PENINSULA | WHAT THE MEDIA SAYS The Mail on Sunday

BUYING ABROAD 22/10/2006

Is this a new wonder of the modern world?

The developers are stirring in the shadows of Granadas magnificent, iconic Alhambra
The magnificent Moorish Alhambra in the Andalucian city of Granada has become such a revered architectural icon that it is in the running to become one of the new Seven Wonders of the World in the New 7 Wonders vote. The result will be announced in 2007. Yet despite its fame, Granada as a second-home towns such as Marbella, a mere 90 minutes away, typically attracting the kind of buyer who fancies restoring a rural ruin. Now that sleepy image is walking up-with the first new golf developments emerging on the fringes of this beautiful city of historic Arabic market streets, caf-lined squares and buzzing tapas bars. Just ten minutes west of Granada, Medina Elvira has a striking setting, framed by olive groves, the peakes of the Sierra Nevada 30 minutes away and Cubillas lake for watersports. In a move to push the appeal of Europes second highest and most southerly ski resort, the longest cable car in the world is being built to span the 12 mile stretch from central Granada to the Sierra Nevada slopes. A new motorway is also under construction, bringing the Costa Tropicals beaches to within half an hours drive. Apartments at Medina Elvira start at 165,000 (117,000) for one bedroom, 245,000 (175,000) for two. Ready by late 2008 will be an eventual 2,000 units, along with an international school, shopping centre and hotel all overlooking the golf course lending the development a lived-in, small-town feel. `Granadas property market is untapped so far and this development is a completely new concept, says Gapsar Lino, director of Peninsula, the Medina Elvira developer. `In the past few years, Granada has expanded considerably, and now prices are so high in the centre of town, families are moving towards the suburbs, he adds. He envisages the initial swathe of investment to come mainly from UK buyers looking to capitalise on 15 per cent annual price rises an rental packages with an estimated eight per cent gross yield. Robin Macdonals, 35, a landlord from Caverswall in Staffordshire, is confident about Granadas investmen potential, having bough five apartments at Medina Elvira in January for 150,000 (107,000) each. QA, Why buy in Medina Elvira? Whith such a beautiful setting on the lake, skiing and beaches half an hour away, it ticks a lot of boxes. This area east of Malaga appeals to people who really like Spain, not just sun and beaches. It also offers far better value for money. It used to be hard to get to, but now its easy using budget airlines. QA, Is southern Spain still a good investment? I started buying properties in southern Spain two-and-half years ago. Payment terms are attractive you pay only 20 per cent until completion and the guaranteed rental covers my mortgage. QA, Is there a risk of over-development? Because Granada has not seen anything like this, and the development is being pitched as the most upmarket in the area, I dont think it will be a problem. QA, Why did you buy one bedroom apartments? It will appeal to Spanish buyers. If you drive around Granada, you see lots of dated apartment blocks in the suburbs. If more tourism comes to the area, local wealth increases and more people are employed to work away from home so there will be a need for good-quality property.

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