real estate Archives - Page 12 of 15

Spanish Property Market: House Prices Rise on Quarterly Basis

SpainHouses.netDecember 23, 2013December 20, 2013Leave a comment

House prices in Spain rose on a quarterly basis for the first time since the middle of 2010 in the third quarter of this year, but experts were quick to point out that this does not mean that the housing market has started to emerge from trough it plunged into around the start of 2008.

According to figures released by the National Statistics Institute (INE), house prices climbed 0.7 percent in the period July-September from the previous three months.

Prices on average have fallen over 40 percent from their highs around the end of 2007 after more than doubling over the course of a decade-long boom that turned to bust.

The INE said that home sales in October declined 10 percent from the same month a year earlier to 22,770, the lowest figure since March and one of the lowest since the real estate bubble burst.

Although the economy emerged from an extended recession in the third quarter of this year, a jobless rate of 26 percent remains a major impediment to a recovery in the housing market, which still has an estimated glut of some 600,000 housing units. Banks have also tightened up on lending, citing a lack of “solvent demand.”

Would-be home buyers are finding it hard to secure the necessary funding at current prices and seven out of 10 transactions taking place are in cash.
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The Construction of a Skyscraper in Marbella, Malaga (Costa del Sol)

SpainHouses.netDecember 16, 2013Leave a comment

Since Marbella Town Hall approved modifications to local planning restrictions to allow the construction of skyscrapers in the municipality, so far only one project has been put forward. The plans envisage a 30-storey residential block reaching 115 metres above sea level on the Istán road. The high rise block would be designed by Catalán architect Ricardo Bofill, thanks to negotiations with the developers that are in their final stages.

While several investment groups from Spain and further afield have shown an interest, this is the only definite project that has reached the local planning offices.

The site for the block would be near the Istán road, just over a kilometre from the coast, and not far from the Olivia Valere night club, Les Roches hotel management school and Manolo Santana’s tennis club. The project is for a solely residential building with a maximum of four luxury flats per floor.
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The ‘Golden Visa’ and its effects over the Spanish Property Market

SpainHouses.netNovember 25, 2013November 25, 2013Leave a comment

The 'Golden Visa' system now operating in Spain has prompted a 2,500 per cent increase in interest from Middle Eastern buyers in the year to date, compared with the same period in 2012.

Since October 1 2013, any non-EU national coming to Spain with more than €500,000 to invest has been automatically granted a residency permit, which has resulted in increased interest not only from the Middle East, but also from Asia and Russia.

The low property prices in Spain, which suffered from a glut of unsellable property during the credit crisis and high levels of repossessions, combined with the ability to secure EU residency has boosted tourism in recent months as potential buyers flock to the country to find their perfect property.

More than eight million people visited Spain in August alone, according to the Spanish tourism ministry, with Russians flocking in their thousands – between January and July this year, the number of Russian visitors rose by 30 per cent to 838,876.
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Price review makes buying Spanish property more taxing

SpainHouses.netNovember 18, 2013November 14, 2013Leave a comment

Approximately one million Britons live in Spain permanently or maintain holiday homes there.

The worst effects of the global recession have seen property prices plummet, representing a golden opportunity to pick up relative bargains. For those unable to sell, it provides a significant headache.

Fewer and cheaper sales not only spell bad news for owners and vendors - they have also caused concern on the part of Spain’s tax authorities, which have seen their take decrease due to the slowdown in the property market.

In order to reverse the situation, tax officials have taken more proactive steps, resulting in an increase in reviews of sale prices and the transfer taxes paid when properties are bought. It’s a step that can have consequences for buyers a number of years after ownership of the homes in question has changed hands.

This price review is a valid long-standing tax measure under Spanish property law. However, it is not necessarily apparent or brought to the attention of those eager to start life overseas.

When recession struck, the amount of transfer tax – called impuesto de transmisiones patrimoniales (ITP) – pouring into official coffers decreased significantly owing to the reduced number of sales and/or lower prices.

Under the terms of the Spanish law Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, enacted in 1993, regional tax authorities have powers to examine all property purchases in order to ensure that the correct amount of ITP is paid by the buyer.
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Spanish bad bank reorders property sale as bids fall short: sources

SpainHouses.netOctober 28, 2013October 28, 2013Leave a comment

Spain’s bad bank failed to attract high enough bids in its first sale of commercial real estate and will cut the size of the portfolio being offered to make it easier to sell, Bloomberg quoted three people familiar with the matter as saying on Friday.

The bad bank, known as Sareb, received more than 30 offers for the portfolio that were lower than it expected, said one of the people, who declined to be named because the information isn’t public. It will reduce the number of buildings in the package known as Corona to four from seven, the person said. A spokeswoman for Madrid-based Sareb declined to comment.

Spain created Sareb last year to absorb 50 billion euros of real-estate assets from lenders including Bankia group that took aid as part of the nation’s European bailout. Its failure to attract high enough bids may undermine growing optimism in Spain as the stock market has surged 20 percent this year and foreign investors including Microsoft Corp. founder Bill Gates buy into Spanish companies.
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Mortgages granted in July drop to new record lows

SpainHouses.netSeptember 30, 2013September 29, 2013Leave a comment

Spain’s mortgage market continues in the doldrums due to low demand because of rampant unemployment and stricter conditions imposed by the country’s banks.

According to figures released Thursday by the National Statistics Institute (INE), the number of home loans granted by banks in July fell 42.7 percent from a year earlier to 13,777, the lowest figure since the INE began the current statistical series in 1995. Home loans granted in June were down 42.2 percent at 14,053. Mortgages disbursed have now fallen for 39 months in a row.

The amount of capital lent by banks fell by 42.2 percent to 1.380 billion euros, with the average mortgage down 4.3 percent at 100,180 euros. House prices in some parts of the country have fallen by over 40 percent from their peaks around the end of 2007 and the start of 2008.
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Forecasts for the commercial real estate market in Spain improve 1

SpainHouses.netSeptember 2, 2013April 2, 20201 Comment

Although Spain continues to be affected by the uncertainty that has impacted the country over the past five years, an economic recovery does now appear to be closer and forecasts for the real estate market have improved.

It is expected that the Spanish economy will continue to contract over the coming months, and the fall in GDP in 2013 is projected to be similar to that of 2012, with the economy shrinking by around 1.6% and domestic demand is expected to remain weak but this will be partially offset by a more positive contribution from external demand, the report says.

GDP forecasts for 2014 indicate that growth will be close to 0.5%, boosted by an expected improvement in the global economy. The outlook will also be aided by the measures taken by the European Central Bank (ECB) to stabilise and ensure the survival of the Euro. ...continue reading "Forecasts for the commercial real estate market in Spain improve"

New lease of life for coastal properties in Spain 1

SpainHouses.netJuly 22, 2013April 2, 20201 Comment

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.

The 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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Increase of Spanish holiday rental

SpainHouses.netJuly 1, 2013June 30, 2013Leave a comment

The Spanish property crisis and lack of liquidity has increased the amount of properties on offer related to holiday rental businesses such as rural houses for short lets and hostels, it is claimed. Not only has the number increased but also the variety of profiles and business models.

There has been a 200% increase in the number of these types of properties being offered by Spanish vendors to the UK and other international markets. There are two main reasons for this change.

Firstly is a lack of liquidity in the economy in Spain which has forced Spanish business owners to sell their business.

Spain’s new visa for non-Europeans buying property worth over €500,000 is set to spark huge interest from wealthy overseas buyers, it is claimed.

Secondly there has been an increase in expats seeking to move to Spain to start a new life and looking for a property related business. They are finding that there is the opportunity to buy a property at a reasonable price and start using it to earn an income from day one.
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Russian buyers rank third in 2012 overseas in Spain

SpainHouses.netJune 3, 2013December 31, 2019Leave a comment

According to the latest “2012 Real Estate Registry Statistics Report”, released by the Official Real Estate Register Bureau, Russian buyers rank third position in number of properties acquired in 2012, shifting place with Germany which moves to fourth place.

Russian demand in our country starts just before the Real Estate bubble began in 2007 in Spain. From that date it has been steadily growing 135% with 1.008 units in 2007 to 2.399 in 2012.

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