World’s housing market has a weak third quarter

December 15, 2011 – 11:05 am

Spain and Tenerife fail to buck the trend of weaker house prices

The world’s housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide.   During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better. 

The Global Property Guide’s statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

The world’s second strongest quarter-on-quarter house price rise occurred in an unexpected city – Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria’s capital.

The Irish housing market remains the world’s weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008.  Quarter-on-quarter, Ireland’s house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

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

Spain plan to part nationalise weakest banks

January 24, 2011 – 9:30 am

Spain to consider nationalising weaker cajas

Spain plans a part-nationalisation of its weakest savings banks as it seeks to reassure investors a rescue will not weigh on its deficit, sources and reports said on Friday.

A source familiar with the matter told Reuters the government will force debt-laden savings banks to become conventional banks and seek stock market listings to persuade skittish investors that they are good investments.

The state-backed bank restructuring fund (FROB) would then take stakes in the banks - known as cajas - which fail to attract private investment, the source said. Up to now the FROB has functioned as a lender to the cajas.

High levels of bad property loans at the savings banks is seen as a major risk for Spain’s government as it aggressively cuts its budget deficit to stave off fears it will need an Irish or Greek-style rescue from the European Union and International Monetary Fund.

Estimates of the cost to recapitalise the savings banks range from 17 billion euros (14.4 billion pounds) to 120 billion euros, with consensus falling in the 25 billion to 50 billion range.

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

Thomas Cook to pull out of Canary Islands?

April 9, 2010 – 10:57 am

The Irish low-cost carrier is to offer 32 services to the Canary Islands (Gran Canaria, Lanzarote, Tenerife and Fuerteventura) from nine British airports this summer – with the routes being supported by discounts offered by the Canary Islands’ government. Thomas Cook, Britain’s second-largest tour operator, has claimed that Ryanair will receive a subsidy equivalent to at least 6.5 euros per passenger on the new routes.

Thomas Cook to leave Tenerife and the Canary Islands?

Thomas Cook to leave Tenerife and the Canary Islands?

Thomas Cook has given warning it could pull out of the Canary Islands in a row over the “subsidies” it claims are being paid to Ryanair by local authorities.

Manny Fontenla-Novoa, chief executive of Thomas Cook, said in an interview with the trade publication Travel Weekly that “paying” Ryanair to fly to the islands was not the way to arrest falling visitor numbers and said that Thomas Cook might switch to selling more holidays in Turkey and Egypt.

A spokesman for Ryanair denied that the carrier received subsidies. “The discount scheme is available to all airlines that commit to growing traffic to the Canary Islands,” he said. “Instead of complaining, Thomas Cook should apply for the scheme, lower its fares and compete on price to grow its business – something it has never had to do in the Canary Islands.”

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

Irish walk away could be great news for other expat investors in Tenerife?

December 3, 2009 – 4:40 pm
Irish walk away from Tenerife may mean more bargains for oher expats.

Irish purchasers walking away from Tenerife could mean more bargains for other expats.

A growing number of Irish property investors are walking away from their overseas property investments, following the slump in global property prices over the past two years, reports Overseas Property Mall.

Irish investors were among the most active overseas property buyers in the world during the boom years, but many have fallen into negative equity, particularly those who invested off-plan, following the collapse in property values in places like Spain and the USA.

“Now these projects are nearing completion and the final staged payments are becoming due, property owners are realising they have already paid two or three times what their investment is now worth, without even adding in this final payment”, Overseas Property Mall report.

Irish investors have also been hampered by problems in their own domestic property market with the average price of a home in Ireland have depreciated by around 24% since the peak of the market in 2007, according to Fitch rating agency. Although many international investors, not just the Irish, have had their fingers burnt by the recent collapse in property values, the fact is that many of them bought property at or near the top of the cyclical upturn.

“Following recent stern price corrections, property values in many countries are now much closer to bottoming out. Some markets are already showing tentative signs of improvement, with transactions and prices increasing once more. Now is the time to invest astutely in property, not shun away from it.” So if this trend continues then other ex pats may pick up more bargains as many Irish have heavily invested in Tenerife and the Canary Islands in recent times.

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