La Zagaleta Villas For Sale: April 2010

There has been a somewhat shockling revelation in the Marbella property market, that the Mayoress, Angeles Muñoz is using to demonstrate that this area will be the first out of the protracted recession that has plagued the market here for a number of years. An earlier post here on the blog discussed the consequences of getting her far reaching plan approved, helping build the credibilty of Marbella internationally.

The figures she is using directly from the tax office show that there are actually more people buying real estate in the area over the first quarter of 2010 than for the same period in the last four years, which is just before the infamous "Malaya" corruption case came to a head. Apparently there have been 2499 sales within the area within the first quarter of this year, compare the figures produced in the previous four years

Q1 2010 - 2499

Q1 2009 - 820

Q1 2008 - 1263

Q1 2007 - 1602

Q1 2006 - 1224

Ecouraging as this may be I do find it hard to believe that there has been such a massive increase, however if these are the figures from the tax office, rather than the the usual estate agent inflated figures then they have a good chance of being accurate. We have seen an increase in overall enquires, but they have been mostly for luxury property for sale in Marbella.

The economy in Spain and particularly in the Costa Del Sol is still extremely fragile with unemployment figures continuing to spiral, so this blast of decent economic data relating to housing is definitely welcomed.

Sales of La Zagaleta property are set to increase as this year progresses experts have claimed. According to Spanish based British realtor First Property Choice, demand for quality La Zagaleta and Marbella properties remained strong during the recession, with only a 20-25% fall in enquiry numbers.

"Now," said Mark Goodwin, "that confidence is returning this demand is turning to sales on an increasing basis. And this trend is set to intensify as confidence continues to grow throughout the year."

"The availability of mortgages could also become a factor in increasing demand later in the year, although most La Zagaleta property buyers are cash-buyers," he added.

La Zagaleta is one of the most exclusive resorts in Europe, and also benefits from its location within Marbella; the Monte Carlo of Spain. Luxury villas in La Zagaleta are priced from 1 million euros, to 30 million euros, with the median price being 6 million euros.

The prices have held during this recession, because of the exclusivity of the resort, the quality of the property and the wealth of the owners, who are able to hold out and wait for their price to be met. That said: cash-rich buyers have been securing properties at discounts of up to 15%, particularly when the seller is keen to move-on, even if a sale in this price bracket is rarely ever absolutely essential.

Sales of overseas property in general have been increasing since the first signs of economic recovery began appearing last April. It almost immediately emerged that sales of prime property were increasing faster than other classes.

There have been a few theories put forward in explanation for this, but the main ones are: the prevalence of cash-buyers due to the lack of mortgage availability, and the fact that the wealthy had been least affected by the downturn than most, so fear over the extent the crisis would reach was all that had been stopping them buying. There have been many things that support one or both of these reasons being mainly responsible for the prime property buying spree. More recently inflation fears have had the wealthy hedging against currency devaluation with bricks and mortar properties.

Whatever the reason, La Zagaleta sellers have already seen the benefits of increasing , not demand, but actual willingness to buy. Because sales have started increasing because the first signs of economic recovery made it clear that the recession would not get as bad as some feared, it stands to reason that sales growth would intensify as that recovery gathers strength.

La Zagaleta is a unique and wonderful country-estate-come-luxury-resort in the Andalucían countryside, just a few hundred meters from the Mediterranean coast of Marbella. The resort is tailored to the tastes of the wealthy, with two golf courses, tennis courts, fishing lakes and an equestrian centre making up the activities to be pursued within the grounds.

The resort is home to only a few hundred properties, and only a handful of those ever become available. This, because the resort is renowned and highly sought after, ensures properties have held their value during the downturn.

Currently there are about 30-40 La Zagaleta properties for sale, and only about 3 of those are priced below the 5 million euro mark -- that is the quality of La Zagaleta. Below are the 3 most expensive properties for sale in La Zagaleta at the time of press:

1: La Roca Del Ray: 30 MILLION EUROS

La Roca Del Ray is a luxury mansion being built atop a hillside enjoying the most spectacular views of the resort, and out across the Mediterranean. The plot sits directly overlooking one of the golf courses, which adds a great deal of value in itself. The villa is to have marble floors, 10 bedrooms, multiple reception rooms, an entire floor dedicated to the master bedroom suite, and don't get me started on the kitchen and dining room. Of course the grounds will be host to an exquisite pool and poolside area.

2: 10 Bedroom 10 Bathroom Villa in the Best Position of the Resort: 11,500,000.00 EUROS

This massive luxury villa carries such a price tag, not only because it offers the ultimate in luxury, including, (on top of the 10 bedrooms and bathrooms) a gym, Jacuzzi, office, under floor heating and an elevator, but also because of its incredible location. The villa is 1850 square meters, and within a plot of 18,000 meters giving it substantial gardens, but most spectacular of all, is that the plot is right on the edge of a sheer drop, which gives the property some of the best views in La Zagaleta (just look at the pictures).

3: 7 Bedroom Villa with Amazing Gardens: 8,950,000.00 EUROS

Now this really is a special property. As you can see from the images the pool and stepped gardens are absolutely to die for, and just about justify the price tag alone. For anyone in need of further wowing, the villa has a Home Cinema, Sauna, Turkish Bath, Gazebo & Pool Bar and a large garage, as well as staff accommodation -- this is how the other half live.

The wealthy property buyers are being targeted by some of the lending institutions in the UK, signalling some return to normality within the finance sector. This is being done through some of the high street lenders private banking facilities.

This sudden turn of events has come about as banks are keen to get back on track with some of their lending targets and big hitters can help bridge the deficit that developed during the darkest hours of the credit crisis.

LLoyds has aggressively cut its rates via its Cheltenham & Gloucester lending arm with a 1.9% cut in rates, allowing buyers 40% deposit, looking to buy property over €1,100,000 can expect a rate of 3.99%.

This is more in line with rates expected for much lower value purchases. I can understand why the banks are relaxing rates and encouraging wealthy buyers, with less chance of possible defaults and also jumbo loans will help them get to their projected net lending goals.

The philosophy has proven flawed in the past, as huge loans were handed out with as little as 5% deposit. Couple that with falling property prices during the Zenith of the credit crunch and you were left with a plethora of negative equity and banks looking at gaping holes in their lending book.

Luxury apartments and houses seem to be coming out on top with stronger prise rises seen within this sector. However our sales have been through 100% cash purchases and although we are focussing on the Spanish market, where mortgages are still notoriously difficult to get it does show that most people are shying away from finance of any stripe.

The market in Marbella, athough improved, will only start to gain real traction when a reasonable level of mortgage acceptance is seen once again.

La Zagaleta Villa Property - 7 Bedrooms with 1500m2 of Living Space

This is one of those La Zagaleta houses for sale that really leaves you with a lasting impression. In fact, it is one of the best and well realized houses our company has seen , not just within this development, but throughout our time selling property. I would like to add that we have seen some amazing houses in Italy, The Algarve and Turkey, but none have given our staff as much of a "wow" factor as this La Zagaleta villa for sale.

Upon arrival and through the large gates you see a row of garages, cenceptionalised with the prospective owner at the forefront of its design you have enough size to accomodate a Rolls Royce Phantom and 6 other cars with no problems at all. Another great feature is the presence of drainage inside the garages, allowing you to clean your cars inside. For what reason, you may ask? Try doing it in 40 degrees of direct sunlight! You will find that car washing becomes a thankless job and you won´t have the quality of shine you need for your fleet of cherished vehicles!

Another touch that demonstrates the current owners thought and clear attention to detail, is that the driveway has been designed at the correct maximum gradient that would facilitate a Ferrari or similar to use it without damaging its spoilers!

A La Zagaleta Villa With Great Flow

When you initially enter the house, you get a good understanding of the quality of finish the property has, as you enter the lounge you are struck by a great view, across the green valley straight to the Med! One of the key factors that really impressed me about this property was the entertainment and pool area. The indoor pool has salt water and the area looks like an upmarket health-spa, housing saunas etc. Adjacent to this you have a cinema and bar. All of these amenities have access to a segment of the 1000m2 of terracing. When you are entertaining guests, you can open the patio doors and make the most of your outside space.

High Level of Construction and Excellent Finish

The outside pool benefits from swim-up bar and the 11,080 m2 plot is useable and well thought through, complete with an orchard at the end of the garden. Structurally the current owner has spent more than €1,000,000 on making sure the plot is safe and stable. There is a €50,000 report giving full details of what had been done to ensure the grounds are as steady as the Rock of Gibraltar.

There is a large main kitchen that has been designed to encourage family cooking/dining, in addition there are a number small kitchens on each floor. This, once again shows the careful planning that has gone into making this La Zagaleta property such an impressive residence

Marbella has had its fair share of scandals over the past couple of years. Couple this with the huge bursting property bubble within the Costa Del Sol and you have an extremely poor image portrayed by Spains jewel in the crown tourist destination.

Many foreign property purchasers found themselves owning real estate that was deemed illegal, through no fault of the own and Town Halls in several municipalities were subject to police raids, with high profile arrests.

Fast forward to the present day and we see things have moved forward, much of this due to the work of the Mayor Angeles Muñoz. The Junta de Andalucia has been at the centre of providing solutions for many issues, such as town planning and also allocation of government funding that will help the area and also assist in the international reputation of the Marbella area.

One of the big wins, if accepted, will be the granting of the first occupation license for those who have been unable to do so because of the legal issues concerning planning. This will be done irrespective of of future compensation claims and will assist in the ability to mortgage their Marbella luxury apartments . The second is to acquire land for services, as the Junta will help with several projects so the Mayor is trying to speed up the aquisition process.

Under the new plan issued there are three points that the Mayor has set out to achieve, firstly, to improve the economic situation, complete the General plan and then take care of the institutional plan. Without its implementation there will be little hope of a full recovery.

Private funding to assist the Marbella area is scarce and now Angeles has also started an global charm offensive, emphasized by her recent visit to New York and ringing the bell in the Stock Exchange.

The plan itself does cover all aspects of what is needed to lift the profile of Marbella in a positive fashion. The issue is, will the plan be accepted, as a whole by the Junta De Andalucia. They have the power to rubber stamp the plan, so things can move in a positive direction.

The worrying issue is the timescale it has taken to get this far. The Junta can spend €70 Million per year on getting the area back to the way it should be and Angeles Muñoz needs to make sure that enough tangible projects are ready to absorb and deliver what we all need.

The Marbella property industry is eagerly anticipating the next phase of the Mayor Ángeles Muñoz's reinvention plan, which is being announced this week.

The presentation is expected to contain plans to make Marbella an open-city in terms of foreign investment, with the hope of encouraging foreign companies to work more closely with the local business community. However, it is likely that steps to reassure buyers would be far more beneficial to the market.

The Mayor will be announcing the plan at the Annual Entrepreneur Assembly. The assembly is also expected to discuss what difference the legalisation of the 17,000 (approx) illegally built properties.

The property industry is hoping that the mayor's plan will contain something with regards speeding up the planning process.

"Investors are not going to come in unless they can get a building licence more quickly and are told clearly and quickly if there are any problems," said Ian Waudby, chairman of developer Crest Group International. "Now that the illegal homes have been legalised the town hall needs to address this."

Marbella needs more than foreign investment. Marbella is Spain's prime property destination, and prime properties are currently selling better than any other class, but there is still a negative bubble over the market, because of just how quickly and easily the corruption was allowed to become a disease, and subsequently, to infect the entire property market.

I personally feel that the legalisation of the properties was the right decision, but the process needs to be made completely transparent; where do the proceeds go? Who owns the properties? And many more questions must be answered without anyone having to actually ask.

Further than that there needs to be an independent enquiry that is handled swiftly, and the findings made public equally fast. As it is now, everything is up in the air, where it has rightly formed into a dark cloud hanging over the market.

On the other hand, buyers are doing more research than ever, and this is likely to cause the effects of the scandal to be minimised now that the issues have been almost completely resolved by the legalisation.

In support of Mayor Muñoz, the moves taken by her are starting to bear fruit, with the announcement earlier this year of a new development of luxury apartments in Marbella. A revival in the Marbella property market would certainly be good news, not only for those who have previously invested in property, but also for the Spanish economy as a whole.

La Zagaleta is seeing demand for property increase rapidly as buyers snap up bargains before the market recovers, according to experts. La Zagaleta has been singled out because people are going for quality at a bargain price, property that may have perhaps been out with their reach before.

"The Algarve and Marbella are enduringly popular, but became very expensive; now, they offer great opportunities," said Charles Weston-Baker of Savills, he continued:

"Many people are putting their money in the Algarve's Quinta do Lago, Now the froth has gone-the annual price rises of 15%-20% have come to a halt-people who have long wanted to own in these prestigious resorts finally can.

"The same is happening in Sotogrande and La Zagaleta, with people going for quality at a better price. Although Marbella has been very heavily hit, interest is quickening and, having seen two recessions there before, I know the market can change very quickly. The best properties haven't dropped much in value, but if people really need to sell, you can negotiate 30%-40% off the price."

You can currently buy luxury villas in La Zagaleta from around 3 million Euros. This would never have been possible before the recession, and may not be possible for much longer if sales continue to rise as they are.

Foreign buyers are returning to Marbella, with Taylor Wimpey reporting a 150% increase in sales over last year, and the tax office confirming that sales are higher than they have been for 4 years.

Places like Marbella and La Zagaleta are seeing such rising sales because the lack of mortgage availability has caused prices to come down, and now the wealthy with the cash to buy are capitalising on the fact that they can make cash offers to perhaps desperate sellers.

Prime owners are certainly on the lookout to capitalise on a growing desire among the really wealthy, to put their cash into a tangible asset for fears of currency devaluation. One example of this is the 30 million euro villa that is currently on sale on La Zagaleta, with First Choice Property.

The property is like something you would see on through the keyhole. It sits atop a hill with glorious views from the private poolside out over the gorgeous La Zagaleta resort as far as the ocean. 10 bedrooms, multiple reception rooms, an entire floor dedicated to the master bedroom suite, walk-in wardrobes, marble floors and an exquisite kitchen complete it as a home that will hold its value against any recession.

Marbella is without doubt Spain's premier resort town; the Monte Carlo of Spain, with famous residents including Antonio Banderas, Sean Connery and Dolf Lundgren, and Marbella's marina at Puerto Banus known as a playground for the rich and famous. And if Marbella is Spain's premier resort town, then La Zagaleta is arguably, Spain's premier resort.

La Zagaleta is 900 Hectares of gorgeous Spanish countryside, a former country estate which has been lovingly crafted into a tasteful resort. The properties are built on plots of between 3000 and 10,000 square meters, with each plot being surrounded by a 10m radius of green space, which means at least 20m between each plot (note, plot, not property).

The estate is situated just a few kilometres outside Marbella, in one of the most beautiful areas of The Costa del Sol, yet just 60 km from Málaga airport by motorway. As a result the resort enjoys views of the Mediterranean, the Straits of Gibraltar, the North African coast, of its own splendid golf courses (two of).

As well as the golf courses La Zagaleta also has 4 trout fishing lakes, multiple tennis courts, and an equestrian centre offering horse-riding activities, as well as most properties having private pools.

In view of this magnificence, and of the fact that it offers the wealthy a supreme level seclusion, privacy and security, it is hardly surprising that you can't buy a property in La Zagaleta for any less than 1 million Euros.

In fact, arguably one of the top luxury villas in La Zagaleta has just become available, a 10 bedroom luxury villa upon an 18,000 square meter raised plot, enjoying spectacular views of the surrounding resort and out across the Mediterranean Sea, priced at £30 million Euros. The villa has a heated pool, double-height wood panelled library, piano bar and an entire floor dedicated to the master bedroom suite.

Whilst that is probably the ultimate example La Zagaleta luxury villas, practically every property is spectacular. Looking on the resort website you have a mouth-watering -- if much smaller -- villa on a 4,400 square meter plot, but it still looks like a home from the movies and the views from its swimming pool out over the golf course and wooded area are dreamy.

That is the perhaps the greatest thing about property on a former country estate; the resort is built into the natural contours of the land, which gives the views an unpredictable, and therefore particularly special beauty.

Andalucia, Malaga, Marbella and the Costa del Sol. Spanish property has had a rough time of it over the past 3 years, and undoubtedly the path ahead is far from a bed of roses. But those four locations are still some of the most popular British tourism destinations in the world, and probably always will be. More recently they have also seen increased traffic, both in terms of tourism and property buying from the Scandinavian bloc. As a result, they are set to see a marked revival in their property sectors during this holiday season.

One particular resort that is expected to do well this year, because of the makeup of today's buyer, is Club De Campo La Zagaleta^®

The international financial crisis crippled international property markets, with Spain being among the worst affected. At the beginning, many believed that fear over the full extent the crisis would reach may be the biggest hindrance on foreign demand, but as the downward spirals continued this seemed unlikely.

However, almost immediately after signs of economic recovery began in the US, and several housing markets showed signs of turning around; in other words, after it emerged that the massive stimulus would be successful in fighting off the doomsday scenario we had all swallowed, foreign demand started to pick up again; albeit primarily buying heavily discounted properties.

Apart from the trend of buying discounted properties, several other trends have emerged since the crisis: people are primarily buying in cash, prime properties are the biggest sellers, and the second is spurring the popularity of golf and equestrian resorts.

Whatever the reason for these new realities -- and there are a few being put forward, property as a hedge against financial instability, wealthy unaffected by crisis treating themselves, all equally possible -- La Zagaleta will surely be one of Spain's biggest benefactors.

La Zagaleta is a prime resort of prime properties, which offers the ultimate in privacy and security as well as 2 golf courses, and an equestrian centre, as well as 4 private lakes for trout fishing, indeed the resort has everything the upmarket buyer is looking for.

One of La Zagaleta's super-prime properties is currently available for a cool £30 million. The 10 bedroom La Zagaleta mansion is set atop a rise, which means it has fantastic views of the surrounding scenery, and out over the med. It also has ceiling height windows to enjoy the views, a private pool, an entire floor dedicated to the master bedroom suite, and many more extravagances.