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)

Tinsa shows house price index down by 8pc in 2011

January 19, 2012 – 8:45 pm

Tinsa shows property sales in Tenerife and Spain down in 2011

Spain’s most reliable house price index fell 8.1pc in 2011, making last year almost as bad as the crisis year of 2008, when prices fell 8.8pc. There is a clear double-dip in the curve with price falls accelerating again after staging a feeble recovery last year.

One of the reasons house price declines have picked up speed is because of the return of the credit crunch in Spain. The double-dip in house prices is mirrored almost exactly by a double dip in new mortgage lending.  In coastal areas where holiday homes and much of the glut are concentrated finished the year better than other areas, with prices down 7.2pc over 12 months, compared to 9.1pc in cities and 8pc on the islands such as Tenerife.

Some experts argue that popular coastal areas will recover before the rest of the market thanks to diversified international demand from economies doing better than Spain

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Cheaper homes in Spain

January 17, 2012 – 2:57 pm

The average price of a Spanish home fell by 8% in 2011, with further price falls anticipated in 2012, research shows.

The Tinsa House Price Index, considered to be Spain’s most reliable residential property price index, reveals that average home prices fell by 8.1% in 2011, the worst annual decline in property values since 2008, when the average price a home in Spain fell by 8.8% year-on-year.

“There is a clear double-dip in the curve with price falls accelerating again after staging a feeble recovery last year,” said Spanish property commentator Mark Stucklin. The main reasons why home price falls have picked up pace are due to a lack of mortgage finance and a severe oversupply of homes on the market.

Stucklin added: “The double-dip in house prices is mirrored almost exactly by a double dip in new mortgage lending.”

Somewhat surprisingly, homes located in coastal areas, where there is generally the greatest oversupply of properties, finished the year better than other areas, with prices having declined by  7.2%, on average, year-on-year, compared to 9.1% in cities and 8% on the islands such as Tenerife.

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

Record number of repossessions in Spain this year?

October 21, 2011 – 2:51 pm

Repossession bargains in Spanish and Tenerife property

 A record number of homes in Spain could be repossessed this year, according to estimates by the ADICAE banking and insurance consumer group, presenting prospective buyers with an even greater selection of distressed housing stock to choose from, once the banks start to release these properties back onto the market.

The group projects that around 16,500 homes in Spain were repossessed in the second quarter of 2011, squashing some claims that the market is now on the road to recovery.

With Spanish home prices having declined by up to 70% since 2007, caused primarily by a severe oversupply of homes, property buyers are bagging some genuine bargains, particularly in coastal resorts such as in Tenerife and the Canary Islands.

Spanish property commentator Mark Stucklin said: “If the trend continues, there will be a total of 160,000 home repossessions this year, on top of the 140,000 families that have already lost their homes since 2008.” He added: “To make matters worse, many of those families will still have to pay off mortgages for the homes they have lost.”

According to ADICAE, a further 270,000 families are behind on their mortgage payments, suggesting that the more repossessions could follow,

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Brits considering luxury property in Tenerife and Spain again

August 10, 2011 – 5:36 pm

Luxury and prime property is selling well again in Tenerife and Spain.

Britons seeking their own slice of heaven abroad are increasingly considering luxury Spanish properties.

Experts say the sun-drenched country is once again proving popular with overseas property hunters, but they are now adopting a more cautious approach than that seen during the Spanish housing boom prior to the global economic downturn.

Buyers are seeking out investment properties that meet their precise requirements, and that has generally meant properties with a more luxurious feel. In Tenerife,  prime coastal properties are selling well.

The trend appears to be backed up by a report from the Overseas Guide Company which reveals a rise in the number of requests it has received for information about the Spanish property market.

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

Experts notice return of UK buyers in Tenerife and Spain

July 22, 2011 – 10:55 am

Experts notice Expats returning to Tenerife property

UK buyers are returning to the Spanish market to buy high quality properties, suggest experts at the Manchester Evening News.

Unlike the distressed sales of low quality abandoned projects, the demand for quality developments is growing. Experts have noted a 24% increase in interest in the first 5 months of 2011 compared with the same period last year, with company director Kim Brown explaining to A Place in the Sun that the country’s weather, lifestyle and established expatriate community seem to be the main reasons for its enduring appeal.

While the low quality end of the market is still in crisis, with Spanish ministers touring Europe in a bid to encourage sales,when it comes to the luxury end its a much better situation. However, buyers are much more savvy compared with the years prior to the economic downturn. Looking for developments with security and other additional benefits.

Tenerife holds some great opportunities for those who are willing to explore the property market now, whether prime property, coastal , to buy or let, a good estate agent will point you in the right direction.

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

Recovery in Spanish property market could begin in next 12 months

July 1, 2011 – 11:04 am

Tenerife and Spanish property market set to improve soon.

People keen to earn extra money by investing in property have been told that a recovery in the Spanish market could begin in the next 12 months.

Buy Association editor Paul Collins explained that investors should be cautious about purchasing assets just yet, as further falls are expected.

He said: “There is still significant inertia in the property market in Spain, with developers, agents and private sellers alike struggling to move properties.”

However, Mr Collins cited research by JP Morgan Chase & Co estimating that the industry is set to “bottom out” over the next 12 months and begin to recover.

Certainly the market in Tenerife reflects an upwards trend, particularly in the prime property  and coastal sectors. 

Source: KnowledgetoAction.co.uk

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Property demand in Spain set to soar?

June 13, 2011 – 8:40 am

Property demand set to soar in Tenerife and Spain?

Demand for property in Spain could be set to soar as banks move to sell off billions of euros worth of distressed property assets.

Analysts have estimated that financial institutions in the country control more that €100 billion (£86.7 billion) in real estate, The National reports.

Most are second homes in developments built during a ten-year construction boom targeting the same European buyers.

There are anywhere from 700,000 to a million empty apartments and villas in Spain, the majority of them in coastal areas. Tenerife has its fair share of prime property  again at reasonable prices following the market correction.

Source: PropertyShowrooms.com

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Ideal time to invest in Spain says Blanco

May 13, 2011 – 1:35 pm

The right time to invest in Spain and Tenerife?

Spain’s development minister has urged British buyers to consider investing in one of the country’s 700,000 unsold holiday homes.

“This is the ideal time to invest in Spanish real estate,” said Jose Blanco. “Prices have fallen in real terms by more than 20 per cent on average; even more in large coastal towns.”

The briefing marks the first day of the Spanish Property Roadshow, which will tour Europe and Russia in a bid to offload the homes at discounted prices and kick-start Spain’s struggling economy.

According to the article, which was published in the Telegraph, Mr Blanco dismissed concerns surrounding the health of the country’s financial position, noting that GDP had increased by the end of last year.

Source: PropertyShowrooms.com

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House price index for Spain

May 9, 2011 – 8:35 am

The Official House Price Index published by the National Institute of Statistics (INE) would have us believe that Spanish house prices fell a mere 1.9pc in 2010

New build (vivienda nueva) prices fell -2.1pc, and resales (segunda mano) fell -1.6pc

The suggestion that Spanish property prices only fell 1.9pc last year, against a background of 20pc unemployment, tightening mortgage credit, and a monumental property glut is difficult to fathom.

These figures tend to distort price signals from the market and put off potential buyers. We might be better off if the INE did not publish house price figures. Not all official figures are so unreliable. According to figures from the Department of Housing, prices fell -3.5pc last year, and 6.5pc in real terms (after adjusting for inflation). That sounds closer to the truth, even if maybe still a touch  too optimistic.

Meanwhile, whilst mainland  Spain struggles in the property sector, the  islands, particularly the Balearics continue to improve, Tenerife being the best performer from the Canary Islands at the moment, mainly in the area of prime coastal property.

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