New homes market in Spain showing signs of recovery.

November 26, 2009 – 4:33 pm

New homes sector shows a recovery in Spain, Tenerife and the Canary Islands.

New homes sector shows a recovery in Spain, Tenerife and the Canary Islands.

The new homes market in Spain is showing tentative signs of recovery, according to the G-14 group of top Spain property developers – Pedro Perez, head of the G-14 was quoted as saying  that the sales of new homes in Spain will continue “consolidating in the coming months”.

There  is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics.

The latest data released by the National Institute of Statistics reveals that sales of newly built properties in Spain increased by 7.6% from August to September, but remain down 20% year-on-year. It is good to see sales rise for the fifth consecutive month, something that means we can say that the sector is recovering since it touched bottom in April.

Spain property developers argue that sales on new homes in Spain are increasing thanks to lower prices and a greater range of mortgage loans on offer. This trend is emerging  in Tenerife and the Canary Islands also.

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

Easier to sell Spanish property to foreign investors

November 10, 2009 – 4:58 pm
Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

It is easier at present to try to sell Spanish property to foreign investors than foreign property to Spanish ones. At least there are still some buyers for property in Spain and Tenerife, if the price is right. Spanish investment in foreign property, on the other hand, has collapsed.

The latest figures from the Bank of Spain on cross border real estate investment reveal that foreigners invested 860 million Euros in Spanish property during the second quarter of the year, down 40% on the same period last year. The Bank of Spain’s figures include all real estate investment, not just residential investors.

Look further back, and the picture is even more demoralising. Foreign investment was down 55% compared to the second quarter of 2004, the peak of the Spanish property boom, when the rest of the world ploughed 1.9 billion Euros into Spanish real estate assets. It is now back to levels last seen in the first quarter of 2000, when it stood at 777 million Euros. The appetite of foreign investors for Spanish property has been declining since the start of 2008, after staging a minor rally in 2007.

Estate agents and developers in Spain may be feeling sorry for themselves in the current market, but they can be thankful that they aren’t trying to sell property abroad to Spanish investors, who have completely thrown in the towel.

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

Investors sticking to proven locations like Tenerife following global market downturn.

September 20, 2009 – 4:10 pm

The index which tracks the level of interest in certain properties and countries from visitors to the site has seen changes.

British buyers stick with traditional locations like Tenerife after the credit crunch.

British buyers stick with traditional locations like Tenerife after the credit crunch.

The United States was knocked off the top spot in August’s Investment Property watch chart

France, a favourite with British investors and holidaymakers,claimed victory in August.

Industry experts are busy predicting that traditional locations will emerge victorious from the global market downturn and that is good news for Tenerife. Mortgage specialist, Conti, found that British investors are sticking to ‘proven’ locations that offer less risk. Spain is a  traditional hotspot. The credit crunch has been particularly hard on Spain, with hoards of unsold apartments lying unfinished as developers fell foul of the credit crunch. Now, huge discounts have led to the bargain hunters circling again, pushing demand for Spanish property back up.

For France and Spain, enquiries have increased considerably with the countries accounting for 53 per cent of all 2009 enquiries so far, compared with 29 per cent in the same period last year. British buyers are sticking to the more traditional overseas locations, especially those with history of providing good rental returns. The smart investor is no longer simply looking to where the best bargains for a swift return can be found, but to where security lies for a longer term investment and Tenerife certainly meets these criteria. perhaps it is time to visit your Tenerife estate agent and see what bargains are available again.

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

New builds fall in Spain.

August 26, 2009 – 6:22 pm
New builds fall in Spain

New builds fall in Spain

The volume of new residential properties in Spain constructed is expected to fall by as much as 25 per cent by the end of 2009, according to a report by the Fundación Laboral de la Construcción.

Residential building activity levels have fallen over the past year or so, culminating in the loss of hundreds of thousands of jobs, due to the global financial crisis, an oversupply of Spanish properties, and a fall in demand for Spain property. Experts project that the new build figures in Spain will remain low until the end of next year.

The construction labour foundation basis its projection on the amount of cement used by Spain property developers, which dropped by 24per cent last year, the largest fall in a decade, while demand for cement has fallen even further so far this year.

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

Banks will start lending when prices stop falling

July 28, 2009 – 3:26 pm
Banks in Spain will lend again when property prices stop falling

Banks in Spain will lend again when property prices stop falling

The president of the Spanish banking association, Miguel Martin, said recently that banks will start lending again when “the fear of a property price collapse” has passed. When that happens, the solvency of buyers will improve as a result, he argued.

Speaking at the recent property sector trade fair in Madrid, Martin explained that “with greater demand and stable prices, or without the fear that prices will collapse, borrowers will see their solvency and collateral improve, and credit will start flowing again.”

At the same event, José Manuel Galindo, president of the APCE developers’ association, drew attention to the role played by banks in causing Spain’s property market slump. He called on banks not to discriminate against clients buying property from developers, accusing them of unfair competition for offering better mortgage financing terms to clients who buy property from the banks

By Angela | Posted in Economy, General, Miscellaneous Articles, Property, Tenerife, Uncategorized | Tagged , , , , , , , | Comments (1)