Real Estate & Property Investment News in Spain from Propertyshowrooms.com

Mortgage availability "surprisingly good" in Spain

Thu, 9 Feb 2012 00:00:00 GMT

There is still finance on offer for buyers who are keen to own a property in Spain.

Operations director at Conti, an overseas mortgage specialist, Clare Nessling told Mortgage Introducer that the availability of home loans in the nation is "surprisingly good, despite the negative reports about its property market".

She explained the maximum loan-to-value still sits between 65 per cent and 70 per cent, but noted this can be higher in regions where the real estate market is considered to be more resilient, such as the Canary Islands and Madrid.

Ms Nessling also pointed out that Spain remains a popular target among overseas property buyers thanks to its accessibility and strong rental potential.

Last month, sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard highlighted Spain's enduring appeal among holidaymakers, noting a predicted influx of tourists in 2012 is good news for the country's real estate industry.

He singled out Alicante as one area to watch, thanks to the growing number of airlines flying into and out of its airport.

Exchange rates 'favourable for Brits buying property in Spain'

Wed, 8 Feb 2012 00:00:00 GMT

UK buyers who want to purchase a property in Spain may decide now is the time to do so after one currency exchange organisation pointed out the favourable rate between sterling and the euro.

According to managing director of Currency Index Robin Haynes, those who are keen to invest in real estate in the south European nation could benefit from the strength of the British pound.

"Overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able to get over eight per cent more for their money than if they were buying euros in July last year," he stated.

The firm noted the highest proportion of its currency transactions were sent to Spain in 2011, indicating the nation has not lost its appeal among tourists and expats.

Bob Atkinson, travel expert at Travelsupermarket, recently highlighted Spain's popularity as a holiday destination, which may bode well for anyone investing in a rental property in the country.

He noted it is "cheap" and "accessible" for Brits and, in the current climate, Spain offers good value for money, especially for families.

'Opportunities for investors' in Spanish retail property

Tue, 7 Feb 2012 00:00:00 GMT

There are expected to be "attractive opportunities" for investors in the Spanish retail real estate sector over the course of 2012.

Danny Kinnoch, international investment director at Savills, commented that buyers who are not relying on finance from banks will be able to take advantage of some of the best deals on offer.

He stated: "There is scope for strong returns assuming market recovery over the medium term, which will keep international players acquisitive."

Meanwhile, debt sales of such Spanish real estate assets will provide chances for "opportunistic investors", Mr Kinnoch added.

Savills has predicted that yields in the country's retail property sector will be steady over the course of 2012, with returns currently standing at 6.5 per cent for prime shopping centres and seven per cent for prime retail parks.

Research published by Jones Lang LaSalle last month revealed the volume of investment in Europe's retail sector was expected to break the €28 billion (£23 billion) mark in 2011, a significant increase over the €20.7 billion recorded in 2010.

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.

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.

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.

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".

Property buyers in Spain 'should focus on consolidated areas'

Tue, 31 Jan 2012 00:00:00 GMT

People who are keen to purchase real estate in Spain should focus their search on consolidated areas in the most popular destinations.

So says Mark Stucklin, head of Spanish Property Insight, who explained looking in these locations means buyers "can now be picky and fussy about what they go for".

He highlighted the Costa del Sol, Costa Blanca and Alicante as the three most popular regions for property investors at present.

"Consolidated areas that are well-established with a good range of amenities and services will be the most interesting and will be where people are looking," Mr Stucklin stated.

However, he warned there is over-priced property on sale, so buyers need to do their research before committing to a purchase.

Managing director of Currency Index Robin Haynes pointed out last week (January 26th) that people investing in property in the eurozone - including Spain - can now expect to get approximately eight per cent more for their money than in July 2011, thanks to the reduced value of the euro compared to sterling.

Investors 'still keen to buy property in Spain'

Mon, 30 Jan 2012 00:00:00 GMT

Despite the current financial problems in the eurozone, Brits are still interested in buying property in Spain.

This is the assertion of the Currency Index, a firm specialising in foreign exchange services, which recorded a 32 per cent increase in the volume of euros transferred to Spain by Brits in December 2011, compared with the same month a year earlier.

Robin Haynes, managing director of the firm, commented: "Buyers who are worried about any currency devaluing could even consider holding debt (such as a mortgage) as well as assets (such as property) to balance out the perceived risk."

Next week (January 30th) will see leaders from the European Union meet at a summit to discuss further measures to bring greater stability to the euro.

Currency Index stressed, though, that with the exchange rate for the single currency at an almost 16-month high against sterling, now is "one of the cheapest times to buy a place abroad in recent memory".

Earlier this month, A Place in the Sun magazine revealed Spain remains the top choice for Brits looking for real estate overseas. The publication added seven out of the ten most popular destinations are in the eurozone.

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.

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.

Rising tourist numbers 'good for Spanish property'

Wed, 25 Jan 2012 00:00:00 GMT

Owners of property in Spain are likely to be encouraged by the rising tourist numbers recorded in the country.

This is the opinion of Marc Pritchard, sales and marketing manager at Taylor Wimpey de Espana, who noted that even more people are expected to holiday in the nation during 2012 than in 2011.

He highlighted figures from the Spanish airport authority, which revealed 500,000 more passengers passed through Alicante last year compared with 2010, while there has been a 15 per cent rise in the number of requests for flight slots at the Costa Blanca hub.

Mr Pritchard commented such data is "great news for Spanish tourism and property markets this year".

Those considering purchasing real estate in Spain may want to take note of the latest report published by Tinsa.

In its December General IMIE Index of house prices, the organisation revealed the value of properties on the country's Mediterranean coast - which includes the Costa Blanca - fell by 7.1 per cent year-on-year.

This may encourage investors to make a purchase while the market is low.

New NIE procedure 'won't affect Spanish property market'

Tue, 24 Jan 2012 00:00:00 GMT

The new regulations relating to obtaining a Numero de Identificacion de Extranjero (NIE) in Spain won't have an adverse effect on the property market.

This is the opinion of Chris Mercer, of real estate agency Mercers, who believes, while the bureaucracy may be frustrating, it won't put serious buyers off.

Since January 3rd 2012, all foreigners have been required to attend the local police station in person to receive an NIE - an identity number for tax purposes - which is needed to buy or sell property in Spain.

Before this year, it was possible to send a lawyer in your place by signing a power of attorney.

Mr Mercer commented: "Admittedly, it can be a hassle, but if people are pre-warned and prepared they simply accept it."

He added most people "don't mind a few tedious hours at a police station to get the home of their dreams".

It appears Brits are still keen to purchase real estate in Spain, after a recent survey conducted by A Place in the Sun magazine at two of its exhibitions revealed the nation is the top choice among many potential buyers looking for a home overseas.

Spanish expats 'among the happiest'

Mon, 23 Jan 2012 00:00:00 GMT

Brits who have moved to Spain are the happiest expatriates (expats), according to a new survey.

The research, carried out by Lloyds TSB International and published by The Telegraph, revealed that 75.9 per cent of those questioned said they were happier living in Spain than they had been in the UK.

On average, 68 per cent of expats claimed they were more content when residing abroad than they were in Britain.

John Kramer, an expat living in Andalucia, told the news provider Spain offers an "outdoor lifestyle, traditional family values and positive outlook on life".

Those considering purchasing a property in Spain with the intention of moving to the nation may be encouraged by the findings of this study.

A Place in the Sun magazine recently revealed the country remains the top choice for Brits looking to buy real estate overseas.

The publication quizzed visitors at two of its live exhibitions and found Spain was a more popular option than other favourites such as France, Portugal, Italy and the USA.

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.

Spain 'top destination' for Brits buying property abroad

Thu, 19 Jan 2012 00:00:00 GMT

Spain is still the first choice for British buyers looking for a property overseas, a new survey has revealed.

Research conducted by A Place in the Sun magazine at two of its live exhibitions found that real estate in Spain has retained its appeal among the British market.

France, Portugal, Italy and the USA completed the top five, with eight out of the ten most popular destinations in Europe.

Liz Rowlinson, editor of the publication, commented: "What's really interesting about our annual Ten Best Places to Buy Abroad survey is that it shows UK buyers are sticking to tried and tested European countries."

Director at Conti Clare Nessling recently made a similar observation in an interview with Mortgage Introducer.

She told the publication that investors are being drawn to overseas property by the potential for higher returns than those generated by UK-based assets.

Ms Nessling added that strong rental prospects and capital growth are among the factors buyers are considering when searching for a real estate investment abroad.

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.

Correction in Spanish house prices 'could slow due to new tax rules'

Tue, 17 Jan 2012 00:00:00 GMT

Changes to the Spanish personal income tax law 35/2006 introduced on December 31st 2011 may hold back a correction in the country's real estate prices, it has been claimed.

Fitch Ratings asserted that the extension of benefits to those purchasing a property in Spain for the first time and homeowners making improvements to their dwelling may have short-term advantages, but added this could support higher house prices in the long term.

Under the new law, a tax deduction of up to €1,350 per year (£1,115) can be made annually over the life of a mortgage for any first-time buyer or owner regardless of income.

Previously, only those earning less than €24,100 per year were eligible for the tax relief.

However, the firm stated it expects the value of residential real estate in Spain to continue to fall due to the "lack of credit in the economy, the significant property overhang and the weak state of the broader macroeconomic environment".

Figures published at the beginning of January by Sociedad de Tasacion revealed the value of Spanish homes dropped by four per cent over the course of 2011, with the organisation predicting further price falls in 2012.

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.

Property investors 'focusing on prime locations' in Andalucia

Fri, 13 Jan 2012 00:00:00 GMT

Andalucia's prime locations have seen an upturn in the fortunes of their property markets over the past year, it has been claimed.

In her annual report, agent with The Property Finders Barbara Wood explained the focus for investors has been on prime assets, with the market now very similar to how it was in the mid-1990s.

"In 2012, the buyer is remarkably similar to the 1995 buyer - cash rich [...] and only interested in quality properties in the very best locations," she asserted.

Ms Wood added "virtually 100 per cent" of Andalucian real estate transactions are occurring in "a handful of prime locations", highlighting Marbella as a particular hotspot.

She went on to predict that, over the next 12 months, buyers will avoid assets that are in undesirable destinations or of a lower quality, but expects investors to continue to show an interest in the top end of the market.

Earlier this week, Marc Pritchard, sales and marketing director at Taylor Wimpey de Espana, was positive about the outlook for Spanish property in 2012, commenting that further house price falls in highly desirable areas are unlikely, with growth anticipated in the most sought-after locations.

Spanish property market expected to improve

Thu, 12 Jan 2012 00:00:00 GMT

Some sectors of the Spanish real estate market will begin to recover in 2012, it has been claimed.

Marc Pritchard, sales and marketing director at Taylor Wimpey de Espana, explained that property prices in prime locations had already stabilised in 2011 and this trend is set to continue into this year.

He added, in many cases, the value of homes in the most sought-after destinations has hit rock bottom, with positive growth now likely.

However, Mr Pritchard warned buyers to be cautious when looking at inland properties, as such assets in undeveloped locations may see a further drop in price during 2012.

A recent report published by Assetz suggested investors should avoid making a purchase in an area where there is significant oversupply, as this could affect the amount of rental income a house can generate.

Mr Pritchard does not believe the level of rent will necessarily be a primary concern for many potential purchasers, though, as he has predicted a rise in the number of lifestyle buyers entering the Spanish real estate market in search of a second home.

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.

Quality buyers 'can pick up bargain Spanish property'

Tue, 10 Jan 2012 00:00:00 GMT

Buyers with a solid financial footing may find there are opportunities for them to purchase good value Spanish property, it has been asserted.

Managing director of Feltrim International Adam Cornwell explained while the outlook for mortgage lending in Spain during 2012 is not overly positive, people classed as "quality buyers" are likely to be targeted by the country's banks in an attempt to sell on some of their real estate assets.

He commented Spanish financial institutions "are prepared to offload these homes at rock-bottom prices with the highest mortgages".

Mr Cornwell stressed that the Spanish property market stands out as a result of the level of finance being offered to encourage investors to purchase distressed assets.

There are some parts of the nation buyers may be particularly interested in, he added, with Marbella one of the regions considered to be "safe".

This comes after sales and marketing manager at Taylor Wimpey de Espana Marc Pritchard recently highlighted a Kyero.com survey, which revealed the Costa Blanca and Alicante are among the top targets for overseas investors.

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.

Spanish property prices drop 4% in 2011

Fri, 6 Jan 2012 00:00:00 GMT

Prices for property in Spain decreased by four per cent last year, according to a new report.

Figures from Sociedad de Tasacion show the average cost of a new dwelling stood at €213,840 (£177,169) in 2011, with 81,000 properties being built during the 12-month period. Barcelona had the most expensive homes, while Murcia recorded the lowest prices.

The real estate organisation said it believes this downward trend for house values will continue in 2012.

However, it also suggested the balance between supply and demand will improve, as the number of available residences starts to match the needs of buyers following the oversupply of properties in recent years, the Leader reported.

The newspaper said Sociedad de Tasacion's figures point to a slight upturn in some areas; although 48 of the 50 provinces saw a drop in prices, Zamora experienced an increase and Pontevedra's values began to level off.

Figures published by the Royal Institution of Chartered Surveyors last November indicated that agents believe the supply of distressed properties in Spain will continue to rise as a result of the eurozone crisis.

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.

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.

More foreigners buying property in Spain

Tue, 3 Jan 2012 00:00:00 GMT

An increase in the number of overseas buyers entering the Spanish property market has been recorded.

Global Property Guide reported on figures published by the Ministry of Public Transactions, which showed a 24.7 per cent rise in the number of foreigners involved in real estate deals during the third quarter of 2011, compared to the same period a year earlier.

Among the most popular regions for buyers from outside Spain were Alicante, Malaga, Barcelona and the Balearic Islands, the news provider revealed.

Speaking to the publication, Marc Pritchard, sales and marketing director of Taylor Wimpey de Espana, commented the rising interest from overseas investors demonstrates "many buyers have been discerning enough to strike while the iron is hot and purchase properties that are well priced and in excellent locations".

Mr Pritchard and Stephen Dight, managing director of Mallorca Sotheby's International Realty, both recently highlighted Mallorca's real estate market as one to watch in 2012.

The prediction was prompted by an announcement by Ryanair that it intends to run more flights to the island and open up new routes to and from its main airport.

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.

Holiday home owners in Spain 'need to consider sustainability'

Tue, 3 Jan 2012 00:00:00 GMT

The face of the holiday rentals market in Spain is changing and property investors in the country need to adapt.

This is the opinion of Claus Pedersen, founder of Campaya Holiday Rentals. He has claimed that many properties in Spain and elsewhere are set up for tourists who want a two-week break in the sun, but stressed travellers' priorities are shifting.

He commented that catering for this market "may not be enough to make your property stand out and attract the more niche-minded tourist".

Cultural tourism is one trend in particular to be aware of, Campaya noted, with many travellers now keen to learn about the area in which they are staying and have a more authentic experience.

The organisation has advised anyone considering purchasing real estate in Spain with the purpose of renting it out to holidaymakers to try and cater for more than just one demographic.

Earlier this month, PropertyinSpain.net explained potential buyers are prepared to wait for their ideal asset to come on to the market, highlighting the importance of location to those hoping to generate a rental income from their investment.

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 banks 'to be encouraged to sell real estate assets'

Fri, 23 Dec 2011 00:00:00 GMT

Spain's banks will be encouraged to sell off their real estate portfolios, the country's new prime minister Mariano Rajoy has revealed.

In an address to the Spanish parliament on Tuesday (December 20th), Mr Rajoy said the true value of the so-called toxic assets held by many of the country's financial institutions needs to be clarified.

The Guardian quoted the Spanish prime minister as saying: "We must clear up doubts about the value of certain assets, especially in real estate, which make access to the markets for the financial sector more difficult and also damage the credibility of our public debt."

Analyst with Eurasia Group Antonio Barroso told the Associated Press there is still division between the Popular Party, who have the majority in Parliament, and the Bank of Spain about the possibility of establishing a bank to deal with all the toxic assets.

Spain's real estate market has seen the value of homes fall substantially, with the most recent data published by Tinsa showing the price of property in the nation has fallen by eight per cent between November this year and the same month in 2010.

New flights 'may aid Mallorca property market'

Thu, 22 Dec 2011 00:00:00 GMT

The Ryanair announcement that it is due to open a base a Mallorca's Palma airport, from which it will operate 17 new routes, could be good news for the island's property market.

This is the opinion of Stephen Dight, managing director of Mallorca Sotheby's International Realty, who noted the region has been performing well, despite difficulties elsewhere in the Spanish real estate industry.

Mr Dight explained property in Mallorca has international appeal and, therefore, any new connections to other countries are likely to have a positive effect.

Among the new routes unveiled by Ryanair are flights to Gothenburg, Magdeburg, Maastricht and Tampere, which will "open up the island to potential property buyers from countries that are not suffering from the effects of recession", he asserted.

"We will be interested to see the trickledown effect on the housing market," Mr Dight added.

Potential investors may be encouraged by figures published recently in the Holiday Lettings' Insight Report 2011, which revealed the Balearic Islands were the eighth most-enquired about destination among those seeking holiday homes between January and October this year.

The level of queries about the archipelago increased by 21 per cent during this period, compared to the same time in 2010, the research found.

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 'a top choice among buy-to-let investors'

Mon, 19 Dec 2011 00:00:00 GMT

Spain is one of the most popular property markets for people looking for holiday let opportunities, it has been revealed.

According to the Holiday Lettings' Insight Report for 2011, the nation was the second most-enquired about destination among such investors, after the UK, between January and October this year.

There was also a three per cent rise in the number of queries about buying a property in Spain, compared to the same period in 2010, the survey noted.

Meanwhile, five of the top ten most-enquired about regions are found in the country, with the Costa del Sol leading the way, followed by the Costa Blanca in fifth place, Tenerife in sixth and Mallorca and Lanzarote, which were ranked ninth and tenth respectively.

The firm also highlighted three Spanish destinations where demand currently outstrips supply for holiday rentals, which may make Playa d'en Bossa and San Antonio in Ibiza, as well as Playa Del Ingles in the Canary Islands, safe choices for investors.

Mallorca is one destination that property buyers may want to consider, after Stephen Dight, managing director of Mallorca Sotheby's International Realty, recently stated the number of tourists arriving on the island has increased, which is often a precursor for rising real estate values.

'End of year rush' predicted for Spanish property

Thu, 15 Dec 2011 00:00:00 GMT

There looks set to be an final rush of buyers seeking out Spanish real estate before 2011 draws to a close.

This is the assertion of Sue Brown writing for PropertyInSpain.net, who claimed many people who have been waiting for the opportunity to invest in the market have now decided the time is right.

She noted one driving force behind the decision is the low interest rates offered on savings accounts, which are pushing people to seek out assets that generate a better return.

Ben Walker, sales manager for the property firm, commented: "The increase in activity in the last quarter of 2011 suggests that many of these manana [tomorrow] buyers have decided to make their move while the choice of well-located, well-priced properties remains good."

Earlier this month, International Property Success suggested Spanish house prices have hit the bottom and will now begin to recover.

The organisation highlighted the markets of Murcia, Tenerife and Malaga, which have recently seen an upturn in property values.

More Russian investors to buy property in Spain?

Wed, 14 Dec 2011 00:00:00 GMT

Russian investors are increasingly targeting overseas property markets and Spain is one of their top choices, it has been revealed.

Organiser of international real estate shows aiGroup found that 71 per cent of the attendees at the Moscow and St Petersburg events intend to buy a home abroad within the next three to six months.

Chief executive officer of the firm Kim Waddoup noted that Spain, along with Italy and Bulgaria, is one of the most popular locations in which to invest in real estate.

She added a third of those surveyed have more than €300,000 (£256,000) to plough into a real estate purchase in Spain or elsewhere.

The company cited figures from Russia's central bank, which show approximately $70 billion (£44.76 billion) in capital is expected to leave the nation by the end of 2011.

Last month, real estate agents Fine & Country Spain reported a significant increase in the number of enquiries they received from potential Russian buyers looking at homes in Marbella.

Sales director at the firm Laurent Coulee explained the majority of investors are keen to own property on the coast, while purchasing real estate in Spain will also ensure they receive a visa, making future European travel much easier.

More tourist arrivals 'may boost Mallorca property market'

Tue, 13 Dec 2011 00:00:00 GMT

The market for property in Spain may be boosted by increasing numbers of tourists touching down in the country.

According to managing director of Mallorca Sotheby's International Realty Stephen Dight, rising numbers of tourists coming into Palma - the capital of Mallorca - are often a sign that house prices will climb.

Figures from the Institute of Tourism Studies recently indicated that nearly one-fifth of the 32.2 million travellers who came to Spain on low-cost airlines between January and October 2011 arrived in the city.

Mr Dight noted that many clients have loved Palma so much that they want to buy conversions in old buildings, adding:"The prices are high but the results are absolutely incredible one-off homes at the heart of the action."

Another area of the country that appears to be proving popular is Marbella, with Fine & Country Spain recently noting Russians in particular seem to be keen to buy real estate in this destination.

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.

'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.

'Spend time in Spain' before buying a property

Thu, 8 Dec 2011 00:00:00 GMT

People who are considering purchasing a home in Spain need to spend plenty of time in the country before they make a decision about where to live.

This is the advice of Chris Marshall, founder of Almerimarlife.com, who explained it is important to see your chosen destination at different times of the year.

"Wherever you go, I would recommend renting for a year first. You'll get some incredibly good ideas," he stated.

Another factor to consider before purchasing property in Spain is the airport and its links with the UK, Mr Marshall added.

Potential buyers should check that flights will operate outside the standard tourist season, otherwise accessibility may become an issue.

Meanwhile, investors could target the try-before-you-buy market to find longer-term tenants for homes they own in Spain, rather than relying on holiday rentals.

Last month, Fly2let cited figures from the Overseas Guides Company which showed an increasing level of interest in Spanish real estate among British buyers.

According to the organisation, enquiries about the south European nation rose by 60 per cent during September.

Spanish property prices down

Wed, 7 Dec 2011 00:00:00 GMT

Spain is one of the nations to see the biggest annual fall in residential property values around the world, new research has revealed.

In the Knight Frank Global House Price Index, the European country was ranked 45th out of 51, experiencing a year-on-year drop of 5.5 per cent between the third quarter of 2010 and the same period in 2011.

However, the firm commented that the latest set of data indicates that Spain - as well as the other nations in the PIIGS (Portugal, Ireland, Italy, Greece and Spain) group - may be "over the worst".

The report stated: "Although prices in all five housing markets continued to fall, the pace of decline slowed in all but Portugal."

According to the findings, the Spanish property sector saw values slip by 1.3 per cent between the second and third quarters of 2011.

Figures published last month by Global Property Guide painted a more optimistic picture of the health of the real estate industry in the country, recording a lower quarterly price drop of 0.83 per cent.

New government 'will improve confidence in Spanish property'

Tue, 6 Dec 2011 00:00:00 GMT

An upturn in confidence in the Spanish real estate market is expected following the election of a new government in November, it has been claimed.

Director of Lucas Fox International Properties Alex Vaughan stated that his company is "hopeful" about the prospects for the sector now that the People's Party (PP) has come to power.

He added that because the PP holds a majority in parliament, it is in a position to "address the current financial crisis and its impact on the property market".

Mr Vaughan added that proposed tax breaks for the Spanish real estate sector, including an extension of the reduction to value-added tax (VAT) on the purchase of new-build homes, will "help to sustain and build on the healthy signs in the property market that we observed in the third quarter [of this year]".

The VAT cut on new houses - which saw the former eight per cent rate reduced to four per cent - was introduced by the outgoing government and is due to expire on December 31st 2011.

'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.

'Thorough research needed' when buying property in Spain

Fri, 2 Dec 2011 00:00:00 GMT

Anyone who is considering investing in property in Spain needs to make sure they carry out plenty of research, it has been asserted.

Editor of A Place in the Sun magazine Liz Rowlinson explained that the systems used for real estate transactions are often "unfamiliar" and it is therefore sensible to find out as much as possible about the process before proceeding.

She stressed the importance of obtaining independent legal advice in any property deal.

"Documents and contracts will usually be in a foreign language, so can be open to misinterpretation. There may be additional costs involved in the buying process that you are not familiar with - again, do your research," Ms Rowlinson stated.

Southern Spain remains one of the most popular destinations for people seeking a property abroad in a sunny location, she added.

Marbella is one place in particular that appears to be attracting many foreign investors, it was recently claimed.

Earlier this month, International Property Success predicted that prices in the area will not fall any further, while an increasing number of buyers from the Middle East, as well as countries such as Russia and the UK, are targeting real estate assets here.

More property buyers 'looking to Spain'

Thu, 1 Dec 2011 00:00:00 GMT

There has been a rise in the number of people expressing an interest in buying real estate in Spain, new research has found.

Fly2let cited a report from the Overseas Guide Company (OGC), which revealed it experienced a 60 per cent rise in requests for information about the nation during September.

Client relationship manager at OGC's research centre Elaine Ferguson commented: "Spain has suddenly begun to take off again and is now commanding the second largest share out of thousands of enquiries coming from people interested in buying overseas."

Richard Way, editor at the firm, told the website that budget is a key consideration for those thinking of entering a real estate market abroad.

He added that countries like Spain are doing well because they are relatively easy to reach from the UK and the journey is usually inexpensive.

Earlier this month, journalist and author Anna Nicholas stressed the importance of visiting the country several times before committing to a property purchase.

She explained it is important to get an idea of what the area you are considering buying in is like at different times of the year, to ensure it will meet your needs in both summer and winter.

Supply of distressed Spanish property rises

Wed, 30 Nov 2011 00:00:00 GMT

There has been more distressed property coming on to the market in Spain over the past few months, it has been revealed.

According to the Global Distressed Property Monitor published by the Royal Institution of Chartered Surveyors (Rics) for the third quarter of 2011, Spain experienced one of the greatest increases in the number of such assets available.

However, real estate experts in the nation believe that the rate at which this stock is put up for sale will slow by the end of this year.

Meanwhile, demand for distressed property in Spain fell among specialist funds that have been targeting this asset class during the three months from July to September, compared to the previous quarter, the survey found.

Simon Rubinsohn, Rics chief economist, commented: "The deteriorating picture is most pronounced in the southern European countries, which remain at the centre of the euro crisis."

Research published by Savills earlier this month suggested that investment activity in Spain's commercial property sector is being reined in by uncertainty in the global economy, with investors taking a "conservative" approach to the nation's real estate market.

Suggestions made to boost Spanish property market

Mon, 28 Nov 2011 00:00:00 GMT

Several real estate experts in Spain have made suggestions about how the new government can boost the country's property sector.

Founding partner of Menorca-based agency Bonnin Sanso Colin Guanaria told A Place in the Sun that changes to taxation is the way forward.

In an interview with the publication, he recommended that the government should "dramatically reduce taxes for the building and housing sector, including the property sales tax".

Mr Guanaria added that stimulating tourism across the nation could also help its real estate market recover.

Chris Mercer, from Murcia-based estate agency Mercers, highlighted the need to embark on a public relations (PR) exercise to ease concerns about purchasing a Spanish property.

"What is needed is a major PR campaign to win back the doubters, which needs to show real figures for what is happening on the ground," he told the publication.

The previous government cut the value-added tax payable on new-build houses in the nation by 50 per cent in a bid to boost the real estate market.

Buyers can take advantage of the reduction until December 31st 2011, when the tax will revert back to its previous level of eight per cent.