With property prices in Spain that have fallen significantly since the global financial crisis, many investors are seeing now as the perfect time to put their funds into Spain’s housing market.
Spanish real estate and construction accounted for around 18 per cent of Spain’s GDP in 2007, with a market capitalisation of more than €30 billion. It is now about a tenth of that, with the result that economists and investors alike are looking at Spain as being one of the last bastions of good value property in Europe.
The National Statistics Institute has confirmed that home sales are rising, up 8.8 per cent in June 2014 compared with a year earlier, while Spain´s society of notaries has reported that foreign buyers favour coastal areas. The breakdown of foreign buyers included 15 per cent Brits, 10 perr cent French, 9 per cent Russians and 7 per cent Belgians, according to the data.
...continue reading "Good days for the Spanish property market"
Home prices in Spain fell 4% in May compared with a 10.4% drop recorded in May 2013, indicating that the market could be nearing the bottom.
The data from the leading valuations company Tinsa index also shows that this was the lowest annual drop in May since 2008.
The biggest price declines were on the Mediterranean coast, down 7.9%, but even that was the slowest drop since 2010. Madrid saw the smallest fall at 3.3% and other large cities also saw smaller than usual price declines.
Recently released figures from the National Institute of Statistics showed a 1.6% annual decline in prices recorded in the first quarter of the year compared to a 7.8% annual decline in the fourth quarter of 2014. On a quarterly basis prices fell 0.3% compared to a 1.3% drop in the fourth quarter.
...continue reading "Falling of property price in Spain have slowed substantially"
As one of the most moribund housing markets in Europe, Spain has become a magnet for global bargain hunters. Real estate prices are down as much as 50 percent from their peak during a housing bubble, and investors from Asia to the United States and Britain are flocking to Spain to try to catch the uptick.
British Airways flights to Madrid are packed with London-based real estate executives. The hedge fund Baupost is buying shopping centers, Goldman Sachs and Blackstone are buying apartments in Madrid, and Paulson & Company and George Soros’s fund are anchor investors in a publicly listed Spanish real estate investment vehicle. Kohlberg Kravis Roberts just bought a stake in a Spanish amusement park complex. Big-name private equity firms and banks are teaming up with and competing against one another on huge loan portfolios with names like Project Hercules and Project Octopus.
...continue reading "Spain: Magnet for Global Bargain Hunters"
Despite reports of foreign buyers snapping up bargain properties in Spain, the country’s real estate market will not recovery fully until banks relax their lending rules, it is claimed.
Currently the maximum loan to value for non-residents in Spain is around 60% but a buyer also needs to pay up 15% of the purchase price in taxes and fees so some considerable upfront outlay is still needed to buy a dream home in Spain.
The latest official figures confirm that mortgage numbers in Spain have dropped for the 46th consecutive month up to February 2014. Experts believe that the country is in no danger of a full recovery, let alone a property boom, as average house prices have fallen by 30% since 2008 and mortgage lending dropped from a peak of €173 billion in 2007 to just €26 billion in 2013.
...continue reading "Still Waiting for a Fully Recovery of the Property Market"
More foreign buyers are buying property in Spain but the traditional purchasers from the UK are in decline, according to new data from property lawyers.
According to a new report published by Spain’s Notaries the number of foreign buyers increased by 9.8% in 2013 but the proportion of British buyers continued to fall.
Foreign purchasers accounted for 21.4% of all Spanish residential sales or 55,187 transactions in 2013 and it also highlights the areas that are popular with overseas buyers.
A breakdown by nationality showed the number of homes purchased by British buyers accounted for 14.7% of foreign purchases compared to 34.3% prior to the financial crisis in 2007.
Instead, French, Russian, German and Belgian buyers increased in number in 2013, rising by 10.9%, 8.2%, 7.8% and 6.9% respectively.
...continue reading "More Foreign Buyers in Spain but Less Brits"