A weaker Euro means less pounds for British vendors who repatriate their funds to the UK

January 25, 2012 – 1:25 pm

The weaker euro v the pound affecting property vendors in Tenerife and Spain

In the Euro zone , we continue to see the  single currency’s woes. For many investors and property owners in Spain it’s time to look at the bigger picture, which doesn’t paint a pretty scene as the hang-over continues into 2012.

The second half of last year revealed a number of detrimental factors that have hurt the Euro zone – a worrying decline in stocks, increase in unemployment, Governments finally pulling their heads out of the sand and recognising the problems within their own countries have all contributed to the crisis, which left people asking whether the single currency will even survive a year. It is a fair assumption that the Euro zone debt crisis will remain the central focus of markets going well into the New Year, so further weakening of the Euro is expected.

The outcome of the EU Summit last month did little to support the currency, with the outlining of plans to work towards greater fiscal integration in the euro zone failing to provide any comfort to the market as GBP-EUR pushed the €1.20 (0.833) level, and some forecasting €1.25 (0.8) by the end of February.

So the Euro could well continue to fall, in which case now might be a good time to sell it, or get a forward contract to do so if you are not yet ready (for example, if you are in the process of selling a property in Spain).

For example, if you wanted to change Euros into Pounds in June last year, when one Pound cost 1.11 Euros, but you didn’t have access to the Euros until December, a foward contract could have saved you £6,992.21. Firstly, you agree a rate of exchange for the amount of Euros that you are looking to sell and give a date that you know that the funds will be available before (bond maturity, or date of expected house completion for example).

A 10% deposit is needed within a few days of agreeing the rate and you can then relax and not be affected by any market movement, and can get your money at any stage at the fixed rate and all you need to do is send over the Euros when you have them before the end of forward contract.

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

Tinsa shows house price index down by 8pc in 2011

January 19, 2012 – 8:45 pm

Tinsa shows property sales in Tenerife and Spain down in 2011

Spain’s most reliable house price index fell 8.1pc in 2011, making last year almost as bad as the crisis year of 2008, when prices fell 8.8pc. There is a clear double-dip in the curve with price falls accelerating again after staging a feeble recovery last year.

One of the reasons house price declines have picked up speed is because of the return of the credit crunch in Spain. The double-dip in house prices is mirrored almost exactly by a double dip in new mortgage lending.  In coastal areas where holiday homes and much of the glut are concentrated finished the year better than other areas, with prices down 7.2pc over 12 months, compared to 9.1pc in cities and 8pc on the islands such as Tenerife.

Some experts argue that popular coastal areas will recover before the rest of the market thanks to diversified international demand from economies doing better than Spain

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

Potential purchasers looking for property discounts in Spain

January 6, 2012 – 9:45 am

Potential investors still want discount on property for sale in Spain and Tenerife

A  survey compiled by Spanish  portal Idealista reveals that potential homebuyers are looking for a property asking price discount of 21%, on average, despite the fact that prices have plunged  in recent years.

Data provided by Idealista shows that Spanish home prices dropped for the fifth consecutive year in 2011, with the average asking price now 20% below the high reached at peak of the market in 2007.

In spite of the fall in the property values, many would be purchasers feel as though values have not fallen enough to reflect the chronic oversupply of properties on the market, along with the country’s dire economic situation.

Spanish property commentator Mark Stucklin said: “As far as all other housing market indicators go, 2011 was another bad year, if not the worst since the crisis began. Property sales, house building, mortgage lending and confidence all tumbled to new lows, whilst repossessions hit new highs.”

Stuckin, like most Spanish property experts, expects home prices in Spain to continue falling in 2012.

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

Spain’s property reign ended by America

December 12, 2011 – 10:22 am

US overtakes Spain in the property market

The reign of Spain has been ended by America, according to the latest Top of the Props report .

Spanish property used to be the favourite for buyers, with the sunny Costas attracting swarms of house hunters every year. But now there’s a new top dog as the US replaces Spain in the overseas property portal’s rankings, upsetting the market’s established order to become the most popular destination in November.

The US has long played second fiddle to both France and Spain for property buyers but in October, America leapfrogged France to become a surprise runner-up in TheMoveChannel’s chart. Now, an increase of 7.01 percent in enquiries has seen the US surge to number one, with foreclosed homes and bargain house prices eclipsing the opportunities available in Europe.

Spain could only stand and watch as enquiries fell by 2.38 per cent last month, despite its half-price VAT reduction on new homes until the end of the year. France, on the other hand, remained firm in third place, attracting exactly the same number of enquiries in November and October, demonstrating the country’s consistent appeal to investors.

Managing Director Dan Johnson comments: “After climbing three places in as many months, the US continues to attract more and more overseas investors. Florida remains a popular lifestyle choice and with US houses the most affordable they have been in 15 years, the troubled Eurozone just can’t compete with the low price of American real estate. It’s no coincidence that the US is the only country to rise above the four familiar European markets.

As Spain’s reign ends, America’s dominance begins. Indeed, while the industry speculates about the impact of the Euro upon the rest of the world, North America’s rise to first place is exactly the kind of stimulant the US housing market needs

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

Higher standard rental properties requyired in Tenerife and Spain

November 25, 2011 – 1:07 pm

Higher quality rental property required in Spain and Tenerife

Holidaymakers opting for rental properties in Spain and Tenerife are looking for higher standards from their accommodation.

This is the finding of the Campaya Rental Property Market Trends 2011 report, which revealed that visitors to the country are increasingly searching for “levels of luxury equal to, if not better than, at home”.

As a result, the organisation suggested that those who invest in a property in Spain with the intention of letting it out to tourists may need to do more when it comes to furnishing and decorating the flat or house.

However, it warned that spending extra money on kitting out a property will not necessarily lead to higher rents, because the supply of such holiday homes continues to outweigh demand.

Source: PropertyShowrooms

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

Latest Price Index from Tinsa

November 17, 2011 – 9:53 am

Tenerife and the Canary Islands fare best in Tinsa's latest property index

Average Spanish house prices fell 6.9pc over 12 months to October, according to the latest House Price Index published by Tinsa, one of Spain’s leading appraisal companies.

Prices fell the most (-8.1pc) in regional capitals and metropolitan areas (-7.5pc), followed by the Mediterranean coast (-6.9) where holiday homes are concentrated, and where prices dropped considerably less than September. Prices fell the least in The Balearic and Canary Islands (-3.4pc).

Peak to present, prices are down on average 30pc on the coast, and 20.5pc on the islands.

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

September Tinsa Index

October 19, 2011 – 2:00 pm

Average Spanish house prices fell 7.4pc over 12 months to September, according to the latest House Price Index from Tinsa – one of Spain’s leading appraisal companies.

Prices fell the most (-8.9pc) in capitals and large cities, followed by the Mediterranean coast (-8.2) where holiday homes are concentrated.

Peak to present, prices are down on average 24.1pc, and by 31.9pc on the coast.

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

Spanish house prices fall again,though prime areas fair better

September 12, 2011 – 9:07 am

Property prices in Tenerife,Balearics and Costa Brava fair better than the rest of Spain

Average Spanish house prices fell 4.1pc over 12 months to the end of Q1, according to the latest house price index published by Spain’s National Institute of Statistics (INE).

That represents a turn for the worse after prices clawed their way back towards stability in the second half of last year.

New build prices fell 1.9pc, whilst resales were down 6.3pc, the worst result since Q3 2009.

This ties in with other data such as falling transactions to paint a picture of a housing market still far from out of the woods.

Not all market segments are suffering equally. Prime segments in upmarket destinations like the Costa Brava,Tenerife, and the Balearics are doing better.

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

Average prices have declined say TINSA

August 29, 2011 – 10:26 am

Average house prices have declined 6.6pc over 12 months to the end of June,according to the house price index published by Tinsa – one of Spain’s leading appraisal companies.

Holiday homes have led the fall, with prices on the coast down 8.7pc in 12 months. The market on the coast is struggling to digest a large helping of second homes, made more indigestible by the disappearance of British buyers.

After the latest falls, prices are now back to where they were 6 years in 2005, but even that means that prices might still be too high.

Peak-to-present, house prices on the coast have fallen the most (-28.8pc), followed by cities (-23.4pc), suburbs (-22.9pc), and the islands (-20pc). On average prices are down 20pc since their peak at the end of 2007

 Tinsa state a fall of -7%  for the Canaries and Balearics, however the market appears to be improving again in Tenerife.

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

House price index for Spain

May 9, 2011 – 8:35 am

The Official House Price Index published by the National Institute of Statistics (INE) would have us believe that Spanish house prices fell a mere 1.9pc in 2010

New build (vivienda nueva) prices fell -2.1pc, and resales (segunda mano) fell -1.6pc

The suggestion that Spanish property prices only fell 1.9pc last year, against a background of 20pc unemployment, tightening mortgage credit, and a monumental property glut is difficult to fathom.

These figures tend to distort price signals from the market and put off potential buyers. We might be better off if the INE did not publish house price figures. Not all official figures are so unreliable. According to figures from the Department of Housing, prices fell -3.5pc last year, and 6.5pc in real terms (after adjusting for inflation). That sounds closer to the truth, even if maybe still a touch  too optimistic.

Meanwhile, whilst mainland  Spain struggles in the property sector, the  islands, particularly the Balearics continue to improve, Tenerife being the best performer from the Canary Islands at the moment, mainly in the area of prime coastal property.

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