Real Estate & Economic News in Spain from Propertyshowrooms.com

Spain to calculate full property exposure

Mon, 21 May 2012 00:00:00 GMT

Spain's government will investigate the value of real estate loans compared with the current price of property.

Thursday (May 17th), independent valuers Blackrock and Oliver Wyman were appointed to look at the problem, which may be the cause of the nation's economic crisis, according to the Financial Times.

Blackrock and Oliver Wyman will provide an assessment of the book value of property loans compared with the cost of real estate in Spain within one month, the news provider revealed.

Three months following this, they will look at the banks on an individual basis and assess the loans they have given out.

Spain's economy is still in difficulty, and $2.5 billion (£1.58 billion) of medium-term government debt was auctioned.

Earlier this month, a ministry of economy and finance spokeswoman also recommended Spanish banks look for ways to raise more money so they are protected against property losses. The total distressed property fund is currently believed to be worth €35 billion (£28 billion).

Spanish banks 'will have to raise more provisions for property losses'

Fri, 11 May 2012 00:00:00 GMT

Banks in Spain will need to raise more funds to protect themselves against potential property losses.

A spokeswoman for the ministry of economy and finance said new provisions regarding real estate in Spain will be introduced to ensure financial institutions are protected should their assets fail.

The representative did not provide any further information regarding the move, but it is believed the distressed property fund could total €35 billion (£28 billion)

Fresh concerns regarding the health of the Spanish banking sector have raised more worries over the eurozone financial crisis and shares in some of the country's biggest lenders, including Banco Santander, BBVA and Bankia have fallen

The government has taken control of Bankia in a bid to reassure the financial markets it is able to restore stability to the banking sector and chairman of the company Rodrigo Rato has stepped down from his position.

According to Reuters, the move gives the government a 45 per cent indirect stake in the bank.

Spain expected to bail out Bankia

Wed, 9 May 2012 00:00:00 GMT

The Spanish government is expected to announce a package of financial aid for one of the nation's largest banks - Bankia.

Between €7 billion (£5.6 billion) and €10 billion is likely to be ploughed into the firm to help bolster its balance sheet and cover future losses.

Bankia and its parent company BFA are the most exposed lenders to the Spanish property market, holding €31.7 billion of troubled real estate assets, according to Reuters.

Rodrigo Rato, chairman at Bankia, announced he would step down from his position ahead of the anticipated government bailout.

Last week, Luis de Guindos, Spain's economy minister, revealed proposals encouraging banks to transfer their bad property loans into holding companies run in conjunction with asset management firms would not be compulsory, Reuters reported.

A government announcement about Bankia's future is expected on Friday (May 11th), once a new chairman has been appointed at the organisation.

Jose Ignacio Goirigolzarri, the former president and chief operating officer at BBVA, has been tipped for the job, with Inigo Lecubbari, from the Abaco Financials Fund, telling Bloomberg "you couldn't ask for someone better qualified to lead a Spanish bank that's in trouble".

Spanish property 'remains popular among Brits'

Thu, 26 Apr 2012 00:00:00 GMT

Spain and France are the most popular locations for Britons who are looking to buy property abroad, according to a survey by currency company HiFX.

The study showed that, despite the current economic crisis in the eurozone, 35 per cent of people would be interested in owning a home in France, while 16 per cent opted for Spain, the Press Association reported.

Nearly three quarters of those surveyed said lifestyle was one of the most appealing aspects of living abroad, followed by the weather. 25 per cent of Britons also believe it is cheaper to own a property overseas.

Advisory firm R.R. de Acuna and Asociados recently predicted Spanish real estate values could fall by a further 12 to 14 per cent by the end of the year. HiFX director Mark Bodega said that Britons hope to take advantage of these depressed prices.

He stated: "The average property price in the country [Spain] is down almost 30 per cent since the market peaked in 2007, yet while there are discounts to be had, buyers need to pick carefully."

Banesto profits hit by Spanish property losses

Mon, 16 Apr 2012 00:00:00 GMT

Banco Espanol de Credito SA (Banesto) - which is controlled by Santander - has announced profits fell sharply during the first quarter of this year.

The domestic financial institution has been hit particularly hard by the rules introduced by the Spanish government earlier in 2012 requiring all banks to increase their provisions against bad real estate loans.

Banesto's net profit dropped 88 per cent year-on-year to stand at €20.2 million (£16.7 million). The organisation revealed it has set aside €475 million to help cover its Spanish property assets, which is approximately half the amount required by the end of 2012.

Lending by the Spanish bank also fell during the first three months of this year, declining by 8.3 per cent - a move designed to improve the organisation's capital ratio.

Fitch Ratings recently predicted all the major Spanish financial institutions will report lower earnings throughout 2012, largely as a result of the new provisions required for bad real estate loans.

In addition, smaller, domestic banks may post losses if they are unable to generate revenue from asset sales, the agency stated.

Spanish house prices slide in March

Thu, 12 Apr 2012 00:00:00 GMT

The value of residential real estate in Spain recorded its biggest year-on-year drop last month.

According to the latest index published by Tinsa, the cost of buying a home in the nation fell 11.5 per cent annually in March.

Properties in capitals and major cities took the biggest hit, sliding by 12.6 per cent in this timeframe, while metropolitan areas and the Balearic and Canary Islands held up best, with both regions experiencing annual declines of 9.8 per cent.

Since the Spanish housing market reached its peak in December 2007, real estate in the country has shed 28.6 per cent of its value.

Last month, Bloomberg reported on data published by Idealista, which revealed the cost of buying a home in the nation fell by 3.4 per cent in the first quarter of 2012, compared to the previous three-month period.

Co-founder of the firm Fernando Encinar said a lack of mortgage financing was helping push prices lower, adding "similar declines" are anticipated throughout the remainder of this year.

Spanish house prices fall

Wed, 4 Apr 2012 00:00:00 GMT

Spanish house prices dropped by 6.9 per cent over the course of 2011, new figures show.

According to data gathered by The Economist, the value of property in Spain was 16.8 per cent below the peak it recorded in 2007 at the end of last year and the publication believes prices will drop further during 2012.

The ongoing eurozone crisis is likely to suppress real estate values all over Europe, the news provider asserted, stating: "Unemployment is rising across the continent and banks are under pressure to shore up balance sheets. Prices will struggle to rise in such conditions."

A report from the EU Commission released on April 2nd revealed unemployment in the region has hit its highest level in 15 years, with 24 per cent of Spaniards currently out of work.

Last month, founder of Idealista Fernando Encinar told Bloomberg that a lack of finance for property purchases is one of the major factors weighing down the Spanish real estate sector, adding that unless the situation improves, further price declines are likely in 2012.

Holiday homes 'still considered a good investment'

Tue, 20 Mar 2012 00:00:00 GMT

Despite the economic difficulties in the eurozone, many people still consider owning a holiday home in Spain or elsewhere on the continent to be a "good investment".

This is the assertion of Liz Rowlinson, editor of A Place in the Sun magazine, who explained buying a property in Spain or another popular destination can often be a more attractive option than other kinds of investment.

"It just shows that in this climate you have to be very hard-nosed about returns and the bottom line with costs," she stated.

She acknowledged there is an increasing number of holiday homeowners who are considering selling up, after Home Away revealed 65 per cent of respondents to a survey it conducted are thinking about putting their overseas property on the market.

However, Ms Rowlinson pointed out it is not uncommon for second homeowners to look into selling their asset, adding this attitude is "symptomatic of the climate that we are in at the moment" due to the continuing economic problems in the eurozone.

Spanish real estate values decline

Thu, 15 Mar 2012 00:00:00 GMT

The price of buying residential real estate in Spain fell by 9.5 per cent in February, compared to the same month a year earlier.

According to the Tinsa General IMIE Index, properties in the country's major cities took the biggest hit, dropping by 11.5 per cent over the past 12 months.

Metropolitan areas didn't fare much better, with values sliding by 10.3 per cent in the same period. Real estate in the Balearic and Canary Islands, meanwhile, posted an 8.8 per cent decline.

Property values on Spain's Mediterranean coast saw a 9.5 per cent drop, while assets in other municipalities - which is any location that doesn't fit into one of the groups above - performed best, registering a 6.5 per cent fall in price.

Tinsa noted: "The deterioration of the macroeconomic environment with significant job losses, together with an increase in the spread on mortgage rates, are offsetting the positive effect of reinstated tax breaks on house purchases."

Managing director of Feltrim International Adam Cornwell recently highlighted the opportunities open to investors resulting from the reduction in value of Spain's property market. He pointed to assets in prime locations, such as homes near golf courses, as being among the best buys at present.

House prices in Spain fall

Wed, 29 Feb 2012 00:00:00 GMT

The value of residential property in Spain slid in the final quarter of 2011, according to new research.

Global Property Guide has published its worldwide housing market statistics for the final quarter of last year, revealing real estate in Spain saw 2.86 per cent wiped off its value in the last three months of 2011, compared to the period between July and September.

Meanwhile, the annual figures showed property prices in Spain fell by 9.27 per cent between the fourth quarter of 2011 and the same timeframe in 2010.

Only Athens in Greece, Warsaw in Poland and Ireland saw greater annual declines in residential real estate prices over the course of last year.

Last week, one property expert advised investors to consider the merits of purchasing distressed property in Spain.

Director of International Property Success Jon Ainge explained banks are more willing to lend on this kind of asset, as they want to reduce their exposure to the country's real estate sector.

Spanish property prices 'continue to fall'

Fri, 17 Feb 2012 00:00:00 GMT

The latest figures published by Tinsa in its General IMIE Index revealed the value of property in Spain continued to slide in January.

According to the organisation, the cost of buying a home in the nation fell by an average of 6.6 per cent year-on-year, although there were disparities between different regions.

Capitals and major cities registered the biggest decline - hitting 8.7 per cent - closely followed by the Mediterranean coast, where real estate shed 8.1 per cent of its value.

Meanwhile, the Balearic and Canary Islands' property markets held up best, with assets here selling for 3.1 per cent less than they did at the beginning of 2011.

Across the country, property prices now stand exactly 25 per cent lower than they did at their high point in December 2007.

However, there are indications the market is beginning to improve, with sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard recently highlighting the uptick in investment from overseas buyers.

He cited data from the Bank of Spain, which revealed there was a 19.1 per cent increase in the amount of money ploughed into the country's property sector by international investors in the third quarter of 2011, compared to the same period in 2010.

Boost to foreign investment in Spanish property

Tue, 14 Feb 2012 00:00:00 GMT

Rising levels of foreign investment have been recorded in the Spanish real estate market.

Marc Pritchard, sales and marketing manager of Taylor Wimpey de Espana, cited figures from the Bank of Spain, which showed the amount of money entering the sector from overseas buyers grew by 19.1 per cent in the third quarter of 2011, compared to the same period in 2010.

He stated this is an indication that the Spanish property market is beginning to improve, noting this momentum has carried over into the start of 2012.

Many purchasers have come from Germany and the Nordic nations so far this year, Mr Pritchard pointed out, but he doesn't think it will be long until Brits return to the market in force, largely thanks to the exchange rate between sterling and the euro.

"As Spanish property seems more affordable in the eyes of British buyers there now seems to be a slow but sure increase in the demand for villas and apartments along Costa shorelines," he asserted.

Earlier this month, operations director at Conti Clare Nessling told Mortgage Introducer those considering purchasing a home in Spain will find mortgage availability in the nation is "surprisingly good".

Spanish banks 'must up provisions' for bad property loans

Mon, 6 Feb 2012 00:00:00 GMT

Financial institutions in Spain have been told they need to find an additional €50 billion (£41.5 billion) to cover a higher proportion of the bad real estate loans and foreclosed properties on their books.

The banks will also have to increase their provisions against Spanish real estate losses to between 35 and 80 per cent, depending on the asset class or type of loan in question, the government announced.

A deadline of the end of December 2012 has been set by the country's politicians for the changes, however, financial organisations that choose to merge will be given additional time to raise the funds.

Speaking at a news conference about the reforms, economy minister Luis de Guindos commented: "The aim is for housing to come on to the market and for Spanish banks, by being cleaner, stronger and more transparent, to be able to extend credit, which is something that's not happening at the moment," Bloomberg reported.

Banco Santander recently announced it had made provisions of €1.8 billion to cover its anticipated losses on its property portfolio.

Chief executive of the firm Alfredo Saenz told AFP the business had taken the measures - which significantly lowered the bank's 2011 profits - in anticipation of legislation to this effect being announced by the government.

Spanish real estate assets hit Santander profits

Thu, 2 Feb 2012 00:00:00 GMT

Banco Santander, the largest lender in Spain, has revealed its net profits in the final quarter of 2011 fell by 98 per cent, coming in at €47 million (£39 million).

This is compared to profits of €2.1 billion recorded in the same three-month period in 2010.

One of the reasons given by the company for its poor performance is its exposure to toxic Spanish property assets.

The financial institution has set aside €1.8 billion to cover losses on repossessed dwellings in the south European nation at 50 per cent of their book value.

Alfredo Saenz, Santander chief executive, told AFP the bank is taking a "conservative" approach to the economy. He added the firm wants to be "a step ahead" of the anticipated legislation in Spain that will require such organisations to recognise the extent of their bad real estate loans.

Last month, Bloomberg reported on a statement made by Spanish economy minister Luis de Guindos to state broadcaster TVE, where he predicted the price of buying a home in Spain will fall as banks release their real estate portfolios on to the market.

Spanish property prices 'will fall as banks sell assets'

Fri, 27 Jan 2012 00:00:00 GMT

When Spanish financial institutions begin to sell-off their real estate portfolios, the price of buying a home in the nation is likely to fall.

This is the assertion of economy minister Luis de Guindos, who told state broadcaster TVE many residential properties held by the country's banks are not going to market because they are not being valued correctly, Bloomberg reported.

He added when they are put up for sale at their true worth "we'll find that the price of housing in Spain will fall more, there'll be an adjustment and it will be more available for a lot more people," the news agency quoted Mr de Guindos as saying.

The publication cited data from the Bank of Spain, which shows financial organisations in the country hold around €176 billion (£147 billion) of "troubled" Spanish real estate assets on their books.

According to the most recent figures published by Tinsa, the value of property in Spain fell by 8.1 per cent over the course of 2011.

Capitals and major cities experienced the biggest decline in prices, sliding by 9.1 per cent between December last year and the same month in 2010.

Agency predicts zero growth for Spanish property

Thu, 5 Jan 2012 00:00:00 GMT

The short-term outlook for the Spanish real estate sector is one of little growth, according to a ratings agency.

Fitch has cut its forecast for Spain's economy, stating that "an improvement in the real estate sector is unlikely in the short term" and that economic growth will stand at zero per cent this year, City AM reported.

However, it predicted a rise in economic activity of one per cent in 2013, albeit down from its previous forecast of 1.5 per cent.

"Banks are unlikely to return to the cheap funding costs that were available to them in the past," Fitch said, claiming that Spain's economy needs the eurozone crisis to be resolved before it can experience real growth.

Recent figures from Scotiabank showed Spanish house values fell by 8.9 per cent in the third quarter of 2011 compared with the same period in 2010 and by nearly 25 per cent from their peak in 2007.

Madrid house prices expected to drop

Tue, 3 Jan 2012 00:00:00 GMT

The value of homes in Madrid is expected to fall marginally during 2012, new research suggests.

According to the Knight Frank Prime Global Forecast, property prices in the Spanish city are likely to drop next year, although the organisation is predicting a decline of less than five per cent.

Bordeaux in France was given a similar outlook, while Geneva is anticipated to be the worst-performing European city market over the next 12 months.

The report stated: "The main reason for price falls in 2012 is the growing global economic uncertainty emanating from the eurozone and extending to other parts of the world."

Data published earlier this month by Scotiabank Group revealed house prices in Spain fell by 8.9 per cent during the third quarter of 2011, compared to the same period in 2010.

So far, the value of residential real estate in the nation has slipped by almost 25 per cent since its peak in 2007, the financial organisation noted.

Spain's house prices 'have fallen significantly'

Tue, 3 Jan 2012 00:00:00 GMT

New research looking at the value of property in Spain and elsewhere in the world has demonstrated how much the country's real estate market has fallen since its peak in 2007.

According to a report released by Scotiabank Group, Spanish house prices have slipped by over 25 per cent since reaching a high point in early 2007.

Data from the third quarter of 2011 shows, year-on-year, the value of dwellings in the nation has declined by 8.9 per cent.

In a more detailed comparison of international housing markets, the only country to put in a worse performance over the past 12 months is Ireland, the organisation noted.

The figures showed Spain's property prices experienced the biggest growth, 16.9 per cent, in 2003, with the decline beginning in 2008 and steadily worsening.

A report published earlier this month by the Spanish national statistics institute revealed that, although average house prices across the nation continued to decline, there were regions where values have started to recover.

The establishment named Extremadura and Principado de Asturias as the only two areas to experience property price growth during the third quarter of 2011, although the cost of purchasing a home is still lower than at the same time the previous year.

Spanish property buyers 'focusing on location'

Wed, 21 Dec 2011 00:00:00 GMT

Buyers looking for a good deal on Spanish property are increasingly concerned with the location of the assets they are purchasing.

This is the opinion of PropertyinSpain.net, with the website noting that investors who have been researching the Spanish real estate sector for some time are now ready to take the plunge - if the right asset is put up for sale.

Ben Walker, sales manager at the firm, explained many people have become more positive about purchasing a property in Spain, especially as good deals have been brought to the market and sold out quickly.

"Many have definite ideas on what they want and where and have indicated that they are likely to buy in 2012 when matching deals come up," he stated.

The most recent assessment of the state of the Spanish property sector from Tinsa found that, in November, the Balearic and Canary Islands held up the best in terms of house prices.

Across the entire country, values fell by eight per cent last month, in comparison to the same period in 2010, while the islands saw prices drop by just 3.7 per cent during this timeframe.

Lending in Spain 'unlikely to recover in 2012'

Tue, 20 Dec 2011 00:00:00 GMT

There is unlikely to be a recovery in lending to those buying property in Spain over the coming 12 months, it has been asserted.

Bloomberg Businessweek highlighted a report from Fitch Ratings, which predicted that financial institutions in the nation will be concentrating on "optimising their balance sheets", rather than increasing lending.

The firm noted banks are expected to focus on "existing high-quality borrowers and on potential buyers of banks' repossessed properties".

As a result, the mortgage market in Spain is likely to remain constricted in 2012, the organisation added.

Investors with access to finance may want to consider purchasing real estate in the nation after International Property Success stated earlier this month that the housing market has "reached its bottom".

The company pointed to areas such as Murcia, Tenerife and Malaga, where the value of homes has begun to increase, which may indicate returning confidence after a long period of decline.

House prices drop in Spain

Mon, 19 Dec 2011 00:00:00 GMT

The latest figures from the Spanish national statistics agency (INE) have revealed that house prices in the nation fell during the third quarter of 2011.

According to the research, property values in the country slid by 2.8 per cent between this period and the previous three months. This represents an annual decline of 7.4 per cent, the organisation added.

Cataluna, Pais Vasco and Madrid were the regions to experience the biggest drops, while Extremadura and the Asturias area both saw increases in house prices, although growth remained in negative territory.

When the data is broken down by the type of property, existing homes experienced much greater declines in value than their new counterparts.

The cost of buying a new real estate asset in Spain dropped by five per cent between the third quarter of 2011 and the same three months in 2010.

By contrast, the value of existing homes plummeted by 9.6 per cent over this 12 month period.

The report from the Spanish INE paints a bleaker picture of the country's real estate market than was revealed in the recent Knight Frank Global House Price index, which suggested residential property values had fallen by 5.5 per cent during this timeframe.

Spain's property market 'has hit the bottom'

Tue, 13 Dec 2011 00:00:00 GMT

Spain is one of the countries where the property market is thought to have hit its lowest point, one real estate firm has revealed.

According to International Property Success, the south-European nation has exhibited signs that its housing market is beginning to recover in some regions.

"Murcia, Malaga and Tenerife property prices have risen on the most recent quarterly data, suggesting that confidence is beginning to return after nearly four years of falling prices averaging seven per cent per annum," the organisation noted.

As a result, the company stated that there is a more positive outlook for the Spanish property market going into 2012.

The Knight Frank Global House Price Index published earlier this week also highlighted a small improvement in the country's fortunes.

Spain, along with Greece, Ireland and Italy, is thought to be "over the worst" as far as its real estate market is concerned, the report stated.

Real estate assets 'will cause problems for Spanish banks'

Tue, 22 Nov 2011 00:00:00 GMT

Spain's small and medium-sized banks are most at risk from their exposure to the country's real estate market, it has been claimed.

In an interview with Bloomberg, managing partner of Madrid-based MaC Group Pablo Cantos expressed his concern for such establishments "whose business is 100 per cent in Spain and based on real estate growth".

The news provider noted that it is estimated banks in the nation hold approximately 30 billion euros (£25.6 billion) worth of Spanish property that is classed as "unsellable", according to six lenders.

Meanwhile, Fernando Rodriguez de Acuna Martinez, a consultant for R R de Acuna and Asociados, told the publication that a large proportion of real estate assets and land are now effectively worthless because of their location.

He pointed out that 43 per cent of the country's unsold homes are situated in areas a long way from city centres, while a further 36 per cent of the stock is in coastal regions.

It has recently been reported that Morgan Stanley Real Estate (MSRE) is now the preferred bidder for three billion euros of real estate assets brought to market by Santander. MSRE offered 1.2 billion euros for the portfolio in the initial bidding stages, Property Magazine International revealed.

Marbella property prices 'unlikely to fall further'

Fri, 18 Nov 2011 00:00:00 GMT

The value of homes in Marbella is not expected to drop any further, with one real estate organisation predicting that the market has now reached its lowest point.

According to International Property Success, a rising number of overseas buyers based in the UK, Russia and the Middle East are targeting the Spanish destination.

The organisation added that Marbella's warm year-round climate and its reputation as one of the top resorts in the country enhance its appeal among those seeking a property in Spain.

It stressed that any potential investors in the Spanish real estate market need to choose the location of the house or flat they buy carefully, due to the current volatility in the sector.

However, the firm concluded "there are few better places to look in Spain than Marbella".

Earlier this month, Michael Corry Reid, who works in the Marbella office of Aylesford estate agency, revealed that the top end of the Spanish property market is "holding up well", noting that prime assets in Marbella in particular are attracting attention from international buyers.

Level of Spanish banks' exposure to bad property debts revealed

Fri, 4 Nov 2011 00:00:00 GMT

The latest Financial Stability Report from the Banco de Espana has revealed the extent to which banks in Spain are tied to "troubled" assets in the real estate sector.

According to the central bank, financial institutions have been linked to €176 billion (£151.5 billion) worth of exposure to the Spanish property market, constituting 52 per cent of total loans received by the country's developers.

The report cautioned that the continuing economic instability in the eurozone region, coupled with a weak economic performance in Spain itself, "might result in increases in bad debts on top of those already seen".

Earlier this year, the Spanish government announced a 50 per cent reduction in the value-added tax charged on the purchase of new-build homes, cutting it to four per cent of the dwelling's worth.

The lower rate is due to expire on December 31st 2011, with officials hoping that the change will help Spain's developers shift some of the 700,000 empty holiday homes that were constructed before the market crashed.

Prime Spanish property 'still attracting investors'

Wed, 2 Nov 2011 00:00:00 GMT

Property transactions in the prime sector of Spain's real estate market are holding up well, according to one local expert.

Michael Corry Reid, who works in the Marbella office of Aylesford estate agency, commented: "Despite the uncertainty in Spain, the top end market is holding up well." He added that the majority of buyers are coming from other European nations.

The firm highlighted some of Marbella's most exclusive properties as being particularly sought after.

Among the attractions of owning a residence in the Spanish destination are its golf facilities, marina, restaurants and luxury shops.

Meanwhile, Sotheby's International Realty recently cited seaside homes in Mallorca as one of the top options for wealthy investors.

The organisation noted that there is a large discrepancy between prices in waterfront locations and those situated further inland, because the lifestyle many people visiting Mallorca seek is very closely linked to its beaches and water sports facilities.

Recovery for Spanish commercial property 'may take more than a year'

Mon, 31 Oct 2011 00:00:00 GMT

The Spanish commercial property sector is likely to take longer than 12 months to recover, new research has suggested.

Bloomberg Businessweek reported on data published by Savills, which stressed that a lack of finance coupled with the wider European debt issues will slow the market's recovery.

According to the firm's figures, investment in Spanish commercial real estate is now at its lowest level since 2001, with just €1.25 billion (£1.1 billion) in deals concluded in the first nine months of this year.

This represents a 52 per cent drop over the same period in 2010, with the news provider noting that a lack of funding from Spanish banks is deterring investors.

Managing director for Spain and Portugal at RREEF - the real estate investment division of Deutsche Bank AG - Ismael Clemente agreed with this sentiment.

Speaking to Bloomberg, he stated: "Pressure on Spanish sovereign debt is pulling back investment. A lot of the big property deals that have come up this year have been canned because of a lack of financing."

Earlier this month, a report published by BNP Paribas Real Estate found that the retail property market in Madrid has low growth prospects for the rest of 2011 and into 2012, with investment volumes in the sector falling during the third quarter of this year compared to the same period in 2010.

Spain sees credit rating downgraded

Fri, 21 Oct 2011 00:00:00 GMT

Spain has had its credit rating cut by Moody's this week, following similar decisions from other agencies Standard & Poor's and Fitch Rating.

Moody's downgraded the south European nation by two notches, from A2 to A1, noting that this decision was partly due to "the downside risks from a potential further escalation of the euro area crisis".

The Spanish government stated that it believes the ratings downgrade is based more on the short-term problems in Europe, rather than the "long-term fundamental outlook" for the country.

Politicians have put together a number of measures to help reduce the nation's deficit, although slow economic growth and high unemployment are still issues.

Meanwhile, Spain's property sector suffered from further house price declines during the third quarter of the year, the Ministry of Public Works announced earlier this week.

According to the report, the value of real estate in the country fell by an average of 5.5 per cent in the three months from July to September.

Spanish house prices slide in Q3

Thu, 20 Oct 2011 00:00:00 GMT

The decline of Spanish property prices has failed to halt, with the latest figures published by the country's Ministry of Public Works showing further falls.

In the third quarter of the year, the average value of a home in Spain slid by 5.5 per cent on an annual basis, the official statistics show. A quarter-on-quarter drop of 1.3 per cent was also recorded.

Speaking to the Wall Street Journal, Nomura banking analyst Daragh Quinn predicted that the Spanish real estate sector still has further to fall.

He estimated that 100,000 new homes will be sold in the country this year, a significant reduction from the 326,000 properties that were snapped up during the boom year of 2007.

Meanwhile, Tinsa's General IMIE Index released earlier this month painted a worse picture of the situation.

According to the organisation, house prices around the country fell by an average of 7.4 per cent between September 2010 and the same month this year.

It also revealed that capitals and major cities - as well as areas on the Mediterranean coast have been hit the hardest by the decline - registering falls in real estate values of 8.9 per cent and 8.2 per cent respectively.

Mallorca property prices 'will go up'

Tue, 18 Oct 2011 00:00:00 GMT

One real estate expert in Mallorca has claimed that property values on the island will rise over the coming year.

Euro Weekly News reported on comments about the state of the sector in the Balearic Islands made by president of the Balearics Property Developers Association Gabriel Oliver to Spanish news provider Europa Press.

Mr Oliver explained that a lack of funding for new construction projects means that demand is set to outstrip supply by 2012.

He stated: "There will be no stock, especially in the big cities like Palma," pointing out that by the end of this year, there will only be around 2,000 new-build properties available to purchase.

This contrasts with the average of 3,000 transactions that take place on Mallorca each year. As a result of this constricted supply chain, he predicted that real estate values will rise.

However, the latest figures in the General IMIE Index released by Tinsa showed that property prices in the Canary and Balearic Islands dropped by six per cent between September 2011 and the same month a year earlier.

This was still a better performance than the national average though and these markets were the most resilient of all the Spanish real estate sectors.

Spanish house prices 'drop again in September'

Mon, 17 Oct 2011 00:00:00 GMT

The General IMIE index of Spanish house prices published by Tinsa saw property values across the nation decline in September.

According to the figures, average house prices are now 7.4 per cent lower than they were a year earlier, with real estate in capitals and other major cities taking the biggest hit.

Properties in Spain's urban centres decreased in value by 8.9 per cent last month, with dwellings on the Mediterranean coast not far behind, recording a drop of 8.2 per cent.

The most resilient markets were in the Canary and Balearic Islands, where real estate prices slipped by six per cent.

Tinsa pointed out that since the Spanish property market's peak in December 2007, values have slid by an average of 24.1 per cent.

However, Marc Pritchard, sales and marketing director of Taylor Wimpey de Espana, stated earlier this month that some regions of Spain had begun to recover.

He cited Alicante in particular, noting that the opening of a second airport terminal would help attract more visitors to the area, which will in turn boost the holiday home rental market.

Some Spanish regions on the up

Tue, 11 Oct 2011 00:00:00 GMT

There are certain parts of Spain where a recovery in property prices is occurring, it has been noted.

According to sales and marketing director of Taylor Wimpey de Espana Marc Pritchard, rising Spanish real estate values in locations such as Murcia, Alicante and Costa Calida is "an encouraging sign for investors".

He stated that these regions have experienced "marked price increases" and cited figures from Kyero, which showed that over the course of the third quarter of the year, the average asking price of a home in Spain jumped up.

The organisation revealed that in June this stood at €263,000 (£226,910) and had grown to €266,100 by September.

Mr Pritchard added that Alicante in particular is in a strong position. He pointed to the opening of a second terminal at the airport, commenting that such an improvement in the infrastructure "is always good news when it comes to attracting more visitors".

Last week, chief investment officer at the private banking division of BBVA Enrique Marazuela told the Reuters Global Wealth Management Summit that many of the country's coastal regions have reached a low point in terms of property prices and are beginning to see higher volumes of transactions taking place.

Spanish regional governments selling property

Fri, 7 Oct 2011 00:00:00 GMT

Two of Spain's regional authorities are hoping to offload a substantial amount of real estate assets over the coming months, it has been reported.

According to Bloomberg, Catalonia and Andalusia are aiming to sell $1.3 billion (£835.5 million) worth of property between them by the end of 2011.

Director of assets for Catalonia Jacint Boixasa told the news provider that officials have chosen "the cream of the crop" for the portfolio in order to ensure that the assets in question are sold.

Both regions are getting rid of Spanish real estate in an attempt to raise funds to reduce their budget deficits.

However, head of research at CB Richard Ellis Group in Spain Patricio Palomar told the news agency that it is doubtful that all the properties will be sold by the end of the year.

"It's unlikely that a large-scale portfolio sale will be completed on time, due to the volatility in financial markets and restrictions on funding," he stated.

Meanwhile, Elena Salgado, Spain's economy minister, predicted yesterday (October 5th) that the country will see positive economic growth figures during the final two quarters of the year and will avoid slipping into recession.

Coastal Spanish properties 'have reached the bottom'

Wed, 5 Oct 2011 00:00:00 GMT

In some parts of Spain, the bottom of the property market has been reached, it has been claimed.

Speaking at the Reuters Global Wealth Management summit in Geneva, chief investment officer at BBVA's private banking division Enrique Marazuela stated that real estate in coastal areas of Spain has hit its lowest point in terms of value.

"Now what we have seen is that the houses on the coasts are starting to recover, not so much on price but in transaction volumes and that is coming from European citizens that want to have a second house in Spain," he told the news provider.

Mr Marazuela added that those investing in a property in Spain should not expect to see significant rises in value in the short to medium term, but added that the marketplace in some regions is stabilising.

Last month, overseas mortgage specialist Conti revealed that it has seen enquiries about Spanish real estate rise so far this year.

According to the organisation, the number of queries about Spain increased by seven per cent compared to 2010, with 31 per cent of all mortgage enquiries received by the firm now relating to the nation.

Zapatero warns on Spain's growth prospects

Thu, 15 Sep 2011 00:00:00 GMT

Spanish prime minister Jose Luis Rodriguez Zapatero has cautioned the country that economic growth is unlikely to change much during the third quarter of the year from that experienced in the previous three-month period.

Reuters reported on a speech Mr Zapatero made to parliament, where he warned that the Greek economic crisis could have a knock-on effect in his own nation.

"We have a situation of tension, especial[ly] over Greece, which could affect our growth forecasts," the news provider quoted him as saying.

The Spanish property market has been in decline since the global economic downturn began, with the most recent figures from the country's national institute of statistics revealing that the annual rate of sales has dropped sharply between July this year and the same month in 2010.

According to the organisations, real estate transactions for residential assets fell by 36.3 per cent during this time, while the number of property transfers carried out was 24.1 per cent lower over the same period.

Spanish property sales drop, official figures show

Wed, 14 Sep 2011 00:00:00 GMT

The latest data published by the National Statistics Institute in Spain has revealed that property transactions in the country declined during July, on both a year-on-year and monthly basis.

Annually, sales of homes in Spain fell by 34.8 per cent, with an 8.6 per cent drop compared to June this year.

Meanwhile, the number of property transfers also decreased, reaching 128,097, which represents a 24.1 per cent decrease on July 2010 and is 9.8 per cent lower than that recorded the month before.

Just under half (47.8 per cent) of the sales to take place during July were for new housing, although the number of transactions for new dwellings has dropped by 39.8 per cent compared to the same time last year.

However, one building firm operating in Spain recently revealed that it has experienced an eight per cent increase in the number of international sales it has executed so far in 2011.

Taylor Wimpey de Espana stated that it also received 70 per cent more enquiries from potential buyers during the first six months of this year, compared to the first half of 2010.

Residential property sales in Spain fall

Fri, 9 Sep 2011 00:00:00 GMT

The number of homes sold in Spain dropped dramatically during the second quarter of the year, compared to the same period in 2010, it has been revealed.

An AFP report published on Expatica.com cited government figures that showed a 40.8 per cent fall in the level of Spanish property sales taking place.

The news provider noted that this followed on from a 30.4 per cent decline in the first quarter of 2011, compared to a year earlier.

It added that over 90,000 homes were sold in the three months from April to June, although there are an estimated 1.5 million properties still on the market in the nation.

And this reduction in sales is coupled with a decline in real estate prices in the country, with Global Property Guide revealing last month that housing values fell by 8.43 per cent in the second quarter, compared to a year earlier.

In addition, a quarter-on-quarter drop of 3.1 per cent was also recorded in the Spanish real estate sector during the same period.

Reduction in Spanish property tax welcomed

Thu, 25 Aug 2011 00:00:00 GMT

One Spanish real estate expert has welcomed the government's decision to reduce the rate of value added tax (VAT) on new-build homes.

Nick Stuart, managing director of Spanish Hot Properties, was enthusiastic about the 50 per cent reduction on the levy, commenting: "Some agents this summer have been very much on the edge and this news will certainly help them ride the storm out."

He added that the decision "will hopefully spark some movement in the market as new-build properties become more affordable".

Last week, minister of development Jose Blanco announced that VAT on new Spanish housing would be cut from eight per cent to four per cent with immediate effect, with the discount to remain in place until December 31st this year.

The country's economy has been struggling to cope during the global recession, with the most recent figures from the national statistics office showing that gross domestic product increased by just 0.7 per cent during the second quarter of 2011, compared to the same period in 2010.

Brits 'continue to lead the way with Spanish property'

Thu, 18 Aug 2011 00:00:00 GMT

British buyers are still the largest foreign group to purchase property in Spain, it has been noted, although one expert pointed out that other nationalities are increasingly looking at real estate in the country.

Managing director of Spanish Property Insight Mark Stucklin explained that "with the process of international diversification, sales should slowly start to increase".

He made the comments to Taylor Wimpey de Espana, which highlighted research by the College of Registrars in Spain that showed Brits accounted for one in four real estate transactions to foreign buyers in 2010.

Sales and marketing director of the house builder Ignacio Osle revealed that Mallorca remains a hotspot for property investment among UK nationals.

The General Spanish Real Estate Market Index, which was published earlier this month, painted a more positive picture for properties on the Balearic Islands.

According to the data, this archipelago, along with the Canary Islands, only saw house prices fall by 2.5 per cent last month, significantly better than the national average of a 6.4 per cent drop.

Will slowdown in Spanish economy affect property market?

Wed, 17 Aug 2011 00:00:00 GMT

As the Spanish national statistics institute announced yesterday that the country's economic growth stalled in the second quarter of the year, there are indications that this will have a knock-on effect to the property sector.

Figures showed that gross domestic product increased 0.7 per cent year-on-year between April and June, while it registered a quarterly rise of just 0.2 per cent.

In an interview with Bloomberg, Estefania Ponte, head of research at Cortal Consors, made some observations about the Spanish real estate industry.

She commented: "The international context is very complicated and the Spanish construction sector is undergoing a clean-up."

The news provider pointed out that the number of property sales in the nation has been steadily falling for the past four months, while an anticipated rise in base interest rates would hit homeowners hard.

In addition, the most recent figures issued in the General Spanish Real Estate Market Index from Tinsa revealed that, overall, house prices fell by 6.4 per cent year-on-year in July.

Spanish house prices fall in July

Fri, 12 Aug 2011 00:00:00 GMT

The latest figures published in the General Spanish Real Estate Market Index (IMIE General) reveal that house prices in the nation fell in July.

Overall, the country experienced a year-on-year decline of 6.4 per cent, although this was more pronounced in some regions than others.

Properties on the Mediterranean coast took the biggest hit, dropping by 9.5 per cent in July compared to the same month in 2010.

At the other end of the scale, the Balearic and Canary Islands saw real estate values fall at a slower rate, recording just a 2.5 per cent reduction in the same period.

Managing director of Mallorca Sotheby's International Realty Stephen Dight explained that one reason for this improvement away from the mainland is that there are not the same oversupply issues with housing.

He added that another thing in favour of Mallorca's property sector is that there are many Germans, as well as Brits, who have purchased a home here. Mr Dight pointed out that as the recession in Germany "is behind them" people are not as eager to sell up, which has kept available real estate at a steady level.

Spain 'an affordable option' for British buyers

Tue, 9 Aug 2011 00:00:00 GMT

People looking for a house overseas should turn their attention to Spain because "there are a lot of great properties for sale at prices lower than we've seen for ten to 15 years".

This is the opinion of Andy Bridge, managing editor of A Place in the Sun, who explained that many financial institutions are keen to sell real estate to new buyers with cash available when previous owners have defaulted.

He added that the Spanish property sector may see prices fall further, noting that the decline experienced so far occurred as the country's dwellings had become over-valued and further adjustment may be necessary.

At the end of last month, mission chief at the International Monetary Fund James Daniel predicted that homes in Spain were likely to continue to decline in value due to oversupply on the market.

Mr Bridge also pointed out that people who want to secure a property abroad currently have a choice of several distressed property sectors, with Spain just one of a number of options.

Torrevieja 'among the top property markets in Spain'

Mon, 8 Aug 2011 00:00:00 GMT

The holiday resort of Torrevieja on Spain's south-eastern coast boasts one of the highest rates of property sales in the country.

Round Town News revealed that data published by Spain's National Statistics Institute (INE) put the destination in the top ten locations for real estate transactions, among the likes of Madrid, Barcelona, Zaragoza and Sevilla.

The publication noted that in the first quarter of the year, 672 sales were completed, which compares favourably to places such as Bilbao - with 675 transactions - and Zaragoza, where 737 properties were sold.

Although the news provider stressed that this is a far cry from its more popular days, there are other indications that Torrevieja and the surrounding area may be faring better than other parts of Spain.

Chris Mercer, founder of Mercers estate agency in Murcia - a city inland of the beach resort - recently reported a "small but steady increase" in the number of transactions taking place over the past year and a half.

Cuenca an affordable option for Spanish property investment?

Fri, 5 Aug 2011 00:00:00 GMT

People looking for a property in one of the large Spanish cities may find that looking just a little way out of the metropolis presents them with more affordable opportunities.

This is according to Glynna Prentice, who wrote for International Living that the city of Cuenca can be a good alternative location to Madrid.

She explained that it is only 50 minutes outside the city and the new high-speed AVE train provides an easy way to reach the urban hub.

Ms Prentice also pointed out that the area around Cuenca is a haven for outdoor sports enthusiasts, which could be another reason that buyers are attracted to property in this region.

Anyone from outside the country who is considering purchasing real estate in Spain may find a new website set up by the Spanish authorities is helpful.

The online resource has been designed to give house-hunters a way to contact the Public Law Corporation of Land and Mercantile Registrars of Spain and receive a response in English, with the aim of making the nation's property market more transparent.

'Excellent opportunities' can be found on Spanish property market

Thu, 28 Jul 2011 00:00:00 GMT

Buyers keen to find a property in Spain do not need to rush into any deals, it has been advised.

Freelance property journalist and founder of Propertyjournalist.com Marc Da Silva explained that prices are not likely to increase in the nation over the next couple of years.

He even suggested that they may drop further, which could enable investors to find a better bargain.

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

But he recommended that buyers wait to make a transaction until the pound has strengthened against the euro because the problems being experienced by several eurozone economies indicates that the currency is "potentially overvalued".

Earlier this month, Primelocation.com revealed that the number of searches for real estate in Spain dropped significantly between the first and second quarters of the year, falling by 24 per cent during this period.

Spain's property market 'is suffering'

Tue, 26 Jul 2011 00:00:00 GMT

Interest in Spain's property market fell significantly during the second quarter of this year, compared with the first three months, it has been revealed.

According to data published by PrimeLocation.com, searches for real estate in Spain showed a 24 per cent decline during this period.

Property analyst at the organisation Nigel Lewis warned that there may be further problems for the country's housing sector.

"The intense speculation as to whether Spain and Italy will be the next casualties to arise from the debt crisis is in itself enough to force these sensitive property markets into further decline," he stated.

However, there are still some regions of Spain that could be attractive to investors.

Last week, Taylor Wimpey de Espana highlighted the Balearic island of Mallorca as a good option for those seeking real estate in the Mediterranean nation.

The firm commented that the island's climate, natural attractions and world-class events attract those looking for properties in Spain, while prices in the area have remained well above the national average.

Spanish vendors 'need to be realistic about prices'

Thu, 21 Jul 2011 00:00:00 GMT

Many vendors in the Spanish real estate sector are asking too much for their properties, one expert has claimed.

Spanish Property Insight reported that Jose Luis Jimeno, the managing director of the real estate and executive education portal Noteges, told the country's press that people need to significantly reduce the value they attach to their homes if they want to find a buyer.

He stated that vendors should cut their asking prices by as much as 40 or 50 per cent below the competition in the local area.

Mr Jimeno commented that private sellers are still hoping to receive "boom prices" for their properties, adding: "It is not a good time to sell, but if you have no alternative then make the sale now, because with every passing day your home will be worth less."

Data published earlier this month by the National Statistics Institute revealed that the number of property sales in Spain in May declined by 18.3 per cent year-on-year.

Spanish property sales fall in May

Wed, 13 Jul 2011 00:00:00 GMT

A new report has shown that economy worries are hampering property investment in Spain as the number of house sales drops.

According to the National Statistics Institute (INE) in Madrid, house sale transactions fell by 18.3 per cent in May year-on-year - the third consecutive month it has done so and compounding April's decline of 29.7 per cent.

The statisticians said that there is currently an excess of stock caused by a decade-long construction boom which is not being sold as people try to cut back their spending, Bloomberg reports.

Measures have been taken by the government to sort out the problem of the 700,000 unsold homes in Spain, including dropping a tax rebate scheme for mortgage payments of €1,352 (£1,184) a year to propel purchases.

The INE recently reported that the typical value of mortgages in Spain fell by 12.1 per cent in April to €113,425, compared to figures from the same month in 2010.

Utility bills in Spain rise in price

Fri, 1 Jul 2011 00:00:00 GMT

Household utility bills increased across the European Union during the second half of 2010, compared with the same six months a year earlier.

On average, gas bills rose by 7.7 per cent, while electricity prices hiked by 5.1 per cent.

In Spain, expenditure on electricity was up by 9.9 per cent over the same period, while gas fared better, climbing by just 0.8 per cent.

The cost of living expenses, which will include utility bills along with taxes and food shopping, may be taken into account by those looking for a Spanish property.

However, although fuel prices have risen, the country outperforms other EU nations in other respects.

The Self Catering on a Shoestring Barometer 2011 published earlier this month by the Post Office revealed that Majorca is the cheapest destination for food shopping.

According to the survey, an average family shopping basket for one week's worth of provisions came in at £44.23, considerably better than Brighton in the UK where the same items cost £63.63.

Further drop in Spanish property prices expected

Tue, 28 Jun 2011 00:00:00 GMT

Spain's Central Bank has said it expects prices of property in Spain to continue to fall as the housing market tries to correct itself.

A report in The Olive Press revealed that the average value of homes in the nation has dropped by 15.4 per cent since the first three months of 2008, according to figures published by the Bank of Spain.

Speaking to the publication, Jose Luis Malo de Molina, director general of economics, statistics and research at the institution, commented that "the correction in prices has still to run its course".

He added: "There are between 800,000 and 1.1 million unsold properties, which continue to exert pressure on prices."

The oversupply in the real estate sector was cited as a major contributing factor to Spain's economic difficulties by the central bank's governor Miguel Fernandez Ordonez in a statement to a parliamentary committee earlier this month.

However, he stressed that a decline in development is helping to balance the market while further steps have been taken to consolidate Spain's public finances.