Informative property guides on what you need to know before buying a property on Spain's Costa Del Sol.

The Costa Del Sol is an area of southern Spain which has been a popular spot for Brits planning to purchase second homes for several decades.

In the past, the region was made up of small, quiet fishing settlements but development has turned the area into a near-continuous urban agglomeration of high-rise settlements and resorts running the length of the Mediterranean coastline.

To find property on the Costa Del Sol and more Spanish property, visit: www.justoverseas.co.uk/propertyinspain

The Costa Del Sol includes the city of Malaga, as well as the towns of Torremolinos, Benalmadena, Fuengirola, Mijas, Marbella, Puerto Banus, San Pedro de Alcantara, Velez-Malaga, Nerja, Torrox, Estepona and San Luis de Sabinillas.

As well as a host of sandy beaches, the region is well-known for its superb golf courses - so much so that it has become known as the 'Costa Del Golf' in some quarters. There are around 50 world-famous courses in the region, with the majority located near the town of Marbella.

Pros of Buying Property on the Costa Del Sol

Not only has the region's hot and dry climate made it a Mecca for people looking for golfing holidays, but it's also made the Costa Del Sol immensely popular with Brits looking to buy holiday homes and retirement properties.

In fact, the most recent study suggests that there are now 4.48 million foreign residents in Spain and that 17 per cent of these people are originally from the UK.

So many people can't be wrong and indeed house prices in the area have increased steadily in the last ten years. Figures from Kyero.com indicate that average property prices in the most popular province of Malaga reached 307,000 euros in the third quarter of 2007.

Government figures also show that property prices in the Malaga region have been increasing at a rate of 4.2 per cent over the quarter and that property now costs 2,293 euros per square metre.

And over the last decade, people who have invested in property in Spain in general and the Costa Del Sol in particular have seen the value of their property steadily climb. A study by RBS showed that house price inflation averaged 11 per cent annually between 1996 and 2006.

With plenty of English company, beautiful beaches, potential rental income from other holidaymakers and previously strong house capital appreciation, it is not hard to see why so many people have been tempted by property investment in the Costa Del Sol.

Cons of Buying Property on the Costa Del Sol

However, recent reports have suggested that there are disadvantages to investing in the region. The Spanish property market is not expected to perform particularly well over the coming years. Prices have risen at a faster rate in Spain than in any other European nation over the last few years, doubling in many parts of the country. As a result, the country has become very over-developed in parts - and this surplus in supply is expected to result in an overall market slowdown.

This overdevelopment is particularly pronounced in the Costa Del Sol region and has caused prices to drop by as much 20 per cent in recent months.

However, some reports are now suggesting that this slump represents an excellent opportunity for people to consider investing in the region again. In particular, more expensive properties in less developed areas of the Costa Del Sol are expected to hold their value in the coming years.

What You Need to Buy Property in Spain

Anyone buying a property in Spain requires a NIE number - a unique taxation identification number needed before you can buy a property or open a bank account.

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Buying Property in Spain: Costa Brava Property Guide

Buying Property in Spain: Costa Blanca Property Guide

Buying Property in Spain: Mallorca Property Guide

Buying Property in Spain: Ibiza Property Guide

Property in Spain: Costa Del Sol Property Guide

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