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Andalusia, leading the way in failed development projects!

The 2007 financial crisis affected the savings, jobs and dreams of millions of people. In Spain, many of the most exciting real estate developments that had been planned in the south of the country were cut short, leaving thousands of people without their dream Spanish property and deposits lost. Andalusia was undoubtedly one of the Spanish regions most affected by the economic crisis.

In this article, we will go through some of the more well-known developments that failed in the Andalusian community, projects that continue to generate uncertainty among the large number of people who have been affected and who are unaware that they still have time to get their money back!

Housing developments not completed in Andalusia

We started our tour in Fuengirola, Malaga. Here, a Spanish developer, Aifos designed the construction of 300 homes in Cortijo de Torreblanca.

In 2003 – 2004, property buyers invested deposits of approximately €25,000 for their dream Spanish property, but sadly houses still remain unfinished. Aifos was declared bankrupt in 2009, with the development still incomplete.

Despite the bankruptcy of the developer, everyone who was affected by this particular housing development should be aware that they can still recover their lost money from Banco Santander with our help here at MySpanishDeposit.

Following our journey through the Malaga town of Manilva, the developer Manilva Costa designed the construction of 258 homes in the housing development of Jardines de Manilva. The expected completion date of December 2007, was once again missed with houses left incomplete! Manilya Costa quickly became the fourth largest bankruptcy in Seville.

Families, many of which were British and Irish, contributed an average of €50,000. Luckily, buyers are able to claim their money back from CaixaBank – one of the guarantors of the development.

Malaga, the most affected region of Andalusia!

We continue our route in Malaga and here we come across one of the most notorious housing development failures in the region, Puerta de Torrox.

In the town of Torrox, this developer promoted a total of 84 properties with a completion date during the last half of 2007.

Still, two years after the proposed date the properties were not completed and buyers were left without their Spanish home. If you lost out on this development, it is possible to recover your money by directing the claim to the Zurich insurer (an entity that has absorbed ACC Seguros).

The average contribution of each family for this particular development amounts to approximately €25,000.

Failed property developments in Granada

Our tour ends  in Atarfe, where in this Granada town the developers Bareo Investments and Peninsula Project Management designed the construction of the Residential Complex Medina Elvira Golf Club.

Bareo Investments planned the construction of 72 properties on plot 21 within the Medina Elvira development, with the initial plan that houses would be ready by the end of 2008 for buyers to move in.

However, the first-occupancy licence was not issued until well after 2010, resulting in an obvious breach of the original promotion which was punishable under the Law 57/68. The Law helps many people who purchased  properties get a refund of the deposits placed on uncompleted properties throughout Spain. These refunds can be claimed from the financial institution with which you deposited your funds for the purchase of the property.In this case, it is possible to reclaim money from Avalist Bank Cajasur.

For its part, Peninsula Project Management managed the construction of two buildings which would include 186 homes, on plot 22 of the Medina Elvira development, providing buyers with the expectation that their properties would be ready at the beginning of 2009. Unfortunately, it was not until April 2010 that the City Council issued the first occupancy licence and with the absence of insurance, the claim in this case is directed against Generali.

In both cases, the promoters were declared insolvent and today the licences are the subject of legal proceedings before the Court of Grenada.

Andalusia was not the only region to be affected by the economic crisis and the after-effects are now prevalent in our country.

Contact MySpanishDeposit if you paid a Spanish developer a deposit for a home between 2005 – 2016 that didn’t get built, and the developer didn’t give you your deposit back! 

Lawyers from Eskariam are some of the team that have already recovered over €200 million worth of lost deposits on behalf of thousands of people like you. If you pursue your claim with us, there is zero up front cost, and zero risk to you. If you win, the legal team will charge a fixed percentage of the money that you recover, with no hidden fees and no hidden extras such as VAT.

Click here to learn more and read our frequently asked questions.

Register now – before the 20 September 2020 cut-off date for new registrants - so our legal team at MySpanishDeposit can take the necessary steps before the deadline runs out in October 2020.

Author: Enrique Ruiz, lawyer

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