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)

Spain reclaims property crown

January 9, 2012 – 5:57 pm

Spain and Tenerife property in demand

Spain has reclaimed its property crown, according to the latest Top of the Props report from TheMoveChannel. Following America’s unexpected victory in November, US property fell in popularity last month, dropping three places in the overseas portal’s chart.

That dip was all Spain needed to soar back to top spot. Buyers seemed to flock to America to avoid Europe’s troubled markets, Spain, Portugal and France charged up the table, pushing America down to fourth. In total, the top three destinations accounted for just over a third of all enquiries on the site in December.

While US enquiries fell by 7.32 per cent, Spain’s popularity dropped by only 0.18 per cent. This steady level of attention, driven by low prices and the country’s reduction in VAT during 2011, reflects the continuing demand for Spanish property from lifestyle buyers.

This proves that holiday home demand can still buck the Eurozone’s downward trend if the prices are right.  Despite Spain’s return to form, investors are still willing to look elsewhere to avoid Europe’s more troubled economies.

Managing Director Dan Johnson comments: “As 2011 ends, the fluctuations in the Top 10 show the changing buyer demands in an uncertain market. Spain has always been a traditional choice for lifestyle buyers, as evidenced by the constant level of interest in the country. In fact, for the majority of last year, Spain was the most sought-after property destination on TheMoveChannel. so its return to the top spot seems an appropriate end to the year.

“Barbados and Morocco are equally attractive lifestyle choices that are free of Eurozone anxiety, but France and Portugal’s strong performance in December is a reassuring sign for more familiar property markets. As the New Year begins, we shall see if the popularity of these European countries will be strong enough to weather the economic climate in 2012.”

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

Buying opportunities in Tenerife and Spain

December 13, 2011 – 12:10 pm

Property bargains abound in Tenerife and Spain

The recent credit crisis has opened up some superb buying opportunities for buyers seeking a second home in Spain. While prices have fallen typically 25% from their peak.

For example, the Polaris World resorts were made famous by endless TV adverts featuring Jack Nicklaus before the recession hit, now these superb, complete golf resorts have a small proportion of unsold properties which the banks are keen to sell.

Buyers are advised to move quickly as much of the stock made available by the banks has sold in the last twelve months. Prime position property is becoming more difficult to find for buyers and the future of such cut price deals and mortgages remains uncertain with the government bailout of CAM about to result in a sale to a stronger banking group in Spain.

Villa Cashback MD Paul Williams remains cautious about continuing half price deals. “At this stage we don’t know what form a future CAM bank will take and what the pricing strategy of the new banking group will be. What we do know is that a weak CAM bank has so far undercut the stronger banks in pricing their property. Now it’s about to be bought by a stronger institution there’s no guarantee of the property giveaway continuing.”

Brand new apartments are available on resorts such as Hacienda Riquelme where front line golf apartments are available at less than half their original prices. Mortgages of up to 90% are available for overseas buyers. The resort has proved extremely popular with UK and northern European buyers this year.

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

Spanish rental property still tops

December 9, 2011 – 10:36 am

Spanish rental property still tops with the British

Overseas property buyers can get an idea of where they are likely to find a good rental market for their holiday home from a new survey that reveals Spain has been the top destination of 2011.

The quarter three Marketplace Report from holiday rentals specialists HomeAway also shows that there has been an increase in the rentals market in Thailand and Dubai.

More British people than ever opted for Spain as their top summer destination. In terms of the number of booking enquiries for breaks in the third quarter of the year Malaga Province and Majorca claimed first and second place, followed by Ibiza in sixth place.

There was also a clear preference towards short haul destinations with nine out of the top ten destinations for summer 2011 holidays being either in the UK, or within a three hour flight distance.

Source: PropertyCommunity.com

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

New brand created by tourist board to encourage Brits to buy a home

November 29, 2011 – 9:13 am

Costa del Sol brand designed to encourage Brits to buy homes.

The Tourist Board of the Costa del Sol has created the new brand ‘Living Costa del Sol’ with the aim of encouraging the British to buy a home and reside in the region for at least six months of the year, an initiative which is directed at clearing some of the surplus of about 30,000 homes.

The President of the organisation, Elias Bendodo, presented the brand at the World Travel Market tourism fair being held in London this week. He also told reporters that it is their intention that this initiative will also be used in promotional activities to be carried out in Germany, France and the Nordic countries.

According to Bendodo, ‘Living Costa del Sol’ was developed in collaboration with developers, insurance companies and financial institutions, and aims to attract new British residents, reduce the amount of unsold finished homes, located primarily in the west of the Spanish mainland, and boost Spain’s economic recovery.

The President of the Malaga organisation also assured that the developers are “fascinated with the idea”, and stressed the importance of having legal guarantees, for working with insurance companies in the countries to which the brand is focused, reported El Mundo.

Source: Kyero.com

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

INE say sales down in September

November 21, 2011 – 10:25 am

House sales down say INE

There were just 22,065 home sales in September (excluding social housing), 30.5pc down on the same month last year and 62pc down on September 2007, according to the latest figures from the National Institute of Statistics (INE).

Monthly sales this year since March have been the lowest since the crisis began. The positive start looks like a dead-cat-bounce. On a year-to-date basis sales in 2011 are 20pc below last year, and 56pc below 2007. The big question is can it get any worse in 2012?

Sales have been bad this year, falling by as much as 40pc in August, with an average annualised fall of 29pc each month since March. the market is shrinking fast, a clear sign that prices are still too high.

All this at a time when Spain is saddled with a monumental glut of homes for sale, not to mention unemployment of 22pc and rising. More than 40pc of young Spanish adults are out of work. Demographics are also starting to blow against the Spanish economy.

Unless the newly elected  Government takes radical steps to liberalise the economy, boost employment, and force banks to stop keeping property prices artificially high, it’s hard to see a way out of this mire.

What about holiday homes? The situation is a bit different because demand is internationally diversified, at least in some areas such as Tenerife. Some quality segments of the holiday home market will recover before the overall housing market. That said, this year and next year will be very tough.

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

Housing market shrinks again

August 21, 2011 – 5:28 pm

Housing market shrinks again

Home sales in June were the lowest since the property crash began, show the latest figures from the Statistics Institute (INE).
There were 24,699 home sales in June (excluding social housing), down 26pc on the same time last year,  even June 2009, when the crash was thought to be at its nadir.  It is clear that, after a deceptively promising start, 2011  is turning out to be the worst year yet.
Compared to June 2007, sales were down 60pc – a teeth-jarring fall by any measure.
Year-to-date, transactions are down 11pc compared to last year, 3pc compared to 2009, and 55pc compared to 2007.
Assuming that prices have fallen by an average of 30pc since 2007, then in value terms (Euros) the market has shrunk by 70pc since then. That means 70pc less money around for everyone who lived off the housing market, town halls in particular.
All this helps explain why many town halls are now in the jaws of a financial crisis: They ramped up their spending and overheads during the boom, assuming it would last for ever, but now the money has dried up and they can’t afford to pay their bills. A 70pc fall in revenues from real estate helps explain why.
Why are transactions still falling? Partly because the credit crunch is still in full swing – in Spain at least – and partly because the abolition of mortgage tax relief at the end of last year brought forward sales that might otherwise have taken place in the first half of this year. So the figures might make the market look worse than it actually is. To find out we will have to wait and see if there is a recovery in the second half of the year, let’s hope it improves in Tenerife too.
By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do | Tagged , , , , , , , , , , , | Comments (0)

Spain eases conditions for those with mortgage problems

July 21, 2011 – 2:46 pm

Spanish mortgages problems may be eased?

Spain will ease conditions for people who can’t pay their mortgages as floating interest rates rise and unemployment remains the highest in the European Union, the government said on Thursday.

Interior Minister Alfredo Perez Rubalcaba said the government will decree  a new and higher limit on the amount banks can legally deduct from the wages of a mortgage holder in default.

The government is contemplating other new rules to protect homeowners four years after a property bubble burst leaving many Spaniards stuck in homes worth much less than what they owe the bank.

“Indignados” or “indignant” protests around Spain in recent months have called on the government to address the plight of borrowers who can be evicted by the banks but still owe the entire amount of their mortgage even though the bank now owns their home.

Source: Reuters.com

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

Interest in foreign property purchase booming again says Moneycorp

April 1, 2011 – 9:56 am

Interest in purchasing Tenerife and Spanish property on the rise

Interest in foreign property purchases is once agan booming amongst British buyers, with  Rightmove and foreign exchange specialists MoneyCorp both reporting a large surge in enquiries. Real estate enquiries rose by 53 percent in February  Rightmove reports, with Spain retaining its popularity as a second home destination despite its much publicised housing collapse.

Certainly this increase in purchasing  is being seen in Tenerife and the bargains which exist at all levels, even in the prime property sector are now being snapped up by savvy purchasers

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

Increase in holiday home enquiries in Canary Islands

March 31, 2011 – 1:38 pm

Interest in Tenerife property increases

Spring is finally in the air this week here in the chilly old British isles, and it seems UK holidaymakers have summer on their minds, if the latest data from vacation rental website Holiday Lettings is anything to go by. Surprisingly, despite growing media reports of an ‘income squeeze’ due to increasing taxes and inflation, the portal has recorded a 20% year on year increase in holiday home enquiries so far in 2011, with Spain’s Balearic and Canary Islands the big winners amongst sunseekers. 

This is good news for buy to let investors with properties in Spain’s outlying islands, who have no doubt been panicking over the last year with the market collapse on the mainland and virtually no chance of selling their home for a profit. But luckily industry predictions on the resilience of Spain as a holiday destination prompting a recovery in market demand appear to have come true – the Balearic Islands have had the single largest enquiry rate of any destination this year, whilst the Canaries were also popular earlier in the year.

The Canary Islands offer a value-for-money holiday option for cash-strapped Brits, particularly given the savings they could achieve on holiday rentals versus hotel stays. The recognised saving when renting a property is hitting home with consumers in tough economic times and Spain’s reputation for offering value for money and its longstanding place in the hearts of British holidaymakers are likely to be contributing to its popularity so far this year. Great news for property owners in Tenerife.

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