Spain and the Canary Isles still the Brits favourite place to buy a home

Spain is still tops for Britons buying homes abroad

Spain is the perennial favourite for Britons looking to buy a home abroad, confirms the latest survey by Channel 4’s A Place in the Sun.

The ranking for 2011 goes as follows (2010 in brackets):

1. Spain (1)
2. France (3)                    
3. Portugal (4)
4. Italy (6)
5. Florida (2)
6. Turkey (5)
7. Greece (8)
8. Cyprus (7)
9. Malta (new entry)
10. Egypt (new entry)

Here is what they had to say about Spain, Tenerife and the Canary Islands:

Once again, Spain remains the most popular destination for Brits to buy abroad and therefore tops our chart of the best places to buy abroad in 2011. After all, it has all the right ingredients – excellent access from the UK, sun, sea, culture and infrastructure. With repossessed properties and distressed sales hitting the market, the home of the Costas, Balearic and Canary Islands still has some great deals for the diligent buyer. Huge discounts on holiday homes mean there’s a multitude of destinations and property options on offer.

As we have been saying for a while now, this really is a great time to buy in Tenerife. In fact it is a great time to buy throughout Spain and its islands.  Check out the latest deals with your estate agent, particularly the discounts available  on prime property in Tenerife.

Spanish court upholds investors rights in failed property development deposits case

Spanish laws protect investors deposits for off plan property developments throughout Spain and Tenerife

A Spanish court has upheld the right of investors in a failed property development to have their deposits returned to them, after a local bank attempted to shirk their responsibilities under the country’s guarantee laws. 

The Caja Cantabria bank tried to claim that the guarantee period had ‘expired’ on an investor’s funds, after they paid a deposit off the plan on a property that was never built. Under Spanish law, developers can use an ‘aval bancario’, or bank guarantee, to protect buyers whilst the development and construction of the property is in progress. 

Whilst they obtain funds from their particular bank of choice to fund the property development, the bank holds all deposits in a separate safe account until construction is complete. If it doesn’t complete in a set amount of time, the deposit plus six per cent interest is returned to investors.

Despite Caja Cantabria’s attempts to implement a ‘small print’ to the terms of their guarantee, the court still upheld this national guarantee law, and stated the guarantee period could not expire whilst the investor still had no property to show for their funds. Although Spanish law is not based on precedents like that of the UK, this decision should still reassure off the plan buyers that their money is safe as long as they have a concrete bank guarantee issued to them. This applies not only to mainland Spain but the Islands, like Tenerife are also covered. Clearly this should boost investor confidence.

This Spanish hotel really is rubbish!

This hotel in Madid really is rubbish!

Madrid’s most unusual hotel has opened. It really gives a new meaning to the words, “That place was rubbish.”

The Save the Beach Hotel, constructed of 12 tonnes of litter collected from Europe’s beaches, is open to the public as part of the city’s International Tourist Fair. Designed by German artist HA Schult, the hotel, located in the city’s central Plaza de Callao, aims to raise awareness over pollution in the Med’s summer tourist resorts. 

“It shows the damage that we are causing to the sea and coast”, said Schult. “We live in an era of trash, and we run the risk of becoming trash.” Mexican beer brand Corona has also jumped on the campaign, giving competition winners the opportunity to spend the night in one of the hotel’s five bedrooms.

The International Tourist Fair has proved to boost further foreign interest in the flagging Spanish market, where real estate prices remain at record lows. However, a report conducted by Spanish property portal Kyero found that properties in the bargain lower end of the market (50,000 euro and below) saw an increase in enquiries.

Maybe time to look for  that bargain property in Tenerife or any of the Spanish islands?

Distressed sales expected to increase in Spain. Time to bag a property bargain?

Opportunities exist to purchase bargain prime property in Tenerife

The number of foreclosed or distressed properties on the Spanish market is expected to triple by the end of 2011, it has been suggested. Madrid-based Pisos Embagados de Bancos has claimed that there are currently 100,000 foreclosed homes on the market and by the end of the year this figure will rise to 300,000. Greg Butcher, founder of Fairhomes Ltd, believes that this problem is only being fuelled by the country’s banks which, he says, are still continually overvaluing their stock. “The problem is that the balance sheets of the banks still look quite healthy as they routinely overvalue their foreclosed property stock,” Mr Butcher confirmed. “In order to do this, however, they’re inflating market prices by 25 to 40 per cent which is not, realistically, going to help shift a glut of hundreds of thousands of homes. Neither is it going to enable us to judge the real price of property in Spain today.”

A sad situation for some is often another persons opportunity and  currently in Tenerife  for example, we see many bargains as a result of owners having overstretched themselves during the boom. Now is certainly a buyers market and probably one of the best times to purchase prime property, not only in Tenerife but throughout Spain and  the  islands.

House sales fall in Spain,though the islands fair better.

Spanish house prices fall in November

Spanish house sales fell in November for the third straight month, official data showed on Wednesday, reversing eight months of gains as the country’s ailing property sector struggles to recover.

House sales dropped 6.2 percent in November from a year earlier to 32,746 units, after falling 17.7 percent in October, though rose 20.4 percent month-on-month, the National Statistics Institute said.

Spain’s housing crisis has turned a decade-long economic boom into a prolonged bust, forcing the country’s network of savings banks into a costly consolidation process and leaving millions of construction workers without jobs.

Housing prices, which have not fallen as sharply in Spain as in the United States or Ireland, are expected to continue to fall gradually for several more years, aggravating economic stagnation. However, the islands such as Tenerife have largely faired better during the current difficulties.

Brits and Romanians keen to live elsewhere.

Brits and Romanians looking to live in Spain and Tenerife

You may wonder what Brits and Romanians have in common – according to new research, these two nationalities are the most likely to leave home behind and begin a new life elsewhere. Despite the UK being a popular end destination with migrants from all over the world, one in three of us would love to emigrate abroad permanently, new research has revealed.

Research firm Gallup has found that British people share the top slot with Romanians in terms of being the keenest to move away from their homeland and set up a new life elsewhere. The poll questioned people living in EU countries about their contentment with their home countries and their desire to try living somewhere else.

Despite beliefs to the contrary, the economic downturn has not had a big impact on people’s desire to move away from Blighty – the same level – 33 per cent – say that they were just as keen to begin a new life elsewhere before the credit crunch set in.

This trend is similar to what Gallup observes worldwide. With some exceptions, people’s expressed desire to migrate did not decrease meaningfully in the downturn. Instead, the main reasons people gave for wanting a new life away from their home turf were being dissatisfied with conditions in local communities. Many reported feeling discontent with the local infrastructure such as the quality of the local schools and their roads and highways. Disappointment in the government and police force were also named as factors.

The type of person looking to emigrate has not changed much over the last few years. The vast majority of people looking to emigrate were young professionals with relatively high levels of education, all of whom were dreaming of better career prospects and a better quality of life elsewhere.

Thirty-three per cent of those with secondary educations were keen to try life elsewhere, whilst 36 per cent of those with a degree say they would like to move if they had the chance. In terms of location, British people were most keen on Australia, the USA, Canada Spain and its islands.

But the research also found that us Brits appear to be all mouth and no trousers – despite the high levels of desire to want to move abroad, a tiny two per cent of us were actually considering doing so over the next year – a far lower proportion than in many other EU countries. If all of the people who expressed an interest in emigrating actually did so, the UK would be left with a severe skills shortage as its youngest, brightest and best educated hopes flew the nest to take their skills elsewhere.

Gallup’s findings show that the government needs to do more to improve the communities within the UK in order to make them a more appealing place to live and work over the coming years.

Asking prices increase states Facilismo

Property prices on the rise once more in Spain and its islands?

Facilismo.com states that between October and November, vendors put up their asking prices by an average of 0.05%, the first time Facilisimo’s asking price index has increased since June 2007, bringing to an end 40 months of monthly price declines. Compared to November last year, asking prices were still down 4.2pc, but that is the lowest annualised decline this year.

Asking prices rose month-to-month in eight regions lead by Galicia (+3.46pc), Cantabria (+2.73pc) and Murcia (+1.19pc), and declined in eight regions lead by Navarre (-1.32pc), Aragon (-0.34pc), and The Valencian Community (-0..24pc).

“The end of mortgage tax relief and the almost total lack of new construction means that price declines are coming to an end,” explains Juanra Doral, head of Facilisimo.com. “Despite the government urging vendors to lower their prices, the majority will only do so if they really have to, preferring to maintain the present minimum value.”

But according to Idealista.com, another big Spanish property portal, (resale) asking prices fell 1.2pc in November compared to the previous month.

Prices fell in 14 regions, compared to 11 the previous month, and at an increasing rate. Asking prices rose a fraction in just 2 regions; Extremadura and Asturias, didn’t change in Andalucia, and fell the most in The Canaries (-2.4pc) and The Valencian Region (-1.4pc).

Interest in buying property in Spain and Canary Isles is increasing

Interest in buying property in Spain and the Canary Isles is increasing with more people searching for Spanish real estate in May, according to the latest index from Rightmove. Overall 58% of locations saw an increase in property searches, 42% saw a decrease and 0.2% experienced no change.

Half of the top time climbers in May were in Spain and its Islands There was also interest in South Africa but this is put down to curiosity generated by the World Cup football tournament rather than an increase in serious buyers. June is expected to see even more interest as football fever continues.

Interest in property in Tenerife and Spain increasing once more

Interest in property in Tenerife and Spain increasing once more

‘May was a great result for Spain, fed by returning confidence among buyers as the bad memories and headlines of last year fade. It’s always hard to let go of what your property was worth at the peak of  the market and accept times have changed, but vendors also seem more open and have much improved realism about prices necessary to make transactions happen,’ said Robin Wilson, Head of Overseas at Rightmove.

‘The improving Euro exchange rate is definitely playing a part, up 10% on January this year and 20% on January last year, meaning buyer’s budgets can go further,’ he added.

Moneycorp, one of the UK’s leading foreign exchange specialists, has also seen a rise in enquiries for Spanish properties, which amounted to an increase of 11.8% between March and May.

‘Throughout May, sterling gained good ground against a weak Euro. Having started the month at €1.14, the rate eventually reached €1.18 towards the end of the month. The pound has benefitted from economic data which continues to support the view that the UK recovery is gaining traction,’ said David Kerns, Head of Private Clients at Moneycorp.

‘In contrast, the Euro has continued to weaken, following news that Spain’s AAA credit rating had been downgraded. It was sent even lower when the European Central Bank warned that Euro zone banks faced writing off another €195 billion of bad loans. The increase in the Sterling/Euro exchange rate would have made properties within the Euro zone an increasingly more attractive prospect for Euro buyers, and explains the surge in interest.

Canarian property prices improving according to TINSA

Canarian property prices beginning to recover?

Canarian property prices beginning to recover?

Spanish property prices are still falling, but less with every passing month, according to the monthly house price index published by Tinsa, one of Spain’s leading appraisal companies

Average Spanish property prices fell by 4.4% over 12 months to the end of May, show the latest figures from Tinsa. Prices actually fell a fraction compared to last month, even if they rose compared to the same month last year.Should the Tinsa figures be believed, the rate of decline in Spanish property prices has been slowing since June 2009, when it peaked at -10.1%. If the trend towards smaller declines keeps up, average property prices will be stable, or even growing slightly before the end of the year.

Prices have fallen the least over 12 months in coastal areas and the Islands, areas traditionally popular with foreign buyers looking for holiday and retirement homes. Prices are down just 4.1% on the coast, and 2.4% in The Canaries and The Balearics

On a peak to present basis (since prices peaked in December 2007), prices are down 16.5% nationally, 21.4% on the Mediterranean coast, and 12.8% in the Canaries and the Balearics. So anyone buying a property on the coast today should be getting a discount of 21% on average compared to 2007.

Tinsa’s figures are based on their own valuations, not actual transaction prices. Most of these valuations have been paid for by banks, and  they might not give a true picture of property prices .

May Index
National: 1,906
Mediterranean coast: 2,035
Balearics & Canaries: 1,641

Peak Index (December 2007)
National: 2,284
Mediterranean coast: 2,590
Balearics & Canaries: 1,881

No major turnaround in property market

No major upturn in the property market on mainland Spain, whilst Tenerife and the Canary Islands show an improvement

No major upturn in the property market on mainland Spain, whilst Tenerife and the Canary Islands show an improvement

There has been no major turn around in the health of the property market in mainland Spain but no lurch downwards either. Homes sale in September, not including social housing, stood at 33,276, up 7.4% on the previous month, but down 19% on the same month last year. Compared to 2 years ago, sales in September were down 42%, which just shows how much the market has shrunk since the boom.

The figures show that, though the market is significantly smaller than it was, it is not getting any smaller. It appears to be bumping along a floor of around 30,000 sales per month.  Monthly sales have come down compared to 2007 and 2008.  The market is still depressed in volume terms, but not getting worse the islands, such as Tenerife appear to be improving in fact.