Recovery in Spanish property market could begin in next 12 months

July 1, 2011 – 11:04 am

Tenerife and Spanish property market set to improve soon.

People keen to earn extra money by investing in property have been told that a recovery in the Spanish market could begin in the next 12 months.

Buy Association editor Paul Collins explained that investors should be cautious about purchasing assets just yet, as further falls are expected.

He said: “There is still significant inertia in the property market in Spain, with developers, agents and private sellers alike struggling to move properties.”

However, Mr Collins cited research by JP Morgan Chase & Co estimating that the industry is set to “bottom out” over the next 12 months and begin to recover.

Certainly the market in Tenerife reflects an upwards trend, particularly in the prime property  and coastal sectors. 

Source: KnowledgetoAction.co.uk

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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

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Demand for property in Tenerife and Spain may increase after Arab Investment Forum takes place in Murcia

June 27, 2011 – 8:44 am

Arab Spanish Investment Forum may increase interest in Tenerife prime property

Demand for property in Spain could be set to increase following news that the city of Murcia has been chosen to host the Arab Investment Forum.

The event gathers together over 70 per cent of the Arab world’s most prominent investors for two days of networking and discussion, Select Property reports.

Salvador Marin, regional minister of universities, business and research in Murcia said the main objective of the forum would be to “promote investment and the potential of the region”.

Event organisers noted that the region has been selected specifically for its economic importance. It has a strong business sector, growing tourism and real-estate sectors and “has many future investment possibilities”.

Source: PropertyShowrooms.com

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Property demand in Spain set to soar?

June 13, 2011 – 8:40 am

Property demand set to soar in Tenerife and Spain?

Demand for property in Spain could be set to soar as banks move to sell off billions of euros worth of distressed property assets.

Analysts have estimated that financial institutions in the country control more that €100 billion (£86.7 billion) in real estate, The National reports.

Most are second homes in developments built during a ten-year construction boom targeting the same European buyers.

There are anywhere from 700,000 to a million empty apartments and villas in Spain, the majority of them in coastal areas. Tenerife has its fair share of prime property  again at reasonable prices following the market correction.

Source: PropertyShowrooms.com

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British still buying in Spain and the islands

June 10, 2011 – 8:47 am
  • Tenerife and Spain are  still  favourites  with British buyers.

    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).

  • In municipalities with more than 25,000 inhabitants there has been an average 25% decrease, while in certain coastal towns the drop has been even greater. Such is the case in Marbella (40%), Torrevieja (31%) and Ibiza (29%), for example.
  • In 2010, property purchases by foreign residents in Spain increased by 20.8% over 2009.
  • In 2010, the British accounted for 23.4% of all property purchased by foreign residents in Spain.
  • In 2010, 491,000 property sales were recorded, 6% more than in the previous year and the first increase after three years of downturns; 60% of sales were in the Mediterranean coastal regions and in Madrid.
  • The number of empty housing units stands at less than 700,000 units in 2010; 61% of these are concentrated in the Spanish coastal regions.
  • The volume of finished housing has fallen by 60% in 2010 compared to the peak year of 2007, while newly constructed approved housing has fallen by 90% in 2010 from its 2006 high.
  • At present, the construction of subsidised housing (VPO) accounts for 50% of all new housing. As a result this type of housing now accounts for 11% of all residential real estate in Spain.
  • 1/3 of Spain’s more than 25 million houses are holiday homes.

    • 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.

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

    British owners of holiday-homes in Spain paid far fewer visits last year, says a new study.

    May 24, 2011 – 10:05 am

    British visitors to second homes on Tenerife buck the trend in Spain

    Visits to Spain by British owners fell by 17pc, whilst visits by German owners were down 11pc, reveals a new report by the government-sponsored Institute of Tourism Studies (IET).

    The drop in the number of tourists staying in their own properties was much more pronounced than the fall in the number of hotel bookings, which, in the case of British tourists, were down just 0.6pc last year.

    The study also found that British tourists staying in their own holiday-homes spent 55 Euros/day on average, compared to 111 Euros/day average for hotel guests. Spaniards staying in holiday-homes spent an average of 21 Euros/day.

    30% of Spaniards stayed in holiday-homes in 2009, compared to just 8.6pc of foreign visitors.

    Holiday-lettings also fell in 2010, -13.5pc in the case of British tourists, and 13.4pc in the case of Germans. Bad news for landlords on the coast.

    The decline in the number of tourists staying in holiday-homes coupled with the crisis means that “the purchase of a holiday-home is at present far from a priority for the average family,” concludes the report.

    However interest in prime property in Tenerife and the Canary Islands continues to increase and the second home visits seem to be bucking the trend of mainland Spain.

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

    House price index for Spain

    May 9, 2011 – 8:35 am

    The Official House Price Index published by the National Institute of Statistics (INE) would have us believe that Spanish house prices fell a mere 1.9pc in 2010

    New build (vivienda nueva) prices fell -2.1pc, and resales (segunda mano) fell -1.6pc

    The suggestion that Spanish property prices only fell 1.9pc last year, against a background of 20pc unemployment, tightening mortgage credit, and a monumental property glut is difficult to fathom.

    These figures tend to distort price signals from the market and put off potential buyers. We might be better off if the INE did not publish house price figures. Not all official figures are so unreliable. According to figures from the Department of Housing, prices fell -3.5pc last year, and 6.5pc in real terms (after adjusting for inflation). That sounds closer to the truth, even if maybe still a touch  too optimistic.

    Meanwhile, whilst mainland  Spain struggles in the property sector, the  islands, particularly the Balearics continue to improve, Tenerife being the best performer from the Canary Islands at the moment, mainly in the area of prime coastal property.

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

    Official data for Spanish house prices

    April 26, 2011 – 9:52 am

    The fall in Spanish house prices gathered pace slightly in the first quarter of this year, official data showed on Monday.

    Data from the infrastructure ministry showed house prices fell by 4.6 percent in the first quarter on an annual basis after falling by 3.5 percent in the last quarter of the year. The fall was the sharpest since a 6.2 percent drop in the fourth quarter of 2009 and prices have now fallen for two-and-a- half years.

    Spain’s housing sector worries investors because some of the country’s highly-indebted savings banks still have large portfolios of property that they may have to sell off at bargain prices, hurting their outlook even further. Meanwhile in Tenerife and the Spanish islands, prices appear to be improving, particularly for prime property.

    Source: FOREXPROS.com

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

    Investors chasing cut price prime property in Spain

    April 14, 2011 – 1:00 pm

    Investors keen to purchase Spain's cut price commercial property.

    Opportunistic investors chasing cut-price prime commercial property in recession-hit Spain have helped push the sector’s total returns into positive territory for the first time in two years, a survey has found.

    Investment Property Databank research showed commercial real estate total returns for 2010 hit 4.9 percent, from 2009′s negative return of 9.3 percent. It comprised a 1.2 percent fall in capital values and a 6.2 percent gain in income returns, IPD said late on Monday.

    Retail property was the strongest performer, producing total returns of 7.7 percent in 2010, from minus 7.2 percent in 2009, with gains in both capital values and income returns. It was followed by offices at 1.9 percent and industrial at minus 0.6 percent.

    In February, Reuters reported retail property investors were scouting around for distressed assets, betting that rising Spanish GDP would boost total returns by 2013.

    Source: Reuters/London South East

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

    Estate agents surveyed throughout Spain for their views on the property market.

    April 5, 2011 – 1:01 pm

    Property sales increase in Tenerife, especially in the prime property market.

    During February Idealista surveyed 400 estate agents all over Spain for their views on the property market today. They found that 30% of vendors accepted up to 10% lower, 43% accepted between 10 and 20% lower, 19% between 20 and 30% less, and 7% more than 30% less.

    The change in stock of properties for sale since the end of 2010 resulted in a 58% of agents reported an increase. 88% of vendors were more open to offers than a year ago . The main reasons why sales fall through is that vendors were asking too much in 26% of cases, buyers offering too little in 40% of cases (remember, this is all in the opinion of estate agents), and banks not giving finance in 34% of cases.

    Although there have been af fall in  enquiries so far this year, falls up to 20pc or more say 51%, whilst 24% say an increase of up to 10%.So life is not all bad in the property sector.

    In sales so far this year, there have been falls of up to 20% or more say 71%, whilst 19% say an increase of up to 10%. The expectations for the first quarter of the year (compared to same period last year) are  47% say worse, 27% say the same, 26% say better and for the year, 33% say worse, 28% say the same, and 38% say better.

    I wonder who will be correct? Certainly current  property sales in Tenerife indicate a brighter future for the sector, especially sales of prime property in good areas and by the coast.

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