Showing posts with label Property-prices. Show all posts
Showing posts with label Property-prices. 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.

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.

Tuesday, May 6, 2008

Two Spanish villas worth same as a flat in London

The average capital value of rented houses in London has risen by 10.7% in 2008. This includes 12.4% in central London and 15.5% in the rest of the South East. The recent figures from A Place in the Sun suggest that the average price of a flat in London is worth the same as two Spanish villas.


A characteristic London apartment costs approximately £304,000. This means Londoners have to think about moving abroad to get more for their investment because for the same investment they can get two homes in Spain. For instance, two-bathroom, a three-bedroom villa on the Costa Blanca is priced £146,000 and a one-bedroom apartment in Almeria, costs an average of £163,000.

Even though the cash value of rents received by investors has kept pace with inflation in London, recent study by VillasforTravel suggested owners of tourist accommodation in Spain has collected the highest rental returns in Europe last year. Spain has the most potentially lucrative markets for investors who plan to purchase a rental property. Spain as a "lifestyle destination", rather than a place where people wanted to make a fortune.

Official government figures have revealed that the overall number of holidaymakers in Spain went up by 1.7 per cent to more than 59 million last year. Moreover Spanish government has been encouraging the buy-to-let industry by introducing a number of new financial incentive schemes.

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.

Wednesday, February 20, 2008

Spanish properties up for grabs

The Spanish real property market is still lucrative and appealing despite the bad press that it has generated recently. The market value of a number of properties is down and it can be acquired at cheaper prices. For that reason alone, investors are assured of good buys.

But investors should decide wisely on which property to purchase. Indiscriminate buying should be avoided. One should make sure that the property is located in areas which will assure them of a good return of investment. This might include Murcia which has just recently opened an international airport. This develop will help boost the market value of the surrounding properties.

One should also choose properties which will assure them of income for a longer time in a year. This way dependence on holiday makers is avoided. An example of this is properties in towns where universities abound. Properties can be rented out to students in the local universities. An investor should look at the long term benefits rather quick income.

A number of people from UK can surely afford such properties. Listings of Spanish properties on the market may be seen at websites like PropertyInSpain.net. Homes whose mortgages have been foreclosed or those which are to be sold urgently are found in this listing.

Good deals may be had if one acquires the properties when the prices are down and at present there are some which are 30-60% below the value set by the banks. This bargain properties are purchased soon after it is listed in the site.

For bargain Spanish properties, it is suggested that an investor choose with care but buy in haste.

Tuesday, February 12, 2008

Get good deals on Spanish Properties

Spanish property owners are in a quandary over the decreasing prices of real estates. This can be traced to several factors including the policies set by the government regarding restrictions on the infrastructures near the coastlines. The negative publicity from the media has also exacerbated the situation which has lead to the closure of some agencies and the lowering of the prices.

There is also the fact that there are many properties built in some locations and that most of those were very similar in appearance which furthered decreased its value. Those who were direly affected were those who purchased the properties when it had a higher market value. Even the prices of villas are on a downhill even if it is not as numerous as apartments. But since the permits for the construction of villas and other detached properties are being limited, there is the big possibility of its value going up in the near future.

This does not mean though that the real estate market in not profitable. It still is. The only thing is that the investor must choose carefully on which to put place his money. He must check all the legalities to ensure that it has complied with all requirements. A tidy revenue can be made if one invests now that properties are at a cheaper price.

It has to be remembered, too, Spain is still a top contender in the real estate business. It is accessible to United Kingdom and if a notable real estate company makes representation, then the legalities are usually attended by them. It is projected that there will be an upsurge in the value in the next two years.