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)

Spanish commercial sector taking longer to recover

November 4, 2011 – 3:13 pm

Commercial property in Tenerife and Spain taking longer to recover

The Spanish commercial property sector is likely to take longer than 12 months to recover, new research has suggested.

Bloomberg Businessweek reported on data published by Savills, which stressed that a lack of finance coupled with the wider European debt issues will slow the market’s recovery.

According to the firm’s figures, investment in Spanish commercial real estate is now at its lowest level since 2001, with just €1.25 billion (£1.1 billion) in deals concluded in the first nine months of this year.

This represents a 52 per cent drop over the same period in 2010, with the news provider noting that a lack of funding from Spanish banks is deterring investors.

Source: PropertyShowrooms.com

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

More UK holiday makers uninsured when travelling overseas

October 10, 2011 – 8:54 am

Uninsured holiday makers to Tenerife expect the UK government to take care of the bills.

As many as 20% of UK holidaymakers are still going abroad without taking out travel insurance, a survey by travel organisation ABTA found.

More than one in four travellers mistakenly believes the UK Government will cover their bills if something goes wrong.

The poll of 2,018 consumers also found that only 44% bought travel insurance for trips in the UK.

Abta’s financial protection chief, John de Vial, said: “It is very worrying that so many people are putting their health and finances at risk by travelling abroad without insurance.” 

Source: Independent.co.uk

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

Housing glut to shrink to manageable level by 2013 says Spain’s Ministry of Finance

May 5, 2011 – 10:13 am

Housing glut lasts in mainland Spain but improves in Tenerife and the islands

In a drive to reassure international money markets that Spain can deal with its real estate problems, the Ministry of Finance has claimed that Spain’s infamous housing-glut will shrink to a manageable level of 200,000 homes by 2013.

For that to happen Spain will have to sell 900,000 new homes between now and then (300,000 per year), whilst building around 175,000 new homes on average per year. In the chart above, the dotted line forecasts the new housing inventory in 2013.

Some experts have raised doubts that the market will be able to digest 300,000 new homes per year, bearing in mind that resale transactions must also be taken into account.

According to the latest figures from the Government (Fomento) and the property register, analysed in an article by El Confidencial, the net change in the number of new homes on the market over the latest 12 months was a decline of just 30,000, way below Government estimates for the next few years. If that rate continues it will take several years longer to digest the glut. The Government also produced an analysis of the relationship between price falls and the stock of new homes on the market in different areas.

 Madrid and coastal provinces of mainland Spain, where most holiday-homes are located, tend to have the largest gluts and price falls. However the islands such as Tenerife and Majorca have seen an upturn in prices this year

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