Monday, September 27, 2010

The world cup bid will help revitalize the property market

Spain and Portugal are considered having "ideal venues" for the World Cup and having a strong chance of being elected as tournament host and this could have benefits for people with property in the nations

According to Costa del Villas, Spain and Portugal are vying with several other bidders, including England, to host the tournament and FIFA inspection delegation head Harold Mayne-Nicholls has promised the joint Iberian bid a favorable report after completing a four-day inspection as they have a great sport, hotel and transport infrastructure, as well as a strong support from their political and sports authorities.

The bid will help revitalize the nations' property markets, especially in destinations which are already popular with holiday makers, such as Marbella and Mijas in the Costa del Sol. Those who want to purchase property in Costa del Sol ahead of the World Cup could take advantage of the current low prices in the region.

Meanwhile, Home sales in Spain rose 24.7 percent in the second quarter when compared to the same period in 2009. The Housing Ministry said that A total of 149,527 houses were sold between April and June 2010, being the third consecutive quarterly rise in Spanish house sales.

The increase was due partly to a 4.6 percent rise in the sales of new builds. Resale property in Spain accounted for 54.6 percent of the total market, rose by 48.3 percent, amounting to 81,632 sold homes, in comparison 67,895 new build properties were sold.

Thursday, September 16, 2010

Andalusia market is delivering great opportunities for buyers

Anyone interested in property in Andalusia property market could be interested to know that the market is alive and well and delivering great opportunities for buyers.

According to annual report on the market by Barbara Wood of the Property Finders, the stats indicate that at the end of 2009 in Andalusia, there is overall 18% fall since prices peaked in 2007, however he recommended buyers to see closer to 35% down from the peak before buying properties. There are lots of properties whose owners are desperate to sell but the locations are wrong and currently there are no buyers for second-rate positions.

He said that buyers has to be more cautious as €150,000 for a two bedroom, one bathroom apartment in a hideous block in Garrucha, Almería is not a good deal, nor is €250,000 for a townhouse in the Manilva. For this kind of money buyers can get a quality property within five minutes of Puerto Banus.

Meanwhile, National Statistics Institute (INE) figures revealed that the sale of homes increased by 1.25 per cent in Andalucia in the fifth month of 2010 compared to May 2009, with a total of 7,197 properties changing hands. The organization specified that the increase was well below the regional increase recorded nationally from 11.9 percent in May over the same month last year, a total of 37,787 operations.

In May, new home sales in May 2010 increased 3.6 per cent, with the 3,876 transfer of property, while the sale of free homes increased 5.9 percent annual rate, up to 6,469 properties. The transactions of existing homes fell by 1.39 percent for 2009, at 3,321 transactions. Most of the houses that were broadcast on sale in May were free and accounted for more than 90 percent of the total, while the remainder was (state) protected property.

Thursday, September 9, 2010

Marbella property sales in 2010 increases three fold

The property market in Marbella on Spain's Costa del Sol appears to be showing the first tentative signs of a recovery.

The Spanish newspaper El Sur cited the figures published in a report by the Municipal Delegation of Hacienda (Marbella's equivalent of the Inland Revenue) and stated that in the first financial trimester of this year, 2.499 property sales were officially registered, which is triple the number of transactions of the first trimester last year. The more encouraging news was the volume of sales this year which is almost double of those made in the first trimester of 2008.

Angeles Munoz, the Mayor of Marbella said that the results are even more impressive when compared to the results for sales made the first trimester of 2006. He stated that the sales figures achieved in the first three months of 2010 have actually doubled the volume achieved in 2006, when just 1.224 property sales were registered in the municipality.

With this all very positive news for Marbella property market, Mayor Munoz added that the new PGOU (General Plan for Urban Order) which comes into legal effect in August is expected to do even more to resuscitate the local property market and therefore, the local economy.

Nearly 16.000 properties that were built illegally by unscrupulous developers at the height of the property boom will now be legalized. The Mayor went on to say that the figures indicate that the town is set to be the first in the area to emerge from the current economic crisis.

She also expressed her hope that this small yet significant recuperation in the property market would continue and will spread to other business sectors.

Falling prices and favorable exchange rates boost Spanish properties

Property searches are up for Spain as investors look to capitalize on falling prices and favorable exchange rates. Spanish property sales are expected to enjoy a new boost as Sterling regains the 20% lost to the Euro since 2008. Many agents have said that price falls in Spain are drawing investors back to the country.

Capital Gains Tax changes in the recent UK Emergency Budget are an extra incentive for more Brits to buy a second home in Spain, where the capital gains tax is the same as the UK basic of 18%, but with no extra 10% penalty for being a wealthier owner. There is no CGT payable in Spain for official ex-Pat residents if, within two years, the seller reinvests the proceeds of the permanent house sale in a replacement property - deducting the buying costs from the profits when the sell the replacement house is sold.

According to British newspaper the Financial Times, Spain has become eight per cent cheaper for Brits in the last 12 months due to the strengthening GBP. The number of people searching for properties in Spain in particular rose by 48 per cent in the same period, while they were up 341 per cent since December 2008.

The latest figures from Property portal have revealed positive signs for the Spain property sector with re-sale prices rising for the first time in 24 months. The portal has reported a 0.6 per cent average price rise within the country, with some regions posting improvements of almost five per cent.

Chris Mercer, director of Mercers property agents, said that the figures are an indication of life coming back to the market, but he warned that it still remains very price sensitive.

He added that Buyers paying a 20 per cent deposit then the rent will comfortably pay the mortgage and as they are truly buying at the bottom of the market, they have an asset that will certainly appreciate in years to come."