Spain stepping up tax plans

January 3, 2012 – 10:07 pm

Spain's taxation approach helping property sales in Tenerife?

Spain is stepping up its tax plans to tackle the country’s deficit, but buyers are snapping up property regardless as further price drops are predicted for 2012.

The Spanish government’s predictions initially stated that national debt would amount to 6 per cent of GDP for 2011, but it was revealed last week that these figures were incorrect and that the country deficit is closer to 8 per cent.

Since then, Spain’s government has added that the debt “could be even higher”, according to The Daily Mail, prompting the recently elected Popular Party to go back on its pledge not to raise taxes. Property tax is expected to increase for homes above average value, Spain’s swift economic action has been welcomed by the EU as the country tries to reassure international investors who are snapping up properties at low prices.

Indeed, reports at the end of December from Global Property Guide found that foreign property transactions surged by 24.7 per cent in the third quarter of 2011, compared to the same period in 2010.

Alicante, Barcelona, the Balearic, Canary Islands and Malaga were all highlighted as popular areas for buyers, with research from Scotibank Group showing that house prices across Spain have fallen by 25 per cent since 2007. These price drops are now expected to continue in 2012.

Knight Frank’s Prime Global Forecast has predicted that global economic uncertainty will push Madrid’s property values down in the next 12 months. But with investors attracted by Spain’s declining property prices, Madrid’s fall of “less than five per cent” may provide more opportunities for international buyers. As Murcia prepares for the construction of its much-awaited Paramount Theme Park, buyers can benefit from the national downward trend while costs remain low.

Julio Adams said “Demand for key ready homes in this area is already high and we expect an equity boost of around 15 per cent for early buyers when the first spade goes in to start construction of Paramount Park.” With some Spanish regions seeing a gradual recovery and the number of foreign transactions on the up, the government’s reworked deficit plans may take Spain’s housing market in a positive new direction for the New Year.

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Juzcar happy to be left Smurf blue

December 23, 2011 – 2:11 pm

Spain's blue town is loved by Smurfette

It was meant to be a short-lived publicity stunt for a film that became a box-office smash despite withering reviews. But for the 221 inhabitants of Juzcar in southern Spain, The Smurfs in 3D has brought them an unexpected lifeline in tough economic times and yesterday they voted overwhelmingly to keep it.

The tiny pueblo of white-washed buildings near Malaga in Andalucía was selected by the filmmakers this summer to be painted entirely in that unique hue, Smurf blue.

While Sony had promised to return the village to its former glory after filming and publicity, the residents have found that being blue is not so bad at all, and yesterday in a referendum voted 141 in favour and just 33 against to remain the world’s only Smurf village.

Ever since the pueblo was converted into the set of Smurftown for Sony’s hit, it has been cashing in on its new-found celebrity status. Previously, about 300 tourists a year would pass through Juzcar. In the past six months, an estimated 80,000 followers of “Los Pitufos”, as the Smurfs are known in Spanish, have made the trek to the remote village high in Malaga’s sierras.

Source: Independent.co.uk

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Spanish rental property still tops

December 9, 2011 – 10:36 am

Spanish rental property still tops with the British

Overseas property buyers can get an idea of where they are likely to find a good rental market for their holiday home from a new survey that reveals Spain has been the top destination of 2011.

The quarter three Marketplace Report from holiday rentals specialists HomeAway also shows that there has been an increase in the rentals market in Thailand and Dubai.

More British people than ever opted for Spain as their top summer destination. In terms of the number of booking enquiries for breaks in the third quarter of the year Malaga Province and Majorca claimed first and second place, followed by Ibiza in sixth place.

There was also a clear preference towards short haul destinations with nine out of the top ten destinations for summer 2011 holidays being either in the UK, or within a three hour flight distance.

Source: PropertyCommunity.com

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New brand created by tourist board to encourage Brits to buy a home

November 29, 2011 – 9:13 am

Costa del Sol brand designed to encourage Brits to buy homes.

The Tourist Board of the Costa del Sol has created the new brand ‘Living Costa del Sol’ with the aim of encouraging the British to buy a home and reside in the region for at least six months of the year, an initiative which is directed at clearing some of the surplus of about 30,000 homes.

The President of the organisation, Elias Bendodo, presented the brand at the World Travel Market tourism fair being held in London this week. He also told reporters that it is their intention that this initiative will also be used in promotional activities to be carried out in Germany, France and the Nordic countries.

According to Bendodo, ‘Living Costa del Sol’ was developed in collaboration with developers, insurance companies and financial institutions, and aims to attract new British residents, reduce the amount of unsold finished homes, located primarily in the west of the Spanish mainland, and boost Spain’s economic recovery.

The President of the Malaga organisation also assured that the developers are “fascinated with the idea”, and stressed the importance of having legal guarantees, for working with insurance companies in the countries to which the brand is focused, reported El Mundo.

Source: Kyero.com

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Low rental yields in Spain.

May 23, 2011 – 9:59 am

Low rental yields (gross) imply that property prices have not fallen enough, according to new research by Idealista.com.

The highest gross rental yields in Spain are to be found in the Catalan province of Lerida (4.7pc), followed by Las Palmas in The Canaries (4.5pc) and Málaga, home to the Costa del Sol (4.3pc). These rental yields imply around 22 years of rental income to pay for the average property.

The lowest yields are in the North of Spain, with yields of just 2.9pc in the Galician province of La Coruña. That means the average property in La Coruña would cost almost 35 years of rent.

Idealista calculated rental yields per province for Q1 20011 by dividing the average rental asking-price by the average sales asking-price, both in terms of €/m2. Asking prices are not a perfect guide to market prices, but they are the best guide we have.

These figures do not distinguish between primary and holiday homes, and probably overstate expect gross rental yields for holiday-homes on the coast. Net rental yields for foreign owners are likely to be very low, in the 2pc range or less.

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

Spain, confirmed to be the favourite destination of potential property-buyers.

April 4, 2011 – 8:49 am

Tenerife and mainland Spain the destinations of choice for property hunters.

The hoped-for green shoots of the economy in the UK were showing their heads in Birmingham last weekend, when thousands of people turned out for the “A Place in the Sun” exhibition held at the NEC. International property shows in the UK had been in the doldrums over the past months and some of the organsisers had gone into bankruptcy owing to the overall downturn in property sales everywhere, but “A Place in the Sun”, backed by the TV programme of the same name, made a strong come-back at the NEC.

This was especially good news for Spain, confirmed to be the favourite destination of potential property-buyers. No fewer than 60 per cent of visitors indicated an interest in Spain, with France coming in a poor second despite its familiarity and geographical proximity to British buyers.  Spain’s main competitors were the USA and Australia and New Zealand, which were offering immigration packages.

Surveys of the public attending the show indicated that many buyers have been waiting for the right moment, and are now ready to make the move, as prices are unlikely to drop any further. Asked why they were looking at Spain and the Canary Islands, they mentioned, the climate, the friendly people, and enjoyable holidays in this area in the past. Buyers were also aware of the problems now facing investors who had opted in the past for destinations less well served by the airlines. While flights to many of these have been reduced or scrapped altogether during the credit crunch, Malaga and Tenerife airports  continues to be served by numerous airlines with dozens of flights every day to and from the UK.

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Spain blocks Gaddafi plans to build luxury flats.

March 3, 2011 – 11:44 am

Spain blocks Gaddafi's attempts to build on Costa del Sol

Spain has blocked plans by Libyan leader Muammar Gaddafi to build nearly 2,000 luxury flats on a property he owns in the country’s southern Costa del Sol region, Foreign Ministry sources said Wednesday. The complex in Benahavis, in the Malaga province, would also have included a golf course and a congress centre. The project was blocked in order to prevent Gaddafi from profiting from it economically, the sources said. The measure was based on sanctions approved by the United Nations Security Council and by the European Union against the Libyan regime. Spain is investigating whether Gaddafi has other properties or financial assets in the country, the sources said. Gaddafi made a private visit to Malaga in December 2007. Source: Monsters and Critics

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Spanish property market grows once more

May 16, 2010 – 11:17 am
Spanish and Canarian property on the risw once more.

Spanish and Canarian property on the rise once more.

The Spanish property market grew by 16% in February compared to the same month last year, according to the latest figures to be published by the country’s National Institute of Statistics
Not including social housing, there were 35,720 home sales in February, 21,368 of them newly built and 19,665 resales. According to analysts the market has touched bottom and is starting to recovery after two years of decline but the improvement is patchy and volumes are still 47% below what they were in 2007.

An examination of the figures shows that 79% of the increase in transactions came from just two regions. Catalonia saw a 43% increase and Madrid was up 36% while the market continued to shrink or stagnate in many coastal areas popular with foreign buyers. Malaga and Alicante saw year on year increases of 3% and 3.8% respectively and Andalucia saw a 7% rise. Granada and Cadiz were both up 14% and Valencia saw 23% growth.

Local figures suggest that Marbella is leading the way to recovery with figures from the town’s tax office revealing that 2,499 properties were sold in the first three months of this year, a rise of more than 200% compared to the same period in 2009 when just 820 properties were sold and the highest for four years.

Meanwhile, the latest property price index from Tinsa shows that prices fell by 5.3% over the 12 months to the end of March, a slight improvement on the previous month. The figures from Tinsa, one of Spain’s leading appraisal companies, are however based on their own valuations not actual transaction prices.

Since the peaks of December 2007, prices are down 16.2% nationally, 22.5% on the Mediterranean coast, and 13.6% in the Canaries and the Balearics. But there are no signs of foreign property buyers returning to the Spanish market. The latest figures from the Bank of S;pain show that the amount of money invested by foreigners in Spanish property has fellen to its lowest level for a decade.

Foreigners invested €3.7 billion in Spanish property last year, the lowest level since 1999, when it was €2.9 billion. Foreign investment in Spanish real estate was down 32% last year compared to 2008, and by 48% compared to 2003, when foreign investment in Spanish property peaked.  But the weak economy, high unemployment and enormous inventory of new houses will slowdown any recovery in the Spanish market, according to a report from PricewaterhouseCoopers and the Urban Land Institute into European property market trends.

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Zorro fans soon to be guests in Spain?

November 29, 2009 – 1:04 pm

 

Zorro fans soon to visit Spain?

Zorro fans soon to visit Spain?

Zorro fans could soon become guests of Antonio Banderas, spending the night at his Spanish vineyard in a new hotel – the Hollywood heartthrob is looking into opening a small hotel to encourage wine tourism to the area and help increase production.

The actor, who has starred in Hollywood hits such as The Mask of Zorro, Shrek and Philadelphia, bought a 50 per cent share in the vineyard in the famous Ribera del Duero wine area of northern Spain earlier this year. The vineyard was subsequently renamed Anta Banderas and the Spanish national clearly has big ideas to develop the business.

Speaking to the Spanish newspaper El Mundo Banderos said: ‘I have plans to revitalise this project with conferences, for example, on wine and literature, and I want to promote wine tourism. ‘In fact, we are studying the possibility of building a small hotel to welcome wine enthusiasts because it is a marvelous place.’

Visitors to the vineyard could soon spend their days touring the vines to learn more about the red and rose wines made from Cabernet Sauvignon, Merlot and local grape Tempranillo, before bedding down for the night à la Antonio.

If they’re lucky, they may even coincide with a visit from the 49-year-old star himself. The voice of Puss In Boots in the hit film Shrek already does his bit for promoting tourism to certain parts of Spain.

Every Easter he returns to his home city of Malaga to take part part in the traditional religious marches through the streets, attracting scores of adoring fans. His wife Melanie Griffith is even well-known enough referred to by Spaniards simply as ‘La Melanie’.

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