Wednesday, September 21, 2011

Spanish golf properties are holding its value


According to industry experts in Spain, properties located on or near Spanish golf courses are holding its value much better than the national average and have weathered the economic storm better than comparable homes on the coast.

Taylor Wimpey de Espana said that Golf property had held its value between 10 to 15% more than other properties in the country and the value of golf properties fell by a maximum of 20 per cent - significantly better than the 30 to 35 per cent decline exhibited among properties on the coast that are not near a golf course.  He advised investors that purchasing real estate on a golf course in Spain "can be a very sound investment". Investors may also want to bear in mind the firm's argument that good year-round weather and the rising popularity of overseas golfing holidays mean that rental income can be generated in every season.

He also revealed that during the first eight months of this year the property firm saw transactions to overseas investors increase by eight per cent, on the year to date and also a significant rise in the number of enquiries about Spanish properties with a 70 per cent boost in the first half of the year, compared to the same period in 2010. Brits have accounted for 32 per cent of sales so far this year.

With the Golf season lasting the majority of the year unlike other properties that rely on the prime holiday months for occupancy, Golf properties are a great source of regular income. May – August are peak period for Golf property owners who can further profit from their investment.  The combination of high demand and high rental yields meaning there are more exit options and re-sale have continued to attract investors to Spain’s Golf properties ultimately helping them hold their value.


Demand for property in Spanish cities could be set to grow as an increasing number of investors look to take advantage of  price drops in Costa de la Luz on Spain's Atlantic coast.

Nick Stuart, managing director of Spanish Hot Properties, portrayed the region as "the Caribbean of the Spanish property market" as it offers "a completely different lifestyle for property buyers, especially for those who want to get back to real Spain".

The lower prices available in the region is another reason that investors may consider purchasing  real etsate on Costa De Luz is, particularly when compared to areas like the Costa del Sol. Boasting one of the best climates in the country, numerous beaches, historical monuments and a growing ex-pat community, it is the ideal destination for Brits to escape to. Indeed, a growing number of British, Russian and Scandinavian property buyers are beginning to show a real interest in Costa de la Luz property. Price reductions of up to 30 per cent proving too good to miss out on.

The region has now been enjoying an increased interest from international property investors due to its excellent growth potential and investment credentials as properties are available at much lower entry levels than the rest of Spain .

Marc Da Silva, Freelance property journalist and founder of Propertyjournalist.com explained that prices are not likely to increase in the nation over the next couple of years and  they may drop further, which could enable investors to find a better bargain.

He commented: "In Spain, prices have been falling there at a rapid and alarming rate for quite some time. It is a wonderful opportunity to negotiate a cheap property deal."

Thursday, September 15, 2011

Spanish luxury property market has shown more resilience

The sales of residential property in Spain dropped radically during the second quarter of the year, compared to the same period in 2010.

Recent figures from Spain’s National Institute of Statistics showed a 40.8 per cent fall in the level of  Spanish property sales which is followed on from a 30.4 per cent decline in Q1 of 2011, compared to a year earlier, according to AFP report published on Expatica.  From April to June, 90,000 homes were sold and there are an estimated 1.5 million properties still on the market in the nation.

Global Property Guide stated that housing values declined by 8.43 per cent in the second quarter, compared to a year earlier. Besides, a quarter-on-quarter drop of 3.1 per cent was also recorded in the first quarter of 2011. The INE figures show that the price of both new properties and re-sales are falling, down 2.6% and 1.8% respectively year on year and prices are set to keep falling for another two years. Madrid was the only region to experience rising prices in Q3 2010, up by 0.9% compared to a year earlier. AndalucĂ­a saw prices fall by 2.2%, The Balearics 2% and the Canary Islands down 2.9%. The biggest fall was in Cantabria, down 6.7%.

According to figures from Idealista.com, one of Spain’s leading property portals, property owners are dropping their asking prices in record numbers as a record 26,188 vendors advertising their homes for sale at Idealista reduced their asking prices.

However, Property wire has reported that recovery in Spain's commercial property market is currently ahead of the residential sector particularly Madrid is a hub of office activity, offering better than average occupancy rates.  Also, the luxury property market has shown more resilience than other sectors of the market. Overseas buyers are acquiring more luxury properties in Barcelona, the Costa Brava and Ibiza without mortgage financing. Lucas Fox International report on the first two quarters of 2011 also shows that there is a growth in Luxury property investment in Spain from Russian, Dutch, and Swiss buyers and investors.

Alex Vaughan, director of Lucas Fox has said that the first half of the 2011 has seen the luxury property market has held steady in sales prices and seen some increases in rental price for exclusive properties located in major cities. The lack of quality luxury apartments and properties should mean that prices in this segment of the market will remain stable.

He commented: “Given the current economic conditions and lack of finance available to local buyers, the luxury property market for foreign buyers has great potential and that there will be a return to annual capital growth next year. Demand for luxury properties continues apace, mainly driven by international clients from the Euro zone and more demand for sea front villas from buyers from Russia and ex Soviet states”.

Thursday, September 8, 2011

Substantial price falls in Spanish coastal areas encourage buyers


Investors seeking a bargain should turn to the Spanish real estate, one sector commentator has noted as there are "some outstanding bargains to be found" in the country.

Adrian Warriner, Managing director of Spanish-Living.com explained that this is the ideal time for buyers to jump in as in some of Spain's coastal areas, price falls have been substantial. He suggested Costa del Sol, where property prices have plummeted by ten per cent this year alone.

He highlighted other locations such as Nueva Andalucia, San Pedro and Guadalmina because they "provide easy access to up market hotspots Puerto Banus and Marbella".  Apart from the bargains, the government's decision to halve value added tax on new property purchases, bringing it down to just four per cent and discounts offered from the banks with offers up to 100 per cent finance on certain homes has resulted in more influx of first time buyers.

Finally, he pointed out the fact that the Euribor is currently at its lowest rate since 1999, which means there are encouraging conditions for borrowers. Lower property prices may encourage more investors to look into the options open to them in Spain and elsewhere in Europe

 Peter Mindenhall, analyst at IPINGlobal.com, stated that the market is segmented at the moment, with some houses are “just on the market” and some are only “priced to sell.”  But still,   exceptional value can still be found in the country. He also issued a note of caution, stating that investors looking for a good deal on properties should carry out the required research if they are to find “the most competitively priced properties”.

Mr. Mindenhall commented: “The banks have yet to declare much of the backlog of repossessions on their books - when this happens, the average sale price can be expected to fall further.”

Thursday, September 1, 2011

Foreign investment increase in Madrid office market


Foreign investor interest in the Madrid office sector has increased significantly which is showing signs of recovery particularly in Madrid's central business district (CBD).

The latest research from Savills has revealed that vacancy rates in Madrid has dropped during the second quarter of the year to reach 4.73 per cent, compared to the 5.31 per cent recorded in the shortage of new developments has resulted in property-owners refurbishing their properties in Spain to bring new space on to the market. She added that due to the delivery of a number of new and refurbished state-of-the-art properties in Madrid’s central business district, the market is very competitive in terms of quality supply on offer at good prices. This should lead to a revival of interest in the central business district from large corporations in 2011.

According to Savills reports, Madrid’s office market has reached 440,000 m sq (4.7m ft sq) in 2010, which is a 40% increase when compared to 2009. It also records that Madrid’s Central Business District’s (CBD) vacancy rate currently standing at 4.73% while other prime sub-markets outside of the M-30 range between 5% and 8% and some outer lying periphery areas of the city have a vacancy rate of 25%. Savills believes this is because companies have chosen to take advantage of considerable vacant space in the city at affordable rental prices. Tenant take-up in the Madrid office market improved in 2010, up 40% on the previous year despite concerns over the Spanish economy.

Meanwhile, Luis Espadas, Head of Capital Markets at Savills Madrid has stated that the rising interest shown by foreign investors in Madrid is heartening, although national investors continue to be active and dominate the market, both as buyers and sellers.