Tourism in Spain indicates property collapse may only be temporary

March 10, 2011 – 11:54 am

Tenerife and Spanish property slump may be temporary as tourism on the rise once more

Despite its economic woes, tourists are still flocking in their millions to Spain and Tenerife, indicating the current collapse in property values will more than likely only be temporary – last year the country recorded the highest number of hotel stays out of any country in Europe, according to EU statistics body Eurostat. It’s no surprise then that international hotel group Marriott has chosen Spain as the destination to launch its new Autograph brand onto the European market.

Launched successfully in the United States last year, Autograph represents the group’s entrance into the upscale boutique hotel market, following the success of the InterContinental Group’s similar boutique chain, Hotel Indigo. The four new hotels planned in the Spanish cities of Madrid, Granada and the ski resort of Baqueira in the Pyrenees will be constructed from refurbished heritage properties already owned by European hotel group AC Hotels.

Both the AC Santo Mauro and AC Palacio de Retiro hotels in Madrid have been converted from historic houses to 50-room boutique hotels, while the Granada property, AC Palacio de Santa Paula, was a former convent. If successful, Marriott will expand the quirky heritage-turned-modern hotel brand into Italy and Portugal over the next three years.

“We are thrilled to launch the Autograph Collection in Europe with such a dynamic and distinguished group of hotels”, said managing director of Marriott International Europe, Amy McPherson. “Each of these properties offers a truly unique guest experience and fits perfectly within the positioning of the Autograph Collection.”

As the first major hotel launch in Spain since the collapse of the property market plunged its economy into a national debt crisis, the presence of the new Autograph brand will boost both the country’s economy and its public image. With major hospitality brands like Marriott showing confidence in Spain again, the recovery of the property industry can’t be too far behind both on the mainland and in the Canary Islands.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife | 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)