Spanish economy to fall 1.4% this year?

March 26, 2012 – 8:49 am

Zero growth in Tenerife and Spain this year?

According to latest forecasts from The Economist, reported in Diario Sur, the Spanish economy will fall 1.4% this year and register zero growth in 2013, while the unemployment rate will climb to 23.3% this year and prices will rise by 1.9%.

These estimates are slightly more optimistic than those of the Spanish Government, which anticipates a GDP decline of 1.7% this year and an unemployment rate of 24.3%.

Within the eurozone, the English publication only forecasts an economic downturn in 2013 for Greece (-1.2%), after their country’s GDP contracts 7.1% this year. However, it is estimated that Italy, another country in trouble, will stagnate in 2013, after dropping 1.6% in 2012 (more than Spain) and register an unemployment rate of 9.2%.

Germany, on the other hand, will be among the most advanced economies in 2013, with an increase in GDP of 1.4%, after a rise of 0.4% in 2012, followed by Austria, with growth of 0.5% in 2012 and 1.4% in 2013. France and Belgium, meanwhile, will return to growth again in 2013 after registering drops of 0.1% in their GDP this year. Specifically, France will grow 0.9% next year and Belgium by 1.2%.

The Economist then went on to estimate that the eurozone will close 2012 with a fall of 0.6%, but climb back next year, with growth of 0.7%, while the U.S. will grow by 2.1% in 2012 and 2.3% in 2013.

Source: Kyero

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

Property prices to fall further?

November 28, 2011 – 9:37 am

 The distressed nature of the Spanish property market combined with the country’s fragile economy suggests that property prices will fall further, despite the fact that they have tumbled nationwide since the peak of the market in 2007. The Eurozone debt crisis that has already seen three countries, Greece, Ireland and Portugal bailed out is now threatening much bigger economies like Italy and Spain. Furthermore, with unemployment and foreclosure levels in Spain both growing, it is hard to see how further price falls are not inevitable, presenting purchasers with an opportunity to bag an even cheaper priced home in Spain. Fresh research by an association of homeowners facing foreclosure (AFES), reveals that almost 20% of Spanish mortgages signed between the boom years of 2004 and 2008 are or will become delinquent. AFES calculate that over 700,000 families will have had their homes repossessed by 2015, which is a tragedy. But while extremely unfortunate, it does present those in a position to buy property, with an opportunity to secure a home at an even cheaper price, crushing any slim hopes that that market will soon embark on the road to recover. Mark Stucklin of Spanish Property Insight wrote: “Specifically, there were four million home purchases between 2004 and 2008 , the bubble years of the Spanish property boom  of which 170,000 have already been foreclosed, another 170,000 are in process, and another 375,000 are expected to be repossessed by 2015.” “All this at a time when there are more than three million empty homes in Spain,” he added. AFES propose partial or total debt forgiveness by banks, more mortgage lending, and lower property prices to making housing affordable. “The big social drama is that after losing their homes people are saddled with debts they can never afford to pay,” said Carlos Baños, President of AFES. or total debt forgiveness by banks, more mortgage lending, and lower property prices to making housing affordable. “The big social drama is that after losing their homes people are saddled with debts they can never afford to pay,” said Carlos Baños, President of AFES.

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

Victory in Spanish election to herald a change in Spain’s property market?

November 23, 2011 – 9:43 am

People's Party victory in Spain may help property sales in Tenerife

The landslide victory for the People’s Party in Spain’s General Election is hoped to herald an avalanche of change for the country’s property market. The Centre-Right party’s triumph follows elections in Greece, Ireland, Italy and Portugal as Spain becomes the fifth Eurozone country to switch government this year. The real estate industry is now urging the government to act, as thousands of discounted homes across the country remain unsold. Tax cuts and tourism initiatives are two of the measures anticipated by property professionals, as Spain’s appeal to lifestyle buyers remains strong, partially helped by the existing VAT reduction for new homes. “Spain still has arguably the best weather in Europe, is easy to get to and property is relatively cheap,” Spanish agency Mercers commented,  while house builders such as Taylor Wimpey have seen success by slashing VAT altogether. Marc Pritchard, Taylor Wimpey’s Sales Manager, comments: “We initiated the NO VAT policy as a way of assisting potential buyers further especially seeing as buyers have executed caution when committing to Spanish property. Indeed, we have seen considerable interest in our VAT free properties since its introduction and with only weeks to go before this rare time-limited opportunity for investors to purchase their dream home in Spain VAT free ends, we are urging property hunters to invest now before it too late.” As with the UK, unemployment is a central component to Spain’s recession, particularly for under-30s, and tax changes by the PP could create jobs as well as stimulate investor interest. In Motril, for example, an ambitious land development was scrapped when the market crashed. But plans have since been changed to a reworked “sporting and marina complex” that could create 1,000 jobs, as Spanish developers look for new ways to encourage investment. The council’s chief architect Juan Fernando Perez Estevez explains to Reuters: “It is something that will attract high-end customers who will need services. And it will be the catalyst for further activity. We’ve got the infrastructure, the motorway, so this is an important development that will attract investment.” Construction has always been a key source of jobs in Spain. At the peak of the housing boom, construction,when the People’s Party (dubbed the “Pro Property Party”) were last in power, 2.8 million people were employed in the building sector, but this has now dropped to 1.4 million – just 7.8 per cent of the working population. With unemployment high, Spaniards cannot afford new homes and banks continue to repossess property. With many seized assets turning sour, banks are losing out on billions of Euros, yet the Bank of Spain accused them in recent months of “holding back” the best properties until house prices have returned to higher levels. Around 600,000 “bottom of the market bargains” are currently available on the market, according to Property in Spain. And so Spain relies on overseas buyers to boost demand. Hopes reside in the new Spanish government, recognised as taking the problem more seriously, to continue selling off land assets in prime locations and encourage foreign investment. If the Eurozone remains stable, Reuters adds, “Spain can rebuild”. Some, including Property in Spain, are looking for immediate solutions: “The new Government has one month to the start of the New Year buying season to come up with enough incentives and safeguards to get more buyers tempted by the genuine bargains and mortgage deals on offer.” As the industry awaits new incentives to clear the large stock of discounted homes, prime Costa property at cheap prices is expected to eventually bring back international buyers to the country’s sunny coasts. According to a forecast from Bankinter last week, Spain’s supply will last for several years, but houses are predicted to become even cheaper for buyers, with prices falling another 6 per cent by 2013. It is a long road to recovery but in time, the PP’s acronym may stand for “Pro Property” once again. “There won’t be any miracles. We never promised any,” said the Prime Minister-elect Mariano Rajoy, who will be sworn into office in December. “But as we have said before, when things are done properly, the results come in.”

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

Spain still a frim favourite for property

September 7, 2011 – 10:55 am

Property in Spain and Tenerife still a favourite with buyers

The three most popular international real estate markets are still the old favourites – Spain, France and the USA, according to the latest Top of the Props report .

In troubled times, many investors return to the things they know best and that certainly seems to be the case with overseas property buyers, with the top 3 countries sharing nearly a third of all property searches on TheMoveChannel.com.

Director Dan Johnson said: “The Spanish market is awash with great deals at the moment as Spanish banks continue to try and shift property cheaply. This phenomenon is unlikely to change soon, as there is plenty of supply, while the failure of some banks in the recent stress tests, means they’ll be keener than ever to divest the repossessed stock from their balance sheets. 

“France is an altogether different market, with a much higher concentration of lifestyle buyers purchasing holiday homes because they love the country and want to spend time there – it’s not such a price-sensitive market, though buyers are still pushing for good deals.”

Other notable movers and shakers this month are Portugal, which moved above Italy in terms of popularity for the first time and Thailand, which jumped up 12 places to number 9 and moved into the top 10 for the first time.

Of course, the Canary Islands especially Tenerife has some real bargains at present, why not check out the local estate agents and grab a property at prices paid  years ago.

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

Spain still a top destination for holidaymakers

September 3, 2011 – 9:12 am
Spain remains one of the top destinations for holidaymakers around the
world, as tourist numbers and property enquiries both increased this
summer.
Figures released by the Frontier Tourist Movement reveal that Spain has
received 7.4 per cent more international tourists this year compared to the
same time in 2010, proving that the country’s beaches and culture are still
attracting visitors.
Around 32.3 million international tourists visited Spain between January
and July of this year, with July alone welcoming 7.5 million tourists. Up
to July 2011, Spanish airports received nearly 36.5 million passengers. The
busiest budget airline was Ryanair, which experienced a 25% increase in air
traffic to Spain.

Unsurprisingly, visitors from the UK led the way with 7.4 million
passengers (35.8 per cent), while Germany and Italy followed with 4.2m (20
per cent) and 2.2m (10.7 per cent).

The biggest rise to Spanish shores came from Swedish visitors (40.8 per
cent), who are purchasing an increasing amount of property in Spain. France
and the Netherlands also saw their number of tourists grow. Estate agent
Spanish Hot Properties comments: “Of all the tourists who chose to holiday
in the Costa del Sol, around 72% said they were attracted mainly by the
prospect of sun and sand which will come as no shock considering the
region’s exceptional climate.”

Spain continued to attract foreign interest in August too, Robin Brayne, Commercial Director of the overseas property portal, comments: “Once again, Spain is head and shoulders above the rest of Europe. People remain attracted by the country’s sunny coast and relaxed lifestyle, and further interest has been fuelled by the glut of repossessed & distressed properties being sold on by Spanish banks, offering homes at
superb value.”

Of course the Canary Islands, perticularly Tenerife remain popular for sales and purchase of propertyand holidays. As Spanish tourism soars this summer, the property market is looking increasingly sunny.

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

Spain and Tenerife amonst the property buying destinations for the Indian holiday market

June 29, 2011 – 9:08 am

European countries like Spain, Greece and Italy are among the latest property buying destinations for Indians in the holiday home segment after prices have crashed there, according to industry analysts and consultants. Real estate assets in exotic locales around the world are often packaged and marketed as “holiday homes”.

Even as Indians are restricted by the Reserve Bank of India (RBI) ceiling while investing in overseas property, their numbers have risen in the recent past in buying a home away from home. RBI has capped the overseas property investment at $200,000 per person per year.

No concrete data is available to quantify the size of the market as far as Indians going abroad to buy property is concerned, said Anshul Jain, CEO (India), DTZ, an international real estate adviser headquartered in London. Jain, however, said the number of Indians investing in prime property abroad or buying holiday homes overseas has gone up substantially in the recent months.

Spain, Tenerife and the Canary Islands and Greece, which continue to be in the grip of the economic slowdown, have seen 40 to 50 per cent decline in holiday home prices from their peak level, according to Jain. One can acquire a holiday home in these European destinations at ¤250,000-300,000, estimates suggest.

Source: Business Standard

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

Real estate sector in Europe has the potential to double in size over the next five years

May 27, 2011 – 8:49 am

The European listed real estate sector has the potential to double in size over the next five years, according to Fraser Hughes, head of research at the European Public Real Estate Association (EPRA).

The European listed real estate sector has the potential to double in size over the next five years, according to Fraser Hughes, head of research at the European Public Real Estate Association (EPRA).

The main drivers will be banks looking to offload distressed property assets held on their books and private investors turning to REIT structures to realise the value of their investments, Hughes told a seminar at the Realty 2011 trade fair in Brussels on Wednesday.

‘A number of opportunities are converging that have the potential to double the current EUR 300 bn market capitalisation of the European listed real estate sector over the next five years under a best-case scenario,’ he said.

Hughes made the comments during a seminar on European real estate investment trusts (REITs). He said Europe’s three largest economies: Germany, France and the UK, have the greatest potential to increase the size of their domestic listed real estate sectors by between EUR 10 to EUR 50 bn each, but there also interesting situations emerging in Italy, Turkey, Spain and Ireland.

With the  all year round warm and sunny climate, Tenerife and the Canary Islands  are well positioned to be part of any increased interest.

Source: PropertyEU.info

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

Spain receives 9million international tourists in first three months of the year

May 12, 2011 – 10:10 am

Spain received 9 million international tourists in the first three months of the year, according to figures drawn up by the Ministry of Industry, Tourism and Trade and published by the Frontur opinion poll.

This represents an increase of 2.9% over the same period last year. This increase is nearly ten times higher than the 0.3% registered in the first quarter of 2010. Particularly noticeable, were the increases in tourists from the Netherlands (22.3%), Belgium (20%), Switzerland (14.8%), Scandinavia (11.7%) and Italy (10.9%).

However, the UK remained Spain’s number one market, with 1.8 million tourists (albeit a decrease of 4.8% from 2010), followed by Germany with 1.47 million (3.7% less), and France with 1.2 million (2.7% more than last year).

In March, international tourist arrivals rose 0.6% to 3.5 million passengers, the Ministry said, recalling that last year’s Easter Week (Semana Santa) began in this month.

An increase in tourism usually spells greater interest in property purchase for second and holiday homes. Areas such as Tenerife are seeing a return of interest in the market as a result of such tourism

Source: Kyero

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

Time running out for second homes tax breaks

March 24, 2011 – 9:44 am

Time is running out for tax breaks on second homes

Time is running out for holiday  owners to upgrade their property while simultaneously cutting their tax bills. A £30m tax break, which cuts the cost of second homes for more than 65,000 families, is to be withdrawn next month because of EU laws. Attractive tax incentives were introduced in the eighties to encourage people to invest in quality holiday properties in Britain, after the lure of cheap Spanish packages left our many seaside resorts struggling, and in decline. They provided budding UK landlords with a meaningful subsidy towards the purchase and running costs of a second home, as well as more tax concessions when it came to selling. About 65,000 families currently own and run a holiday house in Britain under this tax regime, known as the furnished holiday letting rules, and save an estimated £30m a year in tax. But advantageous treatment of UK holiday property fell foul of EU laws, because they were deemed to discriminate against tourist accommodation in Spain, Portugal, France, Italy and elsewhere in Europe. Either the tax breaks had to be extended to all holiday properties throughout the European Economic Area (which includes Iceland, Liechtenstein and Norway as well as other EU countries); or they had to be withdrawn. The Government calculated that it would add up to £25m to the existing £30m cost of running this scheme if these overseas properties were included. By contrast, cutting this relief would bring an extra £20m into Treasury coffers. From April, losses can only be offset against future rental income and not used to reduce your overall tax bill. Source: Telegraph Online

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

Cheap travel deals encourage property purchases in Tenerife and Spain.

February 8, 2011 – 9:46 am

Cheap travel deals to Spain and Tenerife encourages property purchases

British investors are being encouraged to buy property in Spain by the current cheap travel deals on offer, it has been suggested.

Sue Ockwell, spokesperson for the Association of Independent Tour Operators, noted that a growing number of Britsh people are choosing to travel and acquire property within the eurozone because of cheap prices and familiarity with the destinations.

“I think an awful lot of people are realising how lovely places closer to home are – France, Italy and Spain, for example,” she said. “There is so much to see and do in those places.”

The comments come after the recent Post Office Travel Services Holiday Money Report found that Spain is currently the cheapest eurozone destination and fourth placed worldwide, showing a price fall of 30 per cent for the same travel areas surveyed a year ago. This is part of a general trend, in which every eurozone country surveyed is cheaper than last year.

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