While the bottom and middle of the Spanish property market flounders, those with cash to splash have started to return to the Andalusian sun.

One of Spain's most expensive properties, La Casa Loriana, is in Marbella

Fine & Country’s Tony Instrall knows this better than most. Together with Martyn Ball, Instrall runs the estate agent’s Costa del Sol business, based in the uber posh Marbella Club.

“We don’t sell anything under a million euros, which keeps us to a very niche market,” Instrall explains. “We offer a full premium service to our clients and the results have been very good so far.”

Crucially, unlike in the rest of the Spanish market where the bubble has well and truly burst, the demand for high end and exclusive property in Marbella remains steady. Those on the hunt for a perfect piece of Spanish real estate tend to be a mix of retirees, holiday home hunters and investors who come for Marbella’s micro climate, coastline, golf courses, and, let’s face it, glitz.

And there’s strong interest from UK buyers, says Fine & Country Spain director Martyn Ball.

“The British market in Marbella is once again particularly strong, rivalling recent healthy markets of Russia and Scandinavia.

“During the last decade we experienced booming global markets and purchasers were prepared to travel further afield to buy property, with their curiosity for new horizons. It seems, whether cyclical or due to economic and political unrest in numerous global destinations, the British market is returning to areas much closer to home and to trusted areas to buy property, Marbella being one of them.

“One thing is for sure, the British buyer is a savvy purchaser and is seeing great value in the many opportunities in the upper quartile of the market. Consequently the British are active again and are benefiting from the current availability of luxury mansions at 2004 and 2005 prices.”

On their books at the moment is one of Spain’s most expensive homes, the incredibly grand La Casa Loriana (pictured above), which at 4,000 square metres can accommodate up to 20 people, has its own private lift, guest quarters, Turkish bath, gym, medical room and cinema and is on the market for 50 million euros.

This villa in Marbella is on the market for 5.9 million euros

Slightly more affordable at 5.9 million euros is a six bedroom new build (pictured above) with panoramic views of the Mediterranean Sea in one direction and the La Concha mountains in the other. The swimming pool, gym and home cinema are of course included.

British buyers are seeing the opportunity in Marbella's luxury mansions, says Fine & Country's Martyn Ball

The high end property business is going so well that Fine & Country are now looking to sell homes in Barcelona and property in Majorca. “Barcelona has strong international appeal, but there’s a domestic market there too,” Instrall explains. “It also has a strong appeal to Russians, but not necessarily the Oligarch billionaire market, it’s more wealthy people who want to bring up their families in an international setting, but within striking distance of home. While prices may have dropped a bit in Majorca, there are still lots of people buying there, including huge interest from the German market.”

If you are about to buy an overseas property then, despite today’s uncertain global economy, you are one of a growing number of people returning to the market after a period of, how shall we say, choppy waters.

The latest PrimeLocation.com International Search Index, which is published quarterly, reveals that the number of people house hunting on our site increased overall by 14% during the third quarter of 2011 and by 17% for the top ten most popular destinations (see list below).

At the top of the table, the United States is the most popular attracting 31% more searches than in the previous three months and overall it remains the third most popular destination for property hunters.

France: one of the European countries that an increasing number of British buyers searched for last quarter.

Switzerland was another big winner within the top ten – the number of searches for its Alpine homes increased by 30%, helped by the thousands of wealthy Brits moving money into its safe haven property markets at the moment.

But what, you may ask, is stirring people to buy overseas when several of the countries popular with British buyers are facing financial meltdown – i.e. Spain, Italy, Greece and Portugal?

The answer is that searches are beginning to increase again in the better known destinations despite the financial problems besetting them as many British retirees decide it’s time to emigrate to Europe and beyond for a better quality of life despite the recession.

PrimeLocation.com index also recorded more interest in Germany; searches there rose by 28% compared to the previous quarter driven by its status as the darling of international investor set as its economy shrugs off the recession.

So are there any losers? Only two countries within the top ten saw a decline. Searches for Cyprus property fell by one per cent, and the United Arab Emirates by five per cent, which dropped one place as a result within the Top Ten.

For a full list of the most popular countries by volume of searchs, go to www.primelocation.com.

There’s a reason why one of Spain’s most expensive homes for sale is in Marbella. The Costa del Sol destination is synonymous with luxury and international glamour and is the Spanish equivalent of St Tropez or Monte Carlo. Marbella abounds with multi-million pound yachts, high net-worth individuals and celebrities including Sean Connery and Antonio Banderas.

So it was no surprise when a Marbella property for sale at an eye watering €50 million landed in our inbox. It’s not the average home a Brit looks for in Spain but there is no doubt a market for this exquisite luxury home.

La Casa Lorianna, as it is called, was built in 2002 and sits elevated just above the Golden mile beach. It’s walking distance into town and close to the Marbella Club Hotel, a longstanding favourite with the holidaying elite.

Not that the new owner of La Casa Lorianna would need to be near a hotel – as this home is designed with entertaining in mind and can sleep 20 guests – in suites with their own bathrooms and balconies. And for those seeking some extra privacy there’s a separate guest house and a beach house. Plus there’s separate accommodation for 3-4 staff which is ideal help to look after all those visitors.

The Spanish mansion not only offers the luxury lifestyle of Marbella, it has an enviable quality of life from within its grounds as well. There’s a cinema, health centre with sauna, Turkish bath and gym, a swimming pool – complete with waterfall and grotto and the top floor accommodation is all for the lucky owner with an office, library, his and hers bathrooms, walk in wardrobes, a terrace from which to enjoy the sea view and – in case you fancy the mountain view – a terrace to cover that vista too.

Exclusively available through Fine & Country Spain.

Still struggling to gauge the sheer luxury and expense of this Spanish pad? Check out the video of it below:

Not so long ago everyone was snapping up second homes on a sunny Spanish Costa or other equally warm European destination. But now the escalating debt crisis in Southern Europe is affecting the number of Brits looking for a home abroad.

Our new research reveals interest in Portuguese, Italian, Greek and Spanish property fell by almost a quarter (24%) between January and June this year.

As concerns mount that Italy and Spain may be the next victims of the toxic European debt crisis, our data suggests their sensitive property markets are already suffering.

The table below shows each country’s percentage decline of interest in property searches.

Interestingly, although Ireland suffered at the beginning of the year, it’s the only debt-ridden nation to have an increase in property searches, up 12 per cent between April and June, compared to the first three months of the year. Perhaps investors think the country has now hit rock-bottom and are taking advantage of the low prices?

This research also backs up recent findings from estate agents Knight Frank which revealed second home ownership in England is at its highest on record as families enjoy ‘generational staycations’ – where they take the grand-parents and children away to a large family holiday home within the UK.

But whilst the economy may be more stable here, we do lack the continental sunshine.

This Friday the Channel 4 TV show A Place in the Sun begins its three day tenancy at Earls Court in London and Primelocation International will be there, along with 160 companies offering overseas properties for sale and homebuying services.

Headlining the event will the show’s three most famous presenters – Amanda Lamb (who presents the show’s video, below), Jonnie Irwin and Jasmine Harman – who will be appearing on stage to give advice about buying foreign property and answer questions about their work as TV presenters and signing copies of A Place in the Sun magazine. But they will also be joined by other experts including LBC radio presenter, property investment guru and Apprentice TV show contestant James Maxx.

VIDEO: Watch Amanda Lamb introduce this year’s A Place in Sun Live show

Primelocation International’s property analyst Nigel Lewis will also speaking every day at the show on the main stage, revealing ‘ten things you didn’t know about overseas property’ including which country has the easiest buying/conveyancing process; which town the Spanish holiday home revolution started in, which country offers the best quality of life and which day was the best financially to buy a property in Europe over the past year. Catch him during the show at 11.45am on Friday, 12.30pm on Saturday and 2pm on Sunday.

And if you want a free ticket to attend the show – follow this link to claim yours.

The property market on Spain’s Costas has, if you want to be charitable, been in freefall for nearly three years now but there are promising signs that the unbearable pain in Spain may soon be over – sort of.

Spanish-English developer Taylor Wimpey de España tells me this week that the Brits are back – at last – and the sighs of relief at the company’s Malaga, Alicante and Mallorca offices are palpable.

But the company says it’s only prime properties that are attracting British buyers and usually only in upmarket locations in Majorca and the Costa del Sol. As is always true in recessions, recovery always takes place first in the safest and most familiar markets.

We may have put our dreams of a Spanish home to one side during the recession but Taylor Wimpey España tells me this summer has seen an 80% yearly increase in enquiries from Brits desperate for the Spanish lifestyle including the sunshine, golf courses and Mediterranean beaches. And it’s no longer just the retirees heading to the sun, so far this year 80% of Taylor Wimpey buyers were aged between 30 and 55 years old.

I talked to Victor Sage at Taylor Wimpey, who told me: “Buyers have been waiting for the market to bottom out before they invest. In premier destinations, like Marbella, this is without doubt now the case hence the spike in interest and serious buyers”.

Victor explained that there is oversupply in certain areas of Spain but it is a localised problem and changes from town to town; “the best units in the best resorts will always sell” he assures me.

Prices are 20-25% lower than 2007 but Victor said that if the current demand continues it will push up prices, he thinks that “for those who have been sitting on the fence, sensibly watching the market, now is an excellent time to buy to make the most of the reduced prices and excellent property on offer”.

With less disposable income our property budgets have reduced since 2007 when 45% of us were spending between €250,000 and €350,000 on our Spanish homes. Now 72% of us are on a lower budget of between €150,000 and €250,000 with 60% looking for two bed room properties.

For more information on Taylor Wimpey’s Spanish developments for sale visit their website

As a million or more TV breakfasts balanced on a nation of knees so the second day of ITV’s much hyped Daybreak was rattling through this morning, carried largely by the nation’s favourite celibate couple, Christine Bleakley and Adrian Chiles. Both were looking flush, I thought, with the  millions ITV paid them to jump ship from the BBC’s quirky evening magazine programme The One Show.

But I don’t think Daybreak’s bleary-eyed audience will get the duo’s brand of early-evening humour and the allure of The One Show was its thought-provoking magazine-style features. But let’s give them a chance to blossom and develop.

Nevertheless one thing I can’t let pass was their report from Spain about the property market which, rather glumly, the show’s reporter said is now more Holiday Homes from Hell than A Place in the Sun.

Daybreak’s report chose its angle carefully and focused only on the most vulnerable of the British who moved to Spain, the ones who were always going to need an earned income to survive and who have been hit hard by the downturn.

The first to arrive in Spain during during the late 1950s were adventurous, well-off and usually bohemian home buyers but it wasn’t until Spain turned into the favoured holiday destination for millions of us that owning property on the Costas became a mainstream, discuss-down-the-pub type habit.

But the problems began when the most vulnerable started to move south; the ones interviewed on Daybreak this morning. These are the expats who retired early or moved their young families to Spain in the belief that they’d find jobs despite not speaking the lingo, having much money or possessing the skills needed to make a living on the Costas.

Each story has its own idiosyncrasies and some people have just been unlucky but it’s these type of ex-pats who are the ones moving back home in droves. The type of work they once relied on to keep them in paella and patatas bravas are now scarce – both the tourism and property markets are struggling to survive the recession and these were the traditional areas for unskilled Brits to find a job.

But one thing Daybreak didn’t mention is the 150,000 or more retirees who live in Spain and who – a NatWest bank survey revealed last week – are doing just fine.

The bank revealed that seven out of ten retired Britons living overseas were happy with their new country, and that one in five – or 20% – had returned back to the UK. I wonder if Adrian and Christine will get round to interviewing them?

For those buying a holiday home abroad who intend to make full use of it during the warm summer months, the ultimate must-have is a swimming pool.

There’s nothing quite like having your own, private swimming pool on hand, so you can take a dip and cool off, or get your daily dose of exercise without leaving the confines of your room. Plus, relaxing by the poolside in the sun, enjoying drinks by the pool before dinner or dining outside in the cooler evening air are the ultimate ingredients for perfect holiday living.

If you fancy snapping up your own luxury home with a swimming pool, then here is a great selection of prime homes, all sporting swimming pools of various sizes, located in the popular locations of Spain, France and Portugal. Take your pick!

Spain

Located in Atalaya Park, between Estepona and Marbella, this one-level house with five bedrooms and four bathrooms also boasts a private swimming pool, outdoor sauna and Jacuzzi. It’s on the market for £798,235.

Also available in Spain, is this five-bedroom house situated about five minutes from Palma. It benefits from air conditioning, has a large garden, extensive terraces and that all important swimming pool. It’s priced at £746,585.

France

A sunny six bedroom villa, located in the hills of Golfe-Juan and 10 minutes from Cannes is on the market for £895,994. Outside, it has a private heated swimming pool, plenty of space for relaxing on sun loungers and a stunning Mediterranean garden. Nice International Airport is only 15 minutes away.

An L-shaped, solar heated tiled swimming pool is the star of the show at a five-bedroom house in Montpelier for £861,730. Located in a residential area of a village, the outdoor living elements include a large covered terrace with exposed beams, landscaped gardens and the pool. The house comes with planning permission for an independent guest house.

 
Portugal

A five-bedroom country villa, located in Sta Barbara de Nexe, at Quinta do Lago in Portugal is on the market for £749,402. The house is partly furnished, has air conditioning and outside there’s a beautiful mature garden and lovely swimming pool. Faro International Airport, golf courses and beaches are 15 minutes away.

Elsewhere in Portugal, there’s a luxury villa for sale in landscaped gardens and citrus groves in the hills about Loule. Inside, the villa has underfloor heating, three double bedrooms solar panelling and air conditioning in the kitchen. Outside, it’s surrounded by gorgeous gardens and has an inviting swimming pool. There’s also a covered eating area with its own kitchen, which makes it perfect for outside eating and parties. It’s on the market for £727,803.

There’s encouraging news for anyone trying to claim back overpaid capital gains tax from the Spanish Government, as a British couple become the first successful claimants to win back their money.

It’s nearly a year since Spanish lawyers Costa, Alvarez, Manglano and Associates (CAM&A), and currency brokers HiFX, together exposed the Spanish Government Capital Gains Tax scam. In March 2008, the two organisations revealed that non-Spaniards who sold properties in Spain between March 2004 and December 2006 were charged a hefty income tax rate of 35% on any Capital Gains, despite Spanish nationals only paying 15%.

They claimed that the charge contravened the European Community Treaty rules on discrimination and that it was against the rules for the Spanish Government to have made the charge. Plus, the Spanish Government could have made up to £350 million as a result of it.

To help bring justice to all those affected by the overpayment, CAM&A and HiFX launched Spanish Tax Reclaim last year and encouraged anyone who could have been affected to get in touch with them.

Many people did and, in addition to the successful claimants, 600 other British people are in the process of having their cases put forward to the Spanish Court. Between them they could be in line for reclaiming about £8.4 million, plus interest (the average tax reclaim is £14,100, plus interest). However, it’s thought that as many as 10,000 Brits could still be affected by the tax issue and entitled to claim up to £140 million.

If you sold a property in Spain between March 2004 and December 2006, then check out the Spanish Tax Reclaim website for more details of how to register a claim.

Q. My partner and I are looking to buy a cheap property in Spain with a view to living there permanently and commuting to England via one of the many budget airlines. I’m sure you’re aware that we are spoilt for choice with Spanish property due to the similar national downturn in buyer interest but we are still attracted by competitive ‘off-plan’ deals for newbuilds. Can you advise.

A. A lot of new property in the Eurozone is sold ‘off-plan.’ Put simply, off-plan means when a builder or developer produces plans for a development in advance of construction and starts selling units to buyers based purely on those plans. Usually, the buyer will pay an initial deposit of around 5-10% with stage payments until the property is complete whereupon a final payment is due.

A word of caution, however, given today’s financial turmoil which is affecting most other Eurozone countries similarly to the UK. Many developers, even once financially sound and profitable concerns are in deep financial trouble and/or have gone bust. Sadly, many continue to give the illusion of still trading, taking deposits off unwary non-national buyers and disappearing into the night with their money. If you can handle the risk of buying property off-plan, always use a fully qualified English speaking lawyer (not one recommended by the developer or agent) who is willing to place your deposit into a bonded account with a solid bank guarantee which, should the developer go bust, means that your money will be safe.

If you’d like some more information, take a look at our guide to buying property off-plan.