Land for Golf Course proposal
I Search
1. Land, minimal 500.000 m2, preferably more, for golf, housing and extension of golf and other outdoor activities.2. The location in a relative rural area, not near other golf activities and in a municipality keen on promoting tourist activities. Good road accessibility.
3. Topographically suitable to construct a golf course without a lot of earth moving. Enough water should be available to sustain the golf course.
4. Reasonable price per m2
GeneralThe idea to construct a golf course with possible other outdoor activities, a hotel, country club and housing in a region where there is no course available yet. The Costa (beach side) is full or almost full and prices inland are starting to rise. Land prices are, certainly in the Casabermeja, Colmenar and Riogordo are still very reasonable compared with the coast and comparably Alhaurin and Coin.
At the end of this report there are a few lines on number of foreigners to be expected to move to the Costa del Sol in the next few years.
ResultsAfter an extensive search the following plots might be of interest to the investors:
Riogordo
Riogordo is a municipality located just east of Colmenar and Casabermeja on the main road to Velez Malaga. The plot is self is accessible on a 2 km hard-topped road. Plenty of water is available (Rio = river), even in the dry period, for instance October; water runs freely over the land. No constructions on land. Electricity available.
On offer are the following 4, connected, plots of land:
1.500.000 m2 (371 acres)
1.500.000 m2 ( id )
1.800.000 m2 (445 acres)
1.200.000 m2 (297 acres)Which makes a rough total of 6.000.000 m2 (1480 acres) (the exact numbers of m2 will be provided by the town hall of Riogordo and an topographical plan). Part of the land is agricultural, naturally flowing, and part is mountainous).
The owners of the plots are family of each other.Selling price is 150 pesetas per m2 (0,564 GBP or 0,902 euro).
Total: 900.000.000 pesetas = 3.383.000 GBP = 5.409.000 Euro)Advantages of Riogordo compared with the other offers: price, number of m2 (more flexibility in plan partial proposals, protective buying, increase in m2 price after initial construction), landscape, accessibility and central location. The size of the plot provides possibilities to design different themes.
Prices of neighboring land will rise for certain as soon as the word is out that a golf course, hotel, housing etc is planned.
Some aerial pictures are available as well.
Distances to Riogordo
City Km to Riogordo Driving time Malaga 25 30 Airport 30 30 Torremolinos 35 35 Fuengirola 45 40 Marbella 70 60 Estepona 90 70 Velez Málaga 25 25 Nerja 65 50 Antequera 20 10 Granada 110 80 Sevilla 170 110 Gibraltar 140 110 **All are approximate**
Alora
Between Alora and Carratraca (direction Ardales - El Chorro) a plot of land of 1.650.000 m2 + 40 fanegas is available for a total of 640.000.000 pesetas (2.406.000 GBP or 3.847.000 Euro).
*Fanega: unit of area originally equal to as much tilled ground as was necessary to sow a fanega of wheat, but usually standardized as 12 celemines or 576 square estadales, equal to about 1.59 acres
1 acre is 4000 m2, 1 fanega is approximately 6360 m2
Total area on offer 1.900.000 m2 (469,5 acres) (because the fanegas is not an exact measurement the topographical plan will show the exact number of meters).
Price per m2 is 336 pesetas per m2 (1.26 GBP or 2,02 Euro).
The land is relatively flat, no mayor ground moving work foreseen for the golf course. On the land is and old Cortijo (farmhouse) with stables and patios. The access to the land is directly from the main road as described before. There is plenty of water available from the nearby lakes. Concrete irrigation systems are running over the plot. Electricity available.Mayor advantage on this plot, as far as I can see, is the area, which in the last few years attracted a lot of expatriates (International school recently opened in Cartama).
Vinuela (Golf Romero)
The Romero family is constructing (or planning to construct) a golf course with housing development near lake Vinuela. It seems to be a long-term project.
The offer is 1.100.000 m2, which included permission for a golf course and a large number of houses on small plots (from 400 m2 onwards). Asking price 24.000.000 Euro = a little bit over 15.000.000 GBP.
A brochure and the original golf course lay out is available.
There were other offers, like the one in Vinuela, which were not taken into consideration, just to name a few:· Trapiche golf course development - 700.000 m2 - 9.800.000 GBP plan and permissions are available
· 1.800.000 m2 just north of Malaga (250 pesetas per m2) - Too hilly
· 1.200.000 m2 near Alora High speed train Malaga - Madrid will pass 25 meters away from the proposed land
· Almuñecar 470.000 m2 with housing - commercial project - too small
· Casabermeja - golf permission for 9 holes - too small
· Perriana, 1.700.000 m2 - too hilly.
· Archidona - Antequera 720.000 m2 - 720.000.000 pesetas
· Jaen 650.000 m2 - 1800.000.000 pesetas
· Alhaurin - Coin, 1.500.000 m2, permissions and plans for 2 golf courses and 900 villas - 45.000.000 Euro (28.285.000 GBP). This is a last minute entry. It seems that all ground work for the project is done and if an agreement is signed with the owners, work can start the next day.All prices are given by the owners or their representatives. With the actual buying of the land additional cost have to be calculated like IVA (16%), stamps, notary and lawyer fees. Although this is not at all my specialty, consider a foreign owned company to buy the land…………
Further action to be takenWe are trying to get as much basic information on the proposed land as possible. The information need in first instance is the cadastral plan from the different municipalities and a PLAN GENERAL DE ORDENACION URBANA (PGOU) for the proposed plots.
The above papers will tell us the exact m2 according to the cadastre and the existing usage of the land. It is obvious, certainly considering the more than reasonable prices, that there is no other denomination than "rustic".The second step will be to figure out what the total purchase price of the proposed plot will be (cadastral value to calculate taxes etc) and a nota simple to make sure there are debts on the land.
Additional information needed from the town hall is the complete PGOU of the municipality to see what we can propose within the existing limits of the municipal law (plot sizes, number of m2 build etc).
Example: in most municipalities you are allowed to construct a house on every 25.000 of rustic land. If you irrigate the land the number of m2 will go down to 10.000 for instance.Feasibility study to be made according to our proposed plan partial. Within this study we have to find out what grants are provided by the E.U. and the Junta de Andalucia.
Next step will be the presentation of a plan partial, which means a proposal what we are planning to do with the land, which areas for construction, villas, town housing, club house, golf course etc. We can make the actual divisions (golf course(s), clubhouse, housing etc.) ourselves and use a professional company like SOPDE to present our wishes in the necessary format.
In this plan it will be extremely important to point out the benefits for the municipality (employment, tax income, center of the world, tourism) and the ecological factors (waste water treatment, solar energy, "green" construction, fitting in landscape, soil treatment etc).
Our proposed plan is a matter of negotiation with the mayor and, probably, endless lunches. As soon as the Mayor and municipality agree on the proposed and revised plan our plan partial will be send to Malaga for the final approval of the Junta de Andalucia. (6 month rule?)
It is important to realize that we should keep the plan partial or even our intentions before the purchase as shady as possible because of a possible increase in the selling price.
Construction on the Costa del Sol - articleOf the 500,000 new homes purchased in Spain last year 65,000 were in the province of Malaga. A report prepared by the CEM (Malaga Confederation of Business People) states that economic growth in Malaga was seven per cent last year, as opposed to the 4.5 per cent in the rest of Andalucia. Residential tourism on the Costa del sol continues to grow.
A market study by the AMS group showed that the number of residential tourism homes in Spain has doubled in recent years to more than 3 million, (1.1 million of them owned by foreigners). 70% of Spain's residential tourism homes are located in Andalucia and Valencia, and principally on the Costa del Sol and specifically in the Marbella area.
An additional 65,000 homes are on sale along Spain's coastlines. According to the Banco de Espana, foreign investment in property in the first 6 months of 2,000 totaled 373,000 million pesetas, 35% more than for the same period in 1999 During the year of 1999 foreign property investment totaled 501,000 million pesetas, which was 37% up on the 1998 figures.
Of the 501,000 million pesetas, 149,000 was invested on the Costa del Sol, up from 119,000 million in 1998.In Andalucia, residential tourism provides 50% of revenue in the tourism sector.
ANUTR, (The Asociacion nacional de Urbanizadores y Turismo Residential) estimates the financial impact of this investment at 3.5 billion pesetas, to which can be added 250,000 million pesetas in investment by the Spanish. In the Malaga area, of the 60,000 homes officially registered during 1999, 18,500 were for residential tourism. In Torremolinos alone 72.7% of homes are denominated as residential tourism. Since the 1970's foreigners have purchased 225,000 homes in Malaga province.Construction forecast
The latest forecast from FEDUR (Federacion Andaluza de Urbanizadores y Turismo Residential), an estimated 800,000 European families will buy a home here over the next 5 years; other analysts are predicting as many as 2 million.
II Feasibility study on Riogordo and Alora on excel to follow.As soon as we got an idea which way the investors are thinking, I will make a rough feasibility study according to different scenarios:
1. buy land - get permissions - sell plots
2. buy land - get permissions - construct golf course + club house - sell golf facilities with the land for housing
3. buy land - get permissions - construct golf course + club house - exploit golf club - sell plots for housing
4. buy land - get permissions - construct golf course + club house - exploit golf club - construct villas and sellThere are obviously more possibilities.
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