Rental prices fall in Spain’s cities

February 3, 2012 – 10:25 am

Rental property prices fall in Spain and Tenerife

Rental prices fell in 77pc of Spain’s primary rental markets (cities), according to a study by Spanish property portal Idealista and the Public Rental Company(SPA).

Rents fell the most in Toledo (-8.7pc) and Oviedo (-6.8pc) but rose in Lleida (+11.2pc), Bilbao (+4.2pc), and Alicante (+4.1pc).

The average cost of renting a home in Spain declined in 2011, as you would expect with property prices falling.

In Spain’s biggest cities, rental prices fell 1.3pc in Madrid, 3.1pc in Barcelona and 4pc in Valencia.

The latest annual rental decline follows a bigger decline in 2010, so the cost of both buying and renting a homes in Spain has been getting cheaper for several years.

The study was based on 38,000 properties listed for rent in the 12 months to the end of December.

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

High end Spanish property performing well

January 31, 2012 – 9:45 am

High end property in Tenerife and Spain performing well

Despite tough market conditions for property in Spain, one company has posted its most successful operational year to date in 2011, showing the appetite for high-end Spanish real estate has not waned.

2011 saw Lucas Fox doubling its staff, opening new offices and posting record-breaking third quarter profits of 19.5 Million euros, proof of the continued appeal of Spain among the cash rich. Among the most popular areas for investment were Barcelona, the Costa Brava and Mallorca where investors snapped up boutique and luxury pads.

Aimar Valls, Head of Commercial & Investment Property commented, “In the last year we have received a dramatic rise in both the quantity and quality of enquiries for commercial and investment property. Central Barcelona is a hot-spot for hotels, hotel projects and buildings with potential for tourist apartment rentals.

And the company is also optimistic about their fortunes in 2012. Director Alex Vaughan explains, “Our transaction pipeline is already looking strong and the outlook for the year is very encouraging. We start 2012 with over 5,000 active property buyers registered from Northern and Eastern Europe, Russia, Scandinavia, the Middle East, the U.S and China.”

Source: APlaceintheSun.com

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Property prices decreased by 4% in Spain last year

January 16, 2012 – 3:05 pm

Property sales fall in Tenerife and Spain by 4% last year

Prices for property in Spain decreased by four per cent last year, according to a new report. Figures from Sociedad de Tasacion show the average cost of a new dwelling stood at €213,840 (£177,169) in 2011, with 81,000 properties being built during the 12-month period. Barcelona had the most expensive homes, while Murcia recorded the lowest prices.

The real estate organisation said it believes this downward trend for house values will continue in 2012. However, it also suggested the balance between supply and demand will improve, as the number of available residences starts to match the needs of buyers following the oversupply of properties in recent years, the Leader reported.

Source: PropertyShowrooms.com

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Spain stepping up tax plans

January 3, 2012 – 10:07 pm

Spain's taxation approach helping property sales in Tenerife?

Spain is stepping up its tax plans to tackle the country’s deficit, but buyers are snapping up property regardless as further price drops are predicted for 2012.

The Spanish government’s predictions initially stated that national debt would amount to 6 per cent of GDP for 2011, but it was revealed last week that these figures were incorrect and that the country deficit is closer to 8 per cent.

Since then, Spain’s government has added that the debt “could be even higher”, according to The Daily Mail, prompting the recently elected Popular Party to go back on its pledge not to raise taxes. Property tax is expected to increase for homes above average value, Spain’s swift economic action has been welcomed by the EU as the country tries to reassure international investors who are snapping up properties at low prices.

Indeed, reports at the end of December from Global Property Guide found that foreign property transactions surged by 24.7 per cent in the third quarter of 2011, compared to the same period in 2010.

Alicante, Barcelona, the Balearic, Canary Islands and Malaga were all highlighted as popular areas for buyers, with research from Scotibank Group showing that house prices across Spain have fallen by 25 per cent since 2007. These price drops are now expected to continue in 2012.

Knight Frank’s Prime Global Forecast has predicted that global economic uncertainty will push Madrid’s property values down in the next 12 months. But with investors attracted by Spain’s declining property prices, Madrid’s fall of “less than five per cent” may provide more opportunities for international buyers. As Murcia prepares for the construction of its much-awaited Paramount Theme Park, buyers can benefit from the national downward trend while costs remain low.

Julio Adams said “Demand for key ready homes in this area is already high and we expect an equity boost of around 15 per cent for early buyers when the first spade goes in to start construction of Paramount Park.” With some Spanish regions seeing a gradual recovery and the number of foreign transactions on the up, the government’s reworked deficit plans may take Spain’s housing market in a positive new direction for the New Year.

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3.4 Million Spanish homes are empty.

December 2, 2011 – 11:08 am

Too many empty homes in Spain

3.4 million Spanish homes lie empty, 13pc of the total housing stock  according to a new report from IDC. There are 676,000 empty homes in Barcelona and Madrid alone. Of the two, Barcelona has the biggest problem.

This is a “worrying situation with very negative consequences, principally a huge cost,” explains Carlos Parra, Director of IDC, quoted in the Spanish press. The empty homes are neither for sale nor for rent.

At the same time, tens of thousands of homes are being repossessed, and millions of young adults can’t afford their own home.

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Luxury property success in Spain

October 12, 2011 – 9:01 am

Luxury property selling well in Spain and Tenerife

A luxury Spanish property agency has reported its most successful ever quarter in the three month period from July to September.

Lucas Fox International Properties sold €19.5 million-worth of luxury Spanish real estate in 2011’s third quarter, its best performance since opening six years ago.

Lucas Fox sells properties in Barcelona, Costa Brava and Ibiza.

Alex Vaughan, Director of Lucas Fox, said that recent rich buyers continue to enter the market despite recent negative comments. Personally, I can’t wait for them to start selling luxury properties in Tenerife, that will hopefully inject much needed cash into the local economy

Source: OPP

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Spain’s luxury housing market remains bouyant

September 1, 2011 – 4:44 pm

Tenerife prime property holding price well once more

Spain’s luxury residential market is showing some resilience as Eastern European and non-mortgage buyers surge into the market, according to new research.

New reports from Lucas Fox International Properties show that the average prices in the areas remain way above the national average.

And as finance becomes less scarce the luxury market has shown more strength than others.

Russian buyers are particularly active in Barcelona according to marketing director Anthony Leaton.

Source: OPP.org.uk

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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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Fines in Salou for tourists with bare chests.

July 10, 2010 – 6:36 pm

Appropriate dress required when off the beaches in Spain

Appropriate dress required when off the beaches in Spain

British tourists face fines of nearly £250 for failing to cover up their bikinis or bare chests on the streets of a popular Spanish seaside resort.
The resort of Salou on the Costa Dorada, south of Barcelona, has become the first place in Spain to ban shirtless and bikini-clad tourists in a bid to clean up its reputation, which has been badly damaged after becoming a haven for drunken British students.

In a set of new by-laws passed by the town council those who flout the ban could be fined between €100 (£81) and €300 (£245). Those caught drinking alcohol on the streets or having sex on the beach could also be prosecuted and beachwear will be banned from all but beachfront bars and restaurants.

“We want to ensure that Salou has a good image,” said the mayor, Pere Granados, explaining the move. Earlier this year locals complained about the drunken behaviour of British students who flocked to the resort for the Easter holidays. More than 5,000 British students aged between 18 and 23 crowded into the town 70 miles south of Barcelona to attend “Saloufest” an annual party organised by university sports clubs. Residents complained of “streets running with vomit” after scantily clad students spent their nights binge drinking and indulging in “anti-social behaviour”. Paramedics treated at least a dozen tourists for alcohol induced illnesses and several arrests were made, including one student accused of raping another.
The event caused an “anti-British backlash” that pitted Spanish families taking an Easter break by the sea with businesses reliant on tourism to survive.

The bikini ban signals a growing unease in Spain against those sunburnt northern European tourists who offend the local population by walking in the streets, dining in restaurants and even doing their shopping in little more than beachwear.

“It is not normal to go the market with your packet on show or round the tourist sites in a thong.” said Alberto del Hierro, councillor for Tourism in Salou. “One shouldn’t be allowed to walk the streets or enter public buildings in unseemly apparel. It gives the city a low-class look.”

Earlier this year the regional capital Barcelona stopped short of introducing a similar ban but has embarked on a campaign urging tourists to dress appropriately when away from the beach. Posters showing a stick figure couple in swimming costumes with a red line across it have been plastered at sites across the city ahead of the summer season and hotels, bars and restaurants in the tourist areas have been asked to display the signs. “We want to make people understand that it’s an attitude that we don’t like,” said a spokesman for Barcelona city hall. “It’s not banned or punishable but it’s something we don’t think is polite.”

It might not be too long before a similar stance is taken in Tenerife and the other Canary Isles.

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Upturn in Spanish housing sales.

April 10, 2010 – 10:43 am
Upturn in Spanish property market

Upturn in Spanish property market

There was a small upturn in Spanish housing sales during the fourth quarter of last year, according to recent data released by the Spanish Ministry of Housing.

The increase was small, but enough for the Government to get excited about: “The transactions in the fourth quarter represent a rise of 4.1% with respect to the same period last year, this being the first year-on-year rise since the fourth quarter of 2006″.

In fact, if you just look at the ordinary housing market, the upturn was even better. Excluding social housing there were 116,664 house sales in Q4, a rise of 5.5%. Regrettably, that’s where the good news ends.

Take the year as a whole, there 413,112 transactions last year, a fall of 19% compared to the previous year, and a whopping 46% down on 2007. Even the Q4 was down 33% compared to 2 years ago.

Some regions did better than others. Looking at a selection of regions popular with holiday home buyers, the inland province of Teruel suffered the most in 2009, down 36%, followed by Las Palmas in The Canaries, down 32%. At the other end of the scale, Spain’s two big cities did the best, down just 1.7% in Madrid and 3.9% in Barcelona.

The small national upturn in Q4 that got the Ministry excited was almost entirely driven by big increases in Catalonia and Madrid (Barcelona +35%, Madrid +41%). Why the big surge in home sales in those two cities in the last quarter of 2009? I don’t know. But I wouldn’t be surprised if it had more to do with banks shifting Spanish property around their balance sheets than families buying homes to live in.

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