Asking prices for property in Spain fall

May 17, 2012 – 11:11 am

Property prices on the slide in Tenerife and Spain

Asking prices for Spanish homes fell 9.5pc over 12 months to the end of April, according to data from Idealista, a Spanish property portal.

With Spain back in recession, and banks refusing to lend on anything but their own properties, home owners trying to sell have no alternative but to drop their prices. The average resale property in Spain now has an asking prices of 1,993 €/m2, down from 2,202 €/m2 a year ago. On a monthly basis, asking prices fell 1pc in April.

Asking prices fell the most in Castilla La Mancha, Navarra , Murcia, and Extremadura, and the least in Castilla y Leon, La Rioja and Galicia.

You can read the full monthly house (asking) price index report from Idealista  here (pdf in Spanish)

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Monthly planning approvals at record lows

May 16, 2012 – 1:07 pm

Monthly low for new builds in Spain and Tenerife

Monthly planning approvals for new homes are close to record lows, and might create a shortage in the next 5 years. There were just 4,600 planning approvals for new homes in February, down 44pc on the same month last year, according to the latest figures from the Government (Fomento).

Compared to February 2006, when Spain’s building boom was in full swing, planning approvals are down 93pc. That shows how badly the Spanish house building industry has been hit . From being the driver of Spain’s economy it has collapsed to almost nothing, which helps explain why unemployment is close to 25pc and heading for 30pc.

As a result of the collapse in planning approvals, there will clearly be a shortage of newly built homes in the next 3 to 5 years. This despite the fact that there is a glut of something like 750,000 newly built homes on the market today.

The problem is that many of those homes are typical of what gets built at the peak of a boom, badly built too quick, in undesirable locations with scant regard to what house buyers actually want. There is always a demand for new homes, that are properly built and well located. 

It is best to try to buy off-plan in the depths of the bust, not at the peak of the boom, though, most people do the opposite.

People  want  better designed, better built, more generously sized, more energy efficient, better located, and significantly cheaper homes than are on offer. As there are hardly any developers left standing,we are clearly going to see a shortage of such properties in Spain and Tenerife in the future.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , | Comments (0)

Brits amongst the most active purchasers in Spain and the islands

May 15, 2012 – 9:27 am

Brits active in property market in Tenerife and Spain

Official figures show that Brits were among the most active purchasers of homes in Costa Blanca last year, along with the Russian and Norwegians, which collectively made up 80% of all transactions in the region.

According to figures obtained from Spain’s notaries, at least 9,200 foreigners bought holiday homes on the Costa Blanca last year, including 5,200 in the Catalonia region Costa Brava/Dorada, and 4,600 in Malaga  Costa del Sol; Balearics (2,700), and Murcia (1,500).

José Vicente Dómine, Director General of Public Works for the Generalitat (Valencian regional government), told the press that more overseas nationals purchased bought homes on the Costa Blanca last year than in Madrid and Andalusia combined, and almost as much as Catalonia, the Balearics, and Murcia combined.

While the Spanish property market continues to suffer from an oversupply of homes, now is a great opportunity “for foreign buyers to bag a bargain on the Spanish coast,” said Spanish property commentator Mark Stucklin.

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Brits taking advantage of weak Spanish property market

May 8, 2012 – 9:36 am

Brits taking advantage of cheaper property in Spain and Tenerife

The volume of Brits taking advantage of the weak Spanish property market by purchasing homes continues to grow, new research shows.

According to latest figures from the National Statistics Institute, the number of British residents in the Balearics has risen by 75 in the past year bringing the official total to 23,773 people. The average age of this British contingent is now 46.6 years old.

Stephen Dight, managing director of Mallorca, and Ibiza, Sotheby’s International Realty, says: “The Balearics are a much more aspirational destination and, with higher property prices and lower supply of quality homes than mainland, attract a wealthier expat. Fluctuations in exchange rates lessening pension income or small percentage falls in property values are unlikely to affect our British Balearic expats and be a tipping point to force an exodus  they are simply not living on tight budgets.”

The largest in the Balearic archipelago, the Island of Mallorca features a host of popular beaches, villages and marinas, fertile agricultural plains, 26 golf courses, an impressive capital city and imposing mountain ranges, which partly explains why it attracts over 10m tourists each year.

Meanwhile the Canary Islands, particularly Tenerife are experiencing a similar upturn of interest in the top end coastal properties.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , , , | Comments (0)

More misery for the Spanish property market?

May 2, 2012 – 12:54 pm

More property investment misery in Tenerife and Spain?

The Spanish property market faces more misery with average residential prices expected to fall by a further 18% before finally bottoming out, according to Barclays Capital. The British investment bank says that the decline in values will add to the 22% price drop witnessed since the Spanish property market crashed in 2008. The bank’s latest report claims that Spanish home prices will drop by up to 35% before reaching the bottom of the downturn. But the reality is that property price falls nationwide have been far steeper and have already depreciated by 40%, on average. In fact, this rate of fall has been confirmed by Spain’s Minister for the Economy, suggesting that Barclays Capital’s data is largely unreliable. “So Barclays Capital are right to say that prices might fall 40% in total, but wrong to say that means another 18% of declines to come,” says Spanish property commentator Mark Stucklin. “We are already almost there [at the bottom], certainly when it comes to holiday homes on the coast.”

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Brits getting ready to buy in Tenerife?

April 30, 2012 – 8:38 am

Brits sending money to Tenerife and Spain in order to buy property

Brits are getting ready to buy by transferring money abroad, according to Knight Frank. An increasing number of UK investors are sending money overseas to purchase a second home, the agency’s head of residential development James Price told OPP this week.

“The recession here in the UK is not really a factor,” he commented.
“People want to move at the higher end for tax reasons… this is a result more of the pull of both climate and culture, rather than any perceived ‘push’ from the UK.”

Price’s comments follows figures this week that show Brits are increasingly
looking abroad for holidays as the weather worsens in the UK. With prices
of property across Europe held down by the recession and the weakening
single currency, some may find themselves staying abroad for longer as they
seek out a place in the sun.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , , | Comments (0)

Rising airport charges could cost Spain and Tenerife’s tourism

April 24, 2012 – 9:33 am

Rising airport charges could damage tourism in Tenerife, the Canary Islands and Spain

Rising airport charges could cost Spain 2.87 million tourists, industry figures have warned. The Alliance for Tourism Excellence, Exceltur, labelled the increase in charges as “disproportionate” following their announcement in the State Budget for 2012. The fees, announced this month, could cost the country 2.87 million visitors, the association warned. The reduction in visitor numbers could amount to €1.64 million each year. The new rates, which are expected to be incorporated into ticket prices, have sparked fears that airlines will turn to other beach holiday destinations as a cheaper alternative to Spain, a move that could have serious implications for Spain, a country which relies upon tourism as a major form of income in a post recession climate. Airports expected to be most affected include Barcelona El Prat, which could lose 1.16 million tourists, Madrid Barajas, with 945,115 fewer visitors, and Palma de Mallorca, which could see tourist numbers reduce by 268,567.

Source: Kyero.com

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Spain back in “crisis mode”, but affordable property good news for investors

April 23, 2012 – 9:31 am

Spain in crisis,but property in Tenerife is good value for investors

Spain is back in “full crisis mode”, according to one bank, as property prices continue to plummet. “It is looking more and more likely that Spain is going to have some form of bailout,” Rabobank told OPP. “Assuming there is not an (ECB) intervention, you would not see a cap on Spanish yields, they would just keep increasing.” After the country’s 10-year boom came to a messy end in 2007, Spain’s economy has been dropping like a stone, taking the property market with it. Mortgages payments are rising as rates of inflation rise to 3.4 per cent and banks are left in a vulnerable position, holding one-fifth of the country’s 1 million vacant homes. The new Spanish government are introducing austerity measures to recoup lost finance, including cuts to education and health, but with almost five million unemployed and the economy still shrinking, the return of recession is “likely to suppress local demand”, according to Reuters columnist Maharg-Bravo. But more affordable property remains good news for overseas investors, as real estate values continue to decline at 22 per cent to 29 per cent each year. 

 Tenerife, with it’s beaches and sunshine is still attracting investment from overseas.

By Angela | Posted in Economy, General, Health, Holiday, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , | Comments (0)

More wealthy Brits expected to move overseas

April 20, 2012 – 10:03 am

Wealthy Brits moving to Spain and Tenerife?

The volume of wealthy Britons who move overseas is expected to rise in the next two years, according to a new Lloyds TSB International Wealth survey. The study shows that 19% of people with savings and investments worth more than £250,000 are considering moving abroad, up from 17% six months ago and 14% a year ago. The new figure suggests that over half a million people with that level of personal wealth may flee overseas by 2014 in search of a better, more affordable lifestyle. Many of those seeking to leave the UK say that they would reconsider if Briton lowered taxes, cut regulatory red tape for businesses and improved public services such as healthcare, education and the police. Any hike in in the number of Brits moving overseas would undoubtedly fuel greater demand for homes abroad, with Spain, France, Portugal, Australia, and the USA often high on the agenda. Nicholas Boys Smith, director at Lloyds TSB International Wealth, said the number of people expected to leave the UK includes a “large number of successful, affluent individuals who play an important role in powering the UK economy”. He said: “While the figures strongly suggest we won’t see a mass exodus, it is clear that a significant and growing minority see opportunity and a better quality of life overseas.”

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Increasing numbers of Scandinavians are taking advantage of the crisis to buy holiday homes in Spain

April 17, 2012 – 9:34 am

Scandanavian buyers of property are looking to Tenerife and Spain for investment

According to a recent article at the website Investment Europe, “Figures published by Fastighetsbyrån, part of Swedish banking group Swedbank, suggest Swedish and Norwegian property buyers have pushed hard into the Spanish residential property market, as British and German buyers have withdrawn in the past half-decade.”

The article goes onto explain that “over the four year period, the number of UK buyers has dropped by 65% and German buyers by 3%. However, the number of Norwegian buyers is up 108%, and Swedes by 138%. The total market is still down 33% from its 2007 peak, the figures also suggest.”

Scandinavians are tempted by Spanish property, their economies are relatively strong, as are their currencies (the Norwegian and Swedish Krone/Krona have both risen by around 5pc against the Euro since the Spanish property bubble burst at the end of 2007, whilst the British Pound has fallen almost 20pc); Spanish property prices on the coast are down around 50pc or more from the peak, and the sun doesn’t shine much back at home. So Scandinavian buyers are taking advantage of the market to snap up bargains on the Mediterranean coast, and who can blame them?

Scandinavian buyers are not a panacea for the glut of holiday homes on the coast. For a start, with the pick of the best properties, I doubt they will be tempted by  the cheaper end of the market on the coast that also needs to be sold.  Unfortunately, there just aren’t enough of them to take the place of the retreating Brits, who dominated the market during the boom.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | Comments (0)