Home construction in Spain to recover in 2013?

May 21, 2012 – 8:30 am

Construction in Spain and Tenerife set to improve in 2013

Home construction in Spain will begin to recover in 2013, according to the
Corporate Practise Institute.

The IPE’s Real Estate Pulsometer has predicted that the country’s inventory
of unsold will decline by 23.6 per cent this year, with up to 611,250 homes
being snapped up.

The report also notes an increasing trend for purchasing Spanish property
with cash, predicting that mortgages taken out will amount to just
one-third of the level seen in 2006.

However, while the market’s outlook is promising for the next 24 months,
“the report stresses that current construction activity has been reduced
to 20% of that achieved in 2007″,  Spanish rents rose by 0.7 per cent in April.

Figures from the National Statistics Institute showed that rental rates
increased compared to April 2011, with only two regions recording a
decrease in price: Murcia and La Rioja, where prices fell by 1.2 per cent
and 0.3 per cent respectively.

Rents increased by the highest amount in Catalonia, 1.4 per cent, followed
by Asturias and the Basque Country, where rates jumped by 1.2 per cent.
Rents rose by 1.1 per cent in Castilla y Leon and 1 per cent in Galicia.

Increases of less than 1% occurred in Andalusia (0.8%), Melilla (0.7%),
Ceuta (0.7%), the Canary Islands (0.6%), Extremadura (0.5%), Castilla-La
Mancha (0.5%), Cantabria (0.4%), Aragon (0.4%), the Balearic Islands
(0.4%), and Madrid (0.2%).

Source: Kyero

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Rents on the rise for landlords

September 3, 2010 – 4:11 pm
Rental income on the increase for landlords in Tenerife and the Canary Isles

Rental income on the increase for landlords in Tenerife and the Canary Isles

Rents are rising and prices are falling, so yields are improving for landlords. Average rental prices rose by 1% in July compared to last year, show the latest figures from the National Institute of Statistics (INE). This is surprising given the glut of property for sale and rent on the market.

Over 6 months annualised rental prices have gone up by between 0.9% and 1.2% per month, whilst house prices have gone down between 4% and 5%, meaning that rental yields are improving. Some good news at least for beleaguered property investors.

But consumer price inflation has risen by 1.9% in the same period, so although yields are rising, rental income in real terms is actually falling.

Rents went up the most in the Balearics  and Canary Isles (+1.5%), and down the most in Navarre (- 0.5%).

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European real estate transactions on the rise

April 6, 2010 – 3:52 pm
Commercial real estate on the rise throughout Europe

Commercial real estate on the rise throughout Europe

European real estate transaction volumes could rise as much as 30 percent to around 90 billion euros ($124 billion) this year as credit markets thaw and prices stabilise, according to a report by broker Jones Lang LaSalle.

Appetite for commercial property is returning, with 24.6 billion euros of deals done in the last quarter of 2009, more than double the 11.6 billion euros in the first three months of the year, the report said. “The growth we are expecting to see this year will be fuelled by an improvement in the availability of debt, the recognition that pricing has probably hit or even passed its floor, slightly more appetite for risk-taking, and more assets coming to the market,” Jones Lang director Chris Staveley said.

The data, published on the eve of MIPIM, Europe’s largest property trade fair, highlighted a revival in confidence among key real estate players after a two-year decline.

However, even if the total volume of deals hits 90 billion euros, Staveley said Europe’s commercial real estate investment market would still be modest in size in historical terms, roughly in line with 2002 levels.

“A weak economic outlook sets the backdrop for difficult occupier markets almost everywhere, and despite some markets seeing some recovery in prime rents, caution and risk aversion will remain key themes in the market in 2010 for investors and occupiers alike,” he said.

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