Showing posts with label Market-trends. Show all posts
Showing posts with label Market-trends. Show all posts

Thursday, July 3, 2008

Investors of cyclical Spanish market cannot lose-out

Paul Collins, property editor at BuyAssociation, said that conditions for overseas property investors in Spain should improve in the future as it tends to go in cycles.

Terry Walker from PropertyinSpain.net stated that only the coastal parts of the country have become oversaturated in recent years such as the Costa del Sol along the coast, other areas have not yet been tapped into. Many investors are looking to buy a residence further inland and they could snap up potential bargains before mass tourism increases prices in these regions.

Mr. Walker further said that 'real' Spain with welcoming villages and bargain properties still exist and in this "long-established market" property investors cannot possibly "lose out". The Association of International Property Professionals (AIPP) stated that in times of global economic crisis, established locations like Spain remain popular with foreign investors.

Travel writer Stephen Morgan praised the country, describing it as a "lifestyle destination" as it offered many benefits to overseas investors such as good climate, beaches and attractive scenery. This marks a sharp contrast with many emerging markets across the world, as many of them are considered as pure investment spots rather than places to enjoy the change in lifestyle.
According to the Spanish Property Owners Guild (Spog), the downturn in Spanish housing market is ideal for those who want a property for personal use. The drop-off in housing prices as vendors wants to sell their stocks means that buyers may be able to purchase a house at a bargain price. Property experts believe the market will pick up again as it is cyclical and lead to resurgence in property values.

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.

Wednesday, June 25, 2008

Investors take advantage of lower property prices in Spain

Foreign investors who are considering buying property in Spain have been advised that bargains can still be found as they can now get more with for their Euros as the average property price has dropped 3.6 per cent from this time last year. The portal recommended that this is the perfect time to buy in Spain.

Foreign currency exchange specialists Moneycorp has said that investors can cash in on the lower property prices in Spain. People who are making stage payments, for instance, can still get half of their necessary Euros now and half at a future date, after the position for the exchange rate becomes clearer. Investors of residential homes can withdraw equity and profit from cheaper Euro mortgage deals; they take advantage of the situation by converting them into Pounds. Potential investors of properties in Spain can opt for 'forward contract' and can pay a percentage deposit and for payment at a later date they can also fix an exchange rate for the balance funds.

One Mortgage website has recently reported that Spain is one of the "big names" in the world property market and has long-standing appeal for investors and lifestyle buyers. The strong euro has not dented the appeal of Spain. The Post Office recently revealed that Spain is in fact the cheapest country in the eurozone at the moment even if the pound is at a record low against the euro.

Wednesday, June 18, 2008

Portuguese lifestyle in Huelva at cheaper Spanish prices

Prospective purchasers looking for property in Portugal may be able to purchase a similar home at a comparatively lower cost if they consider Huelva area in Spain, it has been reported. The area is recently becoming popular with those keen on rural tourism.
Huelva area in Spain
The AndalucĂ­an province of Huelva, shares a border with Portugal, the legacy of which can be seen in the numerous castle ruins in the villages to the north and has 150km of unspoilt coastline. The Costa de la Luz, Often dubbed the "Spanish Algarve" attracts large numbers of holiday makers in the summer months. ShelterOffshore.com has reported that the area of Huelva has strikingly similar to the Portuguese Algarve but the property prices are much lower. The website stated that properties in the province start at £38,000.

Huelva also boasts impressive golf courses, gold sands, clean waters, the pine groves and unspoilt, serene surroundings. The Atlantic Ocean on this stretch of coast is cooler than the Mediterranean and is popular with windsurfers and other water sport enthusiasts.

The Foreign Property Buyer website has said that the new airport in the region is good news for property investors as tourism in the area is expected to increase. This would have a positive impact in the local housing market, further boosting its appeal to property investors.

Monday, June 16, 2008

Inland Spain offers good value

Prospective property purchasers thinking of buying property in Spain are encouraged to learn that experts believe the market is set to recover in the coming years. The Spanish Property Owners Guild (Spog) has said foreign buyers looking for a genuine Spanish experience should look inland rather than on the coasts.

Developers and vendors are forced to sell property in Spain at a discount as the market is currently in a slump with a glut of properties available. Those who take advantage of the situation now may be well placed once the market begins to recover.

Paul Bradley, spokesperson for Spog has recently commented that only the coastal areas have become oversaturated and there is still plethora of opportunities available inland. Mr. Bradley added that these places can be found just a few miles away from established investment markets such as the valley of La Vinuela near Malaga although there are also some exceptions because some of these had also seen an influx of Britons.

Property experts also believe that the conditions are ideal for those who want a property for personal use. Brennon Nicholas, an estate agent based in Spain has predicted that the housing market will come back in the next two years.

This comes after the news that the Typically Spanish website recently revealed that the number of expatriates who now reside in Spain on a permanent basis is now higher than four million.

Wednesday, June 11, 2008

Spain property market entices first time property purchasers

The recent survey carried out by ICM research for BBC found that Spain is the place where 24% of 18 to 24-year-old brits would most like to make a new life and looking for their first property purchase.

This was confirmed by Paul Collins, property editor of BuyAssociation that first-time property purchasers are now looking overseas because they can grasp it in reasonable prices comparing to UK. He also added that people consider Spanish property market as being cheaper and more stable than that of the UK.

Due to the fabulous weather, easy accessibility due to low cost airlines and cheap tax rates when comparing to UK, Spain has become the most popular destination for British investors. Traditionally, Spanish property is priced at a large discount to the UK investors.

Figures from Fair Investment Company recently revealed that nearly 10 percent of first-time UK buyers have already bought their overseas property while 44 per cent are waiting in the wings. First timers are attracted towards Spain because of its low entry cost and low risk factors and also they can get their money's worth.

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.

Saturday, May 10, 2008

Overseas investors should consider Spain's regional variations

The Telegraph stated that Spain has a fully developed property market; there are massive regional variations which can often give the wrong impression and people should consider the property market in Spain as places with different trends and attributes.

Spain is a diverse country and there are big regional variations where local supply and demand forces have a big impact on growth. The local dynamics can have an effect on performance more than common market forces. Real estate prices increased most in the province of Granada (8.5%) and Murcia (8.1%), and followed by Madrid (1.8%) and Alicante (3.3%).

According to Kyero.com, a leading Spanish property portal that publishes a Spanish Property Price Index has reported that asking prices fell by 2% in 2007 and the average asking price for 2-bed properties fell by 8.3% while asking prices for 4-bed properties rose by 3.8%. Figures from Sociedad Tasacion, one of Spain’s largest appraisal companies shows that average new build prices in Spain’s provincial capitals increased by 5.1% in 2007.

Property prices on a quarterly basis (when comparing Q4 2007 and Q1 2008 till March) has increased in certain provinces like Huelva (3.9%), Seville (3.6%), and 3.4% in Valencia, but fell in certain places like Murcia (-0.2%), Alicante (-0.8%), and Castellon (-1.3%). So Overseas property buyers should do their homework and consider regional variations in the Spanish market.

The Telegraph has reported that overseas property buyers consider Spain more of a "lifestyle destination", which means that people chose to purchase property there in order to enjoy themselves rather than reaping financial rewards. Spain continues to appeal for the overseas property investors for its beautiful coastline, sunny weather all year round, easier accessibility and a significant ex-pat community who are well catered for. There are enough fundamental reasons for the overseas investors to continue to enjoy Spain and many of the economic pointers look good.

Paul Bradley, spokesperson of Spanish Property Owners Guild remarked about Spain’s appeal that it will always continue to be popular.

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.

Monday, February 11, 2008

Market Potentials of Spain

Spain used to be a prime location for the real property market but is said to be a dwindling industry. That contention is still debatable. Though there are emerging markets in other countries, investment in this historic country can still prove to be profitable.

A prospective investor has just to be very discriminating when it comes to the properties that they choose to purchase. Gone are the days when buyers would randomly acquire lots along the coastline in the hope of getting quick revenue. The trend is now changing. Long term investments are recommended. Spain has demonstrated a steady increase in the prices of houses at approximately 3.95% in the last four decades trailing behind UK. So an acquisition now will have a much higher return of investment after a few years.

One has to weigh the potentials of the location which are being considered. In Spain, one location worthy of deliberation is Murcia. The fact that a new international airport has just become operational means that the prices of the properties in the surrounding areas are going to soar in the near future. Another would be those where universities are located and where the buy-to-let are options available for students.

Time is also of essence. Enough time should be given in looking for a real property to get. One should not be too hasty and should check a lot of options before finally deciding on a certain lot. Investing in Spanish properties now will prove to be lucrative in a few years time.

Investing wisely in Spain calls for proper timing, choice location, and the willingness to wait for the not so rapid but steady rise of prices of real properties.