More misery for the Spanish property market?

May 2, 2012 – 12:54 pm

More property investment misery in Tenerife and Spain?

The Spanish property market faces more misery with average residential prices expected to fall by a further 18% before finally bottoming out, according to Barclays Capital. The British investment bank says that the decline in values will add to the 22% price drop witnessed since the Spanish property market crashed in 2008. The bank’s latest report claims that Spanish home prices will drop by up to 35% before reaching the bottom of the downturn. But the reality is that property price falls nationwide have been far steeper and have already depreciated by 40%, on average. In fact, this rate of fall has been confirmed by Spain’s Minister for the Economy, suggesting that Barclays Capital’s data is largely unreliable. “So Barclays Capital are right to say that prices might fall 40% in total, but wrong to say that means another 18% of declines to come,” says Spanish property commentator Mark Stucklin. “We are already almost there [at the bottom], certainly when it comes to holiday homes on the coast.”

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

Spain back in “crisis mode”, but affordable property good news for investors

April 23, 2012 – 9:31 am

Spain in crisis,but property in Tenerife is good value for investors

Spain is back in “full crisis mode”, according to one bank, as property prices continue to plummet. “It is looking more and more likely that Spain is going to have some form of bailout,” Rabobank told OPP. “Assuming there is not an (ECB) intervention, you would not see a cap on Spanish yields, they would just keep increasing.” After the country’s 10-year boom came to a messy end in 2007, Spain’s economy has been dropping like a stone, taking the property market with it. Mortgages payments are rising as rates of inflation rise to 3.4 per cent and banks are left in a vulnerable position, holding one-fifth of the country’s 1 million vacant homes. The new Spanish government are introducing austerity measures to recoup lost finance, including cuts to education and health, but with almost five million unemployed and the economy still shrinking, the return of recession is “likely to suppress local demand”, according to Reuters columnist Maharg-Bravo. But more affordable property remains good news for overseas investors, as real estate values continue to decline at 22 per cent to 29 per cent each year. 

 Tenerife, with it’s beaches and sunshine is still attracting investment from overseas.

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

Rich property buyers look to Spain for second homes

April 19, 2012 – 12:11 pm

Rich buyers search Spain and Tenerife for property and a second home

Spain is the fourth most popular country for rich property buyers looking for second homes, according Knight Frank’s latest annual Wealth Report.

The 2012 report, which saw London, New York, Beijing and Paris continue to dominate the list of top cities for real estate investment, also found Spain to be a popular choice when it comes to holiday homes.

The 68-page document found Spain to be the fourth most attractive destination for second home purchases by the world’s wealthiest investors, beaten by France, the UK and the US. For rich Latin Americans, Spain is even more popular, ranking just behind the USA in second place.

Out of the factors considered by buyers for their second homes, lifestyle was the most important, with 67 per cent of all respondents citing it as a major influence. Investment potential, on the other hand, only influenced 55 per cent.

For Latin American buyers, the emphasis on lifestyle was even more prominent, with 86 per cent ranking it as the most important factor in their house hunting

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

Increasing numbers of Scandinavians are taking advantage of the crisis to buy holiday homes in Spain

April 17, 2012 – 9:34 am

Scandanavian buyers of property are looking to Tenerife and Spain for investment

According to a recent article at the website Investment Europe, “Figures published by Fastighetsbyrån, part of Swedish banking group Swedbank, suggest Swedish and Norwegian property buyers have pushed hard into the Spanish residential property market, as British and German buyers have withdrawn in the past half-decade.”

The article goes onto explain that “over the four year period, the number of UK buyers has dropped by 65% and German buyers by 3%. However, the number of Norwegian buyers is up 108%, and Swedes by 138%. The total market is still down 33% from its 2007 peak, the figures also suggest.”

Scandinavians are tempted by Spanish property, their economies are relatively strong, as are their currencies (the Norwegian and Swedish Krone/Krona have both risen by around 5pc against the Euro since the Spanish property bubble burst at the end of 2007, whilst the British Pound has fallen almost 20pc); Spanish property prices on the coast are down around 50pc or more from the peak, and the sun doesn’t shine much back at home. So Scandinavian buyers are taking advantage of the market to snap up bargains on the Mediterranean coast, and who can blame them?

Scandinavian buyers are not a panacea for the glut of holiday homes on the coast. For a start, with the pick of the best properties, I doubt they will be tempted by  the cheaper end of the market on the coast that also needs to be sold.  Unfortunately, there just aren’t enough of them to take the place of the retreating Brits, who dominated the market during the boom.

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

Spanish property market emerging from the doldrums

March 14, 2012 – 9:40 am

Spain and Ireland's property markets emerging from the doldrums

The Irish and Spanish property markets are emerging from the doldrums according to delegates at this year’s MIPIM real estate conference in Cannes.

Experts said that both markets were now proving “interesting” for investors. Pierre Vacquier, chief executive of Axa Real Estate, said “Both Spain and Ireland are interesting investors but Ireland is very attractive as the necessary price drops have taken place.”

The head of Deutsche Bank’s property investment arm (RREEF), Pierre Cherki, believes that conditions in Ireland and Spain are much more favourable for investors than a year ago. Let’s hope that Tenerife property sales follow  the same route.

Source: OPP.org.uk

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

Spain and Tenerife look popular for holiday home rentals in 2012

February 20, 2012 – 10:48 am

Spain and Tenerife property holiday rentals increase for 2012

More Spanish holiday home owners are looking to rent out their properties this summer with data showing that the supply of holiday rental accommodation in Spain grew sharply in the last quarter of 2011.

Demand from holiday makers has stayed strong, according to the UK’s largest holiday home rentals site HomeAway. Its latest report shows that Spain is the tenth best performing market in terms of growth in inventory on its website, the first time the country entered the top ten last year.

Due to the tough resale market in 2011 it would seem more Spanish holiday homeowners looked to rent out their properties to help cover costs, it suggests. Now, as property prices are largely thought to have bottomed out, Spain is again becoming one of the most attractive investment options for Brits.

The country also performed well on the demand side too. Overall, booking enquiries for Spain in 2011 were up 27% compared to 2010 and Malaga was the fifth most popular destination for holidays in the last quarter of the year.

Source: PropertyCommunity.com

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

Foreign investment in property grew in 2011 says Bank of Spain

February 16, 2012 – 4:14 pm

Foreign property investment in Spain and Tenerife up in 2011

Foreign investment in Spanish property grew in 2011 according to figures from the Bank of Spain. After surging by 27.8% through September over the same period in 2010 which experienced a mere 2.6% growth, overall transactions reached €3.6bn with the Bank of Spain reporting that these investments exceeded €1bn euros for three consecutive quarters, something not seen since 2008.

Marc Pritchard Sales and Marketing Manager of Spain’s leading house builder Taylor Wimpey España comments: “Foreign investment into Spain has been very changeable in recent years. It progressively declined between 2003 and 2006 only to increase in 2007 however, the upward trend was cut in 2008, during the economic crisis seeing foreign investment fall. However, the news that foreign investment in once again up is a sign that property market conditions are improvingwith property purchases in the third quarter of 2011 increasing by 19.2% over the same period of 2010, amounting to €1.1bn.

“The increase in Spanish property sales seen in the last quarter of 2011 has spilled over into 2012 as international bargain buyer’s hunt down the best Costa deals with Germany and Nordic countries outspending the Brits, who have been a little slow in spotting new opportunities.” Nevertheless, the euro’s depreciation against the pound could mean that there will be numerous opportunities for Brits to expatriate to Spain in 2012 with Pritchard stating: “As Spanish propertyseems more affordable in the eyes of British buyers there now seems to be a slow but sure increase in the demand for villas and apartments along Costa shorelines.”

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

Crucial year for Spanish real estate

February 9, 2012 – 4:37 pm

Crucial year for property in Tenerife and Spain

Property prices in the prime locations of Barcelona remained resilient throughout 2011 but it remains possible to purchase properties at discounts of up to 30% on 2007 prices, according to market analysis for Q3 and Q4 2011 by estate agents Lucas Fox. Having analysed the property markets in Barcelona, Mallorca, Ibiza and Costa Brava property markets, the company predicts that foreign property investment will rise in 2012. Alex Vaughan, Director at Lucas Fox International, says that his firm is still receiving strong interest from buyers looking to buy homes in some parts of the country, many of whom are keen to take advantage of the discounted prices that are possible. But the picture is less positive in other regions of Spain, with agents in some parts of the country such as Murcia and Alicante reporting on large amounts of property stock on the market and a very low volume of transactions. “In these worse affected areas 2012 looks set to be another crucial year for sellers and agents alike,” said Vaughan. “There are, however some positive signs in the market as a whole. Last year the Spanish government lowered the purchase tax payable on new build property which stimulated transactions in the last quarter and the new PP Government have announced that this measure will be continued through 2012.” 

The signs for 2012 are positive with a much larger amount of enquiries from international buyers  than we normally experience at this time of year.” Many prospective buyers who have been observing the Spanish property market for the last few years have now decided that it is the right time to show their hand and start negotiating on their ideal property, according to Stijn Teeuwen, director of Lucas Fox International Properties. He said: “For those clients that get it right there are possibilities to buy prime properties in the best locations at major discounts on the prices that there were being sold at prior to 2007 / 2008.” Tom Maidment, director at Lucas Fox Costa Brava, added: “There are still plenty of opportunities to purchase well-located, quality properties at interesting prices

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

Commercial property markets in Europe struggle

February 8, 2012 – 11:01 am

The commercial property market in Spain, Tenerife and Europe is struggling in the current economic climate.

Commercial property markets in Europe struggled to keep pace with other parts of the world, as the effects of the global financial crisis continued to impact on investment and occupier markets, it is claimed.

Rental predictions were in negative territory across much of Europe with the noticeable exception of Germany in the fourth quarter of 2011, according to the latest Global Commercial Property Survey from the Royal Institution of Chartered Surveyors.

The prospect of an extended period of minimal growth, if not a retreat back into outright recession, is clearly weighing heavily on the sector in the wake of the ongoing turmoil relating to the sovereign debt crisis, it points out.

Source: PropertyWire.com

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

High end Spanish property performing well

January 31, 2012 – 9:45 am

High end property in Tenerife and Spain performing well

Despite tough market conditions for property in Spain, one company has posted its most successful operational year to date in 2011, showing the appetite for high-end Spanish real estate has not waned.

2011 saw Lucas Fox doubling its staff, opening new offices and posting record-breaking third quarter profits of 19.5 Million euros, proof of the continued appeal of Spain among the cash rich. Among the most popular areas for investment were Barcelona, the Costa Brava and Mallorca where investors snapped up boutique and luxury pads.

Aimar Valls, Head of Commercial & Investment Property commented, “In the last year we have received a dramatic rise in both the quantity and quality of enquiries for commercial and investment property. Central Barcelona is a hot-spot for hotels, hotel projects and buildings with potential for tourist apartment rentals.

And the company is also optimistic about their fortunes in 2012. Director Alex Vaughan explains, “Our transaction pipeline is already looking strong and the outlook for the year is very encouraging. We start 2012 with over 5,000 active property buyers registered from Northern and Eastern Europe, Russia, Scandinavia, the Middle East, the U.S and China.”

Source: APlaceintheSun.com

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