The concealing of falls in value is another factor perpetuating this crisis. If the Spanish banks had accepted true valuations we would have reached the bottom of the market some time ago. As it is, it’s been a long, depressing slide. Now though, the bottom is within sight as the banks are finally having to release properties at prices at which they will sell. Sure, it’s going to reduce the values further, but it will only speed up a natural and necessary process, and reaching the bottom ‘of the valley’ is a prerequisite before you can begin to move on, and up again.

I foresee this bottoming out stage being reached before the end of this year. The next question, then, is: ‘When will prices rise again?’ The best locations and best properties will begin the process and gradually pull the others along behind them. Don’t get me wrong, this recovery is going to take years and won’t reach the previous levels in real inflation-corrected value unless there is a major worldwide economic change. So live with it – the average property is no longer a speculative investment, given the costs of purchase and sale. Buy to occupy and enjoy, like people used to do before the big ‘property speculation boom’.

See also http://www.surveyspain.com/articles/evidence-of-the-cause-of-property-boom.htm and http://www.surveyspain.com/articles/values-and-banks-where-do-we-go-from-here.htm

Campbell D. Ferguson, FRICS, has been advising buyers on what’s real and what’s not for more than ten years on the Costa del Sol and for 40 years throughout the UK and Europe. The Survey Spain Network, arranges valuations, building and structural surveys anywhere in mainland Spain, the Balearic and Canary Islands, and Gibraltar.

Having said that, I do have a client who has bought two whole urbanisations and is selling to Nordic clients, where the economies have not suffered as much and there isn’t so much personal debt. Prices are not cheap, but he is making sure that his buyers are getting quality and above-average services. However, this is a numerically limited market. Russians, Germans and some other Northern Europeans, including the occasional Brit, are the other buyers, along with some Spaniards who have somehow kept or gained sufficient finance for investment. On the larger scale developments there is Arab money being invested for the longer term, so the future of the Costa del Sol is secure and will continue to mature.

Quality versus quantity
We all hope that a gradual recovery will focus more on quality than quantity, especially since the scope and need for the latter is limited. This is particularly the case in Marbella, where both available space and the kind of buying public reinforce the need to strengthen the Marbella quality brand with low-volume, high-value real estate in the future. In this context Marbella will be looking to modernise and update a lot of existing properties in the coming years, though a change in the attitude towards environmental restrictions could easily open up new areas to construction and shift the balance towards high-volume development again.

The Partido Popular, which came close to winning the regional Andalusian elections on 25th March, had for instance indicated that they were going to forsake environmental considerations in favour of economic ones. However, the PSOE alliance retained power, so current planning directives look likely to be maintained. Regardless of your personal preference, the PP proposal would only have exacerbated the problem by adding more ill considered real estate to the existing stock. My understanding is that on the island of Mallorca*, and certainly Menorca, there was a much stricter policy on coastal residential development. It has meant that the existing properties there have dropped much less in value. That is what is now needed in Andalucía, so the values come back as quickly as possible and thus rescue owners, lenders and investors from negative equity.

*Update – the new PP government in the Balearics is reported to have announced that it is in favour of a substantial development on a pristine four-kilometre beach on Mallorca. It’s the start of personal fortunes and influence over-ruling wider economic and environmental concerns. Are they blind? No, they just appear to be personally greedy.

Business development, not property development, is what is needed right now to create opportunities for employment, so the authorities should be looking to create favourable conditions for entrepreneurs and lower the threshold for the self employed. There can never be enough work in construction again to absorb all those involved in it before. They need to retrain to skills and jobs that are required. The government needs to create a business environment in which new business can be created, nurtured and thrive. Thankfully, the sun still shines and the food and air are good, so people will keep coming here on holiday and to live which, with modern communications, will allow the area to benefit from the growth and wealth of Northern Europe. Indeed, if treated the right way, the Costa del Sol can become one of the drivers of Spain’s economic renaissance.

So what to do if you have an apartment for sale?
What does it all mean for your apartment? The most sought-after properties will certainly retain their value, but I believe there is a good chance that overall prices in this area will still drop a little, so unless you can wait for the medium term it might be better to sell now. The banks have announced that they have to increase the volume of properties released, and if they do, it will entice investors back, but also drop prices in the short to medium term. If, however, you don’t have to sell, are happy where you are and are in a position to hold on to your property, you may be able to outlast such tendencies and see property values begin to gradually recover in the coming years.

In such a situation you would probably want to earn some income in the interim by renting the property out. As you know, long-term letting can be good if you get the right tenant or hell if you don’t. Short-term holiday lets bring you in a much larger income when rented and are certainly less at risk of the property being damaged or illegally occupied, but the competition is strong, so be well-prepared and treat it like a business. Also, always bear in mind the expenses of IBI (annual property tax), community costs, management fees and wear and tear repairs. Combined with those, if you declare the income as you should and are taxed, the probability is that the net amount in your hand will be somewhere in the region of 55% of the gross rent paid.

There are a great many people offering properties to let, that they can’t or won’t sell, and are also looking to cover their costs in this way. This has increased the supply and reduced the rents achievable. On the other side there are people who have lost their property to repossession and others who have decided to rent rather than buy in a falling market, who together have increased the demand. Make the property attractive and modern with good facilities, and play on any strengths, such as a location close to the beach, golf courses, restaurants and shopping; in fact all the reasons you probably bought in the first place, and it should rent reasonably easily.

Campbell D. Ferguson, FRICS, is a chartered surveyor in Spain. His company Survey Spain Network arranges valuation and surveys by RICS chartered surveyors anywhere in mainland Spain and the Balearic and Canary Islands, and Gibraltar. This includes valuations, building surveys, structural surveys, building inspections and investment and development appraisals.

The editor of Building Surveying Journal, Les Pickford, recently spoke to industry professionals as part of a series of features in the prestigious business-to-business publication. Survey Spain’s Campbell D. Ferguson was among those interviewed, and the text below is the article as published: 

A selection of building surveyors explain why using social media appeals to them and how they harness its power

Looking through the RICS list of surveyors on Twitter it was easy to see that building surveyors featured highly. And what better way to understand how they are using social media than to contact them via Twitter? The responses highlight some common themes about how social media is being used: to increase profile and brand recognition, find new contacts and develop business relationships, communicate and receive industry news, and use contacts to find solutions to problems. And all of this is at no cost other than the time invested.

While the direct benefits can sometimes be hard to quantify (isn’t this the case with all networking?) most surveyors felt that social media was an ideal platform for networking that was leading to a higher profile, an increased circle of contacts and, ultimately, more business.

Interview:

Which social media platforms do you use?
We run a LinkedIn profile, Twitter and Facebook accounts. We wanted to have other ways of communicating with our clients who are looking to buy property in Spain and to collaborate with local business people. We also wanted to tell people of our achievements such as the Survey Spain Network being awarded the Association of International Property Professionals Award 2011 for Most Outstanding Example of Customer Service, and that I achieved the Legal Experience Training Advanced Professional Award in Expert Witness Evidence accredited by the RICS.

It is important for us to receive customer feedback so we also use social media for research and to share our knowledge and information via articles posted to our blog. People buying in a foreign country need as much honest, practical information and advice as they can get before taking such an important step. Social media is an ideal way to provide this.

How active are you?
We only really started using the Facebook and Twitter accounts in the last quarter of 2011 so it’s all pretty new. However, just like traditional face-to-face networking, we realise how important it is to regularly engage our followers, so we make sure that we have a presence on a daily basis. Not only do we cover practical advice regarding property surveys, but also industry news, our company news, client feedback and testimonials, and opinions on the current economic situation. We are starting to blog once per week on a current item and/or one that we think our actual and potential clients should be aware of.

What are the business benefits to you?
We aim to build our brand and raise awareness of the services we provide, offer our knowledge and experience to a wider audience, and grow our network of business associates and partners.

Any specific examples of successes?
Our social media programme has already raised our profile, with clients and contacts mentioning it. We have also had specific work-related enquiries through it and are hopeful that it will more than ‘earn its keep’. It’s early days so far for us, but it’s got us talking to the Building Surveying Journal so that’s another plus.

Campbell D Ferguson, FRICS, is the Director of Survey Spain Network.

We would be happy for you to join us on:

Facebook

Twitter

Linkedin 

This is perhaps the start of the good news. At last we can see an end to the downward spiral, though it’s some time away and we are not at the foot yet. Everyone has known, but it’s never been formally acknowledged, that the Spanish banks have not valued the property to actual market level. Now they will be forced to do so, either by sale of the property or by having such a quantity of property marketed and sold at low prices that higher valuations cannot be maintained. If they had honestly declared the collapse of assets as it was, in the same way as those banks in Ireland and the UK, then the short-term loss of face would have been substantial, but the long drawn out damage that is currently being felt might not have occurred.

For private sellers, without the ability to offer mortgages to buyers, the prices will have to fall even more to be competitive. This, plus the costs of purchase and sale, will mean that any buyer of bank property will immediately be in negative equity of 20+ per cent. Only the best properties with top location and facilities, will be bought by purchasers who are not looking for an instant capital gain, but are seeking an ideal home for their own use. The other buyers will be speculators who will negotiate with the banks to sell at even lower than their discount prices and be prepared to hold the property for a few years until the world economy drags Europe and Spain upwards and out of its present malaise. Keeping these properties in condition to occupy and paying off the community and local taxes, will be a cost that speculators may not be prepared to cover until the property is sold, with the result of starving local communities and town halls of current income from these ‘assets’.

This blog was written by Campbell D. Ferguson, FRICS, of Survey Spain Network, in response to a recent article that appeared in Businessweek.

The value is drawn up by independent government employees using strict and complex valuation guidelines to ensure consistency. Initially, they depend upon a description of the property and its use, which is obtained by observation, licence applications and increasingly, studies of aerial photos. As the Catastral description lists the best estimates of the site’s registered boundaries, obtained from historical records, title deeds, agricultural ‘parcelas’, planning applications and any other source where change has been detected, it can be one of the more reliable sources of information and help to settle boundary disputes and the like. However, it is by no means infallible as it will not catch all extensions and changes, ranging from integral garages to bedrooms, structural problems, and the many other alterations that can be made to a property and that affect its value.

The ‘construido’, gross overwall external floor area is used, with allowance for open-sided covered areas being calculated at 50% and areas under 1.5m high being ignored. This can differ substantially from the ‘util’ or net internal floor area, which is an internal measurement used in construction and excludes external walls and certain other items.

Since the details used in the Nota Simple and the Catastral are obtained in different ways, it is not unusual for variations between these property descriptions to occur. The most frequent problem found here is that the Land Registry is compiled at the point of construction and it is a legal nicety that the sizes recorded are given by ‘declaration’ and are not guaranteed or checked by the Registrar or Notary or other independent body. Also, changes to the property thereafter are often not noted, which can also affect the Catastral records where there can also be discrepancies due to human error or failure to update information.

After the size and nature of the property are determined, a rate per square metre is applied to it. This rate is an estimate of the sale value of the property, calculated from actual registered sales and other property information. Naturally, this information has to be reviewed every few years in order to keep the comparative values of neighbouring properties relatively accurate. This is done on a municipality by municipality basis, so that all neighbouring properties are valued in a similar way. Unfortunately, this can mean that values of a few years ago can become the basis for a Catastral value that may not bear any real relationship to the current value of the land and property. This is certainly the case in Estepona where values have been based on sales in 2007, when prices could be up to twice what they are now. In the past, when sale values have been increasing over the years people have been less disturbed at the low Catastral values.

However, the main concern should not be the individual Catastral value, but its relationship to those of its neighbours. This is where consistency is essential so that everybody is treated in the same way. Equally, the level of value is really of little importance as it is the multiplier that is applied, by politicians and tax authorities, that decides how much actual monetary value it has. The Catastral value is used for calculating capital gain on a property when it is sold and also for the amount of IBI or local property tax that an owner has to pay each year.

It is possible to appeal the Catastral value of a property, but only at the time of revaluation. The timescale is short and the methodology is complex, so that unless there are gross errors it can often just add more expense without an effective result.

When purchasing a property it is important to have sight of both the Land Registry and the Catastral records to ensure that any errors are noted and corrected. If this is not done, it can be that the buyer will be responsible for obtaining licenses and/or paying fines for unauthorised works or even for changing the property back to its former legal state. Whilst conscientious solicitors may endeavour to assist the client in this way, a member of the Survey Spain Network of Chartered Surveyors will often be the only one to compare the size and use of the actual property to the recorded descriptions on the Nota Simple and Catastral records. Differences in these records to the actual building are often a means of identifying potential problems of ownership and/or legality. With this knowledge the potential buyer can then instruct his or her lawyer to ensure that corrections are made prior to purchase and at the cost of the seller.

Addendum: The Spanish tax authorities have announced that they intend to review 4.2 million Catastral values this year throughout Spain. That will almost certainly add to the value and increase to the likelihood of IBI and other property related taxes being raised.

You can apply for this document at the immigration office at one of the designated police stations. Most towns with significant foreign populations will have such a facility, along with resident translators to assist the process for non-Spanish speakers. Once you have submitted your application you will be given a receipt that you will need to bring with you when you return to collect your NIE certificate – usually about two weeks later.

When you apply for your NIE number these documents will be needed:

• Your passport, plus a photocopy of the main page

• Two recent passport-sized photographs

• Any documentation that includes a reason for the application. For instance, if you are in the process of buying a house, bring with you a copy of the escritura or deed of sale. This might be deemed unnecessary, but it will help to offer this additional information.

• Two completed copies of the application form Solicitud de NIE (Ex-15). You will be able to fill this in at home by following this link (http://www.interior.gob.es/modelos-de-solicitud-37/extranjeria-342 ), downloading the appropriate document and printing it

Recent changes to NIE procedure
Previously, it was possible for foreign property purchasers and immigrants to request that a lawyer or gestor (a clerk who is experienced in acting as a conduit between the client and all aspects of the Spanish bureaucratic system) handle the process. However, new legislation that was brought in at the beginning of 2012 means that every applicant must apply for the NIE in person.

There has also been some confusion of late about the status of the NIE certificate, which itself is only valid for three months, however the NIE number allocated remains with the applicant for life. This has unfortunately led to some so-called experts stating that NIE numbers have only a very limited shelf life, which is totally untrue.

However, for those planning a more permanent stay in Spain, it might be more sensible instead to register as a foreign resident. One of these certificates (Certificado de Residencia), which have replaced the old style residency cards, can save time in the long run.

In order to do this you will need to fill out an Ex-18 form which you can print out from the following address: http://extranjeros.meyss.es/es/ModelosSolicitudes/Mod_solicitudes2/18-Certificado_Residencia_comunitaria.pdf .

Campbell D. Ferguson, FRICS, is a chartered surveyor in Spain. His company, Survey Spain Network arranges valuations and surveys by RICS chartered surveyors anywhere in mainland Spain and the Balearic and Canary Islands, and Gibraltar. This includes valuations, building surveys, structural surveys, building inspections and investment and development appraisals. 

The information contained in the Nota Simple includes:

*The current owner(s), their relationships and when they bought it;
*Any debts secured on it that must be paid before its ownership can be transferred e.g. mortgages, unpaid taxes, community debts, private debts, etc.;
*The boundaries of the property, though these are often hazily described as just the land owned by their neighbour;
*The total square metres of the land and the gross overwall area of all built structures;
*The use of the property (whether residential, agricultural, etc);
*The rights that others may have on the property e.g. public paths and rights of way, roads, water, sewage, etc.;
*The share of the costs of the community of owners in which it lies;
*And if you are really fortunate, the Catastral reference. (Described in another article)

Before you request a Nota Simple, you will need to provide the following information:

*The full name of the individual owner or owning company. Ideally, but not essentially, you should also have the NIE, CIF or passport number.
Or
*The Property Registry data, which can be either the Finca number or the unique identification number: IDUFIR.

With either of these sets of information you can carry out a search of the whole of Spain and obtain details on all the property owned by an individual or company. As there can be many owners with similar names, it’s best if you can restrict the search ideally to the minimum of which registry office the property is registered in.

You can obtain a Nota Simple in Spanish, from the land registry and this can be requested in person at any registry office. Alternatively, go online where requests are usually obtained within 24-48 hours. In both methods there is a small charge. Alternatively, ask somebody with a subscription to obtain information for you.

As stated above, the Nota Simple will contain information as to whether there are debts associated with the property. It is possible for debts of an individual to be attached to the property he owns although they may have no other link to the property itself. Be aware that if there are debts attached to the property, then it is essential that they are cleared before the ownership is passed over to the buyer, otherwise they will remain and become the responsibility of the new owner.

Inaccuracies
You may find, on receipt of the Nota Simple that its description is not the same as the actual property. An error in the description of either accommodation or the floor area is important and should be rectified by the seller prior to the sale. It may be that improvements have been carried out on the property and their absence on the document is sometimes an indication that work has been carried out without permission.

Inaccuracies may also mean that a mortgage valuer working for a Spanish lender or insurer could have to value on a reduced basis, as they are obliged by law to use the lesser of the actual area and that recorded in the title, whenever there is a difference between the two. Outbuildings such as garages, stores and even swimming pools should be recorded too, as this all affects the value of a property. However, unless you have an excellent grip of Spanish or are adept at dealing with Spanish bureaucracy, it is recommended that the Nota Simple is discussed with a legal expert or property professional, to make sure that all is in order and the property meets your requirements.

Assistance
If you would like more information about the Nota Simple and how it could affect you, the team at Survey Spain Network is available to offer informed help and advice. We have the advantage of carrying out Acquisition Surveys of the building and being able to compare the actual property with the Nota Simple and the Catastral description (see other article) and thus make sure that differences are caught prior to purchase, so that correcting them remains the responsibility of the seller and is not transferred to the buyer, at his or her future cost.

This is one of two related problems that recently faced Marbella’s municipality; the other was the fact that the catastral value of Marbella’s properties had not been amended for 23 years. The catastral is an estimate of the capital value of a property, very similar to the UK’s rateable value though that is based on a rent estimate. The catastral value is used as a reference point for tax purposes such as Wealth Tax and ‘Plus valia’ (Capital Gains tax), by both national and local government. Real estate values have undergone huge changes since the late 80s, so the values were well out of date. However, such has been the rollercoaster of values over recent years that in the time the authorities acquired the comparisons on which the new values are based, the market had dropped substantially. Accordingly, there can be considerable anomalies between a catastral value that has been traditionally less than market value and suddenly finding that the revaluation has created a catastral value substantially higher than that at which the property could be and is being sold.

It is possible to appeal against the Catastral value if an owner feels that it is well above the actual market value. There is a strict timetable for these appeals and they can be relatively costly, but considering that all the property related taxes will be based upon it, it may be worthy of consideration.

As part of a rolling programme around the country, the catastral authorities have revalued every property and the area of land. Whilst undoubtedly important, the individual value itself is of less significance as long as it is valued on the same basis as neighbouring properties and that the various multipliers used upon it to obtain the tax level are fair. Revaluation is often used as an excuse by politicians to apply a multiplier that brings in additional tax and this is what we’re seeing at this time.

As far as most homeowners are concerned, the most obvious outcome of this new assessment will be an increase in the amount of IBI that they will be expected to pay. Because of a multiplier reduced less than the values have been increased, almost every householder in the Marbella area has experienced a significant increase in payments on their apartment, townhouse or villa.

There is some good news, though – it was announced that the IBI payment increases would be introduced gradually over the next 10 years and that those whose Marbella property constitutes their main place of residence will be eligible for a discount.

Homeowners who conform to this category have until the end of March to apply for the IBI subsidy, which has resulted in long queues forming outside Marbella’s Town Hall. This surely can have been no surprise to the local authorities, since the discount for many could be substantial.

Those whose property has a catastral value of under 100,000€ will be in line for a 10 per cent discount; homes between 100,000€ and 200,000€ can claim a five per cent reduction; a home rated at a value of 200,000€ to 300,000€ will be eligible for three per cent relief; and even property valued at more than 300,000€ will be able to claim back one-and-a-half per cent.

All that the householder needs to do to claim this subsidy is to prove that they are registered on the local population register or padron. This is designed to encourage all Spanish and foreign residents to register. The benefit for the Marbella authorities plus others such as health boards etc, is that they are entitled to funding from the central and regional authorities according to the number of registered residents.

Some foreign property owners have only just heard about this subsidy, which is one of the factors blamed for the current backlog outside the Town Hall, as potential recipients hope to register their property before the cut-off date.

Residents in other municipalities outside Marbella should also check with their own town halls to see whether similar schemes are being operated.

]]> http://www.surveyspain.com/blog/the-latest-news-on-the-impuesto-de-bienes-inmuebles-ibi/feed 0 http://www.surveyspain.com/blog/survey-spain-case-study-tornado-causes-flood-damage-to-an-apartment http://www.surveyspain.com/blog/survey-spain-case-study-tornado-causes-flood-damage-to-an-apartment#comments Mon, 05 Mar 2012 11:59:16 +0000 admin http://www.surveyspain.com/blog/?p=209 Continue reading →]]> Most people when buying property in Spain never think of extreme weather conditions and in particular flooding. However, sometimes the unexpected can happen.

Mr. B, who was about to purchase an apartment in Spain, was made aware that a tornado had hit the town of Alcaucín, causing flooding to the underground car park of the development, with the water level up to 15 feet high.

The developer sent him a structural report in Spanish, but it was very brief. Upon visiting the site, he noticed that further damage had been caused. It became quite clear that the damage was a lot more serious than the developer had initially stated.

As Mr. B had experienced other problems with the developer he decided to contact Survey Spain Network for assistance.

Survey Spain conducted an independent survey and report. Having professional surveyors acting on his behalf gave him complete peace of mind.

Read the complete case study below:

Instruction:
The purpose of this report is we are about to complete on a property. We have been made aware that a tornado went through Alcaucín over a year ago and flooded the underground parking; we believe the water level was up to 15 feet high. We were told that there was a structural report and were sent a copy which was in Spanish and was two pages long – brief to say the least. We then visited the site in Oct 2009 and noticed the smaller pool had considerably dropped to one side and there was a large crack on the outer SW wall. We now want to make sure that the property is sound before completion.

Quote:
From what you say a full building defects report is what you require and we’ll be pleased to provide it. We will look at all elements of the property and give you a list of the problems. You’ll be able to use that to assist with negotiating reduction in the price of the property. We can look at it this week and will arrange that as soon as you confirm our instruction.

Work:
Originally instructed to investigate concerning possible common area structural and waterproofing defects that had occurred, we were also able to reassure the client regarding these. However, we discovered that poor legal representation prior to our involvement meant that Mr. B had to accept a different and lesser property than he had thought he was acquiring. We confirmed this to be the case and, whilst unable to change the ownership or obtain compensation, ensured that the property he acquired was completed to specification and not as ‘handed over’ by the developer.

Testimonial:
“From the first contact I made with Survey Spain I felt I could trust what they told me. They carried out the survey as agreed on an apartment in Spain. I would have no hesitation in recommending this company in the future.” 

If you are thinking of buying a property anywhere in Spain, contact reliable experts to carry out a pre-purchase survey. It is not expensive and could save you a whole lot of money and heartache in the future.

The intention was to benefit from the experience and knowledge of members of MBI. As it has been in existence for more than 30 years, its investor and entrepreneur business members have seen the Costa del Sol survive through at least three recessions and their subsequent booms.

Campbell set the background with the strict parameter that assumed Spain would stay within the Euro and the Euro would continue to exist. He also acknowledged that this recession was the worst we had all experienced, as had been the benefits of the boom before it.

There were significant criticisms of the national statistics, but an understanding of the cultural problems that have led to their unreliability. Unfortunately, international investors can only look at the information they are provided with and thus make incorrect assumptions that property prices in Spain have not fallen as much as in other countries and therefore have significantly further to fall. However, many with a ‘close ear to the ground’ and reliable local contacts know that there are always significant opportunities arising and a gradually increasing number of knowledgeable buyers.

Concentration on ‘the best’ is the key, with quality of location, product, marketing and, emphasised repeatedly, service being essential. Any business on the periphery of any of these is likely to mean inferior product, dissatisfaction and ultimately negative returns and failure.

The repeated theme was of the need for confidence in ourselves and in the natural draw of the Costa Del Sol. All have chosen to live here, some for many years and some only recently arrived, but all confirmed that the concentration on marketing for the long-term should be that it is one of the best places in the world to live. It has the natural advantages, excellent current and increasing man-made infrastructure, and a historical, cultural and culinary experience that is a continuing fascination for all. Emphasis on marketing those lifestyle points to possible incomers of all ages, and successful growth of the area will naturally follow. Without individual buyers and occupiers the empty properties and lost opportunities will be with us for many years.

There was a request for the ‘authorities’ to use the experience and contacts of people who had come into the area over the years as ambassadors helping it to grow. Whilst Europe is not the same as the USA, having many different historical cultures and languages, the South of Spain can certainly be likened to the ‘Sunbelt’ of the USA stretching from California to Florida. Much of the development of that area has come from the cold northern states and Canada. Southern Europe cannot benefit from its potential to expand on its own and must look to all the assets and contacts that it has within its current population to spread the message to the North. Personal recommendation is by far the most effective form of marketing and repeat business is the easiest to obtain.

Concentration on detailed service to current ‘guests’, whilst taking some time, will undoubtedly lead to the long-term continued success of the area. There must be caution, imagination and intelligence in accommodating the growth, but the message was put very strongly that the members believed in the area and its potential and they were contributing their working lives to its and their own success.

The discussion was chaired by Campbell D. Ferguson, FRICS, managing director of the Survey Spain Network of Chartered Surveyors in Spain. The lunch was held at restaurant Rincon de Guadalpin, located in the beachside Guadalpin Hotel between San Pedro and Puerto Banús.