Significant interest in Canarian property by British buyers once more

May 23, 2010 – 5:39 pm

 

Significant interest in Tenerife and Canarian property by British buyers once more

Significant interest in Tenerife and Canarian property by British buyers once more

Taylor Wimpey Espana, the leading UK developer in the Spanish market has reported a significant rise in interest from British buyers seeking to buy holiday homes in Spain and the Canary Islands. Easter has traditionally witnessed a surge in interest from the UK market, April being just behind July as the best month for sales in Spain, but this year has seen a noticeable jump in enquires and sales.

Interest is particularly strong in the Costa del Sol and in the Balearics  and Canaries.

The company is also reporting that the profile of the typical British home buyer in Spain is not the traditional stereotype of a retiree. On the contrary, according to Taylor Wimpey Espana 75% of buyers are middle class executives, between 35 and 50, with a wife and children. More than 50% are looking for a second home for family holidays, attracted by the climate and culture. Although these buyers’ stays are concentrated during the summer, on average they spend between 45 and 60 days a year in Spain. Typically buyers are taking a long holiday of 20 or 30 days between July and August and the rest in the weekends throughout the year. During their time in Spain buyers spend an average of 6,300 euros a year which covers the maintenance costs of the home and food and transport (70% rent a car).

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

Spanish property market grows once more.

May 16, 2010 – 11:17 am

Spanish and Canarian property on the risw once more.

Spanish and Canarian property on the rise once more.

The Spanish property market grew by 16% in February compared to the same month last year, according to the latest figures to be published by the country’s National Institute of Statistics
Not including social housing, there were 35,720 home sales in February, 21,368 of them newly built and 19,665 resales. According to analysts the market has touched bottom and is starting to recovery after two years of decline but the improvement is patchy and volumes are still 47% below what they were in 2007.
 
An examination of the figures shows that 79% of the increase in transactions came from just two regions. Catalonia saw a 43% increase and Madrid was up 36% while the market continued to shrink or stagnate in many coastal areas popular with foreign buyers. Malaga and Alicante saw year on year increases of 3% and 3.8% respectively and Andalucia saw a 7% rise. Granada and Cadiz were both up 14% and Valencia saw 23% growth.
 
Local figures suggest that Marbella is leading the way to recovery with figures from the town’s tax office revealing that 2,499 properties were sold in the first three months of this year, a rise of more than 200% compared to the same period in 2009 when just 820 properties were sold and the highest for four years.
 
Meanwhile, the latest property price index from Tinsa shows that prices fell by 5.3% over the 12 months to the end of March, a slight improvement on the previous month. The figures from Tinsa, one of Spain’s leading appraisal companies, are however based on their own valuations not actual transaction prices.
 
Since the peaks of December 2007, prices are down 16.2% nationally, 22.5% on the Mediterranean coast, and 13.6% in the Canaries and the Balearics. But there are no signs of foreign property buyers returning to the Spanish market. The latest figures from the Bank of S;pain show that the amount of money invested by foreigners in Spanish property has fellen to its lowest level for a decade.
 
Foreigners invested €3.7 billion in Spanish property last year, the lowest level since 1999, when it was €2.9 billion. Foreign investment in Spanish real estate was down 32% last year compared to 2008, and by 48% compared to 2003, when foreign investment in Spanish property peaked.  But the weak economy, high unemployment and enormous inventory of new houses will slowdown any recovery in the Spanish market, according to a report from PricewaterhouseCoopers and the Urban Land Institute into European property market trends.
By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , , , , , , , , | Comments (0)

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.

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

Spain’s property recovery begins

April 3, 2010 – 10:01 am

 

Spain's property on the rise again?

Spain's property on the rise again?

The Spanish property market’s recovery has begun! That’s how some leading daily papers like El Pais are interpreting the latest figures from the National Institute of Statistics (INE) showing the market grew ever so slightly in January. The market appears to have found a floor, which is an improvement on the 2 years plus of monthly declines we had before.

 The figures for January from the INE show that, excluding social housing, there were exactly 34,000 sales in January, up 1.4% over 12 months. A year-on-year increase of 1.4% is no big deal, but it’s a much needed respite when it is the first time in 3 years that the market has actually grown. And it’s difficult to dismiss it as a one off, because it is clear that the market has now found a floor around 30,000 transactions/month.

But, of course, we have to keep in mind that the market in January was 56% smaller than it was in January 2007, when it stood at 77,400 sales/ month. So a year on year improvement is good news, but peak-to-trough the Spanish property market is still just a shadow of its former self. If you dig into the figures you find that most of the improvement is now coming from resales, not new builds. New build sales kept the market from total annihilation last year.

A lot of the improvement came from big cities like Barcelona, Valencia, and Madrid, whereas sales continued falling in popular coastal regions like Malaga (Costa del Sol) and the Canaries, particularly Tenerife bucked this trend. So, when it comes to holiday homes, the market in many areas is still shrinking.

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

Protected coastal areas in Spain under threat

August 11, 2009 – 8:46 pm

A new report from international eco campaigners Greenpeace, Destruction at all Coasts 2009, says up to 8,000 kilometres of coast are threatened. It looked at 233 protected areas and found that 120 of them are under threat from construction, pollution or infrastructure.

Spain's coastline under threat?

Spain's coastline under threat?

Environmentalists are warning that many protected coastal areas in Spain are under threat from property development, some of which they claim is illegal.

 The report also indicates that the world economic downturn, which has hit the Spanish property market hard, has not, however, acted as a buffer to protect endangered areas as there are some 562,000 properties, 29 golf courses, 51 harbours and 14 commercial centres either under construction or have planning approval in protected areas.

Spain’s coastlines have become a cemetery of cement and the last few remaining protected parts are in extreme danger of disappearing,’ said Greenpeace’s director in Spain, Juan Lopez de Uralde.

The report shows that Andalucia, Valencia and the Canaries are the worst. Some 21 areas are under threat in Andalucia including La Albufera Natural Park, Cabo de Gata-Nijar Natural Park and Grandilla.

It also points out that Spain has more legal proceedings open for abuse of the environment than any other country in the European Union.

Greenpeace wants the Spanish Government to tighten the country’s coastal law, to buy up protected land promise to demolish illegal buildings. Pilar Marcos, who is responsible for the Greenpeace coastal campaign in Spain, said that the organisation has noted 625 suspects in 478 cases of planning corruption and that more than half of these suspects hold public office in Spain.

Greenpeace also says that Spain had taken no steps to stop the deterioration of its coastline in recent years and done little to upgrade sanitation infrastructure and water treatment on the coast to keep up with development development needs, Greenpeace said.

‘Local Governments get most of their income from taxes and fees associated with building and construction, something which fuels the deterioration of the coastline. Solutions have not been applied by practically any institutions who are more concerned with short term benefit than the kind of future inherited by coming generations,’ the report said.

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

Property prices begin to stabilise in Spain and Tenerife

July 27, 2009 – 12:49 pm

Property prices stabilising in Tenerife and Spain

Property prices stabilising in Tenerife and Spain?

Spanish property prices fell by 9.8% over 12 months to the end of May, according to the latest Spanish property price index published by Tinsa, one of Spain’s leading appraisal companies.

For what they are worth, the figures represent a slight improvement on the previous month, when prices fell by 10.1%. It could be a sign that the slide in prices is beginning to stabilise, though more months will have to pass before we can call a trend.
Once again, coastal areas were the hardest hit, thanks to the concentration of second homes in those areas. Average prices in coastal municipalities fell by 12.8%.
House prices in the suburbs fell by 9.6%, and by 9.8% in The Balearics and The Canaries.
The problem with Tinsa’s figures is that, like the government’s figures, they bear little relation to the real world, where prices are down by at least 20% to 30% and again this may be the best time for those with cash to grab that bargain property in sunny Tenerife.

 

 

 

 

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

Figures show demand still strong but prospective buyers are belt-tightening

April 27, 2009 – 6:10 pm

Market data from Taylor Woodrow de España provides an insight into how demand for holiday homes in Spain is changing, and how the Spanish property market is being affected by the economic crisis.The data is based on more than 5,500 enquiries at the developer’s Spanish property website during 2008. A shift in the pattern of the needs and wants of house hunters in search of a home in Spain and the Canaries shows a change in budgets, along with changes in the number of bedrooms required, the type of properties sought and in the reasons for purchasing a home in Spain and the Canary Islands. Analysing the budgets available to potential purchasers reveals a marked shift in 2008 towards properties at the lower end of the market. Over two thirds of all enquiries now coming from properties below €250,000. In particular the share of enquiries relating to properties in the €150,000-€250,000 price bands has risen from a 35% share in 2007 to 67% in 2008. Although the price bands are changing, the overall volume of enquiries still remains strong.Consumers have been  forced to look at their budgets and unsurprisingly the lower priced houses in our selection became more popular as house hunters looked to bag a bargain overseas. Whilst the credit crunch has dealt a heavy blow to house hunters, rather than delaying their home owning dreams in the sun they are merely reassessing their budgets and looking for cheaper alternatives.

Owning a ‘holiday home or 2nd residence’ is still the primary reason for consumers looking to buy in Spain with 55% of enquirers citing this as their core motivation. However those seeking a permanent move to Spain, i.e. seeking ‘a primary home’, rose sharply as a percentage of enquirers, taking a 23% share in 2008 as opposed to 12% in 2007. The English weather throughout 2008 was pretty poor, especially in terms of the ‘blink and you miss it’ English Summer. This  is one of the major contributing factors to the significant rise in enquiries for both first homes and holiday homes. Additionally, with the fast accent of technology, more individuals are able to dictate where they work making location less of a major factor and increasing the practically of living in Spain. Also, fast communication links to the UK help to ease travel worries. This has definitely increased the interest in purchasing a home in Spain for the purpose of a first residence as buyers can experience the best of both worlds.”


2 bedroom homes still dominate the market with 57% of all 2008 enquirers looking for homes of this size. This is a 7.5% rise from 2007 when 53% was recorded. Individuals looking for a ‘3 bedroom home’ decreased during 2008 with 40% recorded in 2008, ‘more than 3 bedrooms’ also took a drop with only 1% of enquiries during 2008 in search of additional room. Victor comments: “Two and three bedroom properties have always been the most popular request from our prospective customers due to the flexibility they provide for individuals, couples and families. However, the gap between requests for 2 and 3 bedroom homes during 2008 increased by 17%. Again this may be attributed towards the current climate because, whereas individuals may have normally strived for a 3 bedroom home, they are now willing to compromise and lose a little bit of space in order to still achieve the dream of owning a home in Spain.”

When looking at the types of properties preferred, apartments had a clear majority with 66% of enquirers looking for a simple apartment. Penthouses came second with 18% and semi-detached homes third with 7%. Surprisingly, detached houses/villas only had 2% interest, which clearly demonstrates the current desire for no-fuss properties in Spain. With the majority of our purchasers looking for a holiday home or second residence the desire for a secure, no hassle property that can allow people to ‘lock up and leave’ is usually high up on the wish-list. An apartment, penthouse or duplex can provide this lifestyle and give purchasers the space and
facilities they require.

Breaking down the enquiries according to age groups, the highest rise was seen in the ‘30-45 years’ category with 44% of enquiries in 2008 belonging to this age group, compared with 35% in 2007. ‘46-55 years’ took the biggest hit with the group being responsible for 27% of enquiries in 2008 as opposed to 33% in 2007. ’56-65 years’ also experienced a drop moving from 22% to 20%. ‘Under 30 years’ and ‘over 65 years’ remained stable.


People aged 30 to 45 years once again held onto the majority share with continued optimism when it comes down to purchasing a home in Spain. Whilst Spain appeals to a broad range of people, this age group may particularly be drawn to the country due to its close proximity to the UK, good investment opportunity and its family orientated focus, making it an ideal vacation destination for the school holidays. The older age groups reduced their share, one of the major forces for this may be the continuing pressure of external forces causing people to ’tighten their belts’ in the current environment.

 

In many instances, people’s hobbies dictate the choice of location for their property abroad. Whilst golfing is still the most popular pastime of prospective purchasers of Taylor Woodrow de España properties, other hobbies are starting to gather momentum. Hill walking made the biggest jump going from 6% in 2007 to 17% in 2008, a rise of 145%. Tennis also experienced an increase from 4% to 7%. Whilst, golf dropped its share by 12%, with 67% reported in 2007 going down to 59% in 2008. Nautical hobbies also lost share going from 20% in 2007 to 15% in 2008. Victor comments: “Many of our developments are located close to or on the site of a golf course to satisfy the demand for this past time. However, we have been finding that more family friendly activities such as tennis and hill walking have been growing in popularity. Consequently, we continue to ensure that we build our developments in appropriate locations so couples and families can easily take advantage of the local scenery and facilities on offer.”


Despite the doom and gloom throughout 2008, Spain has been voted one of the ‘top 5 best tourist destinations’ and as such remains a firm favourite for both holidays and purchasing property. Indeed, the continuing popularity of this country helps ensure that property purchased in Spain will always hold its long term value. Especially with the current climate, purchasers looking to invest abroad can take advantage of good prices currently on offer. Finally, combine this with the fact that interest rates are currently at their lowest ever, now is surely a prime time to invest.

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

“No” to price cuts. They ‘would be suicide’ insists business sector.

February 8, 2009 – 4:16 pm

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.

By Angela | Posted in Economy, General, Holiday, Miscellaneous Articles, Tenerife | Tagged , , , | Comments (0)