorca has three times the number of berths – 12,895 across 41 marinas. There is no better time to announce the arrival of Marina Mijas. With an initial investment of 50 million euros, Marina Mijas will comprise 800-1,000 berths of all sizes up to 100 metres (328 ft) as well as two docks designed to accommodate transatlantic cruisers. In addition there will be two hotels, a commercial area with shops, restaurants, cafés, leisure zones, a congress centre, yacht club and full service dry dock, the only thing that will be missing is residential accommodation – an intentional omission. The new facility will comfortably create up to 1,000 new jobs and the avant-garde design will ensure that it becomes a worldwide reference point. Spain is renowned for its old-fashioned bureaucracy and ‘mañana syndrome’ so dredging will commence as soon as the authorities are ready but the good news is that plans for the future Marina have already been included in both Andalucía’s POT (Plan de Ordenación Territorial) and the Plan General de Ordenación de Mijas approved back in 2005. Following a presentation to the Spanish National Coastal Authority (COSTAS) in January 2008 which will result in the seal of approval from the Environment Department phase one should be able to get underway. This phase is the port itself and will take about two years to complete whilst the rest of the project such as the hotels and commercial area will start before finishing the first phase. Residents of the luxurious apartment development Los Cortijos in Mijas will gain a bird’s eye view of the project. The one, two and three bedroom apartments are set within the Costa del Sol’s true ‘golf valley’ with 12 courses within literally minutes of the resort. The properties themselves all boast golf, sea and mountain views with no sub-standard views on offer and are superbly equipped with first class laminate wooden flooring in living rooms and bedrooms, heating and comfort cooling, fully fitted kitchens, disabled-adapted lift access to just two apartments per floor, allocated parking and storage. On-site facilities include a gymnasium, Spa, sauna, three swimming pools and manicured gardens whilst the Calanova Golf Clubhouse is within comfortable walking distance. Prices start from just 195,000 euros for a one bedroom apartment with 25m² of terracing rising to 440,000 euros for a three bedroom three bathroom duplex penthouse with a mammoth 40m² of terracing. For further information on Los Cortijos contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944. The Duchy Estates Team – One More Name to Remember Bournemouth-bred Louise is definitely an AHA (At Home Abroad). Bored of working in the Financial Services industry Louise first left the UK over nine years ago with the Canary Islands as her first port of call. Working in holiday ownership she had two and a half happy years in Gran Canaria and then a frustrating six months in Tenerife, an island which she just found too small, in her words “if you ran fast you’d fall off it”. Cyprus came next, two and a half years with a large developer, and then mainland Spain by accident. Louise’s Mother had recently bought a property in La Quinta close to Marbella and Louise took a well-earned break here five years ago. She liked it so much that she returned to Cyprus only to pack her bags and begin the next chapter of her life on the Iberian Peninsula. She’s worked in a variety of real estate guises on both developer and agency sides, but is now happily ensconced in the friendly, relaxed working environment at Duchy Estates. Louise can be contacted directly by email louise@duchyspain.com or via phone 00 34 952 906 944. As you’ve gathered, the outlook is good for the Costa del Sol. More tourists, new marinas, improved accessibility, extra funding to improve key towns, and summer is just around the corner to boot. What is currently a buyers’ market could well pick up pace again before long, so don’t delay book a research trip today Duchy Estates - Research Trips Adam Gale, Managing Director Contact Duchy Estates by phone 00 34 952 906 944 or email spain@duchyspain.com or visit our website www.duchyestates.co.uk for further information.