Insurance News Archive

Beach properties in Spain could be demolished

A total of 3,500 commercial and residential properties in Spain could be demolished without compensation to their owners following a government decision to enforce often ignored legislation.

The Ley de Costas, which governs construction of commercial and residential properties, has long been ignored by local authorities but the Environment Ministry has announced that it will start enforcing the law retrospectively.

Under the law, no residential properties can be built within 100 metres of the high tide mark, though some have special permission and some commercial use is allowed.

But lax enforcement by authorities has led to illegal developments such as hotels, blocks of flats and homes that are to close to the beach.

Any properties which fall foul of the rule could be demolished as the government gets tough and no compensation will be given.

Carrying out the plans would cost the government €5 billion (£3.5 billion) and some experts hope the expense will make the Environment Ministry reconsider.

31 Oct 2007