Posts tagged with housing

Spain set for a more robust property market in 2017 as prices rise

Spain Set for a Bumper Year on Property Sales

Demand from international buyers will remain fundamental necessity to help the Spanish property market continue its recovery and it remains to be seen if Brexit results in a fall in British interest.

Overall experts point out that 2016 was a positive year for the real estate market with prices having bottomed out the year before and modest price rises seen in some locations.

It is likely that locations with lower prices could become more in demand in 2017 as buyers still want a bargain and there is likely to be some uncertainty around the UK formally beginning the process of leaving the European Union and elections in France and Germany.

According to Lucas Fox International Properties the last 12 months were a turning point for the property market in Spain. Co-founder Alexander Vaughan said that the
recovery continued throughout 2016 and price increases moved beyond the big cities such as Barcelona and Madrid and desirable second home destinations.

‘We believe that a growing economy, low financing costs, good potential for rental returns and capital appreciation will continue to drive sales throughout 2017 and beyond,’ he said.

But his firm has found that Brexit had a noticeable effect on sales to British buyers in the second half of 2016 but he believes that this was mainly due to the depreciation of the pound rather than concerns about the country’s future in Europe.

‘Across Spain as a whole Brits still dominate foreign sales with nearly a fifth of the market share, more than double that of French buyers, he pointed out, adding that diminishing demand for high end homes in London following Brexit could also see non-EU citizens look to Madrid or Barcelona in the forthcoming months.

‘We also expect that demand for Spanish property from other foreign buyers, including from the United States and the Middle East, will continue its upward trend throughout 2017. We’ll see new low cost flights from British Airways and Norwegian Airlines from the US to Barcelona during 2017, a reflection of the growing attraction of cities like Barcelona for Americans, as both a tourist and second home destination,’ he concluded.

New homes are expected to be built in Valencia in 2017, signalling that developers think the demand will be there, according to Juan Luis Herrero, a partner with Lucas Fox in the region.
‘Regarding re-sale properties, we forecast a continued upward swing, especially now that the uncertain political situation which prevailed during 2016 has come to an end. The return of mortgage credit and low interest rates will continue to fuel this trend,’ he said.

Demand is also expected to rise on the Costa Brava, especially in traditionally sought after coastal villages such as Llafranc, Calella de Palafrugell and Begur. ‘These are the areas where we are likely to see the first increases when prices begin to rise,’ said Tom Maidment, a partner with Lucas Fox Costa Brava.

He also expects to see an increase in buyers from the United States but thinks second home buyers from the UK will hold off until there are firm indications of what deals will be done once the UK begins the formal process of leaving the EU which should start with the triggering of Article 50 before the end of March 2017 and the impact this might have on Sterling.

Prices could fall further in Marbella as developers reach out to foreign buyers, according to Stephen Lahiri of Lucas Fox’s office in the region. ‘The increase of new projects is leading to increased competition and developers are increasingly focusing on prices and payment terms and value for money,’ he explained.

Richard Speigal, head of research at Spanish property portal Kyero, pointed out that house sales in Spain have recorded a 15% rise on the previous year and seen 10 consecutive quarters of growth, which means that the Spanish property market crash has officially ended.

‘Spain’s market has two unusual advantages. Firstly, it had nowhere to go but up. The 2008 crisis completely shredded the housing market. Secondly, Spain has incredible international appeal and with one in five property sales going to foreigners, it can endure weak local demand,’ he said.

‘British, French, German, Dutch, Belgian, Italian and Swedish buyers are picking up the slack, which has been good news for the wider market and for those involved in selling property in Spain,’ he explained.

He believes that there is still pent up demand from potential British buyers, citing figures that show that overseas searches for Spanish property via Kyero reached all-time highs after the referendum vote in June, up over 50% on 2015. The portal’s largest agents also reported seeing record attendance at UK investor shows.

He predicts that older British home owners with no mortgages on their properties and looking for a holiday home will be tempted to buy in Spain in 2017 and beyond. ‘In short, British buyers age 50 plus who love Spain are sitting on huge equity piles and Brexit didn’t diminish their wealth and as a group, British buyers are getting richer,’ said Speigal.

But he warned that they will haggle over prices and will want to get value for their money. ‘The hunt for value will translate to a key trend in the Spanish property market in 2017 with buyers seeking good value properties that offset the drop in Sterling’s value. Evidence is already emerging of the benefits of this on lower priced destinations, which look set to boom in 2017,’ he added.

Hi top tips for 2017 include Almeria where traditional charm attracts overseas buyers. In the third quarter of 2016 sales were up year on year by 93% and with an average price of €129,000 properties are seen as good value, almost half the cost of the national average on the portal.

Prices are also lower on average in Alicante where international buyers have more property than any other province in Spain. While this could make it susceptible to shocks, Speigal says it’s strengths are hard to beat including fabulous beaches, steady sales growth and prices up to 15% below average.

Tenerife is also on the spotlight as far as overseas buyers are concerned with Italian buyers overtaking British buyers for the first time as the main group of international buyers. Prices are already increasing, up 5% to an average of €249,000 in 2016 and low cost flights from around Europe make it popular with those looking for a holiday home that they can also let out.

Courtesy of propertywire.com

Posted by: Debbie Whyman on 20/01/2017 Tags: housing

Javea Fire Fund

We have all been left devastated by the recent events of mindless arsonists who have destroyed so much of our beautiful town.  Our fire and rescue services showed such bravery and risked their lives.  Many people have now found themselves homeless.  I think the message below from our Mayor says it all.

" Good morning, we got up with rage and despair after seeing an important part of our town turned to smoke. When the mountain and houses are burning and the security of our neighbours is affected, a part of us breaks. In these terrible hours we have seen and we have suffered a lot of pain, but we have also seen examples of work, effort and solidarity that we will not forget.

Personally I have lived through some very hard moments of uncertainty and concern. From the PMA (Advanced Command), from the police car inside the perimeter and even from the helicopter featured in the fire, I was next to all the people who have fought against a truly devastating fire. My feeling towards all of them is genuine admiration and respect.

So I want to thank all the personnel who participated in the work of firefighting, safety, coordination and information: Local Police of Xàbia, Civil Protection, Red Cross, Fire Brigade, Civil Guard, Forest Brigades, Military Unit emergency 112 & personnel of the Generalitat Valenciana, volunteers, etc …

I also want to acknowledge the solidarity of our neighbouring towns, which offered effective Police and Civil Protection so that our people could rest and get to everything.

But my thoughts are especially with the residents of Jávea. What you have done since the fateful Sunday afternoon until now, your solidarity, your willingness to help wherever necessary and what was needed, your character to overcome the tragedy together makes me feel very proud of our people. The Fiestas Commission of the Virgin of Loreto, the peñas, businesses, men and women who have offered food and shelter … are amazing.

As for my fellow Councillors, you have also done a great job soldiering on relentlessly without rest, wherever you could help, getting involved in the situation and accompanying and serving people: Isabel Bolufer, Antonio Miragall, Doris Courcelles, Quico Moragues, Pilar Zamora Selva, Paco Torres, Marta Bañuls, Cesc Camprubi, Kika Mata Sapena, Ximo Segarra Fornés, Montse Villaverde Retamero, Jose Luis Luengo Medina, Pepa Gisbert Villaplana, Vicent Colomer, Juan Ortolá, Juanjo García, Teresa Bisquert Vendrell: you have all done a great job!

Finally, as Mayor of Xàbia, but mostly as a neighbour of this town, I will say that we have had our trees and houses burned, but not our will; not the great determination of our people, and we will rebuild at all costs.

Neighbours: courage, strength and we continue to work together."

We have started a Crowdfunding to try and raise some money for people who have lost everything.  If you would like to make a donation, no matter how small, it would be greatly appreciated. Just click on the link below and it will open in a new window.  Thank you!

https://www.justgiving.com/crowdfunding/javea-fire-fund

Posted by: Debbie Whyman on 08/09/2016 Tags: housing

What Brexit means for British buyers

What Brexit means for British buyers

The UK’s decision to leave the European Union raises some important questions. Here’s how itwill affect British buyers in Spain.

Can I still buy a property in Spain?

Yes. Britain is still a member of the EU and British citizens enjoy the same rights today that they did last week.

It is likely to take at least two years to leave the EU, and many more years to settle the resulting changes in trade agreements. British buyers are unlikely to feel the impact for some years.

What does a fall in Sterling mean?

A weakened Pound is the most immediate effect of Britain’s referendum. In effect, Spanish property has just become more expensive for UK buyers.

The exchange rate is expected to be volatile over the coming months, but buyers can take steps to insulate themselves from currency risk. It is also worth setting this in a wider context: While Spanish house prices have been steadily recovering over the past 2 years, they remain 32% cheaper than their peak in 2007.

Spanish property remains excellent value.

What will happen to my property when the UK leaves?

Spain has a long history of welcoming buyers from overseas, who now account for 1 in 5 house sales. Non-EU buyers are extremely active in the market and enjoy very similar rights to EU nationals.

Leaving the EU/EEA is highly unlikely to impact the rights of British citizens to buy property in Spain. Overseas investment is too important to the economy.

Will I still get a mortgage?

Yes. Spanish banks typically ask foreign buyers for a deposit of up to 40%. While there is scope for this to rise, it is already at a level that provides banks considerable protection and is unlikely to see much adjustment.

Meanwhile, the economic climate in Europe is wedded to low interest rates. Borrowing costs remain good value.

Will the Spanish property market crash?

British buyers are important to the Spanish market and they are the largest single nationality among overseas investors. However to put this in context, Brits form 4% of the market.

There are two reasons Brexit is highly unlikely to trigger a crash. Firstly, foreign buyers are a diverse group: German, French, Belgian, Italian and Swedish (among many others) are all an extremely active, growing part of the market.

There may be some localised pain, but even a complete collapse in UK demand (again, totally unlikely) would only put a small dent in the market.

Secondly, the market has nowhere to go. Spanish property has been recovering steadily since 2014, but remains a very long way off its peak. The worst we expect from Brexit is restrained growth.

Is my EHIC card still valid?

Yes. The European Health Insurance Card provides reciprocal health cover for travellers in the EEA. It will remain in place for at least two years while Brexit negotiations are in motion.

European countries are keen to ensure that their citizens enjoy healthcare while travelling, so it’s entirely possible an EHIC agreement (or something similar) will remain in place even after Brexit.

Will I get full healthcare if I move to Spain?

For now, yes. As long as Britain remains in the European Union, reciprocal healthcare arrangements continue as before. Expats who live in Spain and contribute to the social security system already receive full healthcare, and will continue to do so regardless of Brexit.

The situation for British pensioners is less clear. The current cost of their healthcare is met by a per capita payment from the UK to Spain for every pensioner who has completed the S1 form and is in receipt of a UK pension.

Nobody knows if this arrangement will continue, though many commentators predict British pensioners will require some form of health insurance post-Brexit.

What about my pension?

Under single market rules, UK citizens living in Spain (and indeed the whole EEA) have their pensions and social security payments automatically uprated each year in line with local inflation.This system is a mutual EU arrangement and is likely to become a negotiating point in Brexit talks.

In the worst case, British pensioners in Spain could get similar treatment to those in Canada and lose their automatic right to pension increases.

How will inheritance work?

British citizens (and indeed all EEA residents) currently get very good tax treatment in Spain, paying the same inheritance tax as locals.

Crucially, the double-taxation treaties that enable theseare NOT made in the EU. Therefore Brexit has no effect on the existing tax agreements between the UK and Spain.

What happens next?

In short, nothing for quite some time.

Exchange rate fluctuations will be the only visible effect of Brexitin the short term.

The two year process of leaving the EU will not begin until Article 50 is triggered and this is currently scheduled to happen inOctober 2016. (Despite protestations, Europe cannot force a faster pace until Britain formally takes this step.)

It is also important to note that this referendum is non-binding, and British politicians willnow enter a protracted period of horse trading over what to do next – or even who’s in charge.

With Brexit leaders already dialling back their rhetoric and promises, it is not a foregone conclusion that Britain will completely leave.Huge debating points now remain over whether Brexitmeans a totalwithdrawal from the single market (EEA).

Time will tell, and it all serves to slow the process.

The net effect is Britons will continue to enjoy the benefits of European citizenship for some years, and can expect a broadly similar deal once Brexit is complete.

The British love affair with Spain continues.

source: Kyero.com

Posted by: Debbie Whyman on 08/07/2016 Tags: housing

Bankinter Forecasts 20% Rise in Home Sales in 2016

source - Kyero.com

Posted by: Debbie Whyman on 21/02/2016 Tags: housing

Home Sales Increased by 24.2% in August

source  kyero.com

Posted by: Debbie Whyman on 14/10/2015 Tags: housing