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Tag: Properties

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Published on 1 Comment on New lease of life for coastal properties in Spain

Reforms to the Coastal Law in Spain are affecting the value of properties and there are reports of a frenzy of activity in some locations.

1110056 51307 1 300x199 - New lease of life for coastal properties in SpainThe changes to the law, which effectively nationalised the whole coast of Spain when it was introduced in 1988, allows refurbishments of homes close to the seafront, and creates a market for longer leases, opening up investment opportunities for those in the know.

Owners of expropriated homes that were legally built before the Ley de Costas were given a 30 year concession of use, effectively a type of lease, many of which were due to expire in 2018.

Now the Ley de Costas has been reformed, extending concessions from 30 years to 75 years and making it legal to buy and sell concessions that before could only be inherited. As a result, concessions are now much more valuable.
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Published on Leave a comment on Buying property for half a million euros will give residence rights

The Council of Ministers has just given the go-ahead to a measure which has been anxiously awaited on the Costa del Sol. Foreigners who buy a property for at least half a million euros will be able to apply for a resident’s permit.

56679 1070272 foto 1 300x225 - Buying property for half a million euros will give residence rightsThe measure is included in the proposed law of ‘Support for Entrepreneurs and their internationalisation’ , in the section which deals with attracting talent and investment through a new regime of visas and residence permits.

The law, which the government hopes will come into force on January 1st next year, will make it easier for residence permits to be granted for reasons of economic interests “through a quick and easy process and involving just one authority” for those who meet the criteria, according to information which was given to the press after the Cabinet meeting had finished.
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Published on 1 Comment on Thousand properties could be spared demolition in Alicante

Approximately 1,800 Alicante properties could be spared demolition. They will be legalised following changes to the 1988 Coastline law due for debate in Spain’s senate later this month.

Alicante 300x201 - Thousand properties could be spared demolition in AlicanteThe news was welcomed by home-owners in Denia, Javea, La Albufereta, Serra Grossa in northern Alicante. Homes in Arenales del Sol in Elche, Guardamar, El Pinet and Santa Pola will also benefit from the amended legislation.

The existing law stipulates that a 100-metre strip of land above the high-water mark must be left free for public use. This is expected to be reduced to 20 metres, enabling the legalisation of pre-1988 homes.

At present owners of properties infringing the 100-metre strip were told they could occupy them only until 2018, after which they were to be demolished.
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Published on Leave a comment on Decree to make properties legal still has no effect in La Axarquía

Decree 2/2012 of the Junta de Andalucía, which aims to regulate buildings which exist on land which is not classified for riogordo axarquia 300x225 - Decree to make properties legal still has no effect in La Axarquíaconstruction, is failing to convince the owners of illegal properties in the countryside of La Axarquía region. In fact, ten months after the new regulations came into force, their effect has been practically non-existent as the majority of owners of illegal houses have not applied for them to be made legal. Nor are the local councils playing their part. Very few of them have drawn up the report on illegal settlements which will help in making the properties legal.

This is a document which is required by the decree, which stipulates that in the absence of an Urban Plan the Town Halls should supply details of their future planning, to identify the places which have a high concentration of buildings on land not zoned for construction. Nor have most of the councils drawn up the regulations about minimum conditions of habitation and sanitation with which all illegal properties will have to comply.
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Published on Leave a comment on Green light to Coast Law reform to save seaside homes

The Cabinet on Friday approved a reform of the Coast Law extending an amnesty for the owners of beachfront properties that would otherwise have to be demolished.

Owners of properties that were in breach of the current legislation, many of them foreigners, were given a 30-year concession of use that was due to expire in 2018.

IMG 1478 300x225 - Green light to Coast Law reform to save seaside homesThe overhaul of the current law, which has been in place since 1988, also creates a special regime for 11 areas, which will be taken out of the public domain. It also established four-year concessions for beach bars and restaurants.

The surface easement limits, or protection areas, for rivers could be reduced from 100 meters to 20 meters.

The text of the draft reform said the current legislation “has tolerated outcomes that are not acceptable in environmental terms,” adding that “time has consolidated certain situations,” and that the law has “prompted mistrust and uncertainty.”

“The aim of the reform is to avoid the risk of homeowners losing their property rights in the short term, and particularly bearing in mind the difficulties this could create for foreigners,” the text also says.
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Published on 1 Comment on Home purchase by foreigners grew up a 15% in 2011

Comunidad Valenciana stood at the forefront of home sales to foreigners in 2011

Comunidad Valenciana (Valencia, Alicante and Castellón) stood at the forefront of home sales to foreigners in 2011, accounting for the 30.6% of the national total. So, this group performed 10,730 transactions for an amount of 1,515 million Euros, according to the latest report of the Housing Observatory of the region.

172035 694868 foto 1 - Home purchase by foreigners grew up a 15% in 2011The Government explained that the data from the end of 2011 "endorse the Consell bet to encourage the region home sales to European buyers", in order to increase the number of transactions over the previous year, when there were 9,300.

The total value estimated of these transactions amounted to 1.515 million Euros in 2011, an amount that also exceeds the quantity achieved in 2010, with 1,431 million Euros.

The Consell has highlighted its commitment to value the housing stock available in Valencia for foreigners in Russia, Sweden, Norway and the UK, especially new homes for second residence, located in the coastline and inland towns.

He pointed out that a secondary house purchase by foreigners in the Comunidad Valenciana is "to consider a number of advantages over other destinations, such as security, facilities, distance to markets and colonies of foreigners of various nationalities."

Finally, the same sources stressed that property investment "is a significant source of revenue for our community, and has an important impact on productive sectors such as construction, tourism, hospitality or services"

Source: elmundo.es

Published on Leave a comment on Spain’s property market gripped by new realism as prices plunge

Bargain-hunting Scandinavians and Russians replace British buyers as Spain faces up to banks' toxic debts

Spain's property market is changing, with apartments in Barcelona and other major cities costing far less than in recent years.

Estate agents in Spain say there is a new realism in the property market as officials finally face up to the issue of the banks' toxic debts.

propertiesspain - Spain's property market gripped by new realism as prices plungeHenri Dovermann, of Hedrealestate.com, an agency in Torrevieja, said: "Things are changing – we are being given whole developments to sell, and pressure is on to sell them fast."

In the past foreign buyers getting into financial difficulties were quietly switched to interest-only mortgages which slashed monthly repayments for three to four years, he said. Spaniards who have got into difficulties have been allowed to stay in their home paying a rent rather than making mortgage payments. Developers, he said, that were technically bankrupt, were propped up so the banks did not have to own up to their bad debts.

But, according to Dovermann, apartments on the coast that were making €200,000 at the top are now, he said, going for €70,000-€80,000, although there are signs that those prices may be reaching the bottom, with local buy-to-let landlords starting to invest.

Bargain-hunting Scandinavians, Russians and even Ukrainians have replaced Britons as the key foreign buyers, often arriving with cash generated at home.

Source: guardian.co.uk

Published on Leave a comment on Changes in the Spanish property lending market

The Spanish government is trying to put the country mortgage market back on track, and it is forcing takeovers and mergers to accelerate the change.

Banco Sabadell acquired CAM bank for €1 in December 2011 and BBVA acquired Unnim bank for the same price this month, and Catalunya’s CaixaBank has purchased Banca Cívica, becoming the leading financial institution in Spain in terms of assets.

Although Spain did not have official subprime mortgages as the United States, in the late 2000s it did fall into unrealistic mortgages, which consequences nowadays are banks having to repossess a meaningful number of properties, converting them in enormous real estate owners with no buyers.

‘As the property market in Spain boomed, many banks took a naive approach to lending money and they are suffering for it now. Whilst the UK has various checks and balances in place to prevent the recurrence of scandals such as the endowment mortgage mis-selling of the 1980s and 1990s, Spain has yet to get a watertight grip of its financial products although Rajoy is making huge strides,’ explained Marc Elliott, independent mortgage consultant and owner of Fluent Finance Abroad.

Mortgage 300x224 - Changes in the Spanish property lending market

‘Deals such as those seen in the past are either non existent or hard to find but if you have a good income and clean credit history the banks will lend. Certain banks did not fall into the reckless subprime trap and are lending pretty much as they were prior to the credit crunch,’ he pointed out.

‘If you are a first time buyer and you don’t have a large cash deposit then it might be wise to consider a bank property. If you have a sizeable deposit at your fingertips it would probably be better to look at the traditional real estate market as these properties tend to be slightly better value for money,’ said Elliott.

‘At the moment banks are looking to get the best price possible for their properties to try and recoup the original funds that were lent, they do this is by slightly inflating asking prices and offering excellent finance terms such as little or no money down deals,’ he added.

‘Always speak to more than one mortgage consultant to make sure you are satisfied that you are getting the best person to represent your interests. If anyone suggests that obtaining mortgage finance in Spain is easy, they are not being completely truthful,’ said Elliott.

Source: Property Wire

propertywire.com 

Published on Leave a comment on Spanish Office Market Goes Down

300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012

Madrid 300x225 - Spanish Office Market Goes DownAccording to an article published in Global Real Estate, the office market in Madrid appears to have taken a downward turn since the beginning of 2012. The vacancy rate in the Spanish city has been creeping up over the past few months, while a rising supply of such commercial properties coupled with falling demand is putting pressure on rents.

300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012; however, demand is sliding, with many occupiers choosing to downsize due to the current economic climate.

On average, the rent charged for Spanish commercial real estate in Madrid's central business district is now nearly 40 per cent below its peak, and the organisation is forecasting prime rents will stand at 309 euros per sq m per year by the end of the first quarter of 2012.

Barcelona also made it into the top ten, ranked as the seventh most desirable location in which to have retail premises on the continent.