Property declared illegal on sale in Marbella

marbella-propertyA news report published by The Observer dated October 18, 2009 revealed an alarming fact on the Marbella property market citing an already declared illegal property still on sale. The development adjacent to Banana Beach, just three-minute walk from Marbella town centre, has been declared unlawful under the new Marbella Town Planning (PGOU).

This is certainly distressing for many buyers who were to book their homes in that beachfront property in the Costa del Sol resort town. After the approval of Plan General de Ordenación Urbana in July this year, the said development has not been granted alternative license and directed for demolition. Despite this, advertisements for flats at Banana Beach are still on display in some estate websites.

The report has quoted the name of some websites where one can still find ads for Costa del Sol apartments consisting of 1, 2, 3 and 4 bedrooms. It is to be noted that a review was conducted by the administration but no further planning permission was granted. Moreover, there is no information about the latest ruling in those websites.

Although Mayour Angeles Muñoz has granted retrospective planning arrangement for almost 18,000 “illegal” homes under the PGOU, this particular building has been ordered for demolition, probably by next year. One of the reasons may be that, Banana Beach which came into existence in 1998 already violates one law which prevents homes close to coast and the development is just 100 metres from the beach.

Many Britons who have homes at Banana Beach or some other areas in Marbella are facing the wrath of this new urban planning law. The authority has also not announced any specific compensation plan; it was in fact the result of corrupt government officials, indulged in many scams and fraudulent activities that almost ruined the Spanish property market.

Marbella Mayor, while approving the new law, has promised for strict action on any unlawful act but this report shows that, there is lot to be done. Even after almost a week of the original report published, websites like and are yet to remove those ads featuring property starting from €259,888.

Planning irregularities and the uncertainty in legal terms have already disheartened many buyers during a time in which the market is yet to recover from the global economic meltdown. And things like this will do no good to the overall growth of Spanish property market and the impression that the country is indeed one of the favorites of foreigners, when it comes to second home or retirement.

Original report:

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