Cheaper homes in Spain

January 17, 2012 – 2:57 pm

The average price of a Spanish home fell by 8% in 2011, with further price falls anticipated in 2012, research shows.

The Tinsa House Price Index, considered to be Spain’s most reliable residential property price index, reveals that average home prices fell by 8.1% in 2011, the worst annual decline in property values since 2008, when the average price a home in Spain fell by 8.8% year-on-year.

“There is a clear double-dip in the curve with price falls accelerating again after staging a feeble recovery last year,” said Spanish property commentator Mark Stucklin. The main reasons why home price falls have picked up pace are due to a lack of mortgage finance and a severe oversupply of homes on the market.

Stucklin added: “The double-dip in house prices is mirrored almost exactly by a double dip in new mortgage lending.”

Somewhat surprisingly, homes located in coastal areas, where there is generally the greatest oversupply of properties, finished the year better than other areas, with prices having declined by  7.2%, on average, year-on-year, compared to 9.1% in cities and 8% on the islands such as Tenerife.

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

Potential purchasers looking for property discounts in Spain

January 6, 2012 – 9:45 am

Potential investors still want discount on property for sale in Spain and Tenerife

A  survey compiled by Spanish  portal Idealista reveals that potential homebuyers are looking for a property asking price discount of 21%, on average, despite the fact that prices have plunged  in recent years.

Data provided by Idealista shows that Spanish home prices dropped for the fifth consecutive year in 2011, with the average asking price now 20% below the high reached at peak of the market in 2007.

In spite of the fall in the property values, many would be purchasers feel as though values have not fallen enough to reflect the chronic oversupply of properties on the market, along with the country’s dire economic situation.

Spanish property commentator Mark Stucklin said: “As far as all other housing market indicators go, 2011 was another bad year, if not the worst since the crisis began. Property sales, house building, mortgage lending and confidence all tumbled to new lows, whilst repossessions hit new highs.”

Stuckin, like most Spanish property experts, expects home prices in Spain to continue falling in 2012.

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

Pressures on Spain’s financial system

September 5, 2011 – 10:40 am

Spain's financial system under pressure.

Falling property values and rising numbers of foreclosures in Spain are among the factors putting pressure on the country’s financial system.

Speaking to Time World, Santiago Nino Becerra, an economist at the University of Ramon Llull, explained that Spain’s mortgage market is comparatively small compared to other nations, such as the US.

“With housing values dropping, the banks here simply can’t withstand those kinds of losses,” he stated.

Mr Nino Bercerra went on to add that because unemployment in Spain is continuing to rise, “when it comes to foreclosures, we’re going to see some unbearable statistics”.

Source: PropertyShowrooms

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

Property enquiries to Tenerife and Canary Islands increase.

February 28, 2011 – 10:10 am

Interest in Tenerife and Canarian property continues to increase.

The number of searches for Spanish property in January this year was 37.05% higher than last year according to overseas property portal Homesgofast.

According to the portal the trend that has been noted since the Spanish property market imploded; namely the dominance of the Balearics and Canary Islands, not only continued in January but became even more pronounced. One third of all enquiries into Spanish properties were for those islands according to the portal.

“It’s interesting to see how Spain despite the bad press is still very attractive to overseas buyers considering retiring or buying a second home abroad,” said Nick Marr, director of the portal.

“The change towards the Canary and Balearic Islands may be a result of the bad press that the Spanish property market has received,” he continued. “People looking to get away from the UK winters still see Spain as a great place to holiday. The Canary Islands offer winter sun and a housing market that has not received the negative press that mainland Spain has endured.”

“House values in Spain are at an all time low and the increase searches may be a result of both buyers and sellers researching the market.”  According to the Association of British Travel Agents, Spain is still the number one holiday destination for Brits, with over 11 million British visitors gracing the shores every year.

Source: Homes Go Fast

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Irish walk away could be great news for other expat investors in Tenerife?

December 3, 2009 – 4:40 pm
Irish walk away from Tenerife may mean more bargains for oher expats.

Irish purchasers walking away from Tenerife could mean more bargains for other expats.

A growing number of Irish property investors are walking away from their overseas property investments, following the slump in global property prices over the past two years, reports Overseas Property Mall.

Irish investors were among the most active overseas property buyers in the world during the boom years, but many have fallen into negative equity, particularly those who invested off-plan, following the collapse in property values in places like Spain and the USA.

“Now these projects are nearing completion and the final staged payments are becoming due, property owners are realising they have already paid two or three times what their investment is now worth, without even adding in this final payment”, Overseas Property Mall report.

Irish investors have also been hampered by problems in their own domestic property market with the average price of a home in Ireland have depreciated by around 24% since the peak of the market in 2007, according to Fitch rating agency. Although many international investors, not just the Irish, have had their fingers burnt by the recent collapse in property values, the fact is that many of them bought property at or near the top of the cyclical upturn.

“Following recent stern price corrections, property values in many countries are now much closer to bottoming out. Some markets are already showing tentative signs of improvement, with transactions and prices increasing once more. Now is the time to invest astutely in property, not shun away from it.” So if this trend continues then other ex pats may pick up more bargains as many Irish have heavily invested in Tenerife and the Canary Islands in recent times.

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

Buyers looking at Spain once more

September 23, 2009 – 6:48 pm
Buyers looking to return to Sapin and Tenerife

Buyers looking to return to Spain and Tenerife

Spain was last at the top in June and it returned victorious in August, claiming first place in  a monthly snapshot of the most popular countries, July’s winner, the USA,  was second. Despite being the subject of more bad publicity than virtually any other country during the credit crunch, buyers are starting to look to Spain once again.

Favouring traditionally popular destinations, international buyers are looking once more to markets such as Spain and France and Brits are proving that the love affair with Spain is far from over.

International mortgage firm Conti revealed that interest in Spanish properties accounted for 22 per cent of the total information requests so far this year, second only to France and up from 14 per cent in 2008.

Assessing the prospects for British buyers in Spain, the company said, “Buyers are in a strong position due to the number of homes available, low interest rates and the opportunity to negotiate price reductions from motivated vendors. “Sensible investments carried out on a long-term basis have a good chance of bringing in healthy returns.”

Prospective buyers are now chasing long term gains and as it had been hit so hard by the global recession, prices could remain low and offer good bargain potential for years to come. Cash buyers have been tipped as the ones most likely to be able to pick up a real bargain in the country as they don’t have to worry about mortgage financing, can bargain hard with struggling developers and can move the transaction quickly along.

The TINSA survey, which prides itself on being ‘Spain’s most reliable guide to property values,’ has found that the decline in prices has stabilized.

Spanish cities are tipped for a brighter future over the next few years, with the Assures Financieros Internacionales (AFI), suggesting that property prices in cities may rise to previous levels during 2010.

Once the glut of unsold properties in Spain is shifted, this will help to aid the recovery and push the market back up in 2010. This of course will also help the market in Tenerife too.

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