Average Spanish house prices fell 7.4pc over 12 months to September, according to the latest House Price Index from Tinsa – one of Spain’s leading appraisal companies.
Prices fell the most (-8.9pc) in capitals and large cities, followed by the Mediterranean coast (-8.2) where holiday homes are concentrated.
Peak to present, prices are down on average 24.1pc, and by 31.9pc on the coast.
Property bargains available in Spain, Tenerife and the islands
During the last three decades, hundreds of thousands of Britons have purchased property in Spain. Nonetheless, a surplus of villas and apartments has spawned due to mortgage defaults from British buyers. By noting the declining property prices during the month of June, according to valuation and consulting firm Tinsa’s latest General IMIE (Spanish Property Market Index) report, one can see the opportunity to purchase Spanish property at a low price. This is why British investors are continuing to invest in the Spanish real estate market.
Along the Mediterranean coast, the Balearic and Canary Island archipelagos are amongst the most popular tourist and investment attractions in Spain. The Balearic Islands feature Mallorca, Menorca, Ibiza, and Formentera. With its Opera House, Mallorca offers a stately and elegant experience, while King Juan Carlos’ castle sits in Palma. Menorca offers a drier climate than the aforementioned Mallorca, in addition to cool breezes. Menorca has also garnered fame for its production of leather goods and gin. Ibiza has recently improved its reputation from years past, and Formentera offers an intimate and secluded getaway.
The Mediterranean Coast offers numerous overseas investment opportunities.
From the bright lights of Benidorm to the opulence of Moraira and the resorts towns of Javea and Denia, the Costa Blanca offers a smorgasbord of options. The Costa Blanca is serviced by Alicante airport, now supplemented by inexpensive flights to Valencia on the northern Costa. This enhances tourists and property buyers’ access to the Spanish region during the year. The Costa features the Mediterranean highway, which runs alongside the coast for virtually the entire length of the Costa Blanca, enabling easy travel.
Tenerife and the Canary islands, firm favourites over the years with the British has property available at prices not heard of during the last five years. Maybe this is the time to bag that bargain?
Prices for property in Spain fell by 6.6 per cent last month compared with June 2010, new figures have revealed.
The latest General IMIE (Spanish Property Market Index) report from valuation and consulting firm Tinsa also revealed a monthly decrease in house prices compared with May.
Overall, the largest drops were recorded on the Mediterranean coast, where values fell by 8.7 per cent over the previous year. Large cities saw a 7.3 per cent decline, while the Balearic and Canary Islands registered a seven per cent negative movement.
“As regards variations by areas, it should be highlighted that all of them showed greater year-on-year falls than in the previous month,” Tinsa said in its report.
Rental property prices on the increase in Tenerife and Spain
The market for holiday rental properties in Spain is on the up, it has been claimed, with more travellers heading to the Mediterranean for a break.
Chief executive officer of the Travel Rental Network Brian Schwimmer stated that rental values in Spain are on the increase, which could bode well for investors with property in the country.
He explained that many holiday home owners cut their prices dramatically in 2009 and 2010 in a bid to attract more UK tourists; however, a rising number of travellers from all over the world are now heading to Spain.
As a result, “prices are normalising once again, so people expecting the same discounts they saw last year might be in for a surprise,” Mr Schwimmer commented. Good news at last for those in Tenerife and the Canary Islands with properties to let.
The price of free-market housing in Spain has dropped on average by 15.4% (more than 20% in real terms and as much as 24% in some provinces).
Certainly in Tenerife and the Canary Islands the housing market is showing signs of improvement once more and their are good quality prime property bargains to be had at present.
New ferry proviodes more choice to Spain from the UK
This Sunday sees the launch of cross-Channel ferry company Brittany Ferries’ second service from the UK to Spain. The company will offer twice-weekly services from Portsmouth to the scenic city of Bilbao on the Franco-Spanish border.
Brittany’s continuing expansion into Spain reflects the continuing demand from British tourists for holidays in the popular Mediterranean nation, which despite the economic downturn shows no signs of ceasing. The company found that particularly due to the constant disruptions in European air travel last year, more people are turning to the ferry as their method of choice to get to their Spanish holiday home.
“As the number of air travellers from the UK to Spain have declined, we’ve witnessed a surge in demand for direct UK Spain crossings”, said passenger commercial director Mike Bevens. “Bilbao has forged a reputation as a destination in its own right in recent years.”
Tinsa index now shows positive signs for the property market in Tenerife
The Tinsa Spanish House Price Index for February (change over 12 months) is as follows:
National average -4.5pc
Big cities – 5.2pc
Mediterranean Coast -6.7pc
The Balearics & Canaries -0.8pc
Peak-to-present:
Mediterranean Coast -27.2pc
Capitals -20.6pc
The Balearics & Canaries -17.5pc
Eu directive may help Brits who travel to Tenerife and Spain.
For second home owners regularly travelling to their property in Europe, obtaining insurance to ensure you’re covered for any accidents that could occur abroad is at best an annoyance, at worst a hefty extra cost. Luckily, if you’re a citizen of the EU or UK travelling to another country within the Eurozone, all that is about to change.
By 2013, all EU citizens will be able to claim back for medical treatments they receive in other European countries, with or without travel insurance. The new Cross-Border Healthcare Directive, ratified in Brussels last month by all Eurozone states, will benefit both short-term travellers encountering those pesky ski accidents, and retirees who divide their time between, say, the UK and a second home in the Mediterranean.
For the latter category, healthcare has been a particular problem previously. As well as not qualifying for free healthcare in the EU, British citizens who spend more than 184 days a year abroad are also discounted from receiving NHS treatments. The new law should simplify the process for this expat category, ensuring they can receive medical care whether they spend the majority of time in France, Spain, the Canary Islands, the UK or anywhere else in Europe.
Despite the EU executive’s estimation that cross-border healthcare will only take up a mere 1% of total health spending, the new laws (which must be implemented by all states within 30 months) have met with some resistance in the UK. “The rules will turn the UK’s NHS into a bureacratic nightmare”, said UKIP leader Nigel Farage. There are also concerns that some countries may be late in doing their part to implement the laws, as Spain, particularly, has been slow to implement many health and insurance-related resolutions from the EU in recent years.
Spanish property prices are still falling, but by less with every passing month, according to the house price index published monthly by Tinsa, one of Spain’s leading property valuation companies. Average Spanish property prices fell by 4.6% over 12 months to the end of April, show the latest figures. On a monthly basis, prices even rose a fraction. Should Tinsa figures be believed, the rate of decline has been slowing since June 2009, when it peaked at -10.1%. Should this continue, average property prices will be stable, or even growing slightly within about 6 months.
Tenerife,Canarian and Spanish property prices bottomed out?
Prices fell by 5.2% on the Coast, and by 3.8% in The Canaries and The Balearics – areas that interest holiday home and expat buyers the most. On a peak to present basis (since prices peaked in December 2007), prices are down 16.1% nationally, 21.5% on the Mediterranean coast, and 13% in the Canaries and Balearics according to Tinsa’s figures, prices have bottomed out and are beginning to recover.
Tinsa’s figures are based on their own valuations, not actual transaction prices. They are interesting in what they reveal about trends, and the valuations used by banks for mortgage lending purposes.
National: 1,916 €/m2
Mediterranean coast: 2,033 €/m2
Balearics & Canaries: 1,636 €/m2
Peak prices (December 2007)
National: 2,284 €/m2
Mediterranean coast: 2,590 €/m2
Balearics & Canaries: 1,881 €/m2 .
