Showing posts with label Latest News. Show all posts
Showing posts with label Latest News. Show all posts

Tuesday, July 1, 2008

'Good times' for Spanish property

Beatriz Corredor, Spain's minister for housing, in a radio interview said that this is a good time to buy property in Spain, as prices are only rising in line with inflation. Corredor also pointed out that some developers have dropped their prices, making this a perfect time to buy a newly built property.

However, she said the available level of supply is exceeding demand. Therefore, she has suggested that organizations who are selling property to "change their prices" accordingly in response to market conditions. Properties are currently being sold for less as a result of the recent downturn in the market. However, property experts believe that the market will pick up again and lead to a resurgence in property values.

The ministry of housing has revealed that the cost of Land in Spain fell to 251 Euros/m2 in March, a 7.7% drop compared to the same period last year. The official statistics shows that land prices are falling faster than house prices. The average land costs in Spain are now back to where it was in 2004.

Telegraph has reported that the glut of properties forced developers and vendors to sell property in Spain at a discount. Property experts suggest that those who invest shrewdly will reap the rewards once the credit crunch is over and the market begins to recover.

Sunday, June 29, 2008

Government plans to reduce vacancy rates

Spain's housing minister Beatriz Corredor has stated that the property sector slowdown will be over by late 2009, according to a Reuters report.

Spanish property market is currently experiencing a considerable slowdown in its residential and construction market and an obvious slowdown in its economic growth. The government of Spain has attempted to stop the housing market slowdown by various initiatives and property experts believe that the market will adjust itself gradually in the future.

There is a severe oversupply of homes in Spain, equating to around 1m residential units.

Nearly 50,000 and 100,000 of these Spanish homes are reportedly located in the Valencia region. The oversupply of homes in Valencia has made the Generalitat regional government wants to see the current housing regulations amended to facilitate other Spanish regions, to sell properties in Valencia as VPO assisted or council housing.

The Generalitat has recommended that a pilot scheme be introduced with an initial 10,000 properties offered on the VPO scheme at a discount of €15,000 (approx £12,000). The housing minister said that the properties are available to those who are resident in the Valencia region and who earn as much as €45,000 per year (around £35,600). The current fears of a property crash has made the mortgage market more liberalized and low-quality developments are reviewed, while the issues concerning off-plan investors are addressed by the government.

Sunday, June 1, 2008

Overseas investors can take advantage of changing Spanish market

Foreign property investors have been advised to act quickly if they wish to snap up a bargain residence as the country is currently experiencing a slump in its housing market, according to new claims from a foreign exchange company.

HiFX said that this is because the recent drop in demand for property in Spain has made property owners anxious to sell their stock. This could bring in opportunities to make an insightful investment, as Spanish property remains very popular. Therefore, people who can still afford a purchase could take advantage of the situation to buy a property at a knock-down price, before the market begins to pick up again.

Rhiannon Davies, director of Amberlamb has said that property investors those who buy property in Spain can cash in on the financial crisis are more likely to reap the dividends over the long term. The demand for Spanish holidays will always remain strong so investors can go for holiday homes as many owners are desperate to offload their stock and are therefore slashing many prices.

Recently The Independent has reported that Spain still offers good investment opportunities, in spite of recent problems such as the impact of the credit crunch. The newspaper also added that real estate agents in Spain have been enforced to cut asking prices in many areas.

Liam Bailey, head of research at estate agency Knight Frank, said that regardless of the recent negative publicity of the slowdown in the rate of house price inflation and a fall in demand in certain areas, Spain still offer a favourable environment for investors. Mr. Bailey insisted that these problems do exist but they do not apply to the country as a whole.

Mark Bodega, marketing director at HiFX, commented that prospective investors have to find out the choice of where to buy and that really depends on why they are buying and on the degree of risk involved.

Friday, May 16, 2008

New research reveals Spain as Top Retirement Destination

The TypicallySpanish website revealed the official figures from the National Statistics Institute that more than 4 million expatriates now legally reside in the country full-time. According to the official statistics, nearly two-thirds of expats are based in Madrid, Valencia, Catalonia and Andalusia.

Spain - retirment destination

About four in ten people are said to come from countries in the European Union.
More than 2 lakh people from the UK are found now to be living in Spain. On the other hand, one in three expatriates is from Latin America, while a fifth of foreign residents are from Africa.

Recent study by Currencies Direct has showed that Spain is the most popular destination for Britons who want to retire to the sun. Mark O'Sullivan of Currencies Direct commented on Spain's popularity saying that the country has a lot to offer, including a plenty of expat communities.

The popularity of Spain as a retirement location is said to be largely because it offers several lifestyle attractions that are extremely favorable to a relaxing and pleasant retirement particularly it offers hot and sunny weather for most of the year, unlike the UK. Besides, it highlighted for its high living standards in relatively low cost of living and for its laidback lifestyle.
Analysts at ShelterOffshore.com has stated that Spain is also highly accessible from the UK, thereby allowing retirees to stay in easy reach of friends and family back home.

This comes after the recent research by NatWest which found that Spain is rated particularly highly by expatriates, with nearly nine out of ten respondents saying that they feel healthier after the relocation.

Wednesday, May 14, 2008

New Research Reveals Spain popular with UK investors

Recent study published by Globaledge.co.uk reveals that the Spain is continuing to attract British investors and holidaymakers and the most searched overseas property destinations by UK internet users despite ongoing economic concerns.

The data was taken from the Wordtracker UK database till 6th May and they studied the most popular 200,000 searches containing the word "property" till 6th May 2008. The research confirmed that the properties in Spain are the unbeatable favourite for British investors.

Properties in Spain are top of the list and it accounted for over 10% of total searches, and the list is sprinkled with several Spanish towns and coastal names. Obviously locations of Costa Blanca and Costa del Sol are the most popular regions; the attractiveness of the Canary Islands is also a most attention-grabbing finding of this research. There is significant search volume even at local level with Lanzarote, Tenerife, Caleta de Fuste all making the top 100.

This was said to be largely because Spain offers numerous lifestyle attractions that are highly conducive to a relaxing environment, hot and sunny weather for most of the year, unlike the UK, high living standards and the reasonable price of goods and services. ShelterOffshore.com has reported that Spain is famed for its laidback lifestyle and relatively low cost of living.

Friday, April 11, 2008

Spanish property inflation rates

The quarterly figures released by the Spanish Ministry of Housing (Ministerio de Vivienda) is the most commonly used housing market statistics for property prices in Spain.

The figures for the third quarter (Q3) in 2007 shows that average national Spanish property prices rose by 0.3%, which translates itself into an annual increase of 5.3%. This is a deceleration compared to second quarter (Q2), when prices rose by 1.5% for that quarter, and 5.8% over 12 months. Average Spanish property inflation rates have been progressively falling after peaking 18.5% in 2003, to 9.8% in 2006, to 5.3% in 2007.

The deceleration in the rate of house price inflation and a drop in demand in certain places don’t mean the end of decade long property boom. The fall in the inflation rates do not pertain to the country as a whole. Murcia region's property market is expanding at a considerable pace and is likely to keep growing as Madrid saw rates drop to two per cent, but Murcia had 10.7% annualised price growth.

This is the forecast by the experts for 2008

BBVA (Spanish bank) : prices +1.4% in 2008 and -1.9% in 2009
Deutsche Bank: prices -2% to -8% in 2008
Natixis (French bank) : prices +2% to +3% in 2008
Crédit Agricole (French bank) : -10%

This comes after the recent survey by Yorkshire Bank which revealed that Spain is one of the most popular foreign destinations among overseas property investors from the UK. This shows after all the negative publicity in the media; Spain is the perennial favourite for British buyers.

Monday, March 31, 2008

Spanish rail links boosts investment opportunities

Overseas investors are still flocking to Spain and are increasingly choosing to look at less traditional Spanish markets.

Nicola Christie of NuBricks.com confirmed the shift of focus of overseas investors to less established markets. The Spanish coastal resorts and cities have traditionally been the investor's choice earlier.

She said that the new cross-country high-speed rail links across the country changed the investor's preferences. The historic opening of high-speed train service between Madrid and Barcelona means that towns along the route will open them up for overseas investors.

They could become popular locations for overseas property buyers in the future and news of transport links to Spanish countryside to come over within the next four years and may provide opportunities for investors looking away from traditional locations such as the Costa del Sol and considering less established markets.

It was found that one in four purchases made by British buyers last year was in Spain and Holiday-Rentals revealed that 31 per cent of British-owned holiday homes are in Spain.

Monday, February 25, 2008

Current trend in the Spanish Real Property Market favors investors

It is a good time to buy properties in Spain now. Why? It is because at present the real property market value has dropped by several per cent. This has been the prevailing condition for the past months and might still be the same in the next few months or so.

The hardest hit are the properties in the communities of Andalusia in the southern part of Spain with the decline in the asking price reaching 2.5 per cent at the starting month of the year 2008. While in the city of Marbella, which is also located in Andalusia, some real properties would even be sold at half of the asking price because of low demand.

Marbella beach in Andalusia, Spain
This general direction of the Spanish real property market in specific places makes it an attractive opportunity for investors who are not out for quick revenue. The marked down properties are considered to be very good deals but will provide the investor with a hefty sum if disposed after a number of years. So for those who are willing to part with their money for a long-term investment, the current situation is ideal.

Acquisition of properties such as those found in Andalusia will prove to be lucrative in the end for the location is quite ideal for holiday makers and even those who might want to spend longer time in the clement weathers of Spain. The current situation may not be advantageous to those who are seeking to sell their properties right now but for investors, this is indeed a good time to purchase.