Real Estate & Investment News in Spain from Propertyshowrooms.com

Spanish house prices continue to fall

Tue, 15 May 2012 00:00:00 GMT

The value of residential property in Spain has dropped in the last year, a new report has revealed.

Tinsa's IMIE General Index was 12.5 per cent lower in April 2012 than it had been 12 months earlier.

Spain's major cities were found to be a big contributor to this decline, as they showed a year-on-year slump of 13.7 per cent.

However, towns along the Mediterranean coastline also fared badly throughout this period.

The index recorded a 14.3 per cent drop in house prices in the area - nearly two per cent higher than the national average.

This was the biggest decline in any segment of the Spanish property market throughout the year to April 2012.

Nevertheless, the fall in prices could potentially tempt some overseas property buyers to consider investing in the European country.

Marc Da-Silva, founder of the PropertyJournalist website, recently suggested that now could be a good time to buy a residence in the eurozone, as exchange rates between the UK and the euro are looking quite favourable for investors.

Eurozone property 'looking increasingly attractive'

Mon, 14 May 2012 00:00:00 GMT

Investors who have the funds available to purchase a property in Spain or elsewhere in the eurozone have been advised now is a good time to buy.

Marc Da-Silva, founder of the PropertyJournalist website and editorial director of International Estate Agent Today, explained the pound has gained ground against the euro, making the continent a top target for British buyers.

"I really expect the pound to improve further. The eurozone looks extremely fragile at the moment [... and] this is only going to continue to have an adverse impact on the euro," he asserted.

Earlier this week (May 9th), the pound hit a three-and-a-half-year high against the euro, with commentators citing the French and Greek elections as the main catalysts for the jump.

It is currently possible to gain more than 1.20 euros to the pound, with some analysts expecting sterling to strengthen further due to the uncertainty caused by leadership changes in some eurozone countries.

Spain 'needs to establish a new REITs regime'

Thu, 10 May 2012 00:00:00 GMT

The Spanish government needs to introduce measures to set up a competitive real estate investment trust (REIT) regime.

Chief executive of the European Public Real Estate Association Philip Charls explained to Property Magazine International that a well developed REITs scheme can be a powerful tool for attracting international investment.

He stressed the only way for the nation's government to generate strong interest in Spain's property sector is to "understand how other countries have achieved this goal with a dynamic and efficient REIT structure".

Mr Charls added the reason why investors are drawn to REITs in other destinations - such as the UK, France and the US - is because they are "a widely understood, transparent and well-managed corporate model".

With investment demand for Spanish real estate assets well into negative territory in the first quarter of this year and expected to remain flat over the three months from April to June, according to the Royal Institution of Chartered Surveyors' Global Commercial Property Survey, the country's government may want to consider new ways of making it more attractive to international financiers.

Transfer of banks' toxic assets 'won't be forced'

Mon, 7 May 2012 00:00:00 GMT

Spanish banks will not be forced to transfer their troubled property assets into holding companies.

Reuters reported on a statement issued by the country's economy ministry that explained the process of removing toxic Spanish real estate holdings from the banks' balance sheets will not be compulsory.

Last week, economy minister Luis de Guindos told Bloomberg the key to successfully attracting investors to these property assets will be "transparency and valuation". The government is hoping private investors will step in to run the asset management companies alongside the banks.

Mr De Guindos has since revealed the government is currently drawing up regulations that will provide a framework banks can use to begin the process of transferring some of their real estate holdings to these separate organisations.

According to Reuters, two of the country's largest financial institutions - Banco Santander and BBVA - have stated their opposition to the scheme, while some of the smaller lenders operating in the nation have also asserted they can manage their property portfolios without resorting to the new model proposed by the government.

Banks' property assets 'to be bought by investors'

Wed, 2 May 2012 00:00:00 GMT

Investors are expected to purchase property assets from Spanish banks, with the government offering no financial assistance.

Bloomberg reported on comments made by Luis de Guindos, the country's economy minister, last week, who stated overseas buyers will be attracted to the real estate portfolios provided they are priced correctly.

According to figures published by the Bank of Spain in its April Financial Stability Report, the property portfolios held by the nation's banks are collectively worth €308 billion (£250.6 billion). Of this total, 60 per cent of assets - equating to €184 billion as of December 2011 - are considered to be "troubled".

Mr de Guindos explained the government intends to draw up rules that will enable the country's financial institutions to shift their Spanish property holdings into asset management companies that will be controlled alongside third-party investors.

"The key element is going to be transparency and valuation," he asserted, adding that, while the government will set out the guidelines, it will not offer any financial aid.

Spain 'popular due to being established investment destination'

Mon, 23 Apr 2012 00:00:00 GMT

Buyers seeking out real estate in Spain are doing so because it is among the most established and therefore reliable markets, an expert has suggested.

Liz Rowlinson, editor at A Place in the Sun Magazine, said a few years ago there was a tendency to look to invest in the next "hot, new emerging place" as buyers sought new frontiers.

However, she noted, this caused problems for investors - who spent money where property bubbles existed and often lost out.

Ms Rowlinson added: "They are steering very clear of those and are looking at the solid, established, well-tested markets like Spain, France and Italy."

One reason many buyers could look to established European locations like Spain is because of the improving exchange rate between the pound and the euro.

Managing director of Mallorca Sotheby's International Realty Stephen Dight noted this week that sterling is at a 19-month high against the multi-nation currency as it appears "attractively stable".

Euro rate 'a major boost for buyers in Spain'

Fri, 20 Apr 2012 00:00:00 GMT

People buying property in Spain can now take advantage of the most favourable exchange rate between sterling and the euro for 19 months.

Managing director of Mallorca Sotheby’s International Realty Stephen Dight said this makes the present time a very good one to buy in Mallorca.

He commented: "The eurozone debt crisis is weighing heavily the European Central Bank's and politicians' shoulders, which makes sterling appear to be attractively stable and increase in value."

Mr Dight also noted those investing in the Balearics who do so before May 1st can avoid the deadline for a new property transfer tax being introduced in the islands.

The tax changes apply to more expensive properties, but new-build homes are excluded from the tax and instead subjected to a different levy whose rate has been halved.

Reuters columnist Fiona Maharg-Bravo predicted this week that property prices in Spain are likely to become cheaper in the near future as unemployment rises and the country slips back into recession.

Spanish property 'to get cheaper'

Wed, 18 Apr 2012 00:00:00 GMT

Property in Spain could become more affordable for investors as the country's economy struggles.

According to Reuters columnist Fiona Maharg-Bravo, the cost of housing in the country is yet to reach its floor, with 23 per cent unemployment and the return of recession likely to suppress local demand.

She noted figures from surveyors Tinsa indicated an 11.5 per cent year-on-year fall in March, but said the likelihood for more falls is also due to the government insisting banks take "haircuts" on the value of foreclosed homes of about 35 per cent.

Ms Maharg-Bravo said this will mean banks hitherto unwilling to sell for fear of crystallising losses will decided to bite the bullet and do so - meaning more discounted properties on the market.

Among the banks hit by Spanish government demands over capital ratios is Santander-owned Banco Espanol de Credito SA.

Having set aside funds to cover its bad real estate assets, the bank has seen net profits fall 88 per cent in the last year.

Spain's Murcia named as a top global property location

Mon, 2 Apr 2012 00:00:00 GMT

The Murcia region of Spain has appeared in a global index of the best property markets in which to invest.

Ronan McMahon compiled the list for International Living magazine, putting the Spanish destination in 22nd place out of 27 locations.

Spanish real estate in Murcia scored highly on the value for money metric - receiving 85 out of 100 - while it also ranked well in terms of the ease of making a purchase.

Mr McMahon explained he looks at numerous factors when putting together his index, including the potential for capital appreciation, rental income and the general costs of buying a home in each place.

One reason why property investors may want to keep an eye on Murcia is the new Paramount theme park, with construction on the project expected to get underway later this year.

It is estimated the number of visitors to the region will increase significantly when the new attraction opens its doors to the public in 2015.

Positives of Murcia property highlighted

Mon, 26 Mar 2012 00:00:00 GMT

One real estate firm has drawn attention to the advantages of purchasing a property in Murcia, Spain.

According to International Property Success, there are numerous reasons why investors should consider this part of the country, including the construction of a new Paramount theme park.

The company highlighted figures from a study conducted in Dallas in the US in 2001, which discovered real estate facing a theme park cost 22 per cent more than equivalent properties further away from the attraction.

In addition, the new development is expected to attract more tourists to the region, which will boost demand for holiday rentals and could, therefore, benefit investors.

However, the new theme park is not the only reason to find a home in Murcia, with the organisation stating property prices in the region have fallen by 60 per cent since their peak.

Earlier this month, Chris Mercer, director of local estate agency Mercers, expressed his optimism about the performance of the area's real estate market due to the construction of the Paramount attraction.

He said: "I very much doubt that there is another location in Spain that will offer the same rental returns and capital appreciation."

'Increasing interest' in Murcia property

Mon, 19 Mar 2012 00:00:00 GMT

A rising number of people appear to be trying to find a home in Murcia, with one real estate firm revealing enquiries about properties in the Spanish region are outpacing those for other destinations, like the UK and Portugal.

Director of International Property Success Jon Ainge explained the Paramount theme park has a lot to do with the spike in interest.

"Building is to start in May and we expect demand for property to increase as a result," he asserted.

More than 1 million sq m of land have been purchased for the project, with the attraction scheduled to open in 2015.

Although Murcia is an appealing prospect for investors seeking real estate in Spain, Mr Ainge urged potential buyers to be selective about the assets they purchase. He highlighted five-star resort properties as "the best places to invest".

In addition to the Paramount theme park, which will feature more than 30 attractions and two onsite hotels, there are plans to construct a business and leisure complex on adjacent land.

Research mortgage market before buying in Spain

Fri, 16 Mar 2012 00:00:00 GMT

While the significant price falls experienced in the Spanish real estate market are attracting investors, one expert has advised potential buyers to do their research when it comes to financing a property purchase.

Marc Elliott, owner of Fluent Finance Abroad and an independent mortgage consultant, explained investors need to do their homework before taking out a loan from a bank.

For overseas buyers, most lenders are offering a loan-to-value (LTV) of between 60 per cent and 70 per cent, although there are 110 per cent LTV mortgages available on some bank-owned properties, with the additional money provided to cover purchase costs.

While these bank-owned homes might seem like a great deal, Mr Elliott urged investors to be cautious.

"If you have a sizeable deposit at your fingertips it would probably be better to look at the traditional real estate market, as these properties tend to be slightly better value for money," he stated.

Director at Conti Clare Nessling recently advised buyers to seek out the services of a specialist overseas mortgage provider when purchasing property abroad in order to improve the chances of the application being successful.

Spanish golf properties 'are more affordable'

Fri, 9 Mar 2012 00:00:00 GMT

The cost of buying Spanish real estate alongside one of the country's golf courses has fallen significantly, opening it up to more investors.

This is the opinion of Adam Cornwell, managing director of Feltrim International, who explained many properties are currently owned by banks, with such institutions now offloading such assets.

He commented: "This means that not only has the clock turned back six or seven years in terms of pricing, but also in terms of lending, with 110 per cent mortgages reappearing on bank-owned developments."

Mr Cornwell highlighted the Costa del Sol as one Spanish region where buyers can benefit from discounted real estate. He pointed out that banks "must have confidence" in the long-term performance of the property market if they are prepared to lend at such high levels.

Last month, director of International Property Success Jon Ainge asserted now is the best time for investors to enter the Spanish real estate market, as they can take advantage of the high volume of distressed housing stock for sale.

Is the popularity of Spain's hotel market growing?

Thu, 8 Mar 2012 00:00:00 GMT

An increasing number of investors believe this year is a good time to invest in the Spanish hotel market.

This is one of the findings of the DLA Piper 2012 European Hotel Outlook Survey, which noted 26 per cent of the property professionals questioned feel there are attractive opportunities in Spain's hospitality industry.

Among the reasons given for purchasing this kind of Spanish real estate were the country's political stability, its well-developed tourism sector and the likelihood of more distressed assets coming on to the market over the next 12 months.

Spain came out ahead of all the other nations in the PIIGS (Portugal, Italy, Ireland, Greece, Spain) group, with Greece cited as the least-appealing of these markets.

The strong tourism industry in the country - and particularly coastal regions like the Costa Blanca - was recently cited by sales and marketing director at Taylor Wimpey de Espana Marc Pritchard as one reason why residential property in Spain is growing in popularity.

'Many issues' affecting Spanish real estate market

Thu, 1 Mar 2012 00:00:00 GMT

There are many reasons why the Spanish residential property sector has been on a downward cycle since its peak in 2007.

This is the finding of a new Royal Institution of Chartered Surveyors (Rics) report, which pointed out tight lending conditions, low demand for homes and declining prices are all contributing to the slump.

According to the organisation, there is likely to be little change in the Spanish real estate market over the course of 2012, although the study acknowledged there is the possibility it could "level off" this year.

Rics also noted, while there is still a large inventory of empty, unsold properties available, this figure is believed to be dropping.

Earlier this month, sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard highlighted the growing demand for holiday rental properties in Spain, adding this is making the nation an attractive target for investors .

This may also be contributing to the falling number of vacant homes currently on the market.

However, Professor Michael Ball, author of the Rics report, commented there are some issues that are affecting the whole continent, not just Spain.

"The future of the housing market in Europe will clearly depend on a good supply of mortgage credit and the ability to cope with the economic and financial crisis in the eurozone," he asserted.

Distressed Spanish property 'presents investors with an opportunity'

Thu, 23 Feb 2012 00:00:00 GMT

One of the best opportunities for investors who want to get into the Spanish real estate market can be found in the country's inventory of distressed properties.

This is the opinion of Jon Ainge, director of International Property Success, who explained tighter lending criteria have made it more difficult for buyers to fund their purchases.

However, he pointed out banks are willing to provide mortgages on distressed properties in Spain as they attempt to reduce their exposure to the real estate sector.

"If banks currently finance a development they are keen to deleverage themselves of the current risk they hold - this is where you will find that most loans are now being issued in countries such as Spain," Mr Ainge stated.

According to the Royal Institution of Chartered Surveyors' Global Distressed Property Monitor, which was published earlier this month, there was greater demand for this asset class in the final quarter of 2011 than in the previous three-month period.

In Spain, the number of new distressed homes coming on to the market between January and March 2012 was expected to be roughly the same as that recorded in the previous three months.

Is Murcia set to be a hotspot for Spanish property investment?

Fri, 3 Feb 2012 00:00:00 GMT

Murcia looks set to be the next big destination in Spain and buyers may want to consider their investment options here, if one local agent is to be believed.

Steve Long, chief executive officer of CasaCalida Property Group, has highlighted several attractions that make the Spanish region stand out.

Among them are Europe's largest shopping mall, a new continental airport and the proposed development of the Paramount theme park.

Mr Long commented: "I have been telling people for years that Murcia is the best place in Spain, if not in Europe, to invest in property."

He added there are comparatively few Spanish real estate developments on the market in the area, which means demand will far outweigh supply should the projected visitor numbers - of three to five million tourists each year - for the new amusement park prove to be correct.

In December last year, Proyectos Emblematicos Murcianos SA, the promoter behind the Paramount attraction, announced it would complete the purchase of the land required for the project on February 6th.

Girona real estate sees higher demand

Wed, 1 Feb 2012 00:00:00 GMT

There has been a rise in the number of overseas buyers looking for properties in certain provinces of Girona, Spain.

PGA Catalunya Resort highlighted research conducted by The Spanish Valuation Society, which found there was more demand from French, Scandinavian, English and Russian purchasers for real estate in Girona in 2011 than in the previous year.

As a result of the greater level of interest in Girona's property markets, prices have remained more stable here than elsewhere in Spain.

Some of the reasons for this include the region's proximity to the coast, its favourable climate and the selection of leisure facilities in the area, PGA Catalunya Resort asserted.

Investors seeking real estate in Spain that is ideal for holiday rentals may also be encouraged by comments made earlier this month by head of Spanish Property Insight Mark Stucklin.

He asserted it is "a buyer's market" in the country, particularly in "consolidated areas that are well-established with a good range of amenities and services".

Luxury Spanish property market 'performing well'

Thu, 26 Jan 2012 00:00:00 GMT

There continues to be an appetite among investors for luxury real estate in Spain, one agency has revealed.

Lucas Fox International Properties announced this week that 2011 was its "most successful operational year to date", with the firm citing its strong client base and portfolio of desirable assets among the factors that have helped it perform well.

Aimar Valls, head of commercial and investment property at the organisation, commented: "In the last year we have received a dramatic rise in both the quantity and quality of enquiries for commercial and investment property."

He added real estate in central Barcelona is particularly sought after, with hotel developments and tourist apartment rentals among the main targets for investors.

Director of Lucas Fox Alex Vaughan highlighted the company's strong position at the start of 2012, explaining that more than 5,000 active buyers have registered with the firm.

Interest in Spanish property is coming from investors based all over the world, including those in Russia, China, Scandinavia and the US, he added.

Earlier this month, International Property Success stressed Marbella and Murcia are among the top locations to consider when searching for a real estate investment in Spain.

Real estate on Spain's coast 'may be a top investment choice'

Fri, 20 Jan 2012 00:00:00 GMT

There are certain areas on the coast of Spain that are ideal for people seeking a property investment, it has been claimed.

International Property Success recently highlighted Marbella as a good destination to consider, thanks to the large amount of investment currently being ploughed into the region.

Meanwhile, Spanish property prices here remain approximately 20 to 30 per cent lower than the original asking price, while new development means the resort has the scope for growth.

The firm stated the value of real estate in Marbella will "definitely change" as the developments are completed over the coming years.

Another Spanish coastal location to consider is Murcia, according to the organisation, which noted the opening of a new Paramount theme park in 2015 is expected to attract around four million visitors in its first year of operation.

Director at the company Jon Ainge commented: "Prices have come down to the point where ordinary investors can buy some fantastic properties on the Spanish coast."

Murcia-based estate agent Chris Mercer believes the Paramount theme park will have a positive impact on the region, and expects the value of homes and apartments in the area to rise once the attraction opens.

Property Investors turning to "tried and trusted locations"

Wed, 18 Jan 2012 00:00:00 GMT

An increasing number of property investors are searching for real estate in destinations they believe are historically strong.

This is the observation made by Clare Nessling, director at Conti, who told Mortgage Introducer there are many British buyers who are prepared to look abroad in order to find better returns on a property investment.

She cited figures from the latest PrimeLocation.com International Search Index, which showed real estate in Spain is one of the most popular options at present.

"It's clear that investors are favouring the tried and trusted locations when it comes to overseas property. But they also want easy access, good rental opportunities and security with price appreciation over the long term," Ms Nessling stated.

With some commentators asserting that the property market in prime Spanish destinations has reached the bottom, now may be a good time to consider making an investment.

Marc Prtichard, sales and marketing director at Taylor Wimpey de Espana, recently predicted the value of homes in the most sought-after locations will begin to rise in 2012, having stabilised during 2011.

Investment in Spanish property rises

Mon, 16 Jan 2012 00:00:00 GMT

The amount of money ploughed into the Spanish real estate sector by foreign investors last year totalled €3.6 billion (£3 billion), new figures have shown.

Property Investor Europe cited the data from the Bank of Spain, which revealed investment in the country's real estate market climbed by 27 per cent in 2011, compared with a year earlier.

According to the financial institution, more than €1 billion was invested over three consecutive quarters last year - the first time this has happened since 2008.

Last month, Global Property Guide reported on figures released by Spain's Ministry of Public Transactions, which showed in the third quarter of 2011, 24.7 per cent more real estate transactions were completed by foreign buyers than in the same period a year earlier.

Alicante, Malaga, Barcelona, the Balearic Islands and Santa Cruz de Tenerife were named as the five most popular destinations for overseas purchasers looking for a home in Spain.

Spanish property 'may be more attractive to Brits'

Wed, 11 Jan 2012 00:00:00 GMT

British buyers may find investing in Spanish real estate is an increasingly attractive prospect as the year progresses, it has been claimed.

Mark Stucklin, head of Spanish Property Insight, explained downward price movement and the relative strength of the pound against the euro have combined to make the market more appealing to Brits.

"Now you have prices in coastal areas that are not difficult to find with a 50 per cent or more decline. The British pound is up above 1.20 [against the euro] and it looks like it is just going to head up all year," he asserted.

Research published earlier this month by Kyero revealed that potential buyers are continuing to focus their attention on well-known regions, such as Alicante and the Costa Blanca.

Mr Stucklin noted it is important to consider the location of a property when making a purchase, as assets in hard-to-reach destinations are not a sensible investment.

He added quality real estate in Spain is now entering a period of price stability and if the euro continues to weaken against the pound, British buyers may be able to find a bargain.

Spain theme park 'could boost house prices in Murcia'

Mon, 9 Jan 2012 00:00:00 GMT

Investors considering property in Spain may want to look into real estate in the Murcia area, where a Paramount theme park is due to be built.

The attraction will be located on a site measuring 1.8 million sq m that will also include restaurants, hotels, bars and clubs, as well as business facilities.

Plans for new residential dwellings are also in place, and Chris Mercer of local estate agent Mercers told Propertywire house values in the region could rise significantly once the park has been finished.

He noted that prices in the area have reached their lowest point and highlighted the potential for rental opportunities to accommodate the needs of both employees at the complex and those visiting it.

Recent figures from Sociedad de Tasacion showed Murcia experienced the lowest prices for property in Spain last year.

The deal for the theme park is expected to be officially approved in February after the initial plans were unveiled last October.

Spain remains top destination for Britons

Wed, 4 Jan 2012 00:00:00 GMT

Spain is still the most popular travel destination for British holidaymakers, according to a new report that may have implications for real estate in the region.

Figures from Skyscanner show the country is the most searched-for location on its website and also accounts for four of the top five city-related queries.

The popularity of Spain can be attributed to a one million-strong British expat community in the country, as well as the high number of package holidays available, Skyscanner said.

Some of the most searched-for Spanish locations include Malaga, Alicante, Tenerife and Palma de Mallorca, along with Barcelona and Ibiza.

The report could have positive implications for those looking to invest in property in Spain. Figures published by Spanish bank Catalunya Caixa last summer suggest there are more than 800,000 unoccupied newly-built properties in the country, with the majority located along the coast.

With the number of unsold dwellings predicted to rise, prices could become more favourable for investors hoping to take advantage of the holiday home market.

'Opportunities available' for investors in Spain

Fri, 9 Dec 2011 00:00:00 GMT

Investors looking to buy property in Spain may find it easier to do so in the future, given one expert's assertions that the eurozone issues and lender retrenchments are creating opportunities to buy at "substantial discounts" in the country.

John Danes, head of European office research at Aberdeen Asset Management, noted in an interview with Property Investor Europe, however, that worries about the economic outlook on the continent do mean that real estate investors have to be more selective when buying assets.

He went on to add that it may be a better idea to look to retail and industrial, since the majority of European office markets are overpriced.

"We would advocate the removal of as much asset-related risk as possible for office investments," Mr Danes continued.

His comments come after IPS revealed Spain to be one of the most distressed property markets in the world. Property can now be purchased at 60 per cent under market value, with 100 per cent finance, it revealed.

'Buy now' to bag a bargain property in Spain

Mon, 5 Dec 2011 00:00:00 GMT

Potential investors in Spanish real estate are being urged to buy a property now if they want to take advantage of bargain prices.

International Property Success named the nation as one of the best places in the world to seek out distressed assets at present, noting that some lenders are offering 100 per cent finance on real estate transactions.

The organisation pointed out that in some areas, house prices have plummeted by 60 per cent since their peak.

"Invest now if you want to grab a bargain in coastal areas. Properties are unlikely to get cheaper," the firm asserted.

Meanwhile, Taylor Wimpey de Espana recently noted that the Spanish real estate sector has not performed badly in 2011, when the difficult economic backdrop is taken into account.

The developer revealed that it has received lots of interest from British buyers, with Malaga on the Costa del Sol one of the destinations to garner the most attention from potential investors.

Spanish golf resorts 'could be a good choice for property investors'

Fri, 18 Nov 2011 00:00:00 GMT

People hoping to buy a property in Spain may want to target the country's golf resorts, after one estate agency highlighted the resilience of this part of the tourism industry.

Sales and marketing director of Taylor Wimpey de Espana Marc Pritchard pointed out that Spain has one of the world's largest markets for golf tourism and described the sector as "resilient and reliable".

He advised potential investors in Spanish real estate to seriously consider the merits of owning an asset in a golf resort.

"You are buying into a community spirited neighbourhood that affords excellent facilities and green surroundings, as well as potential high returns from consistent demand should you chose to rent the property out," Mr Pritchard stated.

Among the most popular golfing destinations in the country are Andalucia - which includes the Costa del Sol - the Balearic Islands and Catalunya.

With over 50 courses, including famous destinations such as the Valderrama Golf Club, Andalucia is Spain's premier golfing region.

Drop in investment in Spanish commercial property

Tue, 1 Nov 2011 00:00:00 GMT

A fall in the levels of activity in Spain's commercial property market has been recorded.

Data published by Cushman & Wakefield showed that investment in Spanish commercial real estate assets dropped by 46 per cent during the third quarter of this year, compared to the previous three-month period.

However, as a whole Europe experienced an increase in the amount of activity in the commercial property sector, with a rising number of international buyers seeking out investment opportunities on the continent.

Michael Rhydderch, head of the European capital markets group at the organisation, commented: "Momentum has definitely slowed but values are stable and the market overall has held up well, particularly when you compare it to other asset classes."

Last week, Bloomberg Businessweek reported on a study carried out by Savills, which found that the Spanish commercial property sector has seen its lowest investment volumes since 2001 this year.

As a result of the wider economic problems in the country, as well as the European sovereign debt crisis, the firm predicted that it would take more than 12 months for the market to begin to recover.

Good deals 'can be found' in the Spanish property market

Fri, 28 Oct 2011 00:00:00 GMT

High levels of unsold stock and distressed properties for sale in Spain make it a buyer's market, it has been suggested.

Bloomberg highlighted the fact that Spanish real estate values have now slipped to their 2003 levels, making it an enticing prospect for investors.

Speaking to the publication, Liam Bailey, head of residential research at Knight Frank, advised anyone considering entering the market to do so with caution.

"There are reasons why properties are distressed," he stated. "As an outsider coming into the market, it's so risky. You've got to get under the skin of the market and figure out why people are selling at a loss."

Mr Bailey added that if you choose a destination that you enjoy visiting on holiday to purchase a second home, you should have good rental potential as the property is likely to be in a place frequented by other tourists.

Meanwhile, Spanish real estate prices are continuing to fall, with the nation's Ministry of Public Works revealing earlier this month that a quarterly drop of 1.3 per cent was registered between July and September this year, while values fell 5.5 per cent on an annual basis.

Valencia 'a good spot for a holiday home'

Wed, 26 Oct 2011 00:00:00 GMT

People considering purchasing a property in Spain may want to look at what is on offer in Valencia.

According to Marc Da-Silva, founder of PropertyJournalist.com, there are many homes in the city on the market for a low price at present.

"Given the Spanish housing downturn, a lot of the vendors have become desperate in their need to sell, so there is plenty of room for negotiation," he explained.

Mr Da-Silva added that Valencia is a popular choice among Brits because it is easy to reach from the UK due to the number of flights that depart for the destination each day.

However, he stressed that the city may not be the best place in Spain to buy an investment property, but commented that it is "certainly a nice place for a holiday home".

The most recent figures published by the country's Ministry of Public Works revealed that house prices in the nation fell by 1.3 per cent during the third quarter of 2011, compared to the previous three-month period.

Property investment volumes in Spain fall

Sat, 8 Oct 2011 00:00:00 GMT

The amount of money being ploughed into the Spanish commercial real estate sector has fallen considerably during the first half of this year, new research has revealed.

Figures published by CB Richard Ellis (CBRE) showed that investment volumes were down by 40 per cent in the six months from January to June, compared to the period between July and December in 2010.

Dr Peter Damesick, chief economist of Europe, Middle East and Africa at CBRE, told delegates at the Expo Real conference that many investors are focusing on "prime quality assets in core markets".

But he noted that the reduction in the amount of money entering the sector is not restricted to Spain: "Total transaction activity in European real estate has slowed during 2011, especially in southern European markets where sovereign debt problems are greatest," Dr Damesick stated.

Earlier this week, the Financial Times reported that there is a widening "valuation gap" between the price that banks are asking for commercial properties in Spain and the amount investors are willing to pay for these assets.

Murcia attracting attention of European buyers

Tue, 4 Oct 2011 00:00:00 GMT

People from all over Europe have been enquiring about property in the Murcia region of Spain, one local estate agent has noted.

According to Mercers, this summer has been its busiest sales period for five years, with French, Norwegian, British, Irish and Swedish buyers among those interested in homes in the area.

Director of the agency Chris Mercer described the Murcia real estate sector as being "poised in pole position for recovery".

He stressed that price is the most important factor encouraging buyers to consider purchasing a property in this region of Spain, while the golf resorts and improved accessibility are also helping to buoy the market.

Meanwhile, a Paramount theme park is due to open in Murcia in 2014 and is expected to attract more than three million tourists each year, which could encourage investors to add a property here to their portfolio.

And it may also appeal to those considering moving abroad after the uSwitch Quality of Life Index published at the end of September revealed that Spain is the second best place to relocate to based on factors such as taxation, the annual amount of sunshine, retirement age, utilities costs and life expectancy.

Tips offered to Spanish property buyers

Fri, 23 Sep 2011 00:00:00 GMT

People intending to buy a home in Spain may want to take heed of some advice offered by a firm of real estate experts.

Spanish Hot Properties has issued some guidance for those considering purchasing a property in the nation, particularly focusing on the Costa del Sol.

One of the first steps to take is to decide what sort of real estate asset you are interested in, with the company noting that requirements for investors and people looking to retire to Spain will be different.

Anyone planning to use their Spanish property as a means of generating an income will need to ensure they choose a place that "can be let all year round, thus giving you a good return".

In terms of where on the Costa del Sol to buy, the organisation suggested the likes of Estepona and Benahavis for anyone seeking a laid-back vibe, while Puerto Banus is an option for those looking at the high end of the market.

Figures published by the Spanish national statistics institute earlier this month showed that during July, just over 6,000 property sales were completed in Andalucia, with Malaga - and the Costa del Sol region - accounting for 1,288 of these.

Demand for Mallorca property 'boosted by world-class events'

Thu, 22 Sep 2011 00:00:00 GMT

Mallorca is a popular destination among property investors, but one expert in Spanish real estate has pointed out that world-class events hosted on the island help drive its appeal.

Ignacio Osle, sales and marketing director of Taylor Wimpey de Espana, explained that festivals and competitions attract an upmarket crowd to the Balearic island.

"The great thing is that world-class events, combined with a great social programme and stunning natural beauty helps increase the demand for rental property with good locations and quality builds always selling well whatever the market conditions," he stated.

Meanwhile, managing director at Spanish-Living.com Adrian Warriner recently noted that property prices in the Balearic Islands tend to hold up better than those on mainland Spain.

He cited figures showing that real estate values across the Balearic and Canary archipelagos fell just 2.5 per cent between July 2010 and the same month this year.

This is significantly better than the national average, with a 6.4 per cent decline recorded nationwide during the same period.

Marbella 'a safe choice' for Spanish property investment

Mon, 19 Sep 2011 00:00:00 GMT

While property prices in Spain have plummeted in recent years, the luxury end of the market appears to be holding up, making Marbella a good option for those planning to purchase a home in the country.

This is the assertion of the Wall Street Journal, which noted in a recent article that average real estate values in Spain have fallen by between 15 and 40 per cent since the financial crisis began.

According to the publication, there is "still a sense of long-term economic stability" in Spain, which may appeal to investors hoping to pick up assets at low prices.

Commenting on the appeal of Marbella in particular, president of Sotheby's International Realty Philip White stated: "It has been a major destination for years. It is safe, international, the restaurants are excellent and it has a sense of vibrancy."

Speaking to Bloomberg this week, Fernando Encinar, head of research at Idealista.com, claimed that vendors in Spain are being forced to drop their asking prices in order to make a sale. This is due, in part, to the lack of flexibility among mortgage lenders, he added.

International property sales in Spain rise

Tue, 13 Sep 2011 00:00:00 GMT

One developer operating in the Spanish market has reported a rise in the number of sales to international buyers.

Taylor Wimpey de Espana revealed that during the first eight months of this year, it saw transactions to overseas investors increase by eight per cent, on the year to date.

According to the firm, it also received a significant rise in the number of enquiries about properties in Spain, with a 70 per cent boost in the first half of the year, compared to the same period in 2010.

The company also showed that it is Brits who are keen to enter the real estate market, accounting for 32 per cent of sales so far this year.

Spanish buyers have also been active in their domestic market, carrying out 24 per cent of transactions, while German, Russian and Belgian investors also purchased properties in the nation.

Earlier this month, Adrian Warriner, managing director at Spanish-Living.com, noted that the significant price falls that have occurred in many regions of the country make this the ideal time for investors to find a bargain.

'Bargains to be had' in Spanish property market

Fri, 2 Sep 2011 00:00:00 GMT

Investors seeking a bargain should turn to the Spanish property market, one sector commentator has noted, due to a range of incentives available through banks and the government.

Adrian Warriner, managing director at Spanish-Living.com, explained that there are many reasons for people to consider purchasing real estate in Spain at the present time.

Firstly, he cited the government's decision to halve value added tax on new property purchases, bringing it down to just four per cent.

Mr Warriner went on to point out that banks are keen to offload their assets and as a result, some are offering up to 100 per cent finance on certain homes.

Finally, he highlighted the fact that the Euribor is currently at its lowest rate since 1999, which means there are favourable conditions for borrowers.

"For investors, the obvious advantage right now is the opportunity to buy in a market that's not far off rock bottom," he stated.

Last month, Lucas Fox International Properties revealed that the luxury end of the property sector in Spain is on the up, with the firm noting a rise in the number of international buyers seeking out high-end homes in locations such as Ibiza, the Costa Brava and Barcelona.

Spanish luxury property market 'continuing to attract investors'

Wed, 31 Aug 2011 00:00:00 GMT

The Spanish luxury real estate sector is holding up well, despite wider problems with the country's economy and housing market.

Lucas Fox International Properties revealed that high-end homes in Barcelona, Ibiza and on the Costa Blanca have been in demand during the first half of this year.

Barcelona, for example, has seen "steady" sales prices, while rental increases are expected in prime parts of the city.

Alex Vaughan, director of Lucas Fox, commented: "The lack of quality luxury apartments and houses should mean that prices in this segment of the market will remain stable."

He went on to predict "a very positive second half of 2011" for the high-end property market in Ibiza, adding that assets in this area have "great potential", with such homes likely to experience capital growth during 2012.

Earlier this month, European sales director for Atlas International James Dearsley stated that investors are looking at the long-term prospects for overseas real estate, noting that there are "good returns to be made" in relation to both rental and capital value growth.

'Wonderful' investment opportunities in Spain

Fri, 26 Aug 2011 00:00:00 GMT

Anyone looking for an investment property in Spain may decide that now is the time to enter the market, if the comments of one expert are anything to go by.

Marc Da Silva, freelance journalist and founder of PropertyJournalist.com, noted that there are some "fantastic opportunities" to find good value European real estate at present, particularly in nations such as Spain.

He pointed out that people in the domestic markets may not have the means to buy their own home, which opens up rental opportunities.

"There are certainly some high rental yields achievable - especially in the domestic markets," Mr Da Silva stated.

Research published earlier this week by the Royal Institution of Chartered Surveyors suggested that the number of distressed properties entering the Spanish market is set to increase during the third quarter of the year.

During the period from April to June, demand from investors for assets of this kind also rose, with this expected to continue over the coming months.

Costa de la Luz 'a top spot for property investment'

Mon, 22 Aug 2011 00:00:00 GMT

The Costa de la Luz on Spain's Atlantic coast has been highlighted by one property expert as a great location in which to make a real estate investment.

Nick Stuart, managing director of Spanish Hot Properties, described the region as "the Caribbean of the Spanish property market".

He explained that this stretch of coastline offers "a totally different lifestyle for property owners, especially for those who want to get back to real Spain".

Another reason that investors may consider purchasing real estate on the Costa de la Luz is the lower prices available, particularly when compared to areas like the Costa del Sol.

The main city in this region of the country is Cadiz, while there are numerous small towns and villages dotted along the coast. It stretches all the way from the mouth of the Guadiana River to the Strait of Gibraltar.

Among the attractions to be found on the Costa de la Luz are its numerous beaches, historical monuments - such as Cadiz cathedral and Jerez de la Frontera Fortress - and the Isla Cristina marine resort.

Brits 'have continued to buy Spanish property in the recession'

Wed, 17 Aug 2011 00:00:00 GMT

Property in Spain has remained popular among British buyers despite the credit crunch, one expert has claimed.

James Dearsley, European sales director for Atlas International, explained that many people have realised that real estate prices in Spain have reached a low point and as such are buying now with a view to realising profits in the future.

He noted that the market has witnessed "the return of the property investor knowing there are good returns to be made both from capital and rental investment perspectives".

Mr Dearsley pointed out that sales of Spanish homes to UK buyers have increased over the course of the year, adding that Brits have had "a love affair" with the country for decades.

House prices in Spain dropped by an average of 6.4 per cent in July, compared to the same month the previous year, according to the latest General Spanish Real Estate Index.

Assets on the Mediterranean coast saw their values decline more sharply than in other regions, falling by 9.5 per cent year-on-year.

Can foreign buyers boost Spain's property market?

Wed, 10 Aug 2011 00:00:00 GMT

The most prolific buyers of Spanish properties have traditionally been Brits, but the strong euro is making it more difficult to find investors from the UK.

Speaking to The National, head of Spanish Property Insight Mark Stucklin explained that there has been increased interest from other European countries, as well as buyers coming from China and the Gulf.

He stated that they are "taking advantage of reduced prices and in some cases distressed sales from banks who are prepared to offer very attractive financing".

Meanwhile, Jose Luis Suarez, a professor at the IESE Business School, told the publication that there has been a significant rise in interest among Swedish and Norwegian buyers.

Comments made recently by Andy Bridge, managing director of A Place in the Sun, support Mr Stucklin's assertion about distressed sales.

He noted that any buyer with the means to pay cash for a home in Spain is in a "very strong position", as many Spanish lenders are trying to offload repossessed properties.

Spanish house prices expected to drop further

Tue, 2 Aug 2011 00:00:00 GMT

An expert from the International Monetary Fund (IMF) has predicted that Spain's property market will experience further falls in housing values.

Commenting on the overall health of the Spanish economy, James Daniel, IMF mission chief, explained that although the country's government has taken positive steps to encourage a recovery, there are still hurdles to overcome.

Among them is the real estate sector, with Mr Daniel noting that there is still a large amount of unsold stock on the market and he predicted that "house prices probably also have further to fall".

However, he pointed out that the housing industry as a whole appears to have "returned to its historical average in terms of employment".

Last month, freelance property journalist Marc Da Silva said that he believes that real estate values in Spain will decline more before stabilising.

He noted that the current economic situation presents "a wonderful opportunity" for investors to find a great deal on a home in the nation.

Spanish house prices drop 6.6% in June

Mon, 18 Jul 2011 00:00:00 GMT

Prices for property in Spain fell by 6.6 per cent last month compared with June 2010, new figures have revealed.

The latest General IMIE (Spanish Property Market Index) report from valuation and consulting firm Tinsa also revealed a monthly decrease in house prices compared with May.

Overall, the largest drops were recorded on the Mediterranean coast, where values fell by 8.7 per cent over the previous year. Large cities saw a 7.3 per cent decline, while the Balearic and Canary Islands registered a seven per cent negative movement.

"As regards variations by areas, it should be highlighted that all of them showed greater year-on-year falls than in the previous month," Tinsa said in its report.

The figures come days after the National Statistics Institute (INE) in Madrid revealed an 18.3 per cent decline in Spanish housing sales in May compared with the same month in 2010.

This represented the third month in a row that transactions dropped rather than increased, the INE noted.

Property investors looking to Spanish retail sector

Wed, 29 Jun 2011 00:00:00 GMT

The Spanish retail sector is attracting a lot of attention from investors, with new research from Savills revealing that deal volumes could double by the end of the year.

Reuters reported that malls and other retail outlets have been proving popular among those looking to put money into Spanish property due to the discounted prices available as the country's economy struggled.

According to the global real estate services provider, many investors believe that Spain has reached its low point and expect values to gradually increase as the market picks up.

"Everything points towards the fact that investor activity is improving. The amount of product for sale has increased and investors appear to be more interested in actively participating in the market," the organisation told the news provider.

In the Savills Spanish Retail Report published on June 20th 2011, the firm noted that occupancy rates in retail outlets have reached almost 100 per cent in many locations due to the restricted number of units available.

Investors turning to the fashionable town of Marbella

Wed, 15 Jun 2011 00:00:00 GMT

Demand for property in Spain could be set to grow as an increasing number of investors look to take advantage of the country's fashionable cities and idyllic beaches.

Recent research by Oak Power Communication found that Andalucia, according to the figures, enjoys the best brand image of Spain rated 7.9, out of ten, followed by Madrid at 7.3 and Barcelona at 7.1.

Breaking these statistics down further, the town of Marbella in Andalucia scored very well, voted the third trendiest and most fashionable city in Spain as well as having the best beaches in the country.

Ignacio Osle, sales and marketing director of Taylor Wimpey de Espana, said that the overall result came as no surprise.

"Marbella is definitely the place to be. And although luxury villas and apartments are seeing a great deal more enquiries indicating that there is definitely a new type of international buyer in town, more affordable Marbella property is selling equally as fast as buyers look to grab a great deal in a perfect lifestyle location before it's too late," he added.

Spanish property clearout 'will lead to price falls'

Wed, 1 Jun 2011 00:00:00 GMT

Demand for property in Spain could be set to soar as banks move to sell off billions of euros worth of distressed property assets.

Analysts have estimated that financial institutions in the country control more that €100 billion (£86.7 billion) in real estate, The National reports.

Most are second homes in developments built during a ten-year construction boom targeting the same European buyers.

There are anywhere from 700,000 to a million empty apartments and villas in Spain, the majority of them in coastal areas.

"Banks will take years to clear [property] off their books," said Arturo de Frias, an analyst with Evolution Securities. "I think the big question is what is going to happen to real estate prices."

Home prices in the fourth largest economy in the euro zone have fallen 17 per cent since the market peaked in 2008, according to government data. But most analysts say the plunge have been much steeper.

Prices are likely to continue to fall anywhere from five to ten per cent in the next year, especially with more distressed and repossessed properties entering the market, analysts say.

Indices suggest bargains can be found in Spain

Thu, 19 May 2011 00:00:00 GMT

An increase in demand for property in Spain could be seen in the coming months as investors look to take advantage of low prices across the country.

Real estate values are expected to continue their decline over the next year, with an oversupply of homes on the market and rising interest rates ensuring that buyers can pick up a bargain.

Spanish Property Insight has collated data from major price indices and forecasts, with all of them suggesting that prices are falling.

Idealista, Tinsa, Standard & Poor and BBVA, all project that Spanish property values will continue to fall by between 4.4 and 10 per cent in 2011, on top off falls of up to 50 per cent since the market peak.

The greatest declines expected to be recorded along the Mediterranean Coast.

Just last week, Peter Mindenhall, a researcher at IPINGlobal.com, suggested that average prices in Spain will fall further when the banks reveal the backlog of distressed property on their books.

Spanish property prices to fall further when banks reveal their hands

Fri, 13 May 2011 00:00:00 GMT

Average Spanish real estate prices are expected to fall further once the country’s banks reveal the backlog of distressed property on their books.

Peter Mindenhall, researcher at IPINGlobal.com, argues that the market is segmented at the moment, with some houses “priced to sell” and others which are “just on the market”.

He added that exceptional value can still be found in the country.

“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,” Mr Mindenhall explained.

However, he issues a note of caution, stating that investors looking for a good deal on real estate in the country should carry out the required research if they are to find “the most competitively priced properties”.

Meanwhile, the Spanish property market is expected to receive a boost thanks to the country’s popularity as a tourist destination.

Between January and March this year, nine million international tourists have already descended on the country, with further arrivals due as the summer months arrive, the Ministry of Industry, Tourism and Trade revealed.