Thursday, September 25, 2008

Marbella is multi-source demand market

The downturn in the Spanish property market does not seem to be putting off foreign buyers to snap up homes in Marbella, according to experts.

According to the Inmobiliaria Salvago consultancy company, Marbella's property market saw an average price increase of 2.15% over the past year. However, the overall drop in property prices along the Costa del Sol amounted to between 0.78% and 3.8% and the average price of a property now stands at €2,556 (£2,020). Marbella possesses the most expensive properties, with the average property for sale currently costing €3,145 (£2,490).

The reason for this trend is as property experts stated the Marbella area market is comprised not only of national buyers but also, and of international buyers. It is a multi-source market, attracts both "in-and-out" speculator buyers and "off-plan" purchasers fed from all European countries and from others even further afield. Another reason stated is that there is now much less zoned building land available for new construction due to the restrictions in the new General Plan, which has boosted the resale market.

The reason for the continued strength in the higher priced properties is that Marbella is most sought-after place and easily accessible with direct flights from most major cities in Europe. Marbella's vastly improved infrastructure, year round season with activity of all types in the winter months, and the best climate in Europe, makes it appealing to investors even though it is not as cheap as earlier.

Friday, September 12, 2008

Unaffordable Barcelona is now much cheaper

The first time buyersTB's who are entering the Spanish market could be able to buy a home at a relatively low price, according to reports.

According to Spanish estate agent, Aguirre Newman, new-build homes in Barcelona are taking 10 times longer to sell than a year ago. A recent research reveals that now it takes an average of 27 months to sell a new development in Barcelona and 28 months to sell in the wider metropolitan area. Therefore, prices of apartments in a new residential unit in a urban development in Barcelona are actually in decline and decreased by 1.5% over the past year, while new build home prices in Barcelona's Old Town Gothic Quarter has fallen by as much as 17% during the same period.

According to Homes Overseas magazine, these slump in house prices has impacted on the demand for investment property in Spain, the publication believes that this could work in the favor of people who are buying a home for personal use. This means that overseas property buyers could find now a good time to grab a residence in Barcelona which may previously have been unaffordable, as they are being sold at reduced prices.

This comes after the news that The Spanish government remains upbeat about the country's property market, the nation's housing minister Beatriz Corredor has stated that the property sector recovery will begin in the second half of 2009.

Monday, September 8, 2008

Spain beats US as top holiday haunt

Spain is continuing to attract a large number of holidaymakers from the UK, it has been revealed.

Brits’ love affair with Spain finally have peaked: Spain has overtaken US as the most popular destination for UK residents traveling abroad. Spain's surge in popularity with British holidaymakers coincides with the string of new low-cost airline routes to Spain.

Les Calvert, director of Property-Abroad.com has said that Flights to Spain are ahead of flights to the US in terms of attracting retirees. The US cannot compete with the European destination in terms of UK tourism, Spain is said to be the favored choice of among Britons. According to Price Runner, cities in Spain account for 40 per cent of this year's top 20 holiday destinations. The Spanish Costas are identified as one of the main hotspots for Britons, in particular Malaga and Alicante.

Les Calvert further added that US is still a long way from the favourites like Spain - it is in the top five while America's in the top ten. According to the Association of British Travel Agents, despite the pound losing nearly 20 per cent of its value against the single European currency in the last year, Spain has held its appeal, as it is the most popular destination "by far". Speaking to the Herald, a spokesperson of the organization commented that Spain still offers extremely good value and there is a very strong dependability factor to the country.

Indeed, figures from Mondial Assistance suggest that one in three holidaymakers from the UK will fly to Spain this year.