News

European commercial property cools down

Ivan Radford — Fri, 11 May 2012 12:21:00 GMT

Commercial property investment markets cooled down at the start of the year, according to Cushman & Wakefield.

The commercial real estate firm's report shows that investment in the European commercial property market in the first quarter of 2012 fell to its lowest level since Q1 2010, with volumes reducing by 31 per cent compared to the end of 2011. Annually, volumes also fell by 1.56 per cent in March, while foreign investors scaled back their activity, leaving domestic buyers to increase their market share from 35 per cent last year to 37 per cent.

Offices were the strongest sector over the year, with volumes rising 19% on Q1 2011 compared to a 55% fall for retail and a 35% drop for industrial. The main areas of growth in activity have been in the Nordics, Poland and Switzerland while France, Italy, the UK and the rest of Central Europe dropped back after a busier Q4 2011.

Prospects for the rest of the year are being trimmed but there is still some confidence that increasing levels of stock and a growing need to act will lead to a firming in the market as the year goes by.

Michael Rhydderch, Head of Capital Markets EMEA at Cushman &Wakefield, commented: "It is not unusual for volumes to fall in the opening quarter - on average since 2006 they have dropped nearly 16% compared to Q4 in fact - but this is not just a seasonal lull, with volumes falling more and falling compared to the same period of last year - which in itself was no high point. There are still plenty of new investors coming into the market, with foreign buyers more dominant than domestic players over the last quarter. However, a shortage of stock, of debt finance and of confidence is holding the market back by perhaps more than we expected given the level of equity demand and the momentum at the start of the year."

The banking sector is the centre of attention but is pulling in different directions, on the one hand promising to feed investors with stock as deleveraging and asset sales pick-up, but on the other enforcing a strict diet due to the near freeze on new lending.

Rhydderch continued "Attention to detail is key in looking at all opportunities including loan portfolio and bank sales - with the property fundamentals vital to getting the financing and pricing right."

Retail has been the hardest hit sector by the slowdown in activity, with its market share dropping to just 22% versus an average of 32% during 2011. Offices, by contrast, have jumped up to 53% as against an average of 45% in 2011. Industrial has been relatively stable with an 8.3% share (8.9% in 2011).

Demand and activity patterns have been far from uniform around the region, with the Nordics, Benelux and parts of Eastern Europe holding up best. By country, Norway, Switzerland and Poland are up on Q1 2011 and notably also up on the busier final quarter of last year. Spain, Sweden and Finland meanwhile failed to match their performance of late 2011 but are at least ahead of the opening quarter of last year.

The Nordic region saw volumes rise 66% on the same quarter of last year as investors have been drawn to its better risk and growth profile and in particular a better relative standing on government debt. Sweden is generally the main target of interest and by far the largest investment market in the bloc but investors are looking further afield, with Norway in particular seeing increased demand and activity ramped up to its highest quarterly level since 2008 in Q1.

Markets such as Belgium, the Netherlands, Germany and Russia have been relatively solid meanwhile while France, Italy, the UK, Portugal, Czech Republic, Hungary and Slovakia all saw marked falls. Parts of the CEE market in particular have been hard hit by a shortage of debt finance but a lack of prime stock has also held investors back. That should change as the year progresses however, and notably so in Poland, as a range of retail and office opportunities are coming forward.

Interestingly, despite an increasing focus on 'core' assets, the big three: Germany, France and the UK, lost market share in the last quarter - dropping to 58.6% versus 62% last year, their lowest combined share since Q2 2009. However, while the core has lost out, so too has the fringe, with the GIIPS countries (Greece, Ireland, Italy, Portugal and Spain) seeing their market share drop to 4.3% as against 5.3% last year and over 11% in 2009.

Germany is the most buoyant of the three core markets meanwhile, albeit a reduction in larger deals masks this somewhat in the latest quarterly figures. The top five cities of Munich, Hamburg, Berlin, Dusseldorf and Frankfurt remain most in demand, while foreign buyers have been the key driver of growth, seeing their market share rise to 43% from 31% in Q4 2011.

Offices were the strongest area of activity in Germany, taking 44% of all monies invested, but as in some other markets, retail is being held back by a shortage of the right quality of stock for investors to buy. Alongside the UK, Germany dominated retail investment in the quarter, with the two accounting for 54% of all retail market activity. Russia was the only market coming close - with €942mn invested versus €1.1bn in the UK and €1.5bn in Germany. Belgium and Poland were the fourth and fifth largest markets, with €272mn and €211mn invested respectively.

While the UK may have lost its retail crown to Germany, it remains far and away the largest European office market - with €5.1bn invested in the quarter versus €2.4bn in Germany, €1.3bn in Norway, €1.2bn in Sweden and €0.9bn in France.

Market concentration is however slightly lower in the retail sector, with the top five accounting for 79.8% of all trading versus 81.3% in offices in Q1. Thanks to the huge dominance of the UK, the top five industrial markets have a yet higher market share of 84%, with the UK (€1.1bn) followed at some distance by Germany (€352mn), Switzerland (€180mn), Poland (€97mn) and France (€92mn).

Looking forward, David Hutchings, Head of European Research at Cushman & Wakefield, commented: "At the beginning of the year we forecast investment would increase in the second half after a slower start and hit something like €24bn for the year. That forecast is now under threat with at least some of the Q1 underperformance not expected to be made up.

"For now however we remain confident of better activity levels in the months to come and have only edged down the forecast to €120bn. Nonetheless there are clear and growing risks that this adjusted forecast will not be met - particularly if economic confidence wanes and improvements in the outlook for the sovereign debt crisis recede any further."

Commenting on demand, Hutchings continued: "Secure yields are fundamentally attractive in a world of low interest rates and now slowing inflation. Income growth will undoubtedly be slower in the year ahead however and negative in some cases as less productive property is found out. However returning business confidence - hopefully - and less new development, should limit the downside threat to rents and occupancy ahead of an eventual return of more robust economic growth in 2013."

Spain's bailout: Have we finally reached the bottom?

Ivan Radford — Thu, 10 May 2012 15:14:00 GMT

Photo credit: Sonia Fernandes

The Spanish government is expected to bailout the country's third-largest bank this week.

Bankia, and its parent company BFA, hold €31.7 billion of Bad real estate assets, according to Reuters, making them the most exposed Spanish lender to the financial crisis. Bankia chairman Rodrigo Rato resigned at the beginning of the week, prompting reports that the government is likely to back-track on its pledge not to bail out a financial institution with public funds and instead inject €10 billion into the bank.

But while political rows surround the proposed bailout, with Spanish public services in need of equal financial support, Spain's banks are also attracting headlines by over-valuing their real estate.

"The banks are over-valuing property on their books," Global Edge wrote this week, "which is hiding the true scale of the problem and distorting local property markets."

Barclays has also been under fire for its Spanish property reports, which predict that "Spanish home prices will drop by up to 35% before reaching the bottom of the downturn".

Confusion arises from the severity of the current house price decline, which is still under dispute. TINSA's official statistics show that April's property prices fell by an average of 12.5 per cent, marking a cumulative drop of 29.8 per cent from the market peak. Barclays, on the other hand, say the decline from the market peak is just 22 per cent. Are prices expected to fall another 35 per cent on top of that?

With banks over-pricing property, the drop is thought by some to be as high as 44 per cent already. "A 40% rate of fall has now been confirmed by Spain's Minister for the Economy," reports Property in Spain, "suggesting that Barclays Capital's data is largely unreliable."

If prices actually have decreased by 40 per cent since 2008, when will the market bottom out?

Some experts think the bottom may now be in sight. Others are less sure. Before the market can fully recover, the extent of the country's falling house prices needs to be revealed. If the Spanish banks dropped their property prices immediately, it would only add to the lack of confidence in the market. On the other hand, it would provide even more affordable investment opportunities for overseas buyers.

Mark Stucklin, Spanish Property Doctor for The Sunday Times, comments: "Barclays Capital are right to say that prices might fall 40 per cent in total, but wrong to say that means another 18 per cent of declines to come. We are already almost at the bottom, certainly when it comes to holiday homes on the coast."

Spanish homebuilder Taylor Wimpey España is even more optimistic. Highlighting the increasing number of tourists in Spain, Sales Manager Mark Pritchard comments:

"Q1 2012 has been rather successful for Spain with British and German bargain hunters choosing the nation as their top holiday and second home destination. Searches on Hotels.com U.K for hotels in Spain for example increased by 106 per cent over the same period last year and we at Taylor Wimpey España have actually seen a 21 per cent increase in the number of units sold between January and April this year over the same period in 2011."

Select Resorts has seen a similar level of demand returning to the market, but suggests that buyers are less concerned about prices bottoming out and more focussed on quality of investment:

"We are experiencing renewed demand for property in up market developments in Spain, such as La Manga Club. There is a huge amount of property available in Spain, at knock down prices, but it is always important to buy property where the amenities are of a high standard and are being well maintained. La Manga Club, for example, has fabulous facilities including 3 championship golf courses, tennis centre and health spa, to name a few," MD Pauline Bonanni told TheMoveChannel.com.

"Buyers are very savvy now, looking for the best deal possible. They are not necessarily looking for the cheapest property but the best value for money."

How much lower can prices go?

Browse our listings of apartments, houses and property in Spain:

http://www.themovechannel.com/property/details/5714791/

Spanish property prices fall again in April

Ivan Radford — Tue, 08 May 2012 11:22:00 GMT

Spanish property prices fell again in April, according to TINSA.

The firm's latest report saw that IMIE General Index of real estate values declined by 12.5 per cent last month, marking a cumulative drop of 29.8 per cent from the market peak at the end of 2007.

The Mediterranean coast continues to record the biggest falls in year-on-year prices, with a decrease of 14.3 per cent in the area's prices compared to 2011. This was closely followed by "Capitals and Major Cities" which fell by 13.7% compared to the same month last year. In both cases the decline was higher than the market average.

Below the market average were the "Balearic and Canary Islands" which fell by 12.3% year-on-year, followed by "Metropolitan Areas" with 12%; while the lowest declines were recorded by "Other Municipalities", defined as those not included in the other segments, which recorded a fall of 10.6%.

In terms of cumulative declines from the top of the market by segment, the "Mediterranean Coast" was down by a total of 37% in April; followed by "Capitals and Major Cities" with 32.8%, Metropolitan Areas" with 30.7%, "Balearic and Canary Islands" with 26.9% and lastly "Other Municipalities" with 24.2%

Video - Spanish bank chairman steps down

admin — Tue, 08 May 2012 09:32:00 GMT

The chairman of Spain's Bankia, Rodrigo Rato, announced his resignation on Monday. The Spanish government is on the verge of announcing a rescue plan for the troubled bank which will be part of a wider reform of the banking sector in Spain.

It is thought Bankia could need an injection of around 10 billion euros although this is unconfirmed. Its shares fell 3.3 percent on the news.

Bankia came into being as a result of the merging of several savings banks, or "cajas" as they are called in Spain.

They all suffered huge losses due to the collapse of the property sector.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/05/spanish-bank-chairman-steps-down/

France is firm favourite for British buyers

Ivan Radford — Fri, 04 May 2012 12:09:00 GMT

France remains a firm favourite for British buyers, according to the Overseas Guides Company, which provides free guides to 15 countries.

The site's latest quarterly index saw interest from UK investors stay strongest in French property, as well as Spanish and American real estate.

"In recent years, a number of emerging overseas property destinations have been flooding the market, each claiming to be the next ‘big thing'. This has led the market to become somewhat crowded and perhaps rather confusing for investors," reads the report, revealing that the traditional destinations continue to dominate the global property market.

France attracted 22 per cent of all enquiries during the first three months of this year, more than any other country. Spain pulled in the second highest share with 16 per cent, followed by the USA with 15 per cent. Significantly, the next most popular, Australia, had just 9 per cent.

Activity also increased in the first three months of 2012, with enquiries for buying property abroad surging by 38 per cent compared to the last quarter of 2011. Encouragingly, the year-on-year growth was far greater - a staggering 128 per cent, from 2,843 in Q1 2011.

Editor Richard Way commented: "Discounted prices are not the only driver in France and Spain at the moment. The last month or two has seen Sterling creep up in value against the euro, partly due to the festering Eurozone debt crisis; so that the current exchange rate is the most favourable it's been for a year and a half for Brits exchanging pounds. We are also seeing close to a six month high in the value of the pound against the dollar which could be responsible in part for driving the US property market. Our sister company, Smart Currency Exchange, has as a result been able to secure some very favourable rates for buyers and vendors in each of these countries."

Underpass overdue for Marbella property market

Ivan Radford — Fri, 04 May 2012 12:02:00 GMT

June sees the arrival of an underpass long overdue for Marbella's property market.

The San Pedro road will finally open next month, allowing traffic to flow fluidly between Marbella and the Costa del Sol. The project will "breathe new life" into the area's housing, according to agents, after several years of start-and-stop construction.

Adam Cornwell, Managing Director of Feltrim International comments:

"The San Pedro underpass saga has been nothing short of an embarrassment and thorn in the side for residents and tourists alike. A project that was conceived to ease traffic and be finished in 2009 has dragged on almost five years and created the congestion blackspot from hell. When the ribbon is cut in June we'll all breathe a sigh of relief and journeying to the ‘west' and towns such as Estepona, Manilva and Duquesa will become a swift pleasure rather than a time-consuming chore. Right now we can offer premium two bedroom apartments in Duquesa for just over 100,000 euros - ridiculously cheap for the Costa del Sol."

Built on the main coastal A7 motorway, the underpass is a kilometre-long tunnel that will bring an end to San Pedro's awkward north-south divide and do away with the need for a series of traffic lights and pedestrian crossings thus making traffic run more freely.

The final cost, after many delays, is reported to reach the 85 million euro mark but more than 65,000 cars will use the underpass daily, boosting the rental potential for Marbella property.

Marbella Mayor Angeles Muñoz has reassured Minister for Public Works, Ana Pastor, that the project is an absolute priority will be finished in June.

Marbella is within a 35 minute drive of Residencial Duquesa, Puerto Banús even closer at half an hour and Málaga International Airport a total of one hour. Meanwhile continue west and smart polo, marina and golf resort, Sotogrande, is less than 20 minutes drive and the rock of Gibraltar with direct flights to the UK is just 50 minutes.

Spanish banks are hopeful for investor interest

Ivan Radford — Thu, 03 May 2012 11:38:00 GMT

Spanish banks are hopeful that investors will show strong interest in the real estate portfolios they are selling, as long as the prices are right.

The Bank of Spain recently announced that Spanish banks held a total of €308 billion in real estate portfolios, with 60 per cent of these classed as "troubled" assets.

The country's Economy Minister, Luis de Guindos, said last week that new guidelines will be introduced to enable the banks to transfer the real estate into asset management companies, which will then be controlled alongside third-party investors.

"The key element is going to be transparency and valuation," he told Bloomberg,adding that no financial assistance would be provided.

The minister added that he expected Spain's economy to return to growth in 2013.

Video - Spain left reeling as figures show a quarter unemployed

admin — Wed, 02 May 2012 09:27:00 GMT

Spain has announced that its jobless rate surged to a record 24.4 percent at the end of March, pounding financial markets already reeling from a Spanish sovereign debt downgrade.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/05/spain-left-reeling-as-figures-show-a-quarter-unemployed/

Costa del Sol prepares to welcome Brits sprinting away from Olympics

Ivan Radford — Mon, 30 Apr 2012 12:19:00 GMT

The Costa del Sol will be making every effort to welcome British holiday makers escaping London during the 2012 summer Olympic Games after a report from the Association of British Travel Agencies (ABTA) discovered that 21% of people questioned said that they do not want to be in the UK whilst the world's biggest sporting event takes place.

With the report highlighting that the Olympics will generate vital opportunities for favoured British holiday hotspots outside the UK including the Spanish Costas, the Costa del Sol Tourist Board is already working on its new tourism campaign which aims to generate a 37% increase in arrivals this year compared to 2011.

The British market will be a primary focus for the Costa del Sol after Elías Bendodo, President of the Costa del Sol Tourist Board explained that the recovery of the British market last year was a key factor in the revival in the Spanish tourism industry as a whole with more than 35% of arrivals at Malaga airport in 2011 from Britain.

Marc Pritchard, Sales and Marketing Manager of leading house builder Taylor Wimpey España comments,

"Spain is always a hot pick for Brits when deciding where to holiday and if the latest news from Lowcostholidays.com is anything to go by, having identified that Mallorca is the number one destination for people over the Jubilee week, registering a 60% increase on last year along with other popular regions such as the Costa del Sol fairing just as well, we fully expect to see a surge of British arrivals when the Olympic Games begin."

Meanwhile, Marbella one of the Costa del Sol's most popular spots has so far witnessed a very positive 2012 according to the city's councillor of tourism Jose Luis Hernandez explaining that Marbella's tourism figures have increased by 5% with an 8% increase in overnight stays this year.

Pritchard further comments,

"While Brits love Marbella for it sun, sea and sophistication, there has been a real push in promoting Marbella's luxurious side in Arab countries which has no doubt aided the positive effect on tourism witnessed this year. It really is no surprise that Marbella is popular as a holiday and second home destination. Offering a perfect location between mountains and award winning beaches, as well as warm temperatures long after the summertime crowds have departed, Marbella affords excellent shopping, delicious Andalucían dishes and a beautiful historic centre. There really is something for everyone here."

Spanish property beats the blues

Ivan Radford — Tue, 24 Apr 2012 14:34:00 GMT

Photo credit: Landahlauts

The Spanish property market is looking blue but for one village in Andalucia, the truth is the opposite.

Júzcar, near Malaga, normally receives 300 tourists per year. Last summer, it agreed to have its traditionally white houses painted blue to celebrate the premiere of Sony's new Smurfs movie. Since then, the homes have stayed the same colour - and 125,000 people have flocked to see the real estate, the village has revealed.

The villagers made headlines in December when they voted to keep their homes the same colour after realising the potential impact it might have upon the community's fledgling tourist industry. 141 villagers were in favour of the blue facades, with only 33 against, while special permission was required from the government and bishop to convert the church and other official buildings from an Andalucian pueblo blanco into what is thought to be the world's only Smurf village.

"The number of visits is not going down," mayor David Fernández Tirado told Southern Spanish newspaper, Sur. "Every weekend gets an average of more than 2,000 visitors."

Not just from Malaga or Spain, but from overseas too: "They come from everywhere," he added.

Fernando concludes that being a Smurf village is not just good for the 200 residents of Júzcar, but for the region as a whole.

However, it is not just in Spain that residents are feeling blue. British buyers are becoming increasingly down about the UK's economy, property market and public service cuts, according to a recent survey by Lloyds TSB.

The bank's International Wealth report predicted that the volume of wealthy Brits who move overseas is expected to increase over the next two years, with a growing number seeking a new life in Spain.

According to the survey, approximately 19 per cent of people with savings and investments over £250,000 are considering moving overseas, an increase from 14 per cent in 2011. Over half of these individuals could leave by 2014.

"The quality of life the nation offers is second to none so it's no wonder Spain is a top choice," comments Marc Pritchard, Sales Manager of house builder Taylor Wimpey España.

"Indeed, with the Costa del Sol Tourism Board having launched a new campaign to attract national and foreign tourists after joining forces with more than 100 local businesses from the tourism sector to create a campaign which promotes all that is great about this favoured Spanish region, we fully expect the Costa del Sol to feel the force of this proposed British arrival."

Indeed, Andalucia is the most popular region of Spain for buyers, TheMoveChannel.com's Spain: At a Glance infographic revealed in February, putting the Costa del Sol in the front line for the new, blue expats. With Júzcar already attracting 2,000 visitors each weekend and Scandinavian investors increasingly attracted by Spain's low-priced property, the country's housing market has not beaten the blues yet, but at least some people are enjoying it.

Feeling blue?

Browse our listings of houses, apartments and other Spanish property:

http://spain.themovechannel.com/news

Rising airport charges could cost Spain 2.87m tourists

Ivan Radford — Mon, 23 Apr 2012 11:23:00 GMT

Rising airport charges could cost Spain 2.87 million tourists, industry figures have warned.

The Alliance for Tourism Excellence, Exceltur, labelled the increase in charges as "disproportionate" following their announcement in the State Budget for 2012.

The fees, announced this month, could cost the country 2.87 million visitors, the association warned. The reduction in visitor numbers could amount to €1.64 million each year.

The new rates, which are expected to be incorporated into ticket prices, have sparked fears that airlines will turn to other beach holiday destinations as a cheaper alternative to Spain - a move that could have serious implications for Spain, a country which relies upon tourism as a major form of income in a post-recession climate.

Airports expected to be most affected include Barcelona-El Prat, which could lose 1.16 million tourists, Madrid-Barajas, with 945,115 fewer visitors, and Palma de Mallorca, which could see tourist numbers reduce by 268,567.

Source: Kyero.com

Spain has enough land for 4 million homes

Ivan Radford — Fri, 20 Apr 2012 14:23:00 GMT

Spain has enough land approved to build another 4 million homes, according to R. R. De Acuna & Asociados.

The Madrid property advisor revealed this week that the country has a huge excess of land that could provide millions of additional new properties for the market. But with 2 million Spanish homes sitting unsold, the land will certainly not be needed any time soon.

Indeed, there is demand for around 250,000 properties each year, according to the company. At that rate, it will take another 10 years to sell all of the country's existing supply of real estate, let alone another 4 million.

"Land continues to be the biggest threat for Spanish lenders," Fernando Rodriguez de Acuna Martinez, a partner at Acuna & Asociados, told Bloomberg on Tuesday. "An important part won't be developed in the next decade, which means the price of that land today is just symbolic or zero."

A nation with an economy boom built upon construction, Spain built approximately 675,000 per year between 1997 and 2006, more than France, Germany and the UK combined, but since the financial crisis, over-supply and debt have plagued developers and lenders across the country.

"There is no need whatsoever to use the developed land to build even more homes because current oversupply will not be absorbed for another 7 years in metropolitan areas and as much as 13 years in coastal areas," Acuna added

Video - IMF sees ‘dark clouds’ over the recovery

admin — Fri, 20 Apr 2012 09:32:00 GMT

The International Monetary Fund's Christine Lagarde has again delivered a mixed message about the global economic recovery and warned "the eurozone is the epicentre of potential risk".

Speaking ahead of the IMF's annual meeting attended by the world's leading finance ministers and central bankers in Washington, Lagarde said: "We are seeing a light recovery, blowing in a spring wind, but we are also seeing some very dark clouds on the horizon - which is another way of saying there is a bit of recovery, timid and a fragile situation with still high risks."

Lagarde said she expects further big contributions to boost the IMF's fund to help safeguard countries from the eurozone debt crisis now that Europe had taken significant steps on its own.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/imf-sees-dark-clouds-over-the-recovery/

IKEA assembles London village

Ivan Radford — Thu, 19 Apr 2012 15:10:00 GMT

Photo credit: TheGlobeandMail.com

Not content with merely selling flatpack furniture, IKEA has already entered the real estate market with its flatpack houses, but now, the Swedish company are building something on a much bigger scale: an entire town. With not an IKEA store in sight.

Strand East, as the village is called, is already under construction and will be built on a plot next to the 2012 Olympic Park. The community will house 6,000 people on a 27-acre patch of land that brings Stockholm-style town-planning to London.

No cars will be allowed in the area, except for buses and emergency services, while the range of apartments, shops, offices and homes will be targeted at low-income residents with affordable rents.

The project broke ground in London last week, reports Architizer, in response to growing concerns from developers who are "[trying] to appeal to consumers who have less money [and] know more about sustainability."

The project will bring Stockholm-style town-planning to the UK capital

The news follows sky-scraping price predictions for The Shard, still under construction on the opposite side of the River Thames. The Shard, set to become the tallest building in Europe, will have equally lofty price tags, with apartments expected to fetch "between £30 million and £50 million each", according to Assetz, when they are put up for sale in the summer.

Compared to The Shard's high-flying homes, Londoners may welcome the option to migrate to a cheap and colourful village assembled by IKEA. Others, however, will have their sights set firmly overseas, with 25 per cent of buyers believing that it is cheaper to own a property abroad than in the UK.

Indeed, the ongoing sovereign debt crisis is doing little to deter ambitious home buyers as Spain and France remain the firm favorites for those seeking to buy a place in the sun, according to new research from HiFX.

The currency specialists revealed this week that Brits are as keen as ever to buy property in both France and Spain, despite the European turmoil.

France topped the list, with over a third of buyers looking to own a property directly across the Channel. Mark Bodega, Director at HiFX said: "France remains a ‘safe bet' for Brits. It goes without saying that the sun and lifestyle are a big pull but buyers are now also able to get better value for their money and take advantage of the weakening euro."

Nearby Spain is also continuing to lure home buyers, despite the country's "precarious position", with prices almost 30 per cent cheaper than in 2007.

Bodega added: "The recent gains made by the Pound against the Euro can be felt throughout Europe but Spain and Portugal have also seen costs and prices fall for a variety of goods and commodities unlike other parts of the Eurozone, notably Italy. We advise buyers looking to pick up a bargain in these countries to do their research and take on board the risk of buying in economically uncertain times before making any important decisions."

Struggling to put together a property investment?

Browse our flatpack-free listings of houses, apartments and other overseas property:

http://www.themovechannel.com/property/all

"Full crisis" hits Spain as house prices plummet

Ivan Radford — Thu, 19 Apr 2012 14:37:00 GMT

Spain is back in "full crisis mode", according to one bank, as property prices continue to plummet.

"It is looking more and more likely that Spain is going to have some form of bailout," Rabobank told OPP. "Assuming there is not an (ECB) intervention, you would not see a cap on Spanish yields, they would just keep increasing."

After the country's 10-year boom came to a messy end in 2007, Spain's economy has been dropping like a stone, taking the property market with it. Mortgages payments are rising as rates of inflation rise to 3.4 per cent and banks are left in a vulnerable position, holding one-fifth of the country's 1 million vacant homes.

The new Spanish government are introducing austerity measures to recoup lost finance, including cuts to education and health, but with almost five million unemployed and the economy still shrinking, the return of recession is "likely to suppress local demand", according to Reuters columnist Maharg-Bravo.

But more affordable property remains good news for overseas investors, as real estate values continue to decline at 22 per cent to 29 per cent each year. And with areas such as Granada tipped by Pathfinder as having "intrinsic value that will always hold", smart investments can still be found in towns not suffering from the nationwide problem of oversupply.

"Granada's international airport has flights from most major European cities, and it's within a two-hour flight range of Northern Europe's major population centres. Culture, beaches, world-class golf and other outdoor activities are easily accessible. This area appeals to visitors on a weekend break, golfers, history buffs and even as a wedding destination. Domestic visitors and North Americans come in large numbers and it's a beautiful place to retire," commented Pathfinder's Ronan McMahon.

Investment Watch: Dial M for Miami

Ivan Radford — Wed, 18 Apr 2012 13:35:00 GMT

Photo credit: vgm8383

Investors dialled "M" for Miami in March, reveals TheMoveChannel.com's latest Investment Watch. The report, which ranks the monthly level of interest in the portal's listings, saw the Magic City's tenanted condos take top spot, knocking Brazil's February high-flyer down into ninth place.

Investors dialled "M" again for Murcia and Malaga, as Spanish golf resorts took fifth and seventh place respectively in last month's top 10 listings. An equal share of the chart went to buy-to-let opportunities in the UK, with Leicester student accommodation and Cumbrian apartments awakening investors' appetites in eighth and sixth place.

But even though British real estate accounted for five of the top 10 listings in March, TheMoveChannel.com undoubtedly belonged to Miami; the Florida condos received 50 per cent more enquiries than their closest runner-up, a discounted plot of commercial land in England, as the promise of high yields and low prices proved too tasty for investors to resist.

Investors dialling "Mmmmm", however, found a tasty new opportunity in London, as fine wine entered TheMoveChannel.com's listings for the very first time. The drink was downed by enough buyers to become the third most popular investment last month, ranking above even a five-star resort in the Algarve.

Combined with the continuing demand for carbon credits, the unexpected thirst for fine wine suggests that while investors in March were dialling "M" for Miami, they were also pressing "A" for alternative investment.

Director Dan Johnson comments: "Fine wine has never been listed on TheMoveChannel.com before, but the response has been a real surprise. At the start of 2012, the demand for carbon credits suggested that investors were starting to consider more unorthodox investment vehicles for their capital. Since then, carbon credits have been in our top 10 listings for three months in a row. Miami remains the top US destination for property, but it looks like alternative investments are becoming an equally consistent choice."

The top 10 investment properties for March 2012 are as follows:

Rank	Property	Country	Partner
1	Miami tenanted condos	USA	Aspen Woolf
2	UK commercial land	UK	Obelisk
3	Fine wine investment opportunity	UK	TPG Media
4	Five-star coastal Algarve resort	Portugal	Hot Property deals
5	Murcia golf resort apartments	Spain	Casacalida Property Group
6	Tenanted Cumbrian apartments	UK	Best Overseas Property Investments
7	Malaga golf resort apartments	Spain	Best Overseas Property Investments
8	Leicester student accommodation	UK	ROC Invest
9	Luxury townhouse, Rio Grande do Norte	Brazil	Aspen Woolf
10	Carbon credits	UK	Strategic Carbon Solutions

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

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Spanish property sales fall in February

Ivan Radford — Wed, 18 Apr 2012 12:38:00 GMT

Sales of Spanish homes fell in February, the National Statistics Institute has announced.

The number of homes sold dropped by 31.8 per cent compared to the year before, with 30,745 properties sold across the month. Out of those, 53.5 per cent were for new homes.

The figures mark 12 months of annual decreases in a row, following a drop of 26.3 per cent in January.

Indeed, agency Cinco Dias told Kyero that their sales of new homes fell by 26.5 per cent year-on-year in February with second home transactions decreasing by 37.1 per cent. This followed a monthly surge of sales in January of 42.3 per cent compared to December 2011.

While the national outlook looks grim, some areas remained popular with buyers, with the Balearic Islands and La Rioja seeing the highest number of transactions per 100k people.

Video - Spanish fever recurs, pushing up borrowing costs

admin — Tue, 17 Apr 2012 09:20:00 GMT

Investors have become wary of Spain's financial health again, forcing the government to pay ever more to borrow money.

Ten year bonds went above 6 per cent, after data showing Spanish banks borrowed record amounts from the ECB.

There are fears Spanish bonds might hit the psychological 7 per cent panic barrier unless the ECB starts buying again.

Watch the full report:

http://www.themovechannel.tv/2012/04/spanish-fever-recurs-pushing-up-borrowing-costs/

Spain is fourth most popular place for rich holiday homes

Ivan Radford — Mon, 16 Apr 2012 12:48:00 GMT

Spain is the fourth most popular country for rich property buyers looking for second homes, according Knight Frank's latest annual Wealth Report.

The 2012 report, which saw London, New York, Beijing and Paris continue to dominate the list of top cities for real estate investment, also found Spain to be a popular choice when it comes to holiday homes.

The 68-page document found Spain to be the fourth most attractive destination for second home purchases by the world's wealthiest investors, beaten by France, the UK and the US. For rich Latin Americans, Spain is even more popular, ranking just behind the USA in second place.

Out of the factors considered by buyers for their second homes, lifestyle was the most important, with 67 per cent of all respondents citing it as a major influence. Investment potential, on the other hand, only influenced 55 per cent.

For Latin American buyers, the emphasis on lifestyle was even more prominent, with 86 per cent ranking it as the most important factor in their house hunting.

Looking for the lifestyle of the rich and famous?

Browse our listings of Spanish property:

http://spain.themovechannel.com/property/all

Spain says no to drug village

Ivan Radford — Fri, 13 Apr 2012 15:11:00 GMT

Photo credit: Calafellvalo

Spain has said no to plans to create a drug village to help pay off the country's mounting debt.

The proposal, which would have seen the small village of Rasquera turned into a large marijuana farm, was ultimately rejected by the local council.

The village, located just south of Barcelona, has traditionally relied upon grapes and olives for its main exports, but the ongoing euro crisis saw the 960 inhabitants consider drastic measures to get the town's finances back in check.

56 per cent of officials were actually in favour of allocating a seven hectare plot of land to the cultivation of marijuana. The mayor, Bernat Pellisa, even threatened to resign if the proposal was rejected. But the final vote fell short of the 75 per cent majority needed for approval.

The land would have been leased to ABCDA, reports the BBC, "an association of drug users in Barcelona".

Legally, the plan was thought to be sound because the country's laws permit the growth of drugs for shared use.

The project would have generated roughly €1.3 million in revenue, enough to clear the village's debts, and even created 40 new jobs, but after cautions from the National Drug Plan, some locals were concerned that the scheme would end up generating large legal fines instead.

It is not the first time that people have turned to drugs in the wake of the financial crash - vacant and foreclosed homes in Las Vegas were swooped upon by local drug farmers at the end of last year - although it is the first time that narcotics have been proposed as a solution for the Eurozone crisis.

But even in the current market conditions, Spain has hit other highs without the aid of psychoactive compounds.

A total of €28,415 million was injected into the country by overseas investors in 2011, according to the Foreign Investment Register of the Ministry of Economy and Competitiveness, an increase of 18.4 per cent compared to 2010. The money primarily went into wireless telecommunications, reports Kyero, which accounted for 17.9 per cent of the total investments, and air transport, which accounted for 17.6 per cent.

Spanish property, too, is seeing interest rising from abroad. With sellers lowering their asking prices to more "realistic" levels, foreign buyers are picking up affordable property as the market begins to bottom out, with Swedish investors leading the charge.

Indeed, figures from the Swedish banking group Swedbank, published last week, revealed that Scandinavian investors have developed a strong craving for Spanish real estate, with purchases by Swedish and Norwegian buyers increasing by 46 per cent and 61 per cent respectively.

If investors keep shooting up, it may be some time until the country considers drug farming again.

Looking to weed out a sound property investment?

Browse our listings of houses, apartments and other Spanish property that won't go up in smoke:

http://spain.themovechannel.com/property/all

Spanish house prices fall by 28.6pc

Ivan Radford — Tue, 10 Apr 2012 13:09:00 GMT

Spanish house prices have fallen by 28.6 per cent since 2007, according to a new TINSA report.

The year-on-year fall in the value of housing increased to 11.5 per cent in March 2012, revealed the report, which amounts to a total decline of 28.6 per cent since the market's peak at the end of 2007.

Capitals and major cities saw the biggest price drop of 12.6 per cent, while other municipalities experienced a fall of 12 per cent, both of which were above the market average. Smaller declines were found on the Mediterranean coast, where values slipped by 10.8 per cent, but the Canary Islands and Balearics fared the strongest - or least worst - with prices falling by 9.8 per cent.

Realistic asking prices for Spanish property draw in Scandinavian buyers

Ivan Radford — Thu, 05 Apr 2012 10:48:00 GMT

It seems that sellers of Spanish property are being a little more realistic when it comes to asking prices according to Spain's largest English language property portal, Kyero.com's Q1 2012 House Price Index.

Kyero.com predicts that Spanish property prices will 'bottom-out' in 2012, while foreign buyers from stronger Eurozone nations continue to purchase Spanish property while prices are low.

Mark Pritchard, Sales and Marketing Director of leading house builder Taylor Wimpey de España comments,

"Prices across Spain are readjusting with sellers and agents pricing more reasonably. At Taylor Wimpey de España we consider our prices very fair given the prime locations, space and quality of build and indeed our reduced 4% VAT offer in itself highlights that we want to make it even easier for property hunters to buy in Spain.

"Certainly, strong Eurozone nations as cited in Kyero's report such as Sweden, Norway, Denmark, Belgium and Holland as well as Russia are currently some of our biggest fans showing increased interest in property particularly on the Costa Blanca. With this market firmly in mind we also attended the Investor Show in Russia on the 9th and 10th of last month where we received a good level of interest and will be exhibiting at Property Worldwide in Russia from the 13th - 15th of April."

Pritchard continues,

"At present, the Swedish economy has been performing better than the UK and with a strong krona and a reduction in Spanish house prices, more Swedes are beginning to realise the possibilities of a life in Spain. With this in mind it is important that we spend time on this lucrative market."

To further support Pritchard's comments, figures published by Fastighetsbyrån, part of the Swedish banking group Swedbank, suggests that Swedish and Norwegian property buyers have pushed hard into the Spanish residential property market with purchases by Swedes up 46% and Norwegians up 61%.

Meanwhile, when it comes to the wider Spanish property market, Mallorca continues to rank highly with limited land and property supply keeping it desirable for property hunters. Kyero.com's Q1 2012 House Price Index reveals that average house prices in Mallorca are 181% above Spain's national average of €253,000, standing at €456,700 as of March 2012.

Murcia makes top 25 in world's best real estate markets

Ivan Radford — Wed, 04 Apr 2012 12:26:00 GMT

Nestled amongst a bevy of exotic Latin American locations, there was a surprise entry into the World’s Best Real Estate Markets 2012 – Murcia in Spain. Created by the boffs at International Living, the index takes into account value for money, appreciation potential, income potential, costs and ease of buying and believes Murcia has got what it takes to make you money in 2012.

Chris Mercer, Director of Mercers, a real estate agency based in Mazarron at the heart of Murcia, comments, "Finding ourselves amongst a who’s who of emerging nations, the likes of Brazil, Mexico and Uruguay, is flattering but not altogether unsurprising. Murcia does make good sense right now for a catalogue of reasons, not least the Paramount Theme Park which will be the largest in Spain and second largest in Europe when it opens in 2015. Interestingly the author gave Murcia a score of 85 out of 100 for value for money, only nine others in the top 25 could match or beat it. With prices from just 50,000 euros, that’s around 41,000 pounds, for a two bedroom semi-detached home with roof terrace on a golf course – there’s your justification. If a buyer is looking at Spain, Murcia is the current best bet."

The World’s Best Real Estate Markets 2012 is careful not to recommend locations that, although undoubtedly cheap, have pitfalls such as unstable governments, dicey property laws or astronomical buying costs and taxes. In Spain, the property purchase process is regulated by the notary system and, provided you use a decent independent lawyer and a professional estate agent – very safe. What’s more, buying costs are generally only around 10% of purchase price to include VAT or Transfer Tax, lawyer’s and notary fees.

Chris finishes, "Murcia, whilst not as mainstream as say the Costa del Sol or Costa Blanca, is a market on the up and plenty of things are conspiring to make the future rosy. Prices are at their lowest point in a decade and you can snap up golf-Side homes within reach of the beach and the Paramount Theme Park site for a tiny fraction of the equivalent in Marbella or pricey Mallorca – a three bedroom villa with swimming pool can be bought for around 125,000 euros. The new Corvera International Airport, 40km drive from our HQ at Camposol Golf, is expected to be fully operational by the end of 2012 and the Regional Government has requested that the proposed Mediterranean Corridor high-speed AVE rail link stops here making it the first airport in Spain to be crossed by a high-speed rail link and the third, after Barcelona and Madrid, to have a rail link at all. This is all creating a huge momentum for holiday and investment homes and our sales team is pleasantly busy."

Video - IMF chief: Recovery still fragile, despite improvement

admin — Wed, 04 Apr 2012 09:58:00 GMT

The head of the International Monetary Fund, Christine Lagarde, is keeping up the pressure on world leaders and urging them not to become complacent.

Despite signs of financial stabilisation in the eurozone and stronger growth in the United States she said the job must be finished.

"The recovery is still very fragile, the financial system in Europe is still under heavy strain, debt is still too high, both public and private, stubbornly high unemployment is really straining the seams of society, and - to add to the list, as if it wasn't enough, oil prices are clearly another cloud on the horizon."

Speaking at a newspaper industry event in Washington DC, the IMF Managing Director said Europe was in the most fragile state and the world's developed nations should "increase their firepower".

To boost growth, countries should make use of monetary policy, especially with no real signs of inflation in advanced economies, she said.

She was also critical of the United States high public debt levels, currently exceeding 100 percent of gross domestic product. "The country needs a stronger push to fix its public finances in the years ahead, including by curbing the growth of entitlement spending and raising more revenue," Lagarde said.

Watch the full speech on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/imf-chief-recovery-still-fragile-despite-improvement/

Spanish property market still flailing

admin — Tue, 03 Apr 2012 11:35:00 GMT

Another clutch of downbeat news stories from the Spanish housing market:

The value of house sales fell 37.5pc in 2011, according to new figures from the Government (Fomento). There were 307,931 home sales last year (excluding social housing), valued at 50.5 billion Euros, 37.5pc down on the year before.

More or less the same story, but from a different source, comes the news that there were 370,204 home sales last year (including social housing), according to the property register (registradores.org). That Spanish housing market is now the smallest it has been since the Property Register started publishing this data series back in 2005. Transactions fell 11pc in the last quarter of the year.

Source: Spanish Property Insight

Experts warn: Euro prime prices are 'too high'

Ivan Radford — Thu, 29 Mar 2012 12:52:00 GMT

Prime property in Europe is no longer driven by fundamentals and looks expensive, warned speakers at the launch of IPD's pan-European Property Fund Index.

At the same time, a panel of industry experts described a cautious optimism about the European macro-economic outlook.

Speaking on the panel, Ben Penalligon, managing director of Prameriga, warned of ‘nosebleed prices' on prime real estate. On the same panel Matt Ridley, director of research at Fidelity's real estate department, described a market where prime assets are defined less by their location than by their lease length.

Sabina Kalyan, chief economist at CBRE global investors, said that prime has become so focused that a large range of attractive investments have been tarred as ‘secondary'. They were joined on the panel by Melville Rodrigues of CMS Cameron McKenna.

Ridley described a European property market where the bulk of returns will come out of income. He said that the strong growth seen in the years of 2005 to 2008 would come to be seen as the aberration, rather than the rule. Ridley characterised the market as one which was not driven by fundamentals.

In her talk on the European economic outlook, Sabina Kalyan, who described herself as "habitually bearish" on the European economy, struck a note of cautious optimism. She was positive about the effects of the LTRO, and praised the new willingness of the ECB to intervene, saying that "the European Central Bank under Draghi is a very different beast". Although Kaylan believed a default by Portugal, and a second default by Greece, were highly likely, she pointed out the controlled nature of the first Greek default, which saw the risk fully priced into markets before the event.

However, Kalyan went on to warn of the seemingly unsolvable problem of the debt to GDP ratio: cutting debt can restrict growth, keeping the ratio steady even as debt is reduced. She warned that the real risk to the European economy was not economic but political, with the Greek government struggling to enact further belt tightening in the face of a disgruntled populace. At the same time the "beer countries" of Northern Europe need a weak euro to maintain their exports, even as the "wine countries" long for a devalued currency.

Kalyen described prime office property as significantly overpriced, although tactical opportunities might still exist. She believes that industrial prime in Amsterdam, Paris and Hamburg look more appealing, as do shopping centres, although she believes that investment might be hampered by liquidity.

Her conclusion was that though the ECB has prevented a ‘Lehman style crisis' the prospects of recession in the near term and below trend growth in the medium term would translate to falling rental values, and rising yields.

Source: investment Europe

Construction down in Spain and Italy

Ivan Radford — Thu, 29 Mar 2012 12:33:00 GMT

Production in the Spanish construction sector registered a decline of 11.5% in January over the same month last year, higher than the fall of 1% experienced in the EU in January, according to figures provided by the EU statistical office Eurostat.

According to the comparison statistics drawn up in Brussels, production in the construction sector of the eurozone fell only 1.4% in January year-on-year, while in the whole of the EU the decline was limited to 1%.

According to the Eurostat figures, construction decreased in nine EU countries and increased in six. Specifically, Spain recorded the third largest drop in the construction sector, after Portugal (11.9%) and Slovenia (19.7%), in annual terms.

On the opposite end, the highest increases in construction were registered in Poland (34.2%), Romania (14.9%) and Sweden (7.3%).

Building construction registered a decrease of 0.9% in the eurozone and contracted by 0.8% in the EU-27, while civil engineering suffered setbacks of 1.7% and 1.4%, respectively.

El Mundo reported that in monthly terms, the construction output in the eurozone declined by 0.8% in January compared with December, while in the EU-27 it fell by 4.1%.

Of the EU member states for which data are available, construction output rose in eight and decreased in seven. Spain recorded a decline in construction of 3.5% in January compared to December 2011.

The largest monthly declines were registered in the Czech Republic (20.1%), United Kingdom (13.8%) and Italy (7.8%), while the largest increases were recorded for Slovenia (17.4%), Germany (4.3%) and Portugal (2.5%).

Source: Kyero

Spanish villas 'still popular' with investors

Ivan Radford — Thu, 29 Mar 2012 12:30:00 GMT

Buyers from the UK are continuing to look towards Spain for possible investments in the property market abroad.

This is according to Rightmove Overseas, which has reported that properties such as villas in Spain are the most popular with those searching the website.

In fact, the country accounted for more than one-fifth (22 per cent) of searches made on the portal over the past month and head of Rightmove Overseas Shameen Golamy said: "Despite nervousness around the Spanish economy in recent weeks, property buyers are undeterred."

During the month under analysis, 51.45 per cent of locations witnessed a climb in interest, with Spanish destinations Fuertuventura, Valencia, Benalmadena and Torrevieja all seeing a jump in searches of more than 20 per cent.

Website ipsbm.com has reported villas in Spain and Portugal are continuing to prove popular with property buyers despite uncertainty in the eurozone, claiming most people prefer what is familiar and so are looking towards locations such as the Costas and the Algarve.

Source: Rightmove Overseas

Property bargain hunters eye Euro opportunities

Ivan Radford — Thu, 29 Mar 2012 12:26:00 GMT

The growing value in European property was underlined after the biggest US real estate investment trust (Reit), Simon Property Group, completed its acquisition of a 28.7% stake in Klépierre, a French property company, for an estimated $2 billion (£1.2 billion).

Simon Property paid a 20% premium for the equity from the French bank BNP Paribas, which owned around a quarter of the Paris-based Reit.

The deal highlights a number of reasons why listed European property companies have become an increasingly attractive proposal for the world's biggest investors.

‘It is interesting that the most respected property company in the world has identified value in European Reits. Even though Simon Property bought it at a premium, it still paid a 10% discount for the underlying asset values,' said Alex Ross, fund manager at Premier Funds.

‘Today, there is no better opportunity to pick up quoted European real estate stocks because they are trading at discounts to underlying value of 10% to 30%. You are not just buying assets at a good discount, you are buying the best assets.'

Source: Citywire

Spanish market 'in turmoil' over conflicting property figures

Ivan Radford — Wed, 28 Mar 2012 14:05:00 GMT

Spain's property industry is in a turmoil over the latest prices data released in the official House Price Index published by the National Institute of Statistics (INE)

The survey claims the average price of a residential property in Spain depreciated by 11.2% in 2011, suggesting that the market crash, which started in 2007, is far from over, say industry watchers.

They believe the price slump is set to continue while other pundits, and some banks, argue the depreciation has slowed dramatically in Q4 2022 and will begin to bottom out when the first quarterly figures for 2012 are released.

The INE figures contrast with the 2011 price fall of 6.8% reported by the Spanish Government Department of Housing and the 8% fall reported by Tinsa, the leading Spanish appraisal firm that works mainly for the banks.

Three separate reports producing three different percentage falls for the same surveyed period suggests big discrepancies in the base prices and there is a growing demand to use a calculation based on the known prices at the peak market in 2007.

However, a spokesman for specialists, PropertyInSpain.Net claims none of the figures is correct:

"Prices have dropped overall by 43% in that period and this means an average drop of 10.75 a year. It's pointless to have year on year comparisons in such a volatile market. Everybody knows the base prices across Spain when the market peaked, so it is more helpful to buyers to know what discounts they are getting in today's market.

"We are currently looking at the relaunch of a development in Costa Almeria we launched originally for the developer in 2007 and the bank that has taken over the scheme wants to sell them at a 40% discount - even though some of the bank's own executives are among the original buyers and will have to take a hit on their equity," he added.

The INE index claims that peak-to-present prices have fallen by an average of 20.6% (new builds -11.9% and resales -27.7%) and that the biggest falls were recorded in Madrid and Catalonia and the least in Murcia and the Canaries. But even those figures are disputed by some experts.

Commentator, Mark Stucklin of Spanish Property Insight said: "I don't believe that for a second. In my experience, prices in Murcia are down much more than Madrid. Right now I can't explain why the index seems to get it wrong when it comes to the regions."

Source:

'Major threat' to Canary Islands tourism on the horizon?

Ivan Radford — Wed, 28 Mar 2012 12:14:00 GMT

Tour operators have written to the Spanish government urging it to block plans to drill for oil off the Canaries, which they warn would harm tourism to the islands for ever.

Repsol, the Spanish oil and gas giant, has been given the go ahead to prospect for oil less than 40kms off the coast off Lanzarote and Fuerteventura.

The regional government of the Canaries has mounted a legal challenge to the decision because of the damage it will do to tourism, which is the islands' main source of income.

ABTA and the Federation of Tour Operators have also written to the Spanish government to protest.

Repsol intends to drill its first exploratory well in 2014 and if findings are positive to start commercial extraction in 2019.

Last weekend, several thousand people took part in demonstrations in Lanzarote, Fuerteventura and Tenerife against the plans.

Source: TravelMole

Spain: Iberia launches new low-cost airline

Ivan Radford — Mon, 26 Mar 2012 12:05:00 GMT

In some good news for property investors, Spanish airline Iberia has launched a new low-cost airline.

The new airline, Iberia Express, commenced operations with prices starting at €25 for a one-way ticket.

Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote.

The launch follows the January collapse of Spain's fourth-largest airline Spanair.

The low-cost Iberia Express has 500 staff and has a fleet of four Airbus A320 aircraft, according to Iberia Express chief executive Luis Gallego.

"The containment of costs will enable Iberia Express to grow and compete with the low-cost operators," he said.

International Airlines Group is the ultimate parent, which was formed by the merger of Iberia and British Airways in 2011.

Source: FinFacts

Spanish mortgages hit 21-month low

Ivan Radford — Mon, 26 Mar 2012 12:04:00 GMT

Spanish residential mortgages fell for the 21st month in January as the euro area's fourth-largest economy edged toward a recession and banks reined in lending amid a surge in bad loans.

The number of home loans fell 41.3 percent from a year earlier, after a 37.2 percent drop in December, the Madrid-based National Statistics Institute said in an e-mailed statement today. The total amount lent fell 34 percent, it said.

A 23 percent unemployment rate has curbed appetite for loans as Spain's economy relapsed into a slump stemming from the 2008 collapse of a property boom. Indicators suggest Spain will enter its second recession in two years in this quarter, Deputy Economy Minister Fernando Jimenez Latorre said on Feb. 16.

Lending fell 3.1 percent in January from a year ago as bad loans jumped to their highest level since 1994, at 7.91 percent, the Bank of Spain said on March 20

Murcia is Europe's 'best' property location

Ivan Radford — Mon, 26 Mar 2012 11:57:00 GMT

Another Spanish overseas property professional is predicting that home values and rental prices in the Murcia and Almeria regions of Spain will rise sharply.

Speaking exclusively to OPP this week, Managing Director of Property Repossessions Spain (PRS) Peter Birkett said:

“Murcia and Almeria have always provided good value compared with the more developed Costas.

"Now with the new theme park, airport and high speed train no other location in Europe can currently match their capital appreciation and rental potential”.

Source: OPP

RICS: Europe in housing market 'agony'

Ivan Radford — Mon, 26 Mar 2012 11:54:00 GMT

Europe is in the midst of "prolonged agony" of housing market decline with no obvious end in sight, a report by surveyors has claimed.

The downturn began five years ago, so had lasted longer than a typical 12 or 18-month dip, the Royal Institution of Chartered Surveyors (Rics) said. The Irish Republic and Spain saw house price falls of 17% and 10% respectively in 2011, compared with 2010. Austria, France, Switzerland and Norway all saw prices rise by 5% or more.

The Rics European Housing Review suggested that the future of the continent's housing market depended on the scale of the economic downturn. The future for the housing market would be "grim" if the eurozone crisis remained unresolved or came to a "painful conclusion", it warned. Prices in the Irish Republic had already fallen by 50% from their peak, the report said, with a host of new homes having been built before prices crashed.

"Not only did Ireland, Spain and Cyprus all have substantial price booms prior to their crashes, but they also had huge building booms as well," the report said. "Each one in consequence is still suffering from severe new supply overhangs." The market across Europe could survive relatively unscathed if there was only a moderate economic slowdown, the report added. Yet, so far, there were "special reasons" for some countries being at the top of the house price growth league.

Prices in France had been boosted by stimulus packages. Iceland had bounced back slightly from a massive fall in house prices. Meanwhile, price rises in Norway had not been matched by the other Nordic countries. Previous strong price growth ended in 2011 in Finland, Sweden and Denmark, the report suggested.

Source: BBC

Spain Economy will fall 1.4% this year

Ivan Radford — Fri, 23 Mar 2012 09:51:00 GMT

According to latest forecasts from The Economist, reported in Diario Sur, the Spanish economy will fall 1.4% this year and register zero growth in 2013, while the unemployment rate will climb to 23.3% this year and prices will rise by 1.9%.

These estimates are slightly more optimistic than those of the Spanish Government, which anticipates a GDP decline of 1.7% this year and an unemployment rate of 24.3%.

Within the eurozone, the English publication only forecasts an economic downturn in 2013 for Greece (-1.2%), after their country's GDP contracts 7.1% this year. However, it is estimated that Italy, another country in trouble, will stagnate in 2013, after dropping 1.6% in 2012 (more than Spain) and register an unemployment rate of 9.2%.

Germany, on the other hand, will be among the most advanced economies in 2013, with an increase in GDP of 1.4%, after a rise of 0.4% in 2012, followed by Austria, with growth of 0.5% in 2012 and 1.4% in 2013. France and Belgium, meanwhile, will return to growth again in 2013 after registering drops of 0.1% in their GDP this year. Specifically, France will grow 0.9% next year and Belgium by 1.2%.

The Economist then went on to estimate that the eurozone will close 2012 with a fall of 0.6%, but climb back next year, with growth of 0.7%, while the U.S. will grow by 2.1% in 2012 and 2.3% in 2013.

Source: Kyero

Spain warns property investors over 'cutting corners'

Ivan Radford — Fri, 23 Mar 2012 09:51:00 GMT

Potential buyers of property in Spain have been warned to avoid cutting corners when purchasing a home or holiday apartment.

Estate agents, lawyers and property developers who offer ways to save money and speed up the Spanish conveyancing system may lead to purchasers ending up with hugely expensive headaches later on, the British Embassy warned.

Despite the well-known problems facing thousands of past purchasers of property in Spain, the Embassy is aware that there are still property industry representatives who are trying to tempt future buyers with apparently attractive methods to secure their dream homes more quickly or cheaply.

Such offers may in fact be very bad value.

"You should exercise extreme caution if an estate agent, promoter or lawyer urges you to cut corners to save money or time", said Embassy property adviser Alex Brown.

"The Spanish property conveyancing system is different to the UK. When you choose an estate agent, promoter or lawyer to help with your purchase, check that they are qualified, reliable professionals and have significant experience of operating in Spain and expert knowledge of how the system works."

Although the vast majority of British property owners enjoy life in Spain and have had no problems, thousands of British expats are facing some kind of legal problem with their homes, some because they were advised to cut corners during the purchasing process.

Many others are facing difficulties through no fault of their own, caught up in the complexities of Spanish planning regulations.

"There is a wealth of information on the Embassy's UKinSpain website", said Alex Brown.

"We strongly urge people to check the advice in full, make sure they use fully qualified, reputable advisers throughout the purchase process, and avoid any kind of ‘dodgy deal' that could end up costing huge amounts of heartache and hard-earned money later on."

Source: EuroWeekly

Housing bubbles: Less frothy but Europe is behind

admin — Wed, 21 Mar 2012 09:00:00 GMT

Wolfgang Muenchau’s article in the Financial Times, There is no Spanish siesta for the Eurozone, inspired me to update my post on housing bubbles around the world (really just Europe and the US). He argues that Spain’s bubble was much more extreme, and that the price adjustment is less mature compared to the others. I would add here that it’s European housing markets more broadly that look overvalued compared to that in the US, as measured by the price to rent ratio.

The chart below illustrates the housing bubble, as measured by the house price to rent ratio, in the US, Spain, the UK, and Ireland that is normalized to Q1 1997 and through Q1 2011. The price to rent ratio can be compared to a price to earnings or a price to dividend ratio in finance. It measures the relative value of the asset: the price of the asset (purchase price of a home) divided by its flow of fundamental value (rental income earned or the value of having a roof over your head). As the price-rent ratio falls, the market home values moves closer to fundamental value.

Spanning the years 2005 to Q4 2011 and indexed to 1997 Q1, home values peaked at roughly 1.7 times rent in the US, 1.8 times rent in Spain, and north of 2 time rent in Ireland and the UK. Since the peak, though, US home values have fallen to 1.0 times rent - a considerable reduction in asset prices toward fundamental value. In contrast, home values in Spain, the UK, and Ireland remain quite elevated to rents, 1.3 times, 1.6 times, and 1.4 times, respectively in Q4 2011. If 1.0 is deemed equilibrium, either home values in Spain, the UK, and Ireland must fall further and/or rents rise to normalize home values. That’s a tall order: rising rental values amid defficient and contracting domestic demand in Spain and possibly Ireland.

The UK has more of a fighting chance, given its relatively easy monetary policy, compared to Ireland and Spain, where more accommodative monetary policy is very lagged amid fiscal contraction. Without growth, though, default is probably the only answer left to normalize housing markets in Spain and Ireland.

Source: BusinessInsider.com

Tax hike on Mallorca and Ibiza property deals

admin — Wed, 21 Mar 2012 05:10:00 GMT

Property sales in Mallorca and Ibiza are to be taxed in price bands from 01 April with high value fincas, villas and mansions involved in private sales having a record 10% ITP (Impuesto de Transmisión del Patrimonio) tax charged to the buyer.

The move follows a meeting of the Balearics Regional Government, called to bolster public sector revenue following budget cuts ordered by the new PP Central Government.

Balearics ministers decided to raise fuel tax and then to increase revenue from property transfer tax that, at 7%, has been traditionally lower than the 8% ITP levied across mainland Spain. The ITP hike was targeted “at taxpayers with greater ability to pay”.

Base ITP tax rate - 7%
Up to EUR 300,000 ITP - 7%
From EUR 300,000 to EUR 500,000 - 8%
From EUR 500,000 to EUR 700,000 - 9%
From EUR 700,000 - 10%

Source: PropertyinSpain.net

New Mortgage Guidelines Agreed by Banks

admin — Wed, 21 Mar 2012 02:45:00 GMT

The government’s new ‘Code of Good Practice’ for mortgages has now been agreed by most Spanish high street and savings banks. It offers unemployed home owners, whose circumstances qualify, the option to restructure their debt, reduce it, or even hand over the house to pay off the mortgage in full.

Debt restructuring can include the possibility to make interest only payments for up to four years, extending the term of the loan to 40 years and rearranging payments for one year at an interest rate of 0.25% above the Euribor rate.

If despite this restructuring, the home owner is still unable cope with the debt, the bank must offer a rebate of part of the mortgage. The amount of this reduction is dependant on each particular case, but experts believe they could adjust the mortgage to the current value of the home.

After one year of restructuring, the owner will be able to hand over the property to pay off the debt in full – commonly a bank would take the property at 60% of its value and pursue the owner for the remaining debt. If this happens, the owner may also remain in the property paying a monthly rent of 3% of the outstanding debt that was outstanding – so if the debt was 100,000 euros, they would pay only 300 euros per month.

Source: Kyero.com

And the award for Spain's best beach goes to...

Ivan Radford — Mon, 19 Mar 2012 09:57:00 GMT

Mallorca, one of the most beautiful and exotic Spanish islands has taken the number one spot for Best Beaches in Spain according to the 2012 Traveler's Choice Awards, compiled by the world's leading travel review site, TripAdvisor.

While, Mallorca's Puerto Alcudia took the crown for best beach in Spain, the golden island scooped third place for best beach in Europe, coming just behind two beaches in Turkey.

This news comes as no surprise to Sales and Marketing Director at Taylor Wimpey España, Marc Pritchard, who has been living and working on the beautiful Balearic Island for over 20 years:

"Puerto Alcudia is a beautiful beach and given its size is able to accommodate many people, which it often does in the summer. However, many of the locals and our home owners look for quieter beaches that attract fewer crowds. For instance there are two beaches just 10 minutes away at Aires de Pollença and Pollentia Mar. These beaches are a little quieter and excellent for families to enjoy a walk along the seafront or find a place to relax and watch the world go by."

Voted Spain's best beach, Mallorca's Puerto Alcudia stretches along five miles of gentle waters making it one of the longest beaches on the island. Described by TripAdvisor as a beach with 'velvety white sands', visitors and residents alike can pick from a quiet stroll around the quaint beach-side fishing village or swimming in the electric-blue sea, to windsurfing and paragliding for the more adventurous.

Source: Taylor-Wimpey Spain

Video - Spain under pressure from EU ministers

admin — Fri, 16 Mar 2012 12:20:00 GMT

Spain is not yet the new Greece but it is raising some eyebrows in Brussels. Mariano Rajoy's new government has admitted it will miss a deficit goal agreed in the new fiscal pact to which Spain is a signatory.

Madrid is hoping to avoid being penalised as it thinks Brussels will recognise the efforts it is making to confront its problems.

Spain's target deficit this year will be 5.8 percent of GDP as opposed to the agreed 4.4.

Its economy is predicted to shrink by 1.7 percent and unemployment has gone up to 24 percent - the highest in the EU.

The problems are crystallised in Peleas de Abajo, Spain's most indebted village. The town hall has borrowed around 5m euros - about 20,000 euros per resident.

Villager Emilio Rivera said:

"The debt's been there for years and to sort it out now is impossible. If we can't get the government to help us out of this crisis it will be impossible. We didn't do anything about it until now because we didn't realise how much debt we were in."

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/03/spain-under-pressure-from-eu-ministers/

Spanish property sales increase by 42.3pc in January

admin — Thu, 15 Mar 2012 11:11:00 GMT

In January, real estate transactions increased by 42.3% compared to December but were down 26.3% compared to the same month in 2011, according to data published yesterday by the National Statistics Office.

86.2% of sales corresponded to urban properties and 13.8% to rural properties, this represented an increase of over 10% in year on year sales of rural property compared to over 21% fall in urban property.

It was a fairly even spread between new and resale properties, although new properties had the stronger showing, taking up 54.1% of total sales, while 45.9% were resales – a reversal of the breakdown for December.

Source: Kyero.com

Spanish house prices return to 2004 levels

admin — Wed, 14 Mar 2012 11:23:00 GMT

The General IMIE Index, an indicator created by Tinsa to analyse the evolution of house prices in the Spanish market, increased its year-on-year decline in February, falling by 9.5% to 1664 points, returning to the levels of 2004.

The cumulative decline from the top of the market in December 2007 increased to exactly 27.1%. 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.

With regards to the performance of the different market segments, “Capitals and Major Cities” once again recorded the severest decline in February of 11.5%, followed by “Metropolitan Areas” with a fall of 10.3%, compared with the same month the year before. In both cases the decline was greater than the market average.

With a similar level to the General Index, the municipalities of the “Mediterranean Coast” segment declined by 9.5% year-on-year.

Source: Kyero.com

Spain and Ireland starting to emerge from downturn say experts

admin — Tue, 13 Mar 2012 02:42:00 GMT

The Irish and Spanish property markets are emerging from the doldrums according to delegates at this year’s MIPIM real estate conference in Cannes.

Experts said that both markets were now proving “interesting” for investors. Pierre Vacquier, chief executive of Axa Real Estate, said “Both Spain and Ireland are interesting investors but Ireland is more attractive as the necessary price drops have taken place.”

Joe Valente, head of research and strategy for the European real estate group at JP Morgan agreed, adding: “We’re looking at doing deals in Ireland and an awful lot of funds are doing the same.”

The head of Deutsche Bank’s property investment arm (RREEF), Pierre Cherki, believes that conditions in Ireland are much more favourable than investors than a year ago. “The Irish economy is at an interesting point in time t buy good assets after taking tough economic decisions early on,” Cherki said.” After sending a RREEF market assessment team to Ireland recently he added, “they reported back that it was an intriguing country. Twelve months ago they made the same trip and said it was too early.”

Source: OPP.org.uk

S & P predicts end to economic crisis in Europe in 2012

admin — Mon, 12 Mar 2012 13:30:00 GMT

The credit rating agency, Standard & Poor’s, believes that the European macroeconomic crisis will not extend beyond 2012, which will result in a “significant recovery” of European real estate markets in 2013.

“Standard & Poor’s Ratings Services believes that the macroeconomic crisis may not extend beyond 2012. We still expect a new recession in Europe, although we believe it will be mild, with a gradual return to growth thanks to the growing demand from emerging countries, the strength of demand in developed countries and the restoration of investor confidence,” said the company.

According to El Economista, the baseline scenario of S & P considers there will be a flat growth of the economies of the eurozone as a whole, with growth of 0.5% in France and 0.6% in Germany, while in UK the gross domestic product (GDP) will grow by 0.5%.

Source: Kyero.com

"No going back" for Murcia's Paramount-branded theme park

Ivan Radford — Fri, 09 Mar 2012 12:51:00 GMT

At a press conference on 23 December the Mayor of Alhama de Murcia, the setting for Murcia's Paramount-branded Theme Park and Lifestyle Centre, said "there is no going back for the Paramount Park" and "there are investors". Local estate agent Mercers believes these reassuring words will silence the Paramount "doubters".

Confidence was further boosted when Proyectos Emblematicos Murcianos SA (PREMURSA), the promoter behind the Park, officially announced that it will purchase the land destined for the project at a cost of 15.8 million euros on 6 February 2012. Details of investors are said to be revealed to coincide with this important transaction.

Chris Mercer, Director of Mercers which is based within ten minutes drive of the Theme Park, comments, "Some have been sceptical about Murcia's grand plans, understandable given the economic climate, however the Mayor has reiterated the importance of the project in guaranteeing work to a whole generation of young people growing up in Alhama de Murcia. Likewise, if PREMURSA has officially stated its intent to spend almost 16 million euros next month we can be confident that they have the backing to proceed - otherwise 16 million euros for what is essentially a rather unremarkable piece of land would be a seriously expensive error. All eyes will be on 6 February in anticipation of the biggest step forward in the project to date."

The land in question is in Alhama de Murcia and extends to just over 1.8 million m² of which 774,777m² will go to the Theme Park itself and just over 1.03 million m² to a Lifestyle Centre which includes seven hotels, restaurants, bars, nightclubs and a business district with modern office space, an auditorium and convention centre. As the land already has plans in place for residential development, planning paperwork should be swift to meet the strict timescales of the Paramount Licensing agreement. Jesus Samper, President and CEO of PREMURSA, has stressed "the importance of exercising the option to purchase these lots" which implies "a considerable step toward the project's execution".

Officially presented in October last year in Madrid, the Paramount-branded Park requires an investment of more than one billion euros but will create no less than 22,600 construction and operational jobs and hopes to attract upwards of three million visitors each year from around the world. Building work is expected to commence in spring 2012 with an opening date slated in for April 2015. PREMURSA has been granted the license to construct and operate the Theme Park, exclusively in Spain, for an extendable 30 year period. The economic impact of the project could make up 2% of the Region's GDP in forthcoming years.

PREMURSA will undoubtedly be pleased with the news that Murcia has five million euros more than 2011 in its budget to promote tourist attractions of the Region. The 11.8 million euro fund will be used on trade exhibitions and media campaigns in Spain and beyond with particular reference to the Paramount-branded Park. Tour operators are already becoming excited about the large-scale tourist attraction, particularly when viewed in conjunction with the brand new Corvera Airport which will be fully operational by late summer this year.

PREMURSA has created an official magazine highlighting the Park's characteristics alongside some interesting statistics: http://www.premursa.com/web2/ES/magazine/3.

Fewer households and other demographic changes reduce demand for Spanish property

admin — Fri, 09 Mar 2012 03:19:00 GMT

“Spaniards of the baby-boom generation went en mass to military service, then to university, and after that to buying a house. But that’s all over.” So said José Luis Jimeno, head of the property company Noteges, quoted in the press, explaining why he thinks we’ll never see a boom like the last one. The collapse in Spanish fertility rates to one of the lowest levels in the world, well below the replacement rate, means there will not be enough future demand to fuel another boom.

Jimeno’s argument is reflected in a recent report on household formation by CatalunyaCaixa, a Spanish savings bank. According to CatalunyaCaixa, household formation (the number of new families) will fall from 400,000 at the peak of the boom, to a forecast of 80,000 in 2015. Fewer Spanish families means lower demand for housing of all types, not least holiday-homes. It follows that Spain will become steadily more reliant of foreign buyers, assuming they can be tempted back to Spain by lower prices.

But in one way “the crisis has been good for us,” argues Jimeno, who says that the only people selling now are forced sellers. “Beforehand everything sold, and the explosion in demand made up for the deficiencies of vendors. That’s no longer the case.” In other words, standards are improving.

Source: SpanishPropertyInsight.com

Currency Watch - Greece, Portugal & Spain are best bets for property in March

Ivan Radford — Tue, 06 Mar 2012 13:32:00 GMT

Currency Index look back at exchange rates in February, and the headlines likely to be affecting rates in March for buyers of overseas property.

February saw the Pound finish the month lower against all major currencies except the US Dollar, where rates improved by 1.08%. The EU bailout of Greece was the main news theme, with austerity measures being passed by the Greek parliament, and relative stability in the Eurozone being the outcome, giving a slightly stronger (more expensive) Euro.

The South African Rand was the most volatile currency, with a range of nearly 4% during February, while the Canadian Dollar was the most stable rate.

The South African Rand also showed the biggest increase in cost, with a Pound going over 3% further at the beginning of February compared to at the end of the month.

While the Greek bailout continues to impact the Eurozone's stability, Currency Index advises overseas property buyers to be aware of key events in March, such as the UK's quantitative easing decision on Thursday 8th March. These events are likely to affect exchange rates and, therefore, have a significant impact upon property prices.

Indeed, applying the recent exchange rate changes to local property markets around the world reveals the real impact upon cost for British buyers. For example, a cash buyer can now pick up a bargain in Greece for nearly 5% less than in recent months - a saving of over £8,000 on a property which was on the market for €200,000.

Brits will be pleased to know that the traditional locations of Greece, Portugal, Spain and the USA have all reduced in price recently, despite exchange rates generally failing to improve further in February.

Your Jetsons home is almost here

admin — Tue, 06 Mar 2012 08:45:00 GMT

In the classic 1960s animated sitcom The Jetsons, everything in the space-age family's home could be controlled by the press of a button on a remote control.

Fifty years later, that futuristic vision is finally becoming reality.

At Mobile World Congress this week, the wireless industry's largest annual convention, companies like AT&T (T, Fortune 500), Qualcomm (QCOM, Fortune 500), Intel (INTC, Fortune 500), and Sony (SNE) are showing off how everything in your home -- from your door locks to your thermostat to your TV -- can be controlled by a smartphone or tablet.

That kind of technology has been demonstrated and discussed for years, but it never graduated past a niche product for the uber rich and extremely geeky. Today, however, the hardware, software, and cloud-based infrastructure necessary to make it a reality is finally inexpensive enough for companies to bring full-home connectivity to the mainstream market.

Source: CNN.com

House prices in Spain fall

admin — Fri, 02 Mar 2012 09:25:00 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.

Source: PropertyShowrooms.com

Spanish job crisis: Go north, young workers

admin — Thu, 01 Mar 2012 09:20:00 GMT

Spain's high unemployment rate of around 23% means many Spaniards, young people in particular, are leaving the country to find work elsewhere. One popular destination is Germany, where the jobless rate is under 7%. But starting afresh in a new country is challenging.

Munich's airport shuttle bus is dropping off newly arrived passengers in the city centre.

Among those getting off are Spaniards Jose Sandino and Juan Alberto Fuente.

Sandino and Fuente are thirty-something industrial engineers from Malaga, in southern Spain. Each has more than a decade of experience under his belt. But Spain's economic crisis has left them jobless. And now it's turned them into immigrants.

Source: BBC.co.uk

House prices down by a third since credit crunch

admin — Tue, 28 Feb 2012 13:29:00 GMT

House prices in the UK fell by 1 per cent in 2011 and by almost a third since 2007, according to the RICS European Housing Review 2012.

This places the UK on a similar footing to several other European nations, although Germany, France, Switzerland and Norway all posted rises of 5 per cent or more.

Ireland and Spain experienced the most significant falls, with drops of -17 per cent and -10 per cent respectively.

Since mid-2007, overall house prices in the UK have fallen by almost a third. This is more significant a drop than seen in Spain (-27 per cent), Italy (-14 per cent), Germany (-11 per cent) and France (-8 per cent), while Sweden and Switzerland have actually seen prices increase in the last five years.

Source: MortgageFinanceGazette.com

Domestic investors 'will dominate Madrid office market'

admin — Tue, 28 Feb 2012 05:25:00 GMT

Madrid's office market is not expected to significantly improve during 2012, despite a strong start to the year.

This is the opinion of Savills, which noted investment in Spanish offices will be limited due to falling demand for space and a lack of confidence in the country's economy.

"It is likely that growth in Spain will remain muted until 2013, and with foreign investment mainly focused on retail, we expect the domestic buyers to dominate the office market this year," Gema de la Fuente, of Savills Research, commented.

One bright spot for the Spanish commercial property sector was the sale of Torre Picasso, a Madrid office development that was purchased for €400 million (£338 million) at the start of 2012. The firm revealed this transaction represented over ten per cent of the total volume of deals completed in 2011.

Source: PropertyShowrooms.com

Spain: 2012 kicks off with 4.6% rise in tourism

admin — Mon, 27 Feb 2012 14:16:00 GMT

Almost 2.8 million foreign tourists came to Spain last month, a 4.6% increase on January 2011.

These latest figures compiled by Frontur and released today by the Ministry of Industry show an increase of 122,000 foreign visitors in January 2012 compared with the same month the previous year, and suggests that the upward trend set last year is set to continue.

Tourism figures went up by 7.6% last year, reaching a total of 56.7 million foreign visitors in one year.

Source: ThinkSpain.com

Demand for Canary Island holiday homes rises

admin — Mon, 27 Feb 2012 13:07:00 GMT

There has been an increase in the number of tourists seeking holiday rentals in the Canary Islands in January, compared to the same month in 2011.

Holiday Lettings revealed demand for this kind of property in Spain climbed by 14 per cent at the start of the year.

According to the organisation, well-known places, such as the Canary Islands, are attracting the most attention, as holidaymakers look for "a reliable climate in the case of winter sun breaks".

Source: PropertyShowrooms.com

Demand for holiday homes set to boost Spanish property this summer

admin — Fri, 24 Feb 2012 11:20:00 GMT

An increase in the demand for holiday accommodation in Spain last year has resulted in more and more Spanish home owners preparing to rent their properties out this summer, providing a welcome boost to the property market.

According to a report from holiday home rentals website HomeAway.co.uk booking enquires for Spain in 2011 increased by 27% in comparison with 2010. As a result, a greater number of British and European buyers are acting now and purchasing a home in Spain with a view to capitalising on this growing rental demand.

Marc Pritchard, Sales and Marketing Manager of Spain's leading house builder Taylor Wimpey España, comments:

"The growth of the rental market has made Spain once again a popular destination for property buyers to invest in, particularly given the readjustment of property prices and abundance of cheap flights. We have seen an exceptionally strong start to 2012 with sales in January markedly up on the same period last year.

"Indeed, to highlight just how much demand Spain is in, as part of London Southend Airport's growth, easyJet will commence new departures each week to a variety of Spanish destinations including Alicante, Barcelona, Ibiza, Malaga and Mallorca from April 2012."

Mallorca is tipped to be a top performing Spanish destination seeing as it registered the highest number of overnight hotel stays in 2011, with 41.6 million, according to data from the National Statistics Institute. Interestingly, online reservations for care hire in Mallorca this summer have also increased by 10% compared to 2011 according to Rhinocarhire.com.

For those thinking about taking advantage of growing rental demand, Taylor Wimpey España has launched Cala Magrana III, following the vast success of phases I and II. The development comprises 20 apartments situated close to golf courses and the marina of Porto Cristo as well as direct access to the sea and the Cala Anguila beach.

Interested in Spanish property?

Browse our listings of houses, apartments and other property in Spain:

http://spain.themovechannel.com/property/all

Spanish property sales head towards record EUR 5B

admin — Thu, 23 Feb 2012 09:45:00 GMT

Would-be investors in Spanish real estate are keen to benchmark overall investments at the mid-point of the first quarter of 2012 as that could confirm record highs for four consecutive quarters.

The magic figure they are looking for is around EUR 500M which would mean around EUR 5 billion of inward investment for Spain’s real estate sector over the last 12 months. This would be a clear signal to buy for most investors and build on the current sales of EUR 11M a day.

Last quarter figures from the Bank of Spain showed investment surging by nearly 28% over the same period in 2010 – exceeding EUR 1B for a run of three quarters, for the first time since the country’s property boom ended in 2008.

The increase in Spanish property sales seen in the last quarter of 2011 has spilled over into 2012 as international buyers secure the best Costa deals with Germany and Nordic countries outspending the Brits, who have been slow to spot the new opportunities.

Source: PropertyInSpain.net

House of the Day: David Hyde Pierce's Spanish Palace

admin — Thu, 23 Feb 2012 09:37:00 GMT

It's a home that even the obsessively picky Dr. Niles Crane would love.

Which is a shame, because it appears that his off-screen self, the Emmy Award-winning actor David Hyde Pierce, is over it.

AOL Real Estate has learned that Pierce has just listed his exquisite, Spanish Colonial-style mansion in Los Angeles for $7.5 million. Granted, Pierce has owned the house for nine years (a lifetime in the fickle world of Hollywood real estate), but if that house were ours, we'd never want to leave.

With 1920s-Spanish features like a grand rotunda entrance, a stunning baronial fireplace, and a gorgeous spiral staircase rising to a stained glass ceiling, the home is anything but your typical California McMansion. The home is decked out in warm, earthy tones and each room is beautifully illuminated by chandeliers or other artful fixtures.

Source: RealEstate.AOL.com

Spanish protests at property repossessions

admin — Wed, 22 Feb 2012 10:00:00 GMT

With millions now out of work and the Spanish economy contracting, one of the country's biggest problems is the vast number of people who now cannot afford the repayments on their mortgage.

In the first nine months of last year, the authorities in Spain repossessed nearly 50,000 properties.

However, as Tom Burridge reports from Madrid, a protest movement is running a nationwide campaign to stop the evictions going ahead.

Source: BBC.co.uk

Video - Spanish ghost towns grow from real estate crash

admin — Mon, 20 Feb 2012 10:30:00 GMT

Empty apartment blocks are haunting Spain as grim monuments to its colossal real estate crash. One man in the industry predicts some ghost towns may get knocked down.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/02/spanish-ghost-towns-grow-from-real-estate-crash/

Foreign investors in Andalucia facing housing demolitions says AUAN

admin — Fri, 17 Feb 2012 02:44:00 GMT

Buyers in the Andalucian town of Albox, Spain, have been given “the devastating news that the courts have again decided that they must face the bulldozers despite the fact that their home was constructed with planning permission from the local council in 2002 and possesses all of its necessary paperwork,” John Hillen of local protest group AUAN told OPP this week.

The news comes as independent figures reveal that January 2012 was the worst the country’s month for home sales since the Spanish housing crisis started four years ago.

The demolition order first appear in 2010 after police served notice that their homes were to be bulldozed after their construction was declared illegal. But, says Hillen, “having overturned the demolition orders on the basis that they had not been informed of the proceedings, the homeowners vowed to fight on. Since then they have engaged in a protracted and expensive court battle to try and defend their homes.”

According to AUAN, “lawyers acting for the regional government (the Junta de Andalucía) successfully argued that the property risked provoking an urban nucleus. The revocation of the building licence was upheld and the retired couple were ordered to pay costs. They are now faced with the prospect of an expensive appeal.”

Source: OPP.org.uk

Spanish property "sells in a day", claims agent

Ivan Radford — Thu, 16 Feb 2012 13:49:00 GMT

Photo credit: Vic Sharp

A Spanish real estate agent has claimed that property in Spain will "sell in a day" - as long as the price is right. José Luis Jimeno, Managing Director of Noteges, told Spanish Property Insight that sellers "have nothing but [their] own unrealistic expectations to blame" if their property fails to sell.

After selling over 6,000 homes in Spain in 2011, Jimeno observes that properties tend to sell at 40 per cent below the average asking price in each region.

His comments arrive just as research reveals the severe extent of Spain's housing woes.

"This housing bust is worse than the previous two", says the Bank of Spain, ranking it above the market's previous dips in 1979 and 2001. "Spanish property prices have fallen for four consecutive years, with the biggest drop happening last year," reads the report, suggesting that it could take up to six years for the real estate market to fully bottom out.

Indeed, Spanish Property Insight has also highlighted 2011 as the "worst year on record". According to expert Mark Stucklin, the market shrank by 19.8 per cent last year compared to 2010. "There was nothing about 2011 to suggest a recovery any time soon," says Stucklin. "That said, it's difficult to imagine that 2012 could be any worse."

Even Valencia, found to be the most popular region for property in Spain by TheMoveChannel.com this month, is suffering. According to MSN, the area now has €20.5bn of debt, equivalent to one-fifth of its economic output, which is "the highest in the country".

Yet some argue the market has never been better.

"Crisis, what crisis?" declares PropertyinSpain.net, a site that sells property in Spain. "Price reductions are good news for both international and Spanish buyers. The affordability ratios are skewed by international buyers who can afford to pay more for prime property in prime locations, whereas Spanish buyers still benefit from improved affordability of the city suburban properties they tend to buy."

The outlook paints a marked contrast to the national figures, but the company is right to highlight the difference between the domestic and overseas markets.

While unemployment in Spain hits record highs and the economy endures austerity measures, overseas investors can take advantage of cheap property prices. Like America, Spain has an inventory of bank-owned repossessions that needs to be cleared before recovery can begin but this backlog is keeping values of holiday homes low.

In a frank and in-depth market analysis of Andalucia (published on Global Edge), property expert Barbara Wood emphasises the contrasting opportunities available to buyers, but points out that overseas investors will not be able to save the country's real estate:

"Even at the high point of the cycle in 2006 when 900,000 units were sold, the overseas market represented only about 10% of buyers so the notion that buyers from overseas will come to the rescue is way off the mark, particularly as they currently only account for 5% of purchases. "

But Wood, founder of buying agency The Property Finders, is optimistic that realistic pricing has started to set in. "I am confident that this situation has finally changed, particularly since the end of summer 2011; asking prices are being reduced in greater numbers and by larger amounts and the trend seems to be accelerating."

As prices drop and the single currency weakens, Brits are regarded by many as the best-placed to buy Spanish property. Robin Haynes, CEO of currency broker Currency Index, explains: "There is a lot of confusion and scaremongering going on in the Euro at the moment but in spite of this, overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able get over 8 per cent more for their money than if they were buying Euros in July last year."

Indeed, with the Bank of Spain revealing last month that foreigners spent €3.6 billion on Spanish property in 2011 - an increase of 27 per cent upon the previous year - the figures suggest that while the market may not recover for at least another 12 months, the country's all-time low is still giving a leg up to overseas investors.

Can you buy a Spanish home in a day?

Browse our listings of houses, apartments and other Spanish property:

http://spain.themovechannel.com/property/all

Investment Watch: Investors go to Disneyland

Ivan Radford — Wed, 15 Feb 2012 13:44:00 GMT

Photo credit: Michael Huey

Real estate investors went to Disneyland in January, reveals TheMoveChannel.com's latest Investment Watch.

The report, which ranks the monthly level of interest in the portal's listings, saw the majority of investors turn to townhouses two miles from Mickey's home in search of a dream come true. The newest vacation home community in the Disney area, the Florida development was built in 2007 but a price reduction of one-third last month saw investors flock to buy a holiday home with strong buy-to-let potential.

While Florida topped the Investment Watch rankings for the second month in a row, Disney was not the only resort to receive attention, with a Bulgarian ski hotspot and a hotel in Marrakech providing popular commercial opportunities for buyers looking abroad. For buy-to-let investors closer to home, student accommodation in London and Cheshire saw similar levels of demand, taking eighth and ninth place respectively.

But January saw a new investment product climb up the chart.

Plots of land in Brazil and the UK generated lots of interest, but a carbon credits project in Australia emerged as the month's second most popular listing, proving that investors don't need to go to Disneyland to find a happy ending.

The alternative investment programme promised a 30 per cent return and a government-backed exit strategy on a reforestation scheme in Victoria - enough to attract almost double the number of enquiries received by a coastal villa in Murcia with 107 per cent finance.

Director Dan Johnson comments: "The demand for Florida's Disney homes was always going to be high - the combination of location, price and commercial opportunity is hard to beat. The popularity of the carbon credits project is more surprising though. Is this a sign that property investors are starting to consider more unorthodox investment vehicles for their capital? That remains to be seen, but with a variety of alternative schemes hitting the market, 2012 looks like being a growth period for that particular sector.

The Top 10 investment properties for January 2012 are as follows:

Rank	Property	Country	Company
1	Disney Pool Townhouse, Florida	USA	Starfish Property Investments
2	Carbon Credits, Victoria	Australia	Best Overseas Property
3	Below Market Value Hotel, Marrakech	Morocco	Best Overseas Property
4	Buy-to-Let Townhouse, Detroit	USA	Target Market Ltd
5	Land Development, Minas Gerais	Brazil	Obelisk
6	New Building Plot, Hampshire	UK	Landmark Developments
7	Ski Resort Hotel, Pamporovo	Bulgaria	Imagine Overseas
8	Student Apartments, London	UK	Principal International
9	Student Apartments, Cheshire	UK	Principal International
10	Financed Beach Villa, Murcia	Spain	Blue Med Repossessions

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Moody’s downgrades Spain’s debt rating

admin — Wed, 15 Feb 2012 10:40:00 GMT

The rating agency Moody’s has downgraded the sovereign debt rating of Spain and five other European countries, while at the same time placing France, Austria and the UK (who are presently enjoying the maximum ‘Aaa’ note), on negative outlook.

The downward revision of the ratings and the outlook for a total of nine European countries, “reflects their susceptibility to the growing financial and macroeconomic risks stemming from the crisis in the eurozone,” the agency explained in a statement.

Thus, the rating agency lowered the note of Spain two notches from ‘A1′ (remarkably high) to ‘A3′ (remarkably low), Italy from ‘A2′ (remarkable) to ‘A3′ and Portugal from ‘Ba2′ to ‘Ba3′ (both in junk bond category), while at the same time placing all these notes on negative outlook.

Source: Kyero.com

Investor appetite grows as commercial foreclosures keep rising globally

admin — Tue, 14 Feb 2012 13:00:00 GMT

While investor appetite rose dramatically towards the end of 2011, the level of distressed properties* coming to the market is set to keep on rising globally, according to RICS.

Released today, the latest RICS Global Distressed Property Monitor reveals that two thirds of the countries surveyed anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise at the fastest pace in the Euro area.

Once again, the countries at the centre of the eurozone debt crisis are worst hit. The Republic of Ireland, Portugal, Spain and Italy expect the highest number of foreclosures. As previous reports have shown, the highly volatile economic and financial context has started to affect steadier markets. Property professionals in France and Germany also anticipate more distressed selling.

Source: Property-Magazine.eu

Boom goes bust in Spain's Valencia region

admin — Tue, 14 Feb 2012 11:05:00 GMT

Once a shining example of Spain's economic boom, Valencia generates grimmer headlines now: corruption scandals, huge debts, austerity cuts and ensuing popular protests.

One photograph encapsulated the happier days: Valencia regional government chief Francisco Camps sitting alongside the city mayor, Rita Barbera, who is all smiles at the wheel of a Ferrari.

The image, republished recently in the leading daily El Pais, harkens back to days of opulence of this eastern, orange-growing region on the Mediterranean coast.

At the time, both politicans were patting themselves on the back for negotiating the arrival of the Formula 1 Grand Prix in Valencia, after having hosted yachting's America's Cup.

Source: News.Malaysia.MSN.com

Property in Murcia being sold at ‘pre- boom prices’

admin — Mon, 13 Feb 2012 10:20:00 GMT

Property in Murcia is being sold at ‘pre boom prices’ according to one local agent.

Barry Aslett has been running Old Farmhouses Spain S.L. Estate Agency for more than 20 years in Murcia, specialising in inland properties, which he believes still offer outstanding value. Unreformed townhouses in historic old town settings can still be purchased for 20,000 euros in this region, or totally reformed cottages with garage, central heating and handmade terracotta floor tiles can be bought for just 120,000 euros.

"I’m selling properties here at pre- boom prices," Aslett said, "the prices inland are equivalent to how they were when I first moved here 20 years ago."

Source: APlaceintheSun.com

Wealthy pouncing on prime Spanish properties as Murcia and Alicante struggle says Lucas Fox

admin — Thu, 09 Feb 2012 02:40:00 GMT

Prime properties in good locations should help the Spanish market begin to show some “positive signs,” international agency group Lucas Fox told OPP this week.

Having analysed the 2011 second half markets in Barcelona, Mallorca, Ibiza and Costa Brava, where the company has its main offices, Lucas Fox concluded that:

• Prices in the prime locations of Barcelona in remained resilient through 2011 but it remains possible to purchase properties at discounts of up to 30% on 2007 prices.

• The Ibiza property market experienced a healthy 2011 with strong demand from international buyers for luxury properties cross the island

• The Mallorca market is currently very slow but there are signs that it will replicate the 2011 success of Ibiza with predictions of increased foreign property investment in 2012

Source: OPP.org.uk

Infographic: Spain - At a Glance

Ivan Radford — Wed, 08 Feb 2012 14:42:00 GMT

The most popular area of Spain for property is the Community of Valencia, according to the latest At a Glance infographic from TheMoveChannel.com. The infographic, which is based upon the enquiries received by the property portal in the last 12 months, shows that buyers scour South-East Spain for real estate, with Valencia attracting 32.24 per cent of all enquiries.

Close behind is Andalucia, which received 30.84 per cent of Spanish property enquiries, followed by Murcia, which accounted for 19.04 per cent. These top three regions carve out a clear favourite corner for buyers, who look almost exclusively at homes for sale in the Costas: Costa Blanca, Costa Calida, Costa del Sol and Costa de la Luz all fall within the three regions, while Costa Brava is located in the other key popular area of Catalunia, which is ranked sixth.

The least popular areas are La Rioja and Cantabria, which saw zero enquiries across the 12 months, indicating an overwhelming focus on holiday homes near the coast rather than inland cities. Even the Community of Madrid, surrounding the country's capital, received just 0.08 per cent of all enquiries, far behind that of rising tourist zone Galicia (0.52 per cent).

Buyers also search for sun and sand away from the mainland. Together, the Balearic Islands and Canary Islands accounted for over 12 per cent of Spanish real estate enquiries on the site. The Balearics alone received 5.13 per cent - more than the whole of northern Spain combined.

Denia, located in the popular Valencian Community, attracted the highest number of destination searches on the portal. Xabia received 3.8 per cent, with four of the top 10 destinations belonging to the Province of Alicante. Given the wider popularity of Spain's island regions, the absence of the Canaries or Balearics from the top 10 suggests that buyers search for property by island as opposed to looking for specific cities.

The infographic also reveals the search behaviour of buyers on Google across the last 12 months. Users hunting for Spanish real estate tend to use general phrases, such as "property for sale in Spain", while the most commonly searched type of property is "houses for sale in Spain". Search activity peaks during the spring and summer months, but "apartments for sale in Spain" attract the most attention in the second half of the year, appearing in almost 1000 more searches from August to October than from February to April.

Click here for the full infographic.

Editor Ivan Radford comments: "Spain: At a Glance continues our series of infographics by giving a new angle on another familiar property destination. While the popularity of the Spanish Costas is well-known, the contrasting lack of attention paid to property in areas away from the coast is quite striking to see.

"It's also curious that searches for apartments increase during the last six months of the year. This could point to a surge in seller activity as well as a spike in buyer interest. Overall, the statistics are a reminder that even during the Eurozone crisis the traditional lifestyle buyer profile lives on."

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack’s Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Spain still reigns for FX but transactions back to the UK rise to nearly a fifth

Ivan Radford — Tue, 07 Feb 2012 13:45:00 GMT

Whilst Spain remains the most popular destination in terms of volume of currency transactions in 2011, interestingly, the UK takes second place with 18% of transactions according to the latest data compiled by FX specialist, Currency Index.

Almost a quarter of all FX transactions in 2011 (24.99%) were sent to Spain, unsurprising given the country's appeal as a top holiday and second home destination. However, while France took the third spot with 14.83% of all transactions followed by the US in fourth place at 9.01%, one of the most surprising results was the volume of transactions sent to the UK last year.

Robin Haynes, MD of award-winning Currency Index explains,

"18.10% of FX transactions, nearly a fifth, last year were made back to the UK. This is most likely a result of people returning home from overseas or in a few cases sending currency to UK-based Euro/USD accounts for example, which can be overseas properties where a lawyer's client account is in the UK for example. In addition, part of these transactions will be business clients repatriating income and also individuals earning money abroad. It really is amixed bag but of note none the less.

"In Q4 2011, there was a 15% increase in people bringing money back to the UK probably due to the Euro crisis which sparked panic and saw people moving money back to locations seen as safe havens."

Indeed, the Eurozone sovereign debt crisis has caused fear to spread but for those considering buying property abroad, the reduction of the value of the single currency means that now is in fact one of the cheapest times to buy a place in the sun.

Haynes comments,

"There is a lot of confusion and scaremongering going on in the Euro at the moment but in spite of this, overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able get over 8% more for their money than if they were buying Euros in July last year."

Buying property abroad?

Visit TheMoveChannel.com's dedicated currency exchange channel:

http://currency.themovechannel.com/

Alicante revealed as top destination for British travellers in 2012

Ivan Radford — Thu, 02 Feb 2012 13:05:00 GMT

Alicante takes the top flight destination spot for Brits travelling abroad in 2012 it has been revealed by price comparison website dealchecker.co.uk.

Up five places from last year, Alicante has always been a popular destination, offering great value getaways. A fall in local prices on everything from a restaurant meal to sun cream combined with the fact that the pound is at a two year high against the euro has made the Costas even more affordable this year according to an annual survey conducted by the Post Office.

Marc Pritchard, Sales and Marketing Manager of Taylor Wimpey España comments:

"In today's holiday market, people are looking for the best available deals to get the most for their money, and places like Alicante offer just that. To highlight just how affordable, the recent Post Office Survey highlighted Spain as the second cheapest destination with a price of £37.72 for eight everyday items. In tough economic times, holiday makers prefer to stick to what they know and the cheaper cost of travel and living in Spain will make the country even more attractive to bargain hunters this year."

Last year, over 286 million overnight stays were registered in Spanish hotels, representing an increase of 6.4% over the previous year, according to the National Statistics Institute (INE). Indeed, this trend looks set to continue according to a recent report from low cost airline Jet2.com and package holiday specialist, Jet2holidays where 1 in 3 sun seekers stated that they will be heading to the Iberian nation for their main holiday in 2012.

Making travelling to Spain even easier this year, Vueling, Spain's low cost airline, announced it is adding two new destinations to its list seeing new flights from Cardiff Airport to Alicante and Palma, Mallorca this summer.

Pritchard comments: "This is excellent news for Spain. These routes are to very popular holiday destinations and have the potential to significantly increase traffic to Spain. We are even more excited by the increase in passenger numbers this year as we have just completed the purchase of an amazing and unique first line plot of land with direct beach access in Villajoyosa between Alicante and Benidorm. This kind of location has not been seen on the international second home market for years and we are confident it will be a hit."

Looking for a more permanent vacation this year?

Browse our listings of houses apartments and other Spanish property:

http://spain.themovechannel.com/property/all

Girona proving to be one of Spain’s better performing property markets

admin — Tue, 31 Jan 2012 12:18:00 GMT

Girona has been named one of Spain's best performing real estate markets thanks to a variety of unique assets, according to an independent market research study based in Madrid.

Whilst the overall Spanish property market experienced a downward trend in 2011, prices in several towns in the province of Girona remained stable with increased demand from buyers in France, England, Scandinavia and Russia.

This increased demand and the consistency of property prices can be attributed to Girona's temperate year round climate, its proximity to the coast, the Pyrenees and Barcelona and the wide range of leisure, culture and haute cuisine available within the region.

Furthermore, the sterling's current strength over the Euro alongside the continuation of the reduction of VAT to 4% throughout the country suggests that 2012 will be an opportune year to invest in the region. To add, the region was recently named the best golf destination in Spain by Today's Golfer Travel Awards.

Source: PropertyCommunity.com

Spain jobless rate soars to 17-year high

admin — Mon, 30 Jan 2012 13:25:00 GMT

Spain's unemployment figure has topped 5 million, the highest rate for 17 years.

The National Statistics Institute says 5.27 million Spaniards are out of work, representing an unemployment rate of 22.85 per cent - twice the eurozone average.

Young people were hit especially hard, with more than half of 16- to 24-year-olds - 51.4 per cent - looking for a job.

The new government has announced a new round of austerity cuts but many doubt it will achieve pre-election pledge to reduce the deficit to 4.4 per cent this year.

Source: ABC.net.au

High end Spanish property performing well

admin — Fri, 27 Jan 2012 06:48:00 GMT

Despite tough market conditions for property in Spain, one company has posted their most successful operational year to date in 2011, showing the appetite for high end Spanish real estate has not waned.

2011 saw Lucas Fox doubling its staff, opening new offices and posting record breaking third quarter profits of 19.5 Million euros, proof of the continued appeal of Spain among the cash rich. Among the most popular areas for investment were Barcelona, the Costa Brava and Mallorca where investors snapped up boutique and luxury pads.

Aimar Valls, Head of Commercial & Investment Property commented, “In the last year we have received a dramatic rise in both the quantity and quality of enquiries for commercial and investment property. Central Barcelona is a hot-spot for hotels, hotel projects and buildings with potential for tourist apartment rentals.

And the company is also optimistic about their fortunes in 2012. Director Alex Vaughan explains, “Our transaction pipeline is already looking strong and the outlook for the year is very encouraging. We start 2012 with over 5,000 active property buyers registered from Northern and East Europe, Russia, Scandinavia, the Middle East, the U.S and China.”

Source: APlaceintheSun.com

The Property Inspector: What's in store for 2012?

admin — Thu, 26 Jan 2012 13:46:00 GMT

Photo credit: Snowshot

TheMoveChannel.com's Property Inspector: Taking a closer look at global real estate each month.

As January draws to a close, TheMoveChannel.com's Property Inspector quizzes the agents who received the most enquiries on the overseas property portal last year. They talk exlusively about the successes - and failures - of 2011 and what's in store for 2012.

Is America really recovering? Should buyers avoid Greece? Has luxury property in Portugal had its day? Can Spain's rental yields stay strong? The Property Inspector asks the experts to point investors in the right direction for 2012.

Assetz (Overseas Property)

How would you sum up last year?

"2011 was a year for buyers, not sellers. Returns on investment were mainly represented by rental income rather than capital growth and indeed most markets saw price stability or falls rather than growth. Some markets like Ireland and the US saw further falls, the UK and Dubai saw broad stability but few markets other than London saw strong growth.

"Nonetheless distressed sale prices to investors, rather than high street pricing, have risen in 2011 and in due course we expect high street/ estate agent public facing prices to start rising again. This remains a market where good buys are defined by their defensive income characteristics that can underpin prices."

What do you expect from 2012?

"At Assetz we like to focus on investment rather than speculation when it comes to the overseas property market. Countries such as Spain present an excess of supply meaning that rental income levels can be weak for a long time, hence holding back prices in our view. This provides buyers with potentially low purchase prices, but due to this over-supply, rental yields will be limited and long-term growth would remain speculative depending on a country's economic state farther down the line.

"One of the biggest challenges in 2012 will be the mortgage markets. In Europe we are seeing the beginning of a very bad year for mortgage availability with the new bank capitalisation rules crushing banks' ability to make new loans for at least 2012, if not 2013 and onwards. The US already has a dearth of any finance at all for investors and whilst we do not think Europe will be as bad we still expect problems."

How much risk is there in Europe?

"The greatest risk may be Greece who in our view is the most likely country to leave Europe in due course and if they did their currency could devalue by 50-60% leaving property owners nursing huge losses. Greece is a country to avoid until they exit the Euro and devalue or it becomes clear they never will. "

What about the USA?

"The USA provides a much stronger platform for traditional investors. Due to a large number of foreclosures, coupled with a decline to the point of halting in new builds, property in the USA has dropped significantly in price as it at the best affordability level ever. The concept of supply and demand is key in the US as, with few new homes being built, currently available properties which are heavily discounted, still offer exceptional rental yields as home-ownership has declined from 70% to 60% in just a few years.

"Recent reports regarding key areas of the United States have begun to suggest that we have seen the bottom of the property cycle and are entering a period of slow, but steady growth. 2012 is a significant year in which to invest in the USA."

How are you starting the New Year?

"The rule of thumb remains that safer investments are where substantial rental demand still exists and very limited new supply is forecast. There are not an abundance of these locations but Florida is currently one of them and we have also started to develop a tourist resort in Cape Verde, Santa Monica Beach Resort and Spa, due to the rapidly rising tourist numbers and the almost non-existent property development on the islands creating a perfect supply demand imbalance. True investments are out there, you just need to find them with careful research."

View property at the Santa Monica Beach Resort and Spa in Cape Verde.

Best Overseas Property Investments (Spain / USA)

How would you sum up last year?

"It was good - the market conditions were as good as any I suppose. Primarily in the Costa Del Sol, where we had a number of good projects with 100 to 107 per cent mortgages, good discounts of 10 per cent or more. That's the core of our Spanish business. We do a lot of lifestyle buyers, interested in either very cheap properties or properties with potential for investment."

What do you expect from 2012?

"In December and January we've had about 150 enquiries for Costa del Sol. It's the perfect time to buy property in Spain because of the reductions and the mortgage deals. I read an article somewhere, but about 40 per cent of the new build stock in the Andalucía region has sold in the last 12 months. Banks are a little fussy but they're offering good mortgages."

Can Spain recover from the Euro crisis this year?

"I think Spain will recover tremendously this year. The fact that the number of off-plan and new build properties has reduced so significantly in the last 12 months is going to be good even for retail vendors."

How are you starting the New Year?

"In Spain, we're getting the most interest in Costa del Sol. Mallorca is exceedingly popular, that's our number two area. But a lot of our work is in America, in North Dakota, a development which has gross yields of 47 per cent and net yields of 37.7 per cent. They've worked out how to access the oil there by a process called fracking and there are basically 15,000 miners camped out there in cars and caravans... it's just the best investment that's been on the market for the last ten years."

View properties ready to let in North Dakota.

Aspen Woolf Europe (Brazil)

How would you sum up last year?

"2011 was our best year on record for property in Brazil. With nothing but bad news coming out of Europe, it's been a pleasure to work in a part of the world that's actually booming. Brazil enquiries were up 40% on the previous year so it's clear we're not alone in choosing Brazil as our leading market for investment."

What do you expect from 2012?

"Brazil ended 2011 well, jumping to 6th place in global economic rankings and all the indicators are there for another strong year for growth, maybe even 4%. I think the next 3-4 years will be the key time to take advantage of the property market. Prices are still very affordable - you can get a house close to the beach for under £60k - and some developers will offer financing so you can spread payments over a number of years. After the Olympics in London, the spotlight will be very much on Brazil as they prepare to host the world's biggest events, the World Cup in 2014 and Olympics in 2016."

How are you starting the New Year?

"2012 will be a very strong year for Aspen Woolf with new offices opening in Brazil as we expand our operations outside Europe. We'll be introducing some new low cash-input projects in and around Natal and Fortaleza and we look forward to launching our very own Brazil project in Q2. We've also highlighted 3 other markets which we believe will offer good opportunities in 2012: the US, UK & Turkey!"

View two-bedroom apartments in Brazil.

CSF Property (Portugal)

How would you sum up last year?

"2011 was a steady year for Portuguese property. To give you an idea, in 2009 we had people coming over wanting to borrow 80 per cent, in 2010 that started to change a little bit: more people with more cash. 2011 was more people wanting to take 50 per cent mortgage, 50 per cent cash, but wanting more expensive properties. Towards to the end of 2011, banks started creeping back, lending 70 per cent. Now they're lending 80 per cent again. In the beginning of 2011, we had the bail-out, but it's starting to get better, you know?"

What do you expect from 2012?

"This year, at the start we're selling not so many villas - it's more townhouses."

Has luxury property had its day?

"Yes. There's not a lot moving above £500,000. Albufeira in the Algarve has become more attractive from a price point. Back in the peak of the market in 2006, a nice townhouse was €300,000. You can pick that up now for €220,000. It used to be that a two bedroom apartment was €220,000, so you're getting a house with a pool for the price of a two-bedroom apartment."

How is Portugal responding to the Euro crisis?

"Portugal has been quite sensible. They've raised taxes, they haven't spent as much on Christmas and roads and things like that and we're starting to see some light. "

"We sell property in Spain's Costa del Sol as well and the big thing about the Algarve? There are 54 new developments on the books at the moment, each one with an average size of 40 properties. In the Costa, there are 1,600 developments, each with an average size of 200 units. There's no oversupply here and that's the one thing that's saving the market."

What are your plans for the New Year?

"We've got a frontline beach development we're pushing heavily in Lagos - Lagos was voted the number one place to be by The Independent. We've got the last ever beachfront properties that are new build for sale. There are no more licenses being granted in Lagos for beachfront properties. And they're two-bedroom apartments at €345,000. They're being built at the moment - they're finished in March this year. It's only 20 units, but it's nice. We're taking reservations now. They pay 30 per cent now and pay the other 70 per cent on completion."

View two-bedroom properties in Lagos.

Where are you planning to invest in 2012?

Browse our listings of houses, apartments and other overseas property:

http://www.themovechannel.com/property/all

Mercer calls for calm after change in law on Spanish ID numbers

admin — Wed, 25 Jan 2012 05:00:00 GMT

Spanish overseas property agent Chris Mercer has reacted to angry protests over the way in which the Spanish government has introduced new rules on how home buyers from abroad obtain their foreign ID Numbers.

He has called for a calmer approach this week after a small number of agents complained that the new rules would see investors in the already troubled Spanish property market “treated like a piece of dirt” at the local police station. Others said that they had “serious concerns”.

The flare-up has been caused by a change in the law, which states that from January 3 2012, the Spanish authorities have changed the rules on how foreign property buyers obtain their fiscal identification number or NIE. A power of attorney is no longer acceptable and every purchaser now has to attend in person, applying at either an approved office in Spain or at their local Embassy.

For Mercer, the complaints are a storm in a teacup. “We have never, in 28 years of trading, had a problem with buyers obtaining their NIE in person,” he told OPP.

Source: OPP.org.uk

Spain is where British expats are happiest, survey finds

admin — Tue, 24 Jan 2012 01:41:00 GMT

British expats are happiest in Spain, followed by Canada and Germany, according to new research which also examined their cost of living and financial well being.

New Zealand ranks highest on quality of life and tax free United Arab Emirates rated as the best destination for expats’ financial prospects.

The survey by Lloyds TSB International also found that overall British expats are far happier in their adopted countries than in the UK.

Overall, 68% of those asked said that they felt happier where they were than in the UK, although for certain countries this figure was much higher. Spain ranked number one for expat happiness, with over three quarters, 75.9%, of Brits living there saying they are happier than back at home. Germany also rates highly on the happiness scale with 71% saying they are happier than in the UK.

Source: ExpatForum.com

Bank of Spain forecasts contraction of 1.5pc in 2012

admin — Mon, 23 Jan 2012 12:30:00 GMT

Spain's central bank on Monday forecast that the country, which is struggling to slash its deficit and debt, will fall back into recession this year with a contraction of 1.5 percent.

The Bank of Spain said however it expects Spain's economy to make a modest rebound in 2013 with growth in gross domestic product (GDP) of 0.2 percent.

It added that it estimates the economy to have grown by 0.7 percent in 2011.

"In 2011 the modest recovery which the Spanish economy began a year earlier weakened as the eurozone sovereign debt crisis extended to a greater number of countries and financial market tensions strengthened," it said in a report.

Source: Google.com

7 things that won’t happen in 2012

Ivan Radford — Fri, 20 Jan 2012 13:11:00 GMT

As Europe continues to struggle with debt, the future of global property is increasingly uncertain. Reports suggest gradual recoveries one week, financial slides the next, while some people still believe that the world will end in December. With potential apocalypse on the horizon, how do you know what property to buy or where to invest?

To clear up the confusion, here are seven things that won't happen in 2012:

London cancels the Olympics

Photo credit: SouthEastern Star

The stadium has been built, the athletes have started training and the invitations have been sent out. London can't back out now, even with the UK economy struggling. Whatever happens in 2012, the Olympics will go ahead, and the Olympic village homes will hit the market. Good news for sports fans - and for landlords in East London, where property values are likely to pole vault upwards.

No-one goes to university

Photo credit: Tulane Public Relations

Fees are rising and unemployment is at an all-time high, but even if British youth are losing interest in higher education, foreign students are still applying to study in Britain. Indeed, two separate agencies (Knight Frank and CBRE) have both recently shown demand for student accommodation rising, with occupancy rates at 99.9 per cent and cities outside of London with more than one university highlighted as having the cheapest prices and the highest yields.

Everyone gets a job

Photo credit: John Keogh

2.68 million people are now unemployed in the UK - a 17-year high for the country. With government spending cuts in full force, lots of residents will be without a job during the coming 12 months. The same is true of many countries around the world as austerity measures are enforced. As first time buyers struggle to finance a new UK home, rental demand and rates may continue to increase, further strengthening the opportunities for buy to let investors.

Foreclosures finish forever

Photo credit: Sean Dreilinger

Foreclosure rates are beginning to decline across America. But even in states such as Las Vegas, where property sales are breaking records, there a large housing supply left to shift. The US government are now proposing to sell off bank-owned homes in large numbers to companies for letting, but whether you buy in bulk or invest in a single property, 2012 will still see foreclosures in America - and around the world - offering cheap property for overseas buyers.

No-one in the UK retires

Photo credit: Garry Knight

The default retiring age has been abolished in the UK, but people won't work forever. In fact, 22 per cent more people will retire this year, according to the Department of Work and Pensions, as the number of post-war baby boomers reaching retirement age is expected to jump by 150,000. Active living resorts in France and other countries will hope to soak up the over-50s market, while commercial property investors will hope to soak up the profits.

Someone solves the Eurozone crisis

Photo credit: Eisenrah

Bailouts and bonds are trading hands as quickly as new governments are elected, but the Eurozone crisis is far from over. Deficits plague everywhere from Spain to Cyprus and while France and Germany may be expected to stay resilient, the unpredictable markets can create unexpected options for careful investors. Portugal, for example, saw a surprising surge in buy to let investment at the end of 2011, while Spain's house prices remain low enough to attract lifestyle buyers looking for affordable holiday homes.

People stop buying property

Photo credit: Images_of_Money

The markets may be slow and the Eurozone crisis may cause concern, but people are still turning to property for a secure place to put their money. London's real estate market continues to be driven by wealthy overseas buyers looking for an investment safe haven and if 2011's record-high prices for prime city property are a reliable indicator, that is definitely set to continue this year.

Unless, of course, the Mayans were right all along.

Hunting for a new home in 2012?

You don't need a crystal ball to browse our listings of houses, apartments and other overseas property:

http://www.themovechannel.com/property/all

Europe dominates Brits' wanted list according to exhibitions' poll

admin — Fri, 20 Jan 2012 13:08:00 GMT

British overseas buyers still retain Spain as their preferred foreign hotspot for purchasing property according to A Place In The Sun’s (APITS) recent exhibitions’ poll.

The research, conducted at APITS’ Live exhibitions in London and Birmingham, revealed Spain as the top destination, followed by other European countries France, Portugal and Italy. The United States completed the top five.

Liz Rawlinson, editor of A Place in the Sun magazine, said that the survey revealed "UK buyers as sticking to tried and tested European countries – yet also willing to travel further to destinations such as Florida and the Caribbean to find the perfect holiday destination."

Source: OPP

Foreigners spend €3.6 billion on Spain

Ivan Radford — Thu, 19 Jan 2012 13:00:00 GMT

Photo credit: Drumsara

Foreigners spent €3.6 billion on Spanish property last year, according to new figures. International buyers were keen to pick up cheap real estate in Spain, the Bank of Spain has revealed, as overseas investment in 2011 increased by 27 per cent compared to the previous year.

With unemployment in Spain currently the highest in the Eurozone, the country is looking to overseas investors to boost its failing property market. The rise in sales last year marks a second year of growth in international investment with 2011 beating the total value of transactions in 2010, when the amount spent on Spanish real estate by foreign buyers jumped by 2.9 per cent.

That increase in 2010 was welcomed by industry figures as the market's first positive sign since 2003. As house prices continue to drop in 2011, that buying trend has continued for a second consecutive year. Indeed, according to Property Showrooms, "more than €1 billion was invested over three consecutive quarters last year - the first time this has happened since 2008."

The country's economic outlook remains poor, but foreign investors looking for cheap holiday homes are enjoying the declining property values. Rents, in contrast, increased by 0.8 per cent in December - a slower rate of growth after a rise of 1.2 per cent at the start of 2011, according to Kyero, but still offering buy-to-let potential in the right locations.

One trend definitely carrying over into 2012 is the reduced VAT rate on new build properties. In an ongoing effort to reduce the country's surplus housing stock as well as stimulate construction and attract investors, the government has again set VAT at 50 per cent until the end of 2012, making buyers of new homes liable for only 4 per cent of the purchase price - the equivalent of saving €8,000 on a €200,000 home.

Some have extended this discount further, with house builder Taylor Wimpey España suspending VAT altogether until the end of February. Marc Pritchard, Sales and Marketing Manager of Taylor Wimpey España explains: "Not only will buyers be feeling the benefits of the government reduced IVA (VAT) rate of 4% but they can take advantage of special offers such as our VAT free properties available until the end of February."

With the pound strengthening against a weak Euro, cheap homes may become even more affordable in the coming 12 months. Will that be enough to support Spain's housing market?

"2012 is set to be the year to invest in Spanish property," claims Pritchard. If momentum continues after the 24.7 per cent increase in foreign investment reported last month, the Spanish homebuilder may be proven right.

Not ready to spend €3.6 billion on a home?

Browse our listings of affordable Spanish homes, apartments and other property:

http://spain.themovechannel.com/property/all

Investment Watch: Florida flies to the top

Ivan Radford — Wed, 18 Jan 2012 12:45:00 GMT

Florida has flown to the top of TheMoveChannel.com's latest buy to let listings, according to the latest Investment Watch. The report, which ranks the monthly level of interest in the portal's listings, saw a Florida condo follow a Michigan apartment in November to become the most popular property on the real estate site at the end of 2011.

The two-bedroom US property is an example of the current trend for buying tenanted homes, which promise investors up to 14 per cent net returns. This type of investment remains the most popular category on TheMoveChannel.com, occupying the top two spots in the Investment Watch chart. Buy to let demand in the UK was so strong that off-market city apartments in Leeds remained in the Top 10 for the second month in a row, rising up the ranks to attract the second highest number of enquiries in December.

While buy to let demand dominated, however, Spanish property was the month's main player. After Spain's earlier Top of the Props victory in December, the most popular country on the portal went on to occupy three positions in the Investment Watch Top 10.

The first, an Andalucian beach house, offers a mortgage that includes the sales price and VAT as well as stamp duty. Such low prices and finance options were the main cause for Spain's consistent level of interest as lifestyle buyers continued to look for cheap overseas bargains.

Two-bedroom apartments in Marbella occupied fifth place, also boasting price reductions of 52 per cent with an inclusive finance plan, while the sixth most popular property listing in December belonged to a three-bedroom town house, similarly reduced for a quick sale.

In addition to their discounted values, the three Spanish properties have another thing in common: they are all located in the Andalucia region, suggesting that the South of Spain is a particular area of interest for investors.

The Top 10 Investment Properties for December are as follows:

Rank	Property	Country	Company
1	2-Bedroom Condo, Florida	USA	Investor Income Properties
2	Off Market City Apartment, Leeds	UK	Real World International
3	Front Line Beach House, Andalucia	Spain	Blue Med Repossessions
4	Brazil Armchair Investment, Natal	Brazil	SPC Overseas Realty SL
5	2-Bedroom Apartments, Marbella	Spain	Best Overseas Property Investments
6	3-Bedroom Town House, Andalucia	Spain	Best Overseas Property Investments
7	Coastal Villa, Playa Azul	Costa Rica	CR-Home.com
8	Marina Studio Apartment, Dubai	UAE	Select Property
9	Mountain View Village, Cayo	Belize	The Zen Investor
10	Luxury Penthouse, Rio Grande do Norte	Brazil	Aspen Woolf

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Video - Spain most searched for travel destination in 2011

admin — Wed, 18 Jan 2012 12:00:00 GMT

The resorts of Spain have once again topped the list of the UK’s most searched for travel destinations, just ahead of New York, while Estonia and Iraq were the fastest rising searched for destinations in 2011.

That’s according to a new travel trends report from travel search site Skyscanner, which details the most searched for destinations on their website in 2011 and predicts the hottest travel spots in 2012.

Watch the full rundown of destinations on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/01/going-anywhere-nice-this-year/

Property investors 'focusing on prime locations' in Andalucia

admin — Mon, 16 Jan 2012 11:59:00 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.

Source: Property Showrooms

Markets mixed on ratings cuts of eurozone countries

admin — Mon, 16 Jan 2012 11:55:00 GMT

European stock markets have opened slightly higher following falls in Asia after Standard & Poor's (S&P) cut the credit rating for France and a number of other European countries.

The main French and German indexes were up about 0.3%, while the UK's FTSE 100 was flat.

Earlier, Japan's Nikkei index fell 1.5%, South Korea's Kospi slipped 0.8%, while Australia's ASX lost 1.2%.

Analysts warn markets will be volatile until the eurozone issues are resolved.

Source: BBC

Spanish property prices drop 4% in 2011

admin — Fri, 13 Jan 2012 03:42:00 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.

Source: PropertyShowrooms.com

House builder forecasts positive year for Spanish property

Ivan Radford — Thu, 12 Jan 2012 12:57:00 GMT

A growing number of experts believe that the Spanish property market is showing signs of recovery following the well documented economic crash which has plagued numerous global property markets.

With a brand new year ahead, we ask award-winning Spanish property builders Taylor Wimpey España for insight into the future of Spanish property in 2012. With years of experience in building some of Spain's most highly regarded properties, Sales Manager Marc Pritchard suggests that the Spanish market has now reached the bottom and will move in a positive direction this year, highlighting a number of aspects that will aid Spain's recovery.

Sale prices in Spain for quality properties in prime locations were stable in 2011 and Pritchard indicates that this trend will continue into 2012 while properties in less popular inland locations that have reduced infrastructure or no views will drop further in price. Pritchard predicts that a greater number of lifestyle buyers will enter the second home market this year with very few looking for rental returns. He suggests that the average age of the property buyer will rise up to 55 years old signalling that lifestyle attributes will be of greater importance in 2012.

Furthermore, Pritchard explains that this year is likely to see inflation increase in the UK, with rising interest on bank accounts and unstable stock markets pushing British buyers, Spain's strongest market, into investing their money in Spanish property.

Finally, when it comes to Taylor Wimpey España this year, Pritchard comments, "We expect sales levels this year to be in line with 2011, however seeing as we will have additional sales outlets, new developments launching in 2012 and are covering the reinstated IVA tax now at 4% on new build properties until the end of February 2012, we are expecting sales numbers to increase making for an exciting year at Taylor Wimpey España."

Spanish banks lending over 100% on repossessed properties

admin — Wed, 11 Jan 2012 09:34:00 GMT

Spanish Banks are prepared to lend over 100% on their own properties that have been repossessed, it has been revealed.

They are also selling them at rock bottom prices to attract buyers so that they can reduce the amount of property on their books.

According to Adam Cornwell, managing director of Feltrim International these are quality properties in desirable areas.

Recent reports from a leading risk adviser say banks have around €30 billion worth of property that they can’t sell.

Source: PropertyWire.com

Agents say Spain's zero growth is good for investors

Ivan Radford — Tue, 10 Jan 2012 11:15:00 GMT

Spain's property market will not grow in 2012, the Fitch ratings agency has predicted. The country's GDP growth is forecast at zero per cent, with Fitch adding that any growth will be limited to the long term, but agents are confident that the country's continuing debt crisis remains good news for investors.

With property prices declining by 8.9 per cent in the third quarter of last year, according to the recent Scotiabank report, houses in Spain are now over a quarter cheaper than in 2007. This represents a market full of bargains for foreign buyers, boosted by the government's decision at the beginning of the year to reinstate 2011's reduction in VAT.

While Spanish officials have since announced plans to raise income taxes to encourage economic growth, at the moment VAT remains 50 per cent cheaper for new homes, with a stamp duty of 1.2 per cent.

Sergio Bolivar from CSF Property comments:

"This means that a person who buys a new property worth €200,000 will save €5,600 compared to buying a second hand one. Even with the European climate the way it is, now is a great time for investors to pick up affordable Spanish property.

Bolivar adds: "In the last month we have helped clients save 1000s of Euros when buying a property in Spain."

Paramount Spanish theme park land deal due next month

admin — Mon, 09 Jan 2012 11:25:00 GMT

The land for the Paramount branded theme park in Murcia, Spain, will be officially signed off next month, it has been confirmed.

The Mayor of Alhama de Murcia and local estate agent Mercers said that the deal will finally silence a group of ‘doubters’ who thought the international brand might back out because of the global economic downturn.

But Proyectos Emblematicos Murcianos (PREMURSA), the promoter behind the park and lifestyle centre, confirmed that that it will purchase the land destined for the project at a cost of €15.8 million on 06 February 2012 when details of investors will be revealed.

Source: PropertyWire.com

Unemployment in Spain climbs to 4.4 million at end of 2011

admin — Fri, 06 Jan 2012 06:36:00 GMT

The “bad and negative” unemployment figures place the future of the welfare state in question, Economy Minister Luis de Guindos said. More than 4.42 million Spaniards were out of work at the end of 2011, an increase of 7.86% over December 2010 and the highest total since 1996.

The statistics confirm “the deterioration of the economic situation in the second half of the year,” the secretary of state for Employment, Engracia Hidalgo, said.

Spain’s unemployment rate, nearly 23%, is the highest in the developed world and more than 45% of Spanish youth are without jobs.

The 2011 unemployment report comes less than two weeks since Rajoy took office pledging to make job creation a priority. With this target in mind PM Rajoy called on Spanish unions and employers’ associations to agree by the end of this week on a new overhaul of labour law.

Source: MercoPress.com

Valencia government looks to stimulate overseas demand

admin — Thu, 05 Jan 2012 06:40:00 GMT

The regional government in Valencia, Spain, has set up a special commission to study ways in which the region can sell more homes to overseas property buyers.

Up until the crash, 23% of properties sold in Valencia went to buyers based abroad and the commission has been asked to look into new ways to stimulate demand from overseas investors.

“We have to find out where the housing stock is and who the potential buyers are,” Isabel Bonig, the Valencian minister responsible for housing told OPP. And it is an important market to get right … 30% of all properties sold to foreigners in Spain are from the Valencia region. Alicante is the most popular area with overseas investors.

The commission will include government officials as well as representatives from the legal side of the business and from the commercial sector. The local chamber of commerce will be involved, and it members will be asked how the area should stimulate demand and promote its real estate opportunities via websites and other types of marketing.

Source: OPP.org.uk

Top of the Props: Spain reclaims property crown

Ivan Radford — Wed, 04 Jan 2012 12:05:00 GMT

Photo credit: Dale Musselman

Spain has reclaimed its property crown, according to the latest Top of the Props report from TheMoveChannel.com. Following America's unexpected victory in November, US property fell in popularity last month, dropping three places in the overseas portal's chart.

That dip was all Spain needed to soar back to top spot, along with several other property stalwarts. After buyers seemed to flock to America to avoid Europe's troubled markets, Spain, Portugal and France charged up the table, pushing America down to fourth. In total, the top three destinations accounted for just over a third of all enquiries on the site in December.

While US enquiries fell by 7.32 per cent, Spain's popularity dropped by only 0.18 per cent. This steady level of attention, driven by low prices and the country's reduction in VAT during 2011, reflects the continuing demand for Spanish property from lifestyle buyers.

Indeed, investors returned to old favourites France and Portugal too. France's enquiries increased by 1.05 per cent to hold third place, proving that holiday home demand can still buck the Eurozone's downward trend if the prices are right. Italy's enquiries increased in December as well, but its smaller monthly rise of 0.65 per cent was still not enough to compete with November's victor.

The end of 2011 also saw a last-minute rush of attention for Barbados and Morocco. The two new entries to TheMoveChannel.com's Top 10 replaced Cyprus and Greece at the bottom of the table. Coupled with the rise of the United Arab Emirates, which jumped a hefty eight places to number 12, it suggests that despite Spain's return to form, investors are still willing to look elsewhere to avoid Europe's more troubled economies.

Managing Director Dan Johnson comments:

"As 2011 ends, the fluctuations in the Top 10 show the changing buyer demands in an uncertain market. Spain has always been a traditional choice for lifestyle buyers, as evidenced by the constant level of interest in the country. In fact, for the majority of last year, Spain was the most sought-after property destination on TheMoveChannel.com, so its return to the top spot seems an appropriate end to the year.

"Barbados and Morocco are equally attractive lifestyle choices that are free of Eurozone anxiety, but France and Portugal's strong performance in December is a reassuring sign for more familiar property markets. As the New Year begins, we shall see if the popularity of these European countries will be strong enough to weather the economic climate in 2012."

The full breakdown of the Top 40 is as follows:

Overall Enquiry Volume for December 2011
Rank	Country	Share	Change
1	Spain	15.45	Up 1
2	Portugal	9.15	Up 2
3	France	8.98	Non-mover
4	USA	8.96	Down 3
5	Italy	5.27	Non-mover
6	Brazil	5.1	Non-mover
7	Turkey	3.44	Up 1
8	Bulgaria	2.7	Down 1
9	Barbados	2.31	Up 4
10	Morocco	2.29	Up 9
11	Germany	2.24	Up 3
12	UAE	1.85	Up 8
13	Thailand	1.7	Up 2
14	Cyprus	1.63	Down 5
15	Greece	1.57	Down 5
16	Poland	1.39	Up 1
17	India	1.37	Up 1
18	Canada	1.22	Up 4
19	Malta	1.2	Down 3
20	Cayman Islands	1.09	Down 9
21	Montenegro	1.07	Up 4
22	Belize	1.02	Up 9
23	Costa Rica	1
24	Hungary	0.94	Up 3
25	Cape Verde	0.87	Down 13
26	Croatia	0.87	Down 5
27	Egypt	0.78	Down 4
28	Switzerland	0.74	Up 7
29	St Lucia	0.7	Down 5
30	Philippines	0.46	Down 1
31	Indonesia	0.46	Down 3
32	Australia	0.41	Non-mover
33	Mexico	0.33	Down 3
34	Jamaica	0.33	Down 1
35	Slovenia	0.33	Down 1
36	Panama	0.26	Up 13
37	Malaysia	0.24	Up 2
38	South Africa	0.22	Up 3
39	Czech Republic	0.17	Down 13
40	Kenya	0.13

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Spain steps up tax as buyers snap up property

Ivan Radford — Tue, 03 Jan 2012 12:50:00 GMT

Photo credit: Zsolt Bugarszki

Spain is stepping up its tax plans to tackle the country's deficit, but buyers are snapping up property regardless as further price drops are predicted for 2012.

The Spanish government's predictions initially stated that national debt would amount to 6 per cent of GDP for 2011, but it was revealed last week that these figures were incorrect and that the country deficit is closer to 8 per cent.

Since then, Spain's government has added that the debt "could be even higher", according to The Daily Mail, prompting the recently elected Popular Party to go back on its pledge not to raise taxes.

But while property tax is expected to increase for homes above average value, Spain's swift economic action has been welcomed by the EU as the country tries to reassure international investors who are snapping up properties at low prices.

Indeed, reports at the end of December from Global Property Guide found that foreign property transactions surged by 24.7 per cent in the third quarter of 2011, compared to the same period in 2010.

Alicante, Barcelona, the Balearic Islands and Malaga were all highlighted as popular areas for buyers, with research from Scotibank Group showing that house prices across Spain have fallen by 25 per cent since 2007.

These price drops are now expected to continue in 2012.

Knight Frank's Prime Global Forecast has predicted that global economic uncertainty will push Madrid's property values down in the next 12 months. But with investors attracted by Spain's declining property prices, Madrid's fall of "less than five per cent" may provide more opportunities for international buyers. And as Murcia prepares for the construction of its much-awaited Paramount Theme Park, buyers can benefit from the national downward trend while costs remain low.

Julio Adams of Med Invest told Property in Spain: "Demand for key ready homes in this area is already high and we expect an equity boost of around 15 per cent for early buyers when the first spade goes in to start construction of Paramount Park."

With some Spanish regions seeing a gradual recovery and the number of foreign transactions on the up, the government's reworked deficit plans may take Spain's housing market in a positive new direction for the New Year.

Planning for an affordable start to 2012?

Browse our listings of houses, apartments and other Spanish property:

http://spain.themovechannel.com/property/all

Ernst & Young: "Spanish recovery likely in second half of next year"

admin — Thu, 22 Dec 2011 08:21:00 GMT

The crisis that began in the second half of 2007 is still continuing. The consultancy firm Ernst & Young’s report on Spain’s prospects for the coming years is based on the slowdown in the economy since the first quarter of this year, and which they warn is not likely to get back on the road to recovery until the second half of next year.

But the crisis will not be a short-term adjustment of some past errors. “Many housing prices are probably still overvalued,” says the consultant. El Mundo reported that, according to Ernst & Young’s views, “a significant recovery in residential construction will not be immediate” – a problem, given the important part construction has played in Spain’s economic activity in the last decade.

With a stagnant economy and a tough adjustment in public expenditure, Spain is depending on its businesses and exports to remain competitive. However, private investment is not expected to return to growth until 2013, and then by only 0.9%, when companies will be encouraged “led by the increase in their profits.”

Spending will remain weak due to a combination of a need to reduce past debt, high price increases – of 3.1% in 2011 and 2% in 2012 – and the continued high unemployment. “Poor hiring in the services sector and the temporary contracts during the tourist season has had a significant impact” Ernst & Young stressed.

Source: Kyero.com

Spanish village happy to be left feeling blue by Smurfs

admin — Thu, 22 Dec 2011 00:59:00 GMT

It was meant to be a short-lived publicity stunt for a film that became a box-office smash despite withering reviews. But for the 221 inhabitants of Juzcar in southern Spain, The Smurfs in 3D has brought them an unexpected lifeline in tough economic times – and yesterday they voted overwhelmingly to keep it.

The tiny pueblo of white-washed buildings near Malaga in Andalucía was selected by the filmmakers this summer to be painted entirely in that unique hue, Smurf blue.

While Sony had promised to return the village to its former glory after filming and publicity, the residents have found that being blue is not so bad at all, and yesterday in a referendum voted 141 in favour and just 33 against to remain the world's only Smurf village.

Ever since the pueblo was converted into the set of Smurftown for Sony's hit, it has been cashing in on its new-found celebrity status. Previously, about 300 tourists a year would pass through Juzcar. In the past six months, an estimated 80,000 followers of "Los Pitufos", as the Smurfs are known in Spanish, have made the trek to the remote village high in Malaga's sierras.

Source: Independent.co.uk

Mallorca - something to look forward to in 2012?

Ivan Radford — Wed, 21 Dec 2011 12:29:00 GMT

After what has been a good year for tourism in Mallorca, 2012 looks set to be an even better one according to research from the World Travel Market.

Figures released during the World Travel Market in London last month highlighted that the number of UK visitors to Spain had increased by 9pc between January and September 2011. Meanwhile, these figures also identified the Balearics as the top tourist destination with 24pc of the 11 million British visitors travelling to Spain during the first 9 months of this year.

And the good news looks set to continue into 2012 with further reports from the World Travel Market showing that summer bookings are already up for next year as tour operators plan more flights to the Balearics, with a particular focus on Mallorca.

Indeed, nearly a fifth of all passengers arriving on low-cost airlines in Spain fly into Palma de Mallorca. In October this year, Palma received the highest number of passengers on low cost airlines reaching nearly 610,000 - four-fifths of the total arrivals to the Balearics and nearly 15pc more people than the same month last year while also in October, nearly 90pc of arrivals flying in via traditional airlines to the Balearic Islands landed at Palma airport.

With this in mind, it is hardly surprising that tour operators and airlines are promising more flights next year to satisfy growing demand with Ryanair announcing the opening of its 49th European base at Palma airport next year. Opening in March 2012, the budget airline will have four aircrafts based at the airport operating 47 routes; 17 of which are new and include flights from Palma to Cork, Maastricht and Stockholm.

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España, comments,

"We are happy that the no-frills airline has estimated that it will fly around 2.8 million passengers annually and maintain 2,800 jobs - in the face of economic doom and gloom people want to get away and providing more flight options is a great way to satisfy growing demand. Indeed, with more tourist arrivals next year, the Mallorcan property market looks set for a boost. We are certainly expecting sales levels to be in line with this year particularly as we will have more sales outlets and new developments for property buyers to get their hands on in 2012."

Christmas comes early as couple win back investment

Ivan Radford — Tue, 20 Dec 2011 13:02:00 GMT

The Woodcocks thought they were investing in a successful development, like the one above.
Photo credit: Scania Group

Christmas came early for Mr. and Mrs. Woodcock this month, as they finally succeeded in recovering their funds from an ill-fated Spanish development.

The couple, who invested in a two-bedroom apartment in an upcoming golf club, were excited about their future home in Murcia, which was scheduled to be finished in 2008. But after the severe downturn in the market, the country club was left unfinished, leaving their investment under serious threat.

Fearing the worst, Mr. and Mrs. Woodcock consulted investment recovery specialists Judicare. Contacting the company as soon as concerns arose about the developer's ability to complete the project, they fought for months to win back their deposit.

"We quickly discovered that planning consent on our apartment had lapsed and also that the developer was considering going into voluntary liquidation," Mr. Woodcock explains.

After eventually receiving a settlement offer from the developer, Judicare stepped in to negotiate a larger sum. Now, three years later, the couple have successfully retrieved the majority of the money they invested.

It's a situation encountered by many overseas real estate investors, but a lot of problems are a result of uncertainty over foreign legal systems.

Judicare's CEO Neil Heaney comments: "Increasingly we are seeing clients being poorly advised of their legal positions in foreign destinations, leading to stressful situations being amplified by confusing and contradictory advice. Our approach is to carefully review each case prior to formal instructions to determine the facts of each case and to provide some initial guidance from legal counsel in those jurisdictions as territorial competence is very important when assessing how and where any case will be fought."

For property buyers unclear over their rights in legal disputes abroad, Judicare's latest success is a reassuring sign, but for Mr. and Mrs. Woodcock, it's as if Christmas has come early.

Having trouble with your property investment?

Visit our investment recovery microsite for advice and details of who to contact:

http://investment-recovery.themovechannel.com/

Fall of housing prices increases foreign buyers in Spain

admin — Tue, 20 Dec 2011 07:59:00 GMT

With sales figures showing foreign purchases of Spain increased by 24.7% in the third quarter, over the same period of 2010, according to the Housing Price Index (HPI) of the National Statistics Institute (INE) sales prices in the same period were shown to have fallen by 7.4%.

Cinco Dias reported that the fall in housing prices leaves the vendor little choice but to lower prices in order to attract a buyer. Housing has continued to get cheaper since the beginning of the crisis with a flood of cut price properties available.

According to the Housing Price Index published on Thursday by the National Statistics Institute there are now fourteen consecutive quarters in which home prices have negative year-on-year figures. This means that prices have fallen steadily since mid-2008.

The decline began in the second quarter of 2008 (-0.3%) and recorded the biggest drop in the second quarter of 2009 (-7.7%). The 7.4% decline experienced in the third quarter of this year is the most pronounced since then.

Source: Kyero.com