Status: 16.01.2024, 10:55 a.m.
By: Sandra Gyuratis
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Suspected real estate fraud: On the coast of Águilas in the south of Spain, one of the residential complexes was to be built, which will probably never be built. © Águilas Town Hall
Attractive location and reasonable prices tempt around 1,000 buyers in the south of Spain to purchase an apartment by the sea or in the city off plan. But the real estate is never built.
Granada/Almería/Murcia – An apartment by the sea or in the city, new construction and not as expensive as real estate usually is on the Spanish coasts: Many have not missed the supposed opportunity and bought a property in Andalusia and in the region of Murcia in the south of Spain off plan. They made advance payments of between 12,000 and 55,000 euros for apartments that have not yet been built and are unlikely to ever be built. This is because the developer Grupo 21 from Córdoba does not own a single one of the plots on which the residential complexes were to have been built. In addition, in most cases, the company does not have the building permit of the respective town hall. There are some indications that the buyers have fallen victim to real estate fraud.
Suspected real estate fraud in Spain: buyers pay for unbuilt apartments
According to a report in the newspaper "El País", Grupo 21 has planned and marketed 18 residential complexes on the Mediterranean coast of Granada, Murcia and Almería in the south of Spain. About 1,000 apartments have been pre-sold, 1,000 buyers are affected by the alleged real estate fraud. Grupo 21 is said to have collected a total of 15 to 20 million euros in this way. The properties sold but not built are located in the municipalities of Almuñécar in the province of Granada, Águilas in the region of Murcia, Aguadulce, El Toyo, Roquetas del Mar in the province of Almería and in the city of Almería itself. A planned project in Málaga on the Costa del Sol, where real estate prices are rising unchecked, does not seem to have come to fruition because the architect is said to have become suspicious and dropped out.
The Guardia Civil in Spain has launched an investigation into the alleged real estate fraud, while those affected are forming platforms to defend their interests. An affected buyer from Almería described to "El País" the approach of the developer Grupo 21: The company secured the acquisition of the building plots through a reservation. In the case of Almería Center, it is said to have been a payment of 300,000 euros. After that, the company had a year to pay the full sum – four million euros in the case of Almería – but this did not happen. Everything seemed so serious, reported another affected person from Águilas on the coast of Murcia. Grupo 21 had assured him that it had all the licenses and that it wanted to start construction shortly. The man decided to buy a 60-square-meter apartment for 132,000 euros in Las Lomas and paid 17,500 euros, which could now probably be lost
Spain: Fraud with attractive real estate by the sea - lawyers count banks
A reservation is enough to start marketing the project. Grupo 21 offered attractive locations and prices that were cheaper than comparable new buildings in Spain. The buyers became suspicious when the start of construction was repeatedly delayed. The first cancellation took place in Almuñécar, on the coast of Andalusia. According to the lawyer of the 26 people affected, sales started in January 2022, but in May 2023 it was said that there would be no construction. It is true that Grupo 21 assured the repayment of the reservations. But so far, no buyer has seen his money. The lawyer has since filed a criminal complaint against the company for fraud and embezzlement.
It does not seem very likely that those affected by the alleged real estate fraud will get their money back from Grupo 21. Lawyers and platforms are therefore targeting the banks. In their view, banks have a duty of supervision under the law and must check whether a developer in Spain can provide professional indemnity insurance and surety insurance, which are intended to protect the customer if the real estate company goes bankrupt. For the lawyers, one thing is clear: the banks must return the money to the injured parties, plus interest.