Wet weather sends Brits searching for the sun

May 14, 2012 – 8:06 am

Wet weather in the UK sends Brits to Tenerife and Spain

As summer approaches and the temperature rises abroad, demand for traditional holiday destinations is also beginning to hot up. With the wet weather in the UK, Brits have turned to search for overseas property in record numbers with properties in Spain attracting the greatest volume of searches. The latest Rightmove Overseas report shows that properties in Portugal were also high on Briton’s wish list, along with a range of other holiday hot spots, including Australia. But Spanish locations dominate the top 10 climbing regions. Shameem Golamy, head of Rightmove Overseas, said: “The main beneficiary of this increased search activity has again been the traditional Spanish destinations of Benidorm, Estepona, Tenerife and Torrevieja, as people look for properties in familiar locations. Albufeira and Carvoeiro in Portugal have also benefitted from extra searches, as has Sydney in Australia.” The report also reveals that more property investors are eyeing up property investment opportunities in Greece, Malta, Spain and Ireland, where prices have plummeted in recent years.  “The economic woes affecting parts of Europe has failed to deter buyers in the UK interested in overseas property. Germany, usually a favourite destination of UK investors, seems to be gradually losing interest. It seems that UK buyers are more inclined to look for warmer destinations as thoughts turn towards the summer.”

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

Average price of a home fell by 11.5% in March compared to last year

April 18, 2012 – 9:43 am

 

Property prices continue to slide in Tenerife and Spain

Vendors have been forced to slash property prices across the country in order to have any chance of realistically attracting a serious buyer, but with the well documented Spanish property crash showing no sign of abating, prices look set to fall further.

Despite claims from some estate agents and developers in Spain that market conditions are improving, it would seem that they are actually getting worse.

The average price of home in Spain fell by 11.5% in March compared to the corresponding month last year, according to Spain’s most widely-watched annualised House Price Index compiled by Tinsa, a leading property valuation firm. The annualised decline in Spanish property is the highest since the housing crash got underway over four years ago.

Spanish home prices have, on average, now dropped by 28.6% since the crisis started in December 2007 and by 35% along the coast, where the greatest glut of homes are located.

Advisory firm R.R. de Acuna & Asociados recently projected that the average price of a home in Spain will fall by 12%-14% this year – the most since the National Statistics Institute started tracking values in 2007.

Fernando Rodriguez de Acuna Martinez, a partner at the advisory company, said: “There will be more serious price drops this year because of the government decree.” What  could happen to prices beyond 2012? With unemployment standing at 23%, which is higher than Greece, and given that Spain is deep in a recession, with greater austerity measures to come, it would appear that prices still have a long way to fall.

Bankinter estimates that housing prices will fall an additional 6% to the end of 2013, but the reality is that the decline is likely to be greater and for longer.

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

Spanish economy to fall 1.4% this year?

March 26, 2012 – 8:49 am

Zero growth in Tenerife and Spain this year?

According to latest forecasts from The Economist, reported in Diario Sur, the Spanish economy will fall 1.4% this year and register zero growth in 2013, while the unemployment rate will climb to 23.3% this year and prices will rise by 1.9%.

These estimates are slightly more optimistic than those of the Spanish Government, which anticipates a GDP decline of 1.7% this year and an unemployment rate of 24.3%.

Within the eurozone, the English publication only forecasts an economic downturn in 2013 for Greece (-1.2%), after their country’s GDP contracts 7.1% this year. However, it is estimated that Italy, another country in trouble, will stagnate in 2013, after dropping 1.6% in 2012 (more than Spain) and register an unemployment rate of 9.2%.

Germany, on the other hand, will be among the most advanced economies in 2013, with an increase in GDP of 1.4%, after a rise of 0.4% in 2012, followed by Austria, with growth of 0.5% in 2012 and 1.4% in 2013. France and Belgium, meanwhile, will return to growth again in 2013 after registering drops of 0.1% in their GDP this year. Specifically, France will grow 0.9% next year and Belgium by 1.2%.

The Economist then went on to estimate that the eurozone will close 2012 with a fall of 0.6%, but climb back next year, with growth of 0.7%, while the U.S. will grow by 2.1% in 2012 and 2.3% in 2013.

Source: Kyero

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

Value of residential property falls in Spain in final quarter of 2011

March 7, 2012 – 11:11 am

Residential property values fall in Spain and Tenerife during last quarter of 2011

The value of residential property in Spain and Tenerife slid in the final quarter of 2011, according to new research.

Global Property Guide has published its worldwide housing market statistics for the final quarter of last year, revealing real estate in Spain saw 2.86 per cent wiped off its value in the last three months of 2011, compared to the period between July and September.

Meanwhile, the annual figures showed property prices in Spain fell by 9.27 per cent between the fourth quarter of 2011 and the same timeframe in 2010.

Only Athens in Greece, Warsaw in Poland and Ireland saw greater annual declines in residential real estate prices over the course of last year.

Source: PropertyShowrooms.com

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Property prices to fall further?

November 28, 2011 – 9:37 am

 The distressed nature of the Spanish property market combined with the country’s fragile economy suggests that property prices will fall further, despite the fact that they have tumbled nationwide since the peak of the market in 2007. The Eurozone debt crisis that has already seen three countries, Greece, Ireland and Portugal bailed out is now threatening much bigger economies like Italy and Spain. Furthermore, with unemployment and foreclosure levels in Spain both growing, it is hard to see how further price falls are not inevitable, presenting purchasers with an opportunity to bag an even cheaper priced home in Spain. Fresh research by an association of homeowners facing foreclosure (AFES), reveals that almost 20% of Spanish mortgages signed between the boom years of 2004 and 2008 are or will become delinquent. AFES calculate that over 700,000 families will have had their homes repossessed by 2015, which is a tragedy. But while extremely unfortunate, it does present those in a position to buy property, with an opportunity to secure a home at an even cheaper price, crushing any slim hopes that that market will soon embark on the road to recover. Mark Stucklin of Spanish Property Insight wrote: “Specifically, there were four million home purchases between 2004 and 2008 , the bubble years of the Spanish property boom  of which 170,000 have already been foreclosed, another 170,000 are in process, and another 375,000 are expected to be repossessed by 2015.” “All this at a time when there are more than three million empty homes in Spain,” he added. AFES propose partial or total debt forgiveness by banks, more mortgage lending, and lower property prices to making housing affordable. “The big social drama is that after losing their homes people are saddled with debts they can never afford to pay,” said Carlos Baños, President of AFES. or total debt forgiveness by banks, more mortgage lending, and lower property prices to making housing affordable. “The big social drama is that after losing their homes people are saddled with debts they can never afford to pay,” said Carlos Baños, President of AFES.

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

Victory in Spanish election to herald a change in Spain’s property market?

November 23, 2011 – 9:43 am

People's Party victory in Spain may help property sales in Tenerife

The landslide victory for the People’s Party in Spain’s General Election is hoped to herald an avalanche of change for the country’s property market. The Centre-Right party’s triumph follows elections in Greece, Ireland, Italy and Portugal as Spain becomes the fifth Eurozone country to switch government this year. The real estate industry is now urging the government to act, as thousands of discounted homes across the country remain unsold. Tax cuts and tourism initiatives are two of the measures anticipated by property professionals, as Spain’s appeal to lifestyle buyers remains strong, partially helped by the existing VAT reduction for new homes. “Spain still has arguably the best weather in Europe, is easy to get to and property is relatively cheap,” Spanish agency Mercers commented,  while house builders such as Taylor Wimpey have seen success by slashing VAT altogether. Marc Pritchard, Taylor Wimpey’s Sales Manager, comments: “We initiated the NO VAT policy as a way of assisting potential buyers further especially seeing as buyers have executed caution when committing to Spanish property. Indeed, we have seen considerable interest in our VAT free properties since its introduction and with only weeks to go before this rare time-limited opportunity for investors to purchase their dream home in Spain VAT free ends, we are urging property hunters to invest now before it too late.” As with the UK, unemployment is a central component to Spain’s recession, particularly for under-30s, and tax changes by the PP could create jobs as well as stimulate investor interest. In Motril, for example, an ambitious land development was scrapped when the market crashed. But plans have since been changed to a reworked “sporting and marina complex” that could create 1,000 jobs, as Spanish developers look for new ways to encourage investment. The council’s chief architect Juan Fernando Perez Estevez explains to Reuters: “It is something that will attract high-end customers who will need services. And it will be the catalyst for further activity. We’ve got the infrastructure, the motorway, so this is an important development that will attract investment.” Construction has always been a key source of jobs in Spain. At the peak of the housing boom, construction,when the People’s Party (dubbed the “Pro Property Party”) were last in power, 2.8 million people were employed in the building sector, but this has now dropped to 1.4 million – just 7.8 per cent of the working population. With unemployment high, Spaniards cannot afford new homes and banks continue to repossess property. With many seized assets turning sour, banks are losing out on billions of Euros, yet the Bank of Spain accused them in recent months of “holding back” the best properties until house prices have returned to higher levels. Around 600,000 “bottom of the market bargains” are currently available on the market, according to Property in Spain. And so Spain relies on overseas buyers to boost demand. Hopes reside in the new Spanish government, recognised as taking the problem more seriously, to continue selling off land assets in prime locations and encourage foreign investment. If the Eurozone remains stable, Reuters adds, “Spain can rebuild”. Some, including Property in Spain, are looking for immediate solutions: “The new Government has one month to the start of the New Year buying season to come up with enough incentives and safeguards to get more buyers tempted by the genuine bargains and mortgage deals on offer.” As the industry awaits new incentives to clear the large stock of discounted homes, prime Costa property at cheap prices is expected to eventually bring back international buyers to the country’s sunny coasts. According to a forecast from Bankinter last week, Spain’s supply will last for several years, but houses are predicted to become even cheaper for buyers, with prices falling another 6 per cent by 2013. It is a long road to recovery but in time, the PP’s acronym may stand for “Pro Property” once again. “There won’t be any miracles. We never promised any,” said the Prime Minister-elect Mariano Rajoy, who will be sworn into office in December. “But as we have said before, when things are done properly, the results come in.”

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments (1)

If Spain had kept the Peseta……..

November 18, 2011 – 3:26 pm

If Spain had kept the Peseta would the property crisis have been as bad?

If Spain had kept the Peseta the bubble would never have been so big, claims Max Otte, an economics professor and fund manager who forecast the crisis in a book published in 2006.

Otte explains that low interest rates that came with Euro-zone membership are the root of the problem. Egged on by the banks, Spaniards binged on cheap mortgage credit and drove the property market into a frenzy, making a traumatic bust inevitable.

Given where we are now, Spain would have been better off with higher interest rates and steady growth outside the Euro-zone, argues Otte in comments reported in the Spanish press. The boom years were no worth this bust.

He also claims it’s only a matter of time before Greece abandons the Euro, and recommends that Spain does so too. The Euro has been a waste of time and money, says Otte.

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

Spain and Tenerife amonst the property buying destinations for the Indian holiday market

June 29, 2011 – 9:08 am

European countries like Spain, Greece and Italy are among the latest property buying destinations for Indians in the holiday home segment after prices have crashed there, according to industry analysts and consultants. Real estate assets in exotic locales around the world are often packaged and marketed as “holiday homes”.

Even as Indians are restricted by the Reserve Bank of India (RBI) ceiling while investing in overseas property, their numbers have risen in the recent past in buying a home away from home. RBI has capped the overseas property investment at $200,000 per person per year.

No concrete data is available to quantify the size of the market as far as Indians going abroad to buy property is concerned, said Anshul Jain, CEO (India), DTZ, an international real estate adviser headquartered in London. Jain, however, said the number of Indians investing in prime property abroad or buying holiday homes overseas has gone up substantially in the recent months.

Spain, Tenerife and the Canary Islands and Greece, which continue to be in the grip of the economic slowdown, have seen 40 to 50 per cent decline in holiday home prices from their peak level, according to Jain. One can acquire a holiday home in these European destinations at ¤250,000-300,000, estimates suggest.

Source: Business Standard

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Wages and labour costs up in Tenerife and the Euro zone.

June 24, 2011 – 10:45 am

Labour and wage costs up in Tenerife and the Eurozone.

The increase in wages and other labour costs accelerated in Tenerife and the euro zone during the first quarter of 2011, although wages continued to fall in Greece and Ireland—two members that are grappling with fiscal crises.

The European Union’s Eurostat agency  said wages and salaries in the 17 nations that use the euro were up 2.3% from the first quarter of 2010, a pickup from the 1.4% annual increase recorded in the final three months of 2010.

Total labour costs, which include taxes paid by employers, were up 2.6% from the first quarter of 2010, compared with a rise of 1.5% in the final quarter of 2010.

The pickup in wage growth will concern the European Central Bank, which raised its key interest rate in March in order to prevent a second round of price increases in response to higher commodity prices.

Source: Wall Street Journal

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Savings banks in Spain are also real estate agents after exposure to property collapse

February 18, 2011 – 10:04 am

Banks in Spain have property to offload after the real estate crisis

They are officially banks but they have become Spain’s main real estate agents, according to data from the country’s banking sector which reveals the extent of their risky property assets. The Bank of Spain had asked all 17 of the country’s fragile regional savings banks, which account for about half of all lenders, to supply it with details of their exposure to the collapsed real estate market.

Unsurprisingly, the savings banks held far more risky assets than the main banks, based on a calculation of the figures last week by AFP. The nation’s seven main banks held 45 billion euros ($61 billion) in risky assets and the 15 of the savings banks that have so far published their figures had around double that, or 90 billion euros.

The difference is due to the huge amount of mortgage loans — some 164.9 billion euros worth — that the savings banks handed out during the property bubble, whereas the main banks only issued some 77.5 billion euros. The savings banks are at the heart of market fears that Spain could need a bailout like the ones granted Ireland and Greece last year.

A good estate agent in Tenerife for example will have details of many repossessed property bargains by banks and will be more helpful with details of the location than any savings bank may be  in my opinion.

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