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OverviewCountry and sporting properties have been an

intrinsic part of Spain throughout history. Some of the world’s oldest cave paintings depicting humanity’s taming of horses are from the Iberian Peninsula; the Andalusian horse is so named be-cause of its breeding history in the South of Spain; and a strong equestrian, hunting and sporting lifestyle has been central to Spanish culture across the centuries.

While Spain has undergone a property crisis in the past 5 years, the real estate maxim still remains true: High value property continues to be a valuable asset within the broader scope of the Spanish property market.

In 2011, more investors and property buyers have begun acknowledging this, creating stronger demand for country and sporting estates in exclusive areas across Spain. Global changes in the investment motives of buyers has placed more emphasis on ‘lifestyle demand’ features rather than purchasing property solely on the desire for a

future potential return. This creates a more stable alignment of property values, as those properties that meet a buyer’s individual needs better dem-onstrate a stability that has longer term worth.

Property locations: what to look for

Country and sporting estate properties across Spain appeal to buyers and have maintained their value, but it is essential to understand the local market in order to capitalize on the very best

locations and property features. Some specific locational factors influencing demand and supply include:

The number of high quality Catalonian •properties - with access to water and having a rich, fertile soil, has recently expanded fol-lowing changes to bullfighting laws in the autonomous state. Several quality properties previously used for bull-rearing have become available, as original owners no longer plan to utilize the properties in this market.

While properties in the Andalusian hills are •keenly sought after, changes to local plan-ning codes mean in some areas construction and further renovation to existing properties is now prohibited. If looking for a property in this area, buyers should check the property’s location, ensure that the buildings are already well renovated or that renovation is possible and that the title deed is fit for purpose. A new Spanish land register now available in English from the Department of Development

CounTry AnD SPorTInG ESTATES mArkET rEPorT DECEMBER 2011

Following a growing number of enquiries from international clients, in summer 2011, Lucas Fox established a country and sporting estates division to meet this increasing demand.

Investors from northern Europe, the Middle East, Russia, China and Scandinavia are looking for high value equestrian properties, hunting estates and working farms.

This Country and Sporting Estates Market report summarizes the market in 2011 and discusses the key factors to consider when investing in country properties in Spain.

“We will continue to see strong interest in these specialty prop-erties as we enter 2012. They represent a solid investment with long term potential.’’

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(ministerio del Fomento) helps ensure buyers can receive accurate details for any property currently for sale.

Access to a water supply on the property is •an essential feature that buyers should be ensuring on any investment opportunity in the market. While lower quality properties present an insurance risk due to their drought-prone propensity, country estates in northern Spain and in well-positioned lush areas across the country, represent a long term investment opportunity. In some cases, estate owners can share or sell water access rights with nearby villages, creating an ongoing income.

Woodland properties are resistant to price •fluctuations, according to an international research team working with Spanish national research Council. The majority of Spain’s 11.9 million hectares of woodland are held by private landowners, where the amenity of these landholdings accounts for a third of the perceived market value. Woodland proper-ties are often used for mixed purposes includ-ing agriculture, cork production and as hunting grounds.

Sotogrande, on the western end of the Costa •del Sol is a much sought after exclusive zone of Spain, with some of the world’s most presti-gious polo grounds.

Areas around Cadiz such as Vejer remain in de-•mand as multifunctional areas with opportuni-ties for hunting, golf and equestrian sports.

Demand for country and sporting estates

Demand for country and sporting estates is growing, with some analysts noting that in 2011, there has been a 16% reduction in the time that quality properties are on the market for sale, compared to previous years.

At Lucas Fox, interest in country and sporting estates has been growing month by month since the establishment of a dedicated property service.

Spanish country and sporting estates are sought after by buyers for a number of priority reasons including:

HuntingHunting remains a popular leisure pastime in

Spain. Each of the 17 autonomous communities across the country publish an annual hunting calendar in August. Hunting season commences in mid-october. Hunting licences are issued by each autonomous community while the police issue weapons licences.

While some larger game is hunted, in north-ern Spain the most popular type of hunting is ecologically based and focused on the red-legged partridge and the wood cock. The wood cock in particular is popular in the foothills of the Pyrenees and is the preferred hunting target for those in-terested in the sportscraft of hunting, as the flight pattern of this game is a complicated spinning rhythm that makes accurately focusing on a target difficult for less skilled hunters. In southern Spain, boar, partridge, quail, goat and deer are hunted.

As with hunting, fishing licences are required. Coarse fishing (for barbel and carp) occurs in mountain rivers and lakes. Fly fishing (for trout and salmon) is popular in southern Spanish areas like rio Frio between malaga and Granada. non mountain-trout season runs from march to August. Fresh water fishing (barbel, trout, carp) is located in the Amadorio Waters while salt-water sea fishing (tunny, swordfish, mackerel, tuna) is more diversely located – marinas offer boats to allow for fishing some 2 to 3 miles from the coastline.

Horse-ridingHorse-riding is popular the country over with

distinct regions offering a chance to hone differ-ent types of horse-riding. The Catalonian Pyrenees for example, offers steep riding with magnificent views, the Castilian Sierra de Grados is considered the best wilderness riding in the country, while in Andalusian areas like Jerez, the focus is on equestrian skills.

PoloGrowing interest in polo amongst international

investors has led to new polo clubs being estab-lished in Andalusia, with Argentinian polo trainers relocating to the region to train this new market. The annual Balaeres International Polo Tourna-ment in Ibiza further adds to this growing market as buyers seek to improve their polo skills ahead of attending and competing in this annual tourna-ment that attracts global polo champions. This year, the event attracted polo names including martin Valent from Argentina, Calao melo from Brazil and Christian Braun from nassau.

GolfStudies in 2011 suggest that properties near

golf courses have been more likely to maintain their value in recent years and where they have dropped in price have done so at half the rate of similar Spanish properties located further away from golf courses. This reflects the changing buy-ing motives of investors towards seeking proper-ties that meet lifestyle demand requirements.

PrestigeIn addition to lifestyle demands, there are

some market demands for the level of prestige that is attached to exclusive properties. owning your own island (menorca), a 10th century castle (Girona), a mountain or a hamlet are all unique prestige characteristics that appeal to specific segments of the luxury property market.

JuLy AuGuST SEPTEmBEr

Enquiries to Lucas Fox for country and sporting estates (3rd quarter 2011)

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The Spanish country and sporting estate property market

Country and sporting estate properties for sale by Lucas Fox average €7.31 per m2.

Amongst the luxury property market in Spain for country and sporting estates, the areas with the greatest availability are:

Interested buyers are from:

Prediction and Market Analysis

The Lucas Fox country and sport-ing estate service is headed by Char-lotte rodriguez. Prior to her move to Spain 15 years ago, Charlotte was a well-established member of the united kingdom’s Hunting & Shoot-ing circles and remains a well know personality. Since living in Catalonia she has competed in major show jumping competitions in Barcelona and Cerdanya, played polo and is a member of various ‘cotas de Caza’, shooting in central Catalonia/Pyr-enees and in Albecete. Charlotte is extremely well integrated in Spain

and her wealth of experience enables her to help international clients looking for sporting and country estates here in Spain.

Summarizing the market in the final quarter of 2011, and looking forward to 2012, ms rodriguez predicts:

“We will continue to see strong interest in these specialty properties as we enter 2012. They represent a solid investment with long term poten-tial. The drivers of investment property have been changing throughout the year, with an increased focus on lifestyle factors to ensure long term value is maintained in any property. Buyers are looking to use these land assets recreationally themselves, or to grow professional and sporting service busi-nesses on these properties.

However, to be able to take advantage of the availability of some estates means having a close understanding of the specific local areas. One property may be good value in one area while a similar property in the next village along will be less likely to maintain its price in the long-term. Buyers will continue to need to have a firm under-standing of the local factors that influence quality and price, and understand the specific conditions that leverage value with these properties.”References

Campos, P., J. L. Oviedo, A. Caparrós, L. Huntsinger, and I. Coelho. 2009. Contingent valuation of woodland-owners pri-vate amenities in Spain, Portugal, and California. Rangeland Ecology & Management2 3:240–252.

Rimontgo Reality Sense blog, Luxury real estate market feedback, 9 August 2011. Cited at http://www.realitysense.com/luxury-real-estate-market-feedback/

Lucas Fox data The UK Leader, VALUES OF GOLF PROPERTIES IN SPAIN

REMAIN STRONG, 18 September 2011. Cited at http://www.theleader.info/article/30391/values-of-golf-properties-in-spain-remain-strong/

MADRID

CATALONIA

MALLORCA

ANDALUSIA

MALAGA

VALENCIA

Country and sporting estate properties - Location of enquiries (July-September 2011)

Main locations of available country and sporting estates, September 2011

Catalonia•

Mallorca•

Andalusia•

Malaga•

Valencia•

1. northern Europe: uk, France, Germany, Belgium, the nether-lands 2. russia and eastern Europe

3. Denmark, Sweden, norway4. middle East5. uSA6. China

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Alex VaughanDirector

Charlotte RodriguezCountry &

Sporting Estates

beAuTiful MASiA wiTh equeSTRiAn fACiliTieS Spain » Girona » Montseny

lfS3037 €2,300,000

COunTRy SPORTing & equeSTRiAn eSTATe Spain » Andalucia » Vejer

lfS3055 €45,000,000