The spectre of holiday homes being demolished is back in the headlines this week following a new proposal from the Spanish Government to save Spain’s coastline from over development. At issue this time are thousands of properties up and down the Spanish coast and islands that have been illegally built too close to the beach, and not just a handful of dodgy buildings in Marbella.
Judging by the recent headlines, you would think that the bulldozers are already revving up their engines to get to work. So is it true that the new proposal will lead to widespread demolitions that could affect thousands of British owners in the not too distant future, and what does it mean for potential investors thinking of buying today?
In reality the initiative is mainly concerned with establishing a new development model for Spain’s Mediterranean coast and islands, to replace the existing model of sun, sea, and sangria against a backdrop of furious construction. Like everything else these days, it is also about preparing for global warming, and conveniently comes hard on the heels of Al Gore’s recent visit to Spain to pick up an award for his work on raising awareness of climate change.
Presented in a document called ‘A Strategy For Coastal Sustainability’ from the ministry of the environment, the proposal argues that Spain’s model of mass tourism and rapid urbanisation is no longer a good thing. “It is clear that the coastal development model of recent decades is unsustainable,” says the document, which also observes that holidaying on the Spanish coast is “no longer pleasant or satisfying in many areas.” It concludes that radical solutions are needed to save the environment, and guarantee a sustainable future for Spain’s coastal economy. Better late than never, but you could also argue that this is just closing the stable door after the horse has bolted.
The proposal is full of evidence of overcrowding and over development on the coast, where 44% of Spain’s population is now squeezed into 7% of its territory, and where 80% of tourists go. According to the document 40% of Spain’s Mediterranean coastline is built up, and 60% of its beaches are hemmed in by construction. As a result some 30% of the coast, 51% of beaches, and 70% of dune areas are now in trouble. Then, of course, there is the threat of rising sea levels from global warming, which environmentalists say will shave 15 metres off the average Spanish beach by 2050, rising to 30 meters or more in some areas.
But although the proposal dwells on establishing a new development model for the Spanish coast, it also envisages rolling back past building infractions, which is where the whole issue of demolitions comes in.
In 1988 Spain passed a law called the ley de costas (coastal law) to protect the coast from over development. This law turned all beaches into public land, and prohibited new residential zones within some 100 metres of the beach. The problem is that urban planning rules in Spain have often been ignored, and over the years thousands of residential properties have been illegally built close to the beach, often with permission from local authorities.
Though no figures are available, it is thought that many of these homes are owned by Britons who have never heard of the ley de costas, and have no idea that their properties are at risk. Any new plan will have to deal with these properties, which could in theory involve expropriation or compulsory purchase leading to demolition.
For years the environmental authorities have been knocking down illegal properties on a small scale, but the scope of this proposal is much more ambitious, with an estimated cost of 5 billion Euros. The proposal itself is vague, but environmental officials make no bones about the need for demolitions. Even so the government insists that the plan will not involve large scale expropriations, though it is hard to see how the proposal can work without them.
Does this means that demolitions are imminent? Hardly. For a start it is just a proposal, not a draft law, and contains few details and no time frame. The next step is supposed to be a big, inclusive, public debate involving all levels of government, business, trade unions, NGOs, the public, and anyone else you can think of, leading to a commission for coastal sustainability, a panel of experts, and maybe one day some regulations. This being Spain, the whole process could take years before any concrete measures emerge, by which time plenty more concrete will have been poured over the coast.
Furthermore the Socialist government in Madrid has little power over urban planning issues, which are controlled by regional governments. The writ of the environmental ministry stops at the edge of the beach, so any deal on illegal properties will need the support of regional and municipal governments. It is hard to imagine any consensus involving key regions, such as Valencia and the Balearics, that are run by the right wing Popular Party who tend to oppose any initiative from the Socialists in Madrid. With national elections just around the corner some will see this proposal as nothing more than electioneering by the Socialists, and if the Popular Party wins the next general election, it might well disappear without a trace.
So despite the recent headlines the chances of widespread demolitions affecting large numbers of British owners anytime soon are close to zero. But it does show that environmental concerns, and the scourge of over development on the coast, are moving up the political agenda, which has implications for anyone now thinking of buying in Spain.
First of all, it is likely to raise awareness of the existence of illegal properties near the beach without necessarily dampening demand for highly-prized beachfront properties per say. This could increase the value of those properties that are legal, and in limited supply, whilst reducing the value of those that aren’t. Canny investors should bear this in mind.
Secondly, if you want to avoid any chance of future demolitions, don’t buy anything near the beach unless your lawyer confirms that it is legal according to the 1988 coastal law.
And finally, even if you have the money to afford a legal property frontline on the beach you may wish to consider the second line. If Al Gore is right, global warming will bring the waterfront right to your door.
Tags: urban planning