New figures on Spain’s house repossessions released

May 6, 2011 – 10:28 am

Spanish repossessions indicate that Tenerife and the Balearics are fairing well

There were 93,622 home repossession processes started last year, according to figures from Spain’s official judicial body (Consejo General del Poder Judicial).

That represents an all-time high, slightly above the previous record high in 2009, and 4 times higher than at the start of the crisis.

The body also warned that the figures might understate the true number of foreclosures thanks to the way the data is gathered.

There have been a total of 271,570 repossessions since the start of the crisis in 2007, when there were just 25,943 foreclosures, rising to 58,686 in 2008, 93,319 in 2009, and 93,622 last year.

Last year repossessions rose the most in Extremadura (+32pc), followed by Valencia (+11pc) and Murcia (+8pc). Repossessions fell by 14pc in The Balearics.

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Mainland Spain house prices to continue decline whilst islands prices improve?

May 3, 2011 – 8:59 am

Tenerife, the Canary and Balearics Islands property prices show signs of improvement

House prices in Spain are expected to continue to their decline for the coming three years, a new poll by Reuters has found.

According to the news provider, the fall is a result of an overhang from the burst property bubble and banks dump unwanted housing stock.

In a poll of 13 analysts, who widely believe that the market has been overvalued even after a 17 per cent fall since 2007, prices were forecast to fall by a further five per cent this year.

Next year, prices are expected to fall by a further three per cent, followed by a drop of a little over one per cent in 2013.  Of course areas such as Tenerife in the Canary Isles and the Balearics are bucking this trend and showing signs of  improvement

Source: IB Times

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Tinsa price index latest results

March 23, 2011 – 9:41 am

Tinsa index now shows positive signs for the property market in Tenerife

The Tinsa Spanish House Price Index for February (change over 12 months) is  as follows:

National average -4.5pc
Big cities – 5.2pc
Mediterranean Coast -6.7pc
The Balearics & Canaries -0.8pc

Peak-to-present:

Mediterranean Coast -27.2pc
Capitals -20.6pc
The Balearics & Canaries -17.5pc

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Property enquiries to Tenerife and Canary Islands increase.

February 28, 2011 – 10:10 am

Interest in Tenerife and Canarian property continues to increase.

The number of searches for Spanish property in January this year was 37.05% higher than last year according to overseas property portal Homesgofast.

According to the portal the trend that has been noted since the Spanish property market imploded; namely the dominance of the Balearics and Canary Islands, not only continued in January but became even more pronounced. One third of all enquiries into Spanish properties were for those islands according to the portal.

“It’s interesting to see how Spain despite the bad press is still very attractive to overseas buyers considering retiring or buying a second home abroad,” said Nick Marr, director of the portal.

“The change towards the Canary and Balearic Islands may be a result of the bad press that the Spanish property market has received,” he continued. “People looking to get away from the UK winters still see Spain as a great place to holiday. The Canary Islands offer winter sun and a housing market that has not received the negative press that mainland Spain has endured.”

“House values in Spain are at an all time low and the increase searches may be a result of both buyers and sellers researching the market.”  According to the Association of British Travel Agents, Spain is still the number one holiday destination for Brits, with over 11 million British visitors gracing the shores every year.

Source: Homes Go Fast

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Rental prices in Spain, Tenerife and Canary Islands

December 8, 2010 – 1:17 pm

October rental values up and down in Spain, Tenerife and Canary Isles

Average rental prices rose 1.1pc in October, according to data.Rents are going up at half the level of inflation, leaving landlords out of pocket in real terms 

That was half the level of consumer price inflation, which was 2.3pc in October. As a result the real price of renting a home in Spain fell by an annualised 1.2pc in October.

Rental prices rose the most in the Balearics (+1.6pc), followed by Cantabria (+1.4pc) Galicia (+1.4pc), Andalucia and the Canary Islands (1.2pc). Prices rose the least in Murcia (+0.6pc), La Rioja (+0.5pc), Extremadura (+0.1pc) and Navarre (-0.3pc).

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Canaries property prices fair better

November 26, 2010 – 12:31 pm

Canarian property fairs better than that on the Spanish mainland

Residential property prices in Spain have fallen between 3.7% and 5% over the 12 months to the end of September with the popular coastal regions taking the worst hit.

The latest figures from the Ministry of Housing show prices down 3.7% while the Tinsa index is down 5% year on year.

The average price of property is €1,832 per square meter, down from €1,903 per square meter a year ago, according to the figures from the Ministry of Housing.

The Tinsa index fell 5% in September, compared to declines of 4.6% in August, and 4% in July. Up until then prices had been trending towards smaller declines, suggesting they might even make it into positive territory on an annualised basis before the end of the year

Prices on the coast, where most holiday homes are located, saw the steepest declines, down 8.7% in September compared with a fall of 4.9% in August. The Balearics and Canaries fared slightly better, down 4.2% compared with a drop of 5.3% in August.

It means that prices on the coast are now down 25.7% at €1,924 per square meter compared to their December 2007 peak of €2,590 per square meter.

Prices falls have accelerated in each of the last three months but these latest figures are a set back to recovery. A lot will depend on what happens in the last three months of the year, according to Mark Stucklin  ‘The big question is why are price declines accelerating again, especially when the latest property sales figures show a strong rebound in transactions?’ he said.

‘We have to keep in mind that it might be just a temporary anomaly lasting a few months after which prices return to an improving trend. You can never be sure with just three months of data. But more likely it shows that average Spanish property prices have still not fallen enough, and vendors are having to give more ground to find buyers,’ he added.

The poor price figures come as the number of repossessions in Spain are on the rise. The credit crunch and rising unemployment have driven home repossessions to a record level.

There were 27,561 repossessions procedures in the first quarter of this year alone, an all time record for Spain, following on from an increase of 126% in 2008 and 59% in 2009. Spanish banks now have €20.5 billion of repossessed property on their books

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Rents on the rise for landlords

September 3, 2010 – 4:11 pm
Rental income on the increase for landlords in Tenerife and the Canary Isles

Rental income on the increase for landlords in Tenerife and the Canary Isles

Rents are rising and prices are falling, so yields are improving for landlords. Average rental prices rose by 1% in July compared to last year, show the latest figures from the National Institute of Statistics (INE). This is surprising given the glut of property for sale and rent on the market.

Over 6 months annualised rental prices have gone up by between 0.9% and 1.2% per month, whilst house prices have gone down between 4% and 5%, meaning that rental yields are improving. Some good news at least for beleaguered property investors.

But consumer price inflation has risen by 1.9% in the same period, so although yields are rising, rental income in real terms is actually falling.

Rents went up the most in the Balearics  and Canary Isles (+1.5%), and down the most in Navarre (- 0.5%).

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Serious vendors dropping prices to ensure a sale.

July 25, 2010 – 2:25 pm

Serious sellers in Tenerife and Spain drop prices to ensure the saleA growing number of vendors trying to sell their homes are dropping their asking prices, according to new research by one of Spain’s leading property portals. Asking prices for 18,007 resale properties in the Idealista database were reduced in June, 30% more than same time last year, and the highest level for 2 years. The number of price reductions has been on the rise every month since January, causing the 12-month average trend to rise after falling for about a year. But if the number of discounted properties is growing, the average discount value is not. Discount values peaked at the beginning of last year and have been declining ever since, so it’s a story of more, but smaller discounts.

The markets where the biggest proportion of vendors decided to drop prices were Madrid (9.3%) and Barcelona (7.4%). That means vendors in Spain’s two biggest markets are becoming more focused on finding a buyer.

- Asking prices were down just 0.5% in Q1 over Q2, to 2,374 €/m2.
- Prices rose in 5 regions: The Balearics (+2,4%) Galicia (+1,6%), Castilla y León (+1%), The Basque Country (+0,9%) y La Rioja (+0,6%).
- Prices rose just by 2 €/m2 in Barcelona, to 4,084 €/m2. Even so, prices there are still below where they were 5 years ago in Q1 2005. They are down 16.4% from the peak of 4,888 €/m2 in Q1 2007.
- Madrid fell 0.4% in Q1, to 3,831 €/m2, 11.2% below the peak of 4,315 €/m2 in Q2 2007.
- Valencia fell 0.7% to 2,335 €/m2, 18.4% below the Q2 2007 peak of 2,861 €/m2

Sellers in Tenerife and the Canary Isles are  also following this trend to ensure a quick sale.

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Canarian property prices improving according to TINSA

June 14, 2010 – 4:56 pm

Canarian property prices beginning to recover?

Canarian property prices beginning to recover?

Spanish property prices are still falling, but less with every passing month, according to the monthly house price index published by Tinsa, one of Spain’s leading appraisal companies

Average Spanish property prices fell by 4.4% over 12 months to the end of May, show the latest figures from Tinsa. Prices actually fell a fraction compared to last month, even if they rose compared to the same month last year.Should the Tinsa figures be believed, the rate of decline in Spanish property prices has been slowing since June 2009, when it peaked at -10.1%. If the trend towards smaller declines keeps up, average property prices will be stable, or even growing slightly before the end of the year.

Prices have fallen the least over 12 months in coastal areas and the Islands, areas traditionally popular with foreign buyers looking for holiday and retirement homes. Prices are down just 4.1% on the coast, and 2.4% in The Canaries and The Balearics

On a peak to present basis (since prices peaked in December 2007), prices are down 16.5% nationally, 21.4% on the Mediterranean coast, and 12.8% in the Canaries and the Balearics. So anyone buying a property on the coast today should be getting a discount of 21% on average compared to 2007.

Tinsa’s figures are based on their own valuations, not actual transaction prices. Most of these valuations have been paid for by banks, and  they might not give a true picture of property prices .

May Index
National: 1,906
Mediterranean coast: 2,035
Balearics & Canaries: 1,641

Peak Index (December 2007)
National: 2,284
Mediterranean coast: 2,590
Balearics & Canaries: 1,881

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Have Spanish and Canarian property prices bottomed out?

May 29, 2010 – 11:27 am

Spanish property prices are still falling, but by less with every passing month, according to the house price index published monthly by Tinsa, one of Spain’s leading property valuation companies. Average Spanish property prices fell by 4.6% over 12 months to the end of April, show the latest figures. On a monthly basis, prices even rose a fraction. Should  Tinsa figures  be believed, the rate of decline has been slowing since June 2009, when it peaked at -10.1%. Should this continue, average property prices will be  stable, or even growing slightly within about 6 months.

Tenerife,Canarian and Spanish property prices bottomed out?

Tenerife,Canarian and Spanish property prices bottomed out?

Prices fell by 5.2% on the Coast, and by 3.8% in The Canaries and The Balearics – areas that interest holiday home and expat buyers the most. On a peak to present basis (since prices peaked in December 2007), prices are down 16.1% nationally, 21.5% on the Mediterranean coast, and 13% in the Canaries and Balearics according to Tinsa’s figures, prices have bottomed out and are beginning to recover.

Tinsa’s figures are based on their own valuations, not actual transaction prices. They are interesting in what they reveal about trends, and the valuations used by banks for mortgage lending purposes.

National: 1,916 €/m2
Mediterranean coast: 2,033 €/m2
Balearics & Canaries: 1,636 €/m2

Peak prices (December 2007)
National: 2,284 €/m2
Mediterranean coast: 2,590 €/m2
Balearics & Canaries: 1,881 €/m2  .

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