Tenerife - An obvious choice for property investment.
15% of those surveyed stated that they were looking to purchase a property overseas in 2009 and of those most were looking to live overseas as well.
Tenerife is a great choice and popular with those wishing to make such purchases for investment as well as to live long term due to its climate and long periods of winter sunshine and proximity to the UK.
The average cost of renting a home in Spain fell 7% in 2008, according to the latest report jointly prepared by Fotocasa.es – one of Spain’s biggest property portals – and IESE – one of the world’s leading business schools.
Residential rents are now back to where they were in December 2006, when Fotocasa and IESE first started collecting data to track the rental market.
Rents reached their peak in May 2007, at 10.12 Euros/m2/month, and have now fallen to 8.98 Euros/m2/month, a fall of 11.3% in nominal terms. Average Spanish residential rental prices have fallen continuously since March 2008.
The type of rental property most in demand is a flat of 60m2. The average monthly rent for this type of property is 539 Euros per month.
Residential rents rose in 6 region: Galicia +7.6%, Cantabria +5.8%, The Basque Country +5.6%, Extremadura +3.8%, Asturias +1.4%, and The Canaries +0.6%.
Residential rents fell the most in The Valencian Region -8.8%, Catalonia -8%, Castilla-La Mancha – 6.3%, Madrid -4.4%, and Aragon -4.2%.
By province, rents fell the most in Valencia -9.1%, Alicante (Costa Blanca) -8.3%, Girona (Costa Brava) -7.8%, Toledo -7.4%, and Lleida -6.8%. They rose the most in Huelva (Costa de la Luz) +18.8%, Cadiz (Costa de la Luz) +13.7%, Leon +7.8%, Vizcaya +7.5%, and Ourense (Galicia) +7.4%.
Rents were most expensive in Barcelona (12.15 Euros/m2/month) and cheapest in Ourense (4.66 Euros/m2/month).
Tenerife's own on-line magazine
I have been a fan of etenerife.com for a long time now. Apart from the fact that it is run by a fellow Scot (apologies for my not so latent nationalism!), etenerife.com is a very interesting, informative and entertaining magazine site covering many aspects of life here on the island, as well as a good source for what is happening, things to do, excursions, blogs and so on. Highly recommended!
Property vs the Stock Market
The British and Irish still dream of buying property in Spain.
Demand and transactions may be down steeply, thanks in part to the credit crunch, but the desire “to buy an investment property or holiday home in Spain or its Islands is a strong as ever,” says ADH. The desire is being fuelled in part by the need to bolster diminishing pensions.
ADH conducted the survey to gauge British and Irish attitudes towards buying Spanish property, and Spain in general.
“Although actual sales are down on previous years, the numbers registering an interest in Spanish property show that desire and demand is returning,” explains Group Marketing Director Adam Godwin.
“We advertised throughout the Christmas period and saw a sharp uplift in both visitor numbers and new registrations, which clearly shows the desire to find out about Spanish property is as strong as ever. In this new-look market where interest is high and prices are low, there are other hidden factors at play so we surveyed our database to find out what they are.”
Other points of note in the survey were that buyers felt confused about how to recognise and choose the best locations and – in these times of big discounts and fluctuating exchange rates - how to accurately assess the real value of a Spanish property.
ADH say the response rate was excellent, which they argue shows there is still “massive interest in Spanish property despite the economic and market changes over the past year.” They do, however accept that “it’s obvious those who are interested in purchasing have legitimate concerns about a range of issues.”
One of these issues is the exchange rate. “We have already begun taking action to help would-be buyers,” says Godwin. “For example, the pound to euro exchange rate is a major issue for many, so we’re in discussions with vendors to drop euro asking prices. Those looking to send funds to the UK can now afford to drop asking prices considerably, and we’re making that happen for our clients.”
Tenerife Carnaval
Just found a lovely site for professional quality photos of Tenerife and La Gomera in the Canary Islands, and Sal and Boa Vista in the Cape Verde Islands.
The site - canaryphotostock - has a gallery of more than 4,000 professional photos/images which can be searched in a variety of ways, including location (e.g. Las Americas, Los Cristianos etc) and type (e.g. beaches, Teide etc) or by simply just browsing.
Cleaner beaches will help tourism in Tenerife
Authorities in the country will spend 5.6 million Euros on tidying up coastal stretches, which one expert believes could spur property investment.
Market analyst James Gonzalez claims that the work planned will help draw foreign nationals back to popular tourist hotspots - ultimately supporting the local rental market.
Mr Gonzalez commented: “This investment comes as a welcome boost to tourism in Spain and its Territories. Measures like this mean areas will be able to maintain their attractiveness to holidaymakers, an essential consideration for buy-to-let investors.”
He added that better beaches could only make purchasing property in Tenerife and Spain “more appealing”.
A new book clearly explaining the rights of Tenerife residents could be just the ticket for recession-hit expats…
Tenerife Lifeline - a must read for anyone wishing to live in Tenerife
Expatriate British and Irish residents in Tenerife may be more likely to feel the recession pinch than other residents on the island. Retired and working residents are particularly vulnerable to a combination of factors brought about by this recession and according to Tenerife Lifeline, a lack of information has made dealing with these problems even worse.
A weak pound has substantially reduced any income that may have come from the UK, which has directly affected many retired residents claiming a pension as thousand are lost in currency transfers to Tenerife. If you require a currency transfer, you should consider a money broker rather than a bank as the charges are less.
An increasing number of remote workers who have settled in Tenerife, earning money from the UK and Ireland, have been equally affected.
The effects of recession may be hitting expats in Tenerife hard, but it is made worse because many British and Irish residents are unaware of how the Spanish system works and how to benefit from it.
An increasing number of residents have discovered Tenerife Lifeline, a book written in English that answers all these questions. The book clearly explains expat rights in all aspects of life, from employment, health to mortgages, credit and tax, and is relevant whether you own a business, work for one or you are retired.
The book is very practical, showing you how to go about getting what you are entitled to. Available from shops all around the island, including the Trading Post in Las Galletas, this invaluable guide is helping more and more of Tenerife’s expats through the recession.
Inflation falling
Spanish inflation fell to 0.8 percent in January, the lowest level since June 1969, official data showed on Friday…
The figures from the statistics institute INE showed that this was the sixth month running of declining 12-month inflation in Spain, which entered its first recession for 15 years in the second half of 2008.
Prices fell by 1.3 percent in January from the price level in December, on a European Union harmonised basis, owing largely to the impact of the start of the winter sales period which lowered prices especially for clothes and shoes.
Labour Minister Celestino Corbacho told public radio RNE the drop in inflation would provide an “oxygen bubble” to households which would be able to consume “in better conditions” because of the drop in prices.
The figures confirmed a preliminary estimate issued on January 30 by the statistics office. At the time the government ruled out the risk of deflation, a sustained fall in prices, is seen as a danger to the economy as it can lead consumers and companies to hold back on spending as they wait for even cheaper prices.
“We do not contemplate that scenario, what will happen is a soft drop in prices over the coming months,” Deputy Prime Minister Maria Teresa de la Vega told reporters after the estimate for January inflation was released.
Twelve-month inflation rate has fallen each month after hitting 5.3 percent in July, which was the highest since January 1997, due to the abrupt economic slowdown and lower oil prices.
In November, Economy Minister Pedro Solbes forecast that inflation would probably slow to about 2.0 percent in December and continue to fall to below 1.0 percent by July 2009.
This fall in costs should assist tourist destinations such as Tenerife, popular for holidays and those wishing to buy second homes. More information on holiday accommodation, car hire and property for sale or rent can be found in the Tenerife Property Guide website.
No price cuts in Canarian tourism sector
Business leaders in the Canaries and Spain have responded angrily to calls, including one by the president of the Canaries, for hotels to drop their prices to prevent tourist numbers from falling further.
Prices will not be adjusted to the current situation despite calls for these measures in the difficult economical times. Both the head of the Spanish Assocation of Chambers and the Las Palmas regional Chamber have called the idea ludicrous. ‘We did just that in the 90s and have still not recovered from the problems it caused. Prices were cut by 20% when the fall in numbers was just 3%’ said Spanish chief Javier Gómez during a visit to the Canaries’ stand at the FITUR holiday fair yesterday.
Tenerife- A land of contrasts
Cesar Garcia, is an unemployed waiter who walked his way around Tenerife recently and said he enjoyed the experience so much he would do it all over again.
Cesar , aged 38 came up with the idea over the Christmas holidays and set out from Palm Mar in Arona in mid-January, with a tent and a sleeping bag to provide shelter at night and a radio to keep him company. He slept on beaches and in the hills, eating sandwiches bought in shops along the way. Cesar has appeared in several newspapers in the past few days recounting his adventure, which he says showed him the natural side of Tenerife he did not know.
