World tourism forecast

July 9, 2009 – 3:42 pm

Property bargains can be had in Tenerife as tourism struggles in the world recession

Property bargains can be had in Tenerife as tourism struggles during the world recession

The latest edition of the World Tourism Barometer has revealed that international tourism will decrease between four and six per cent this year in response to the economic downturn and concerns about swine flu - with Europe posting the biggest decline - a fall of ten per cent between January and April this year…

The United Nations World Tourism Organisation (UNWTO) has said that global tourism in 2009 will fall sharply.

International tourism is now forecast to decline by between -6 per cent and -4 per cent in 2009 as the pace of decline is expected to ease during the remainder of 2009, according to the UNWTO. In January it had predicted a decline of between zero and two per cent.

In view of the rapidly deteriorating global economic situation, economic growth prospects have repeatedly been adjusted downwards over the past six months. Property owners  in Tenerife,who rent for income will need to keep this in mind when setting prices  this year. Europe posted a decline of ten per cent between January and April this year, Going against the grain was Africa and South America, which both posted increases of three per cent and 0.2 per cent respectively

The research also revealed that France remained the world’s top tourism destination last year with 79 million arrivals. The United States regained the second-place position which it lost to Spain after the September 11, 2001 attacks. With this news in mind there are bound to be many bargains in the Tenerife property market at present, so if you are considering buying that one bed apartment, or that wonderful piece of prime property in Tenerife nowcould be the best time to check with your estate agent for those once in a lifetime bargains!

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

Less mortgages approved in mainland Spain

July 2, 2009 – 12:36 pm

Mainland Spain's property market struggles whilst Thhe market in Tenerife appears to be on the up

Mainland Spain's property market struggles whilst The market in Tenerife appears to be on the up once more.

The volume of new mortgages approved in Spain in April dropped by 42 per cent to 50,288, compared to the corresponding month in 2008, illustrating the extraordinary fall in demand for property in Spain, according to data compiled by the country’s National Institute of Statistics (INE)…

On a monthly basis, new lending fell 4.1 per cent between March and April, while the average value of a new residential mortgage has fallen by 18.4 per cent to £98,324, possibly to reflect the fact that Spanish property prices have fallen, while buying budgets have unquestionably dropped.

The low new lending figures further demonstrates the weak nature of the Spain property market but the latest reports suggest that Tenerife may be over the worst as the pound stregthens against the Euro and prime property is available at bargain prices on the island

INE’s figures suggest that the housing downturn in Spain may still have some way to go on the mainland until the market eventually bottoms out.

The data further shows that the average mortgage interest rate agreed in April to buy a property in Spain was 4.7 per cent, owed largely to low Euribor base rates.

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

Brits are buying in Tenerife again.

June 30, 2009 – 9:51 am

Brits are back buying prime property and bargains in tenerife

Brits are back buying prime property and bargains in Tenerife

 British demand for property overseas is on the rise once more, as a growing number of Britons seek to take advantage of the fact that sterling is now making gains on the euro.Until recently, more Brits were selling their homes in the eurozone, in order to repatriate proceeds back to the UK, and consequently take advantage of the euro’s strong value against the UK pound.

The currency broker reports that since January 2009, the volume of clients repatriating their funds back to the UK after selling their property abroad ascended by a staggering 60per cent on the previous six months.

This is unsurprising given that at one stage this year, the UK pound hit virtual parity against the euro.

This meant that those British expats who were fortunate enough to sell their eurozone-based home, amid difficult market conditions, were able to do so for less than they had initially paid, and still make a profit, due to the favourable exchange rate.

However, the UK pound’s value against major currencies such as the euro, has now improved, and looks set to strengthen further throughout the course of 2009, which bodes well for Brits currently thinking of buying a home abroad.

Sterling is currently trading at €1.16 against the euro, having dropped slightly from highs of €1.18 earlier this month and so more Brits are again turning their attention to the bargains and prime property in Tenerife and checking out the estate agents on the island for the best deals.

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

Help for Spain and Tenerife’s economy.

June 7, 2009 – 6:02 pm

Help for Tenerife and Spain's economy

Help for Tenerife and Spain's economy

In the annual state of the nation debate held last week, Spain’s President announced a package of economic measures designed to boost the Spanish economy. These included a  helping hand for Spanish tourism and by extension, property investment in Spain. Under the new Government initiative, airport taxes will be zero per cent as from the third quarter of this year.

Airlines whose passenger figures this year equal or exceed last year’s figures will be entitled to 100 per cent discount on airport taxes. To qualify for the zero tax, airlines will be required to present their passenger numbers as from July this year.

The measure applies to all Spanish mainland and island airports and is expected to boost the tourist industry considerably. Spain is one of the world’s most visited countries, but like most top tourist destinations has seen a fall in its visitor figures since mid 2008.

Spanish airport taxes are among the highest in Europe (and the world) and not surprisingly, those in the tourist sector including tour operators and hoteliers have been calling for a substantial reduction for some time. The recent Government announcement has naturally been welcomed by all sectors of the tourist and property industry.

The main airlines serving Spain and Tenerife are expected to start offering discounts and special offers on flights straightaway and this is predicted to have an immediate effect on tourist figures.

Zero airport tax is excellent news for the whole of Spain but it’s especially welcome for the tourist hot spots like Tenerife. Spain is the number one short-haul destination for holidays and at the moment when people are watching their budget, cheaper flights will be a major deciding factor on where they want to go.”

This measure will obviously have an important knock-on effect  on Spanish  and Tenerife property. Now that some areas of Spain like Tenerife are showing real promise for lifestyle investment, zero airport taxes couldn’t have come at a better time and those looking to invest in  a variety of property types be it prime property, villas with pools or one bed apartments will be delighted with the news .

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

Buying that dream home in Paradise

May 5, 2009 – 8:45 am

 

Tenerife property can supply your dream home

Tenerife's prime property can supply your dream home

Today’s economic state may mean buying a dream home in a sunny tropical paradise such as Tenerife may be more affordable but it’s still not cheap in certain other areas and when you compare the costs then Tenerife begins to look  a bargain.

Property prices on the more popular and developed islands reach over one million US dollars for a house and lot near the beach. In its latest survey of Caribbean property prices, the Global Property Guide reports that prices in highly-developed areas such as Bermuda and Bahamas exceed £4,800 per square metre. Coastal properties in Barbados are also expensive, at around £4,600 per square metre, while in the British Virgin Islands (BVI) and the US Virgin Islands (USVI), real estate prices are around £3,400 per square metre.

The cheapest Caribbean properties are found in Jamaica, Aruba and Dominican Republic, with prices ranging from £890 per square metre to £1,030 per square metre for houses near the beach.

Despite these high prices, Caribbean properties are now considerably cheaper than some coastal properties in Mediterranean Europe. Apartment prices in Barcelona are around £6,800 per square metre - more than twice the price of apartments in Bahamas or Cayman Islands.

In addition, it should be noted,  that some of these islands impose restrictions on foreigners intending to purchase properties. Licenses are required and this adds to the overall purchase cost.

When you compare the costs of high quality front line beach property  in Tenerife to these, then it is clear what  bargains can be found. In addition, the islands close proximity to the UK in terms of flying time is another bonus.
Take the time to look at the bargains available from your estate agent. Whether it is a one bed apartment, to a luxury villa with a pool overlooking the beach there are plenty of bargains available in Tenerife at this present time and without the restrictions that some of the “fashionable islands” impose .

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

Investment in Eastern Europe slows, creating opportunities for Tenerife

April 29, 2009 – 10:08 am

Tenerife prime property considerations for the future

Investment in Tenerife prime property. A consideration for the future?

Recorded property investment turnover in Central and Eastern Europe slowed further in the first quarter of this year with volumes now at levels seen earlier in the decade.

Levels were at approximately £196 million, a third of the volume transacted in the last quarter of 2008, according to the latest report from CB Richard Ellis. But there is optimism, with several areas now showing many property bargains, Tenerife being one.

Lack of liquidity is having an impact on every property investment market in Europe and is therefore profoundly affecting transaction numbers.

The majority of all CEE investment activity in the first three months of 2009 was in Russia. Ironically Russans are now buying property in Tenerife as they recognise its value and potential.

Lack of transparency is making it difficult to measure the markets. There is evidence to suggest that the more challenging conditions in Eastern Europe are impacting on market transparency, making it more difficult to measure investment volumes accurately.

But looking ahead there is optimism in the markets. What some of the low European investment volumes do not show is the considerable pipeline activity in some of the core markets in Europe. Several high quality assets are currently on the radar of institutional investors in the region and this ensures that Tenerife property is extremely good value and should now again be considered as a solid medium to long term investment.

In the remainder of 2009 the trading of a limited number of good quality schemes is expected to result in an upward trend in investment volumes. Whilst  fewer foreign investors are on the lookout, foreign purchasers have driven investments in property in Europe, usually accounting for more than 80 per cent of all volume. But uncertainty about pricing and an inability to obtain financing have now forced many foreign buyers to the sidelines, the report concludes. So, if you have some money it is probably worthwhile considering some prime property in Tenerife as an alternative to that 1% interest on your cash on Bank deposit if you have an eye to the future!

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

A good time to build your own property in Tenerife?

April 13, 2009 – 1:47 pm

Now is a good time to build in Tenerife

Now is a good time to build in Tenerife

With Spain and Europe  going through a severe bout of real estate depression, and the residential construction sector in the eye of the storm, this might be a great time to build your own villa in Spain or its islands, taking advantage of plunging material, labour, and land costs.

Construction prices have  come down significantly over the last 3/4 years with sizeable reductions in both material and labour costs. Furthermore, the cost of construction finance is significantly cheaper than it was several years ago and certain banks will lend 100% of build costs thus negating the impact of the poor Euro exchange rate.

Now may be  the ideal time to self build with low cost of land, lower construction costs, lower interest rates and so on. For many people “sitting” on undeveloped plots, the only way to see value from that investment is to build. Otherwise you are left sitting on an investment with no yield in a flat market which will prove very difficult to sell on as the banks will not currently lend against land. Also why not build now and take advantage of the favourable conditions before the inevitable upturn arrives and the constructors have more work on and the cost of borrowing is higher?

It is much better to build on that fantastic plot rather than maybe see some ‘vulture’ investor pick it up for below market value and reap all of the rewards when you could own your own property in Tenerife and either keep it to enjoy yourself or allow others to rent whilst you accept the financial benefits that owning prime property in the right location can bring.

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

Tenerife’s diverse property market

April 3, 2009 – 1:42 pm

Tenerife's diverse property market

Tenerife's diverse property market

The range of Tenerife property for sale is huge: If you are considering purchasing a  property here on the island there are certain things that you should consider first, such as the type of property you want, its location, cost and purpose (will it be for your own/family’s use, or are you planning it as an investment?). All estate agents in Tenerife have good portfolios and have fully trained professional and friendly staff to help answer any questions you might have about the process involved in buying.

Tenerife is the largest of the Spanish owned Canary Islands situated off the west coast of Africa. It is famed for many things, not least of which is that it is the location of the highest point in all of Spain; the majestic peak of Mount Teide, which towers over the island at a staggering 3,717.91 metres (12,198 ft) high. This peak is a dormant volcano which last erupted in 1909 and is often snow capped even whilst you are baking in the sun on the beaches at its base. Mount Teide splits Tenerife into two drastically differing faces. The north of the island is cooler and wetter, making the vegetation green and lush while the south of the island is a lot drier, with desert like areas and almost constant sunshine.

Mount Teide is also partly responsible for the incredible amount of micro climates that can be found on the island. Within an hour’s drive you can easily have travelled by sandy beaches, lush pine and laurel forests and even magnificent moonscapes.

Tenerife property for sale offers choices as diverse as its geography and no matter what type of property you are looking for, you are bound to find it here - from crumbling local fincas that need restoration to brand new off plan apartments on new developments. Tenerife simply has it all.

Until very recently, the Tenerife property market has been strong for more than twenty years, with many property booms and no real property slumps. Even though property here is still popular, there are now numerous bargains to be found. In the past, purchasing a property on Tenerife almost guaranteed a good return on your investment and with the island’s all year round season and its popularity with tourists from all over Europe, you can still feel secure in the knowledge that a property you buy for rental purposes will not be standing empty for long if the property is in a decent area, with a realistic rental price and close to good amenities.

For further information I suggest that you check out the following sites: Tenerife Prime Property and the The Tenerife Property Guide. Both sites contain all the information that you require when buying or renting either residential or business properties in Tenerife

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

Opportunities abound for even the smallest of budgets via distressed sales of property.

March 31, 2009 – 11:07 am

Distressed sales equals bargains in Tenerife's property market

Distressed sales equals bargains in Tenerife

Whilst investment banks have been busy snapping up distressed Spanish assets for millions since the credit crunch first darkened our doors, there is also an opportunity for those on smaller budgets to benefit from distressed properties, especially in Spain and Tenerife where there is also a wealth of them…

Last year, investment banks, including the now defunct Lehman Brothers, were desperate to get their hands on distressed Spanish assets.

The credit crunch meant that big discounts were on offer for investors who would take on troubled assets or companies and the banks took full advantage, buying up million of pounds of distressed senior bank debt. Lehman Brothers also bought stakes in a defaulted senior bank debt agreement and other non-performing loan sales.

Why Spain?

Spain quickly became the central focus for banks, who viewed the Spanish market as full of opportunity. Whilst the Spanish economy was faltering after ten years of boomtime, with house prices stalling after years of meteoric rises; food and oil prices rose, meaning many Spanish and Canarian locals were in trouble, businesses were shutting down and homes were being repossessed. This meant that distressed assets were ten-a-penny.

Individual buyers eye repossessed properties

Spain and Tenerife has long been the number one European destination for British buyers and hundreds of thousands of Britons happily already own property here. But, due to the decade long property boom having come to an end, the property market is now saturated with apartments that won’t sell and developers that are desperate to offload them.

Some off-plan property investors have a desperate need to sell before completion as either their circumstances have dramatically changed or they exchanged/completed on properties they could not financially keep, with the sole intention of flipping.

Thus, they have a choice. They can either sell the property for far less than market value, which is a distressed sale, or they can have the property repossessed by the developer or bank and forgo their original deposit.

Either way, they are in trouble and with trouble comes opportunity. Many estate agents claim distressed homes currently represent the ‘best value’ in the country for those looking to buy a home abroad.

Distressed properties can come with discounts of up to 40 per cent and there are many available in sub-prime hotspots, where developers have been faced with a glut of unsellable apartments.

Duquesa on the Costa del Sol and Torrevieja on the Costa Blanca are two such areas. Spanish savings bank Caixa Catalunya has estimated up to 500,000 newly built properties remain unsold. In Tenerife, Adje has some great bargains at present and Arona generally has opportunities if you are prepared to look.

If you want more information, why not check out agents such as Tenerife Prime Property or visit the Tenerife Property Guide for up to date news on all the available properties, whether domestic or commercial, for sale or  rental investment. Many of the issues involved with buying “distressed property” and what to expect from such a sale will be explained, and relevant Spanish real estate terms and common sources of distressed property will be knowledgeably covered by a reputable agent or property portal such as these mentioned.

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