UK: 0207 193 2726 Spain: +34 690778057

Posts tagged with spain

Spanish House Price Increases Almost Double the Eurozone’s

Spanish House Price Increases Almost Double the Eurozone’s


The price of housing in Spain registered a 1.6% increase in the first quarter of 2015, compared with the same period of 2014, according to recent data published by the European Commission statistical office, Eurostat, which is almost double the increase registered in the eurozone in the same period, where the prices rose by 0.9%.

Across the whole of the European Union (EU) the average increase in housing prices was 2.5% in the first quarter.

The greatest price increases were registered in Ireland (16.8%), Sweden (11.6%), Hungary (9.7%) and the United Kingdom (8.5%), while in contrast, El Mundo reported that the sharpest declines were recorded in Lithuania (-5.8%), Italy (-3.3%), France (-1.6%) and Slovenia (-1.4%).

Quarter-on-quarter, compared with the last quarter of 2014, housing values in Spain fell by 0.5%, while they increased both in the eurozone (+0.3%) as well as in the EU (+0.6%) 

Information from www.kyero.com

Spanish Property Sales on the Increase

In last week’s Spanish property news, summer has arrived and, as temperatures start to soar into the 30s, house sales have been rising too.

The latest figures from Spain’s network of notary offices reveals that the number of property sales in April is up by nearly two percent.

Their data shows that the low point in transactions took place at the start of 2013 and, since then, a sometimes erratic but sustained growth in the overall number of transactions has been experienced.

The notaries believe that the market is now at a crossover point, with the demand for land, housing and mortgages increasing steadily, in response to cheaper prices and an improvement in the economy.

The most significant economic improvement being a rise in employment – Spain has benefitted from the third largest increase in workers in the eurozone so far this year.

With interest rates at a historic low, the average Spanish household is reported to have a financial burden of around 22 percent of their income. It's a highly sustainable figure, which makes owning a home in Spain cheaper than renting, as well as helping to reduce mortgage defaults.
 
Information from Kyero.com

Growth in Demand for Properties in Spain

2015 is set to see a rise in demand for properties in Spain

 Javea Yacht Club and Marina

 

The international financial markets are expected to be a key driver in the uptake of Spanish prime residential property during 2015, according to a new analysis.

The latest market reports from Lucas Fox International Properties, suggest there has been an increase in demand from UK, US and Swiss buyers thanks to the rise of the dollar, pound and Swiss franc against the Euro. 

Conversely, the number of Russian investors is expected to dwindle as the rouble goes further into free fall in 2015.

‘With unemployment falling, the economy growing faster than predicted and property reaching the bottom, 2015 is set to be a pivotal year for Spain's property market. Prices are on average 40% below what they were since the start of the crisis in 2007 and we predict a slow and steady recovery. This is an opportune time to invest,’ said Lucas Fox co-founder Alexander Vaughan.

The report says that prices in Barcelona have stabilised in the past 12 months and new international interest is impacting on demand for prime residential property. 2015 is expected to be the most significant year of recovery for the prime market in Barcelona since 2007.

Lucas Fox sales data shows that Middle Eastern buyers accounted for 12.5% of all purchases during 2014, followed by the Spanish and French both at 11%, the Germans at 8% and the British at 7%.

The bulk of prime market property purchases in Barcelona during 2014 was for investment use with two out of five buying for that reason, whereas in 2013, the main reason for buying was for use as a primary or secondary residence.

The number of transactions in 2014 increased over 2013, with more properties above €1 million selling than in the previous year. 

‘We see 2015 as the recovery year for the Spanish prime residential property market, driven mainly by increasing numbers of overseas buyers. We expect that those who were deterred by falling prices during the past seven years or so, will enter the market, enticed by some real opportunities,’ explained  Vaughan.

‘Prices have fallen by up to 40% in some areas of the city but, in the last 12 months, these prices have stabilised. Some recent figures suggest that, in some of the most desirable areas of the city such as Eixample and the beachfront, prices for the best properties are starting to creep up again. The key change in the Barcelona Residential market during 2015 will be the return of quality new build residential developments which have not been seen on the market for several years and where demand currently outstrips supply,’ he added.

In the Costa Brava, foreign investment in residential property has grown significantly. In 2010, foreign investment in new housing properties accounted for 9% of the market. In 2014, foreign investment represented 26% of the market.

Price movement in the prime residential property market for the Costa Brava region is not expected in 2015. However, sales volume is predicted to increase particularly in the coastal areas around Begur, including Aiguablava, Tamariu, Calella and Llafranc, traditionally a very popular area for mid to high end British and northern European buyers.

The report also points out that the Costa Brava prime residential property market is seeing maintained levels of activity each quarter, with sales trading leading into the summer particularly strong. In the second quarter of 2014, total transactional value of prime market sales by Lucas Fox reached nearly €8 million.

Lucas Fox sales data indicates that the majority, some 80%, of prime market buyers are looking at the Costa Brava as a second residence or holiday home although just over 13% of buyers in 2014 purchased in the area for use as a primary residence.

‘Given the worsening economic situation in Russia and the Rouble's continued struggles against the Euro, the number of Russian buyers will inevitably fall further. On the other hand, the strength of the British Pound and the likelihood that it will strengthen further against the Euro should attract an ever greater number of British buyers to the market in 2015,’ said Tom Maidment, partner of Lucas Fox Costa Brava.

‘Also, since the unpegging of the Swiss franc against the euro and its subsequent rise, we have already noticed an increase in the number of Swiss buyers coming into the market. Apart from this, more and more savvy purchasers are taking advantage of cheap mortgages to leverage their properties against a weakening Euro,’ he explained.  ‘These factors should help make the market more attractive. Buyers will inevitably be looking for good deals in 2015, with a focus on reduced priced properties in prime locations,’ he added.
 
Along with slight price increases, Ibiza saw a 10% increase in prime market property buyer interest, a trend that is expected to continue in 2015 and it has seen foreign investment in residential property grow steadily. In 2010, foreign investment in new housing properties accounted for 18% of the market. In 2014, foreign investment represented 32% of the market.

Sales in the Balearic Islands, which includes Ibiza, have shown a more robust incremental increase in sales activity for the past year than is evident in the Spanish overall property market.  Lucas Fox Ibiza saw the majority of sales activity in the second quarter of 2014, transacting close to €10 million Euros during a three month period. While the majority of prime market buyers bought holiday home properties, close to a third, 28.6%, of purchases were for investment purposes.

‘As far as prices are concerned, we are seeing a slight rise once again. Ibiza remains very much the place to be and is a secure investment destination, with its high return on rentals during the peak summer months,’ said Maxim Rettich, partner of Lucas Fox Ibiza.

‘In 2014, we saw a 10% increase of client numbers and expect this upward trend to continue in 2015. The high season seems to be extending as increasing numbers decide to enjoy the island's lovely winter months. As a result, we are seeing an increase in demand for long term rentals. The vast majority of our clients come from the UK, Spain, France and Germany followed by Italy and the Netherlands,’ added Rettich.
 
The Marbella residential property has also seen strong growth in foreign property ownership. In 2010, foreign investment in new housing properties accounted for 12% of the market. In 2014, foreign investment represented 35% of the market.
Amongst foreign buyers resident in Spain, transaction value of purchases made across the Malaga region, which includes Marbella, increased for each quarter in 2014 over 2013 levels.

The data also shows that average property prices in key luxury districts across the Marbella region remained steady between the end of 2013 and the end of 2014. Average prices in Marbella Town rose in average prices to €2,307 per square metre.

According to statistics from the Lucas Fox website, international interest in Marbella comes primarily from the UK at 22%, followed by the US at 9% and after that, the Netherlands, Belgium and Sweden.

According to Stephen Lahiri, director of Lucas Fox Marbella, the market for designer and quality properties in prime locations turned around a year ago, with buyer interest picking up, and a significant increase in the number of transactions in 2014.

‘This has been particularly noticeable in the luxury sector, resulting in an increasing shortage of good quality, luxury properties available to buy. One of the primary changes that we have observed in 2014 is the profile of our buyers, which has evolved from predominantly retirees to a much more dynamic, younger buyer who is more quality and fashion orientated,’ he explained.

‘Therefore, the average age of buyers has dropped from an older age group to late 40s to 50s, whose focus is on quality, style, accessibility, services, security and privacy,’ he added.

It is expected that during 2015 prices across the market in Valencia will remain stable as they have done over the last six months. In the most discerning areas of the city, a slight rise of prices ranging between 1% and 3%, is expected.

Although the number of sales transactions of second hand properties in Valencia has dropped significantly since 2007, sales trading has seen increases each year since 2012 with a 31% increase in the number of sales of re-sale properties trading in 2014 over 2013 levels. 

‘It is expected that during 2015 prices across the market in Valencia will remain stable as they have done over the last six months. In the most sought-after areas of the city a slight rise in prices of between 1% and 3% is expected,’ said Juan Luis Herrero, director of Lucas Fox Valencia.

‘Foreign buyers are increasingly looking to buy in Valencia city as the market opens up to a more international clientele and this trend is expected to continue into 2015,’ he added.
 
The reports also suggest that 2014 was a year of stability and growth for the property market in Madrid, with prices expected to have bottomed out. Total sales value of transactions in the first three quarters of 2014 was higher than the corresponding quarters of 2013. 

Madrid city centre saw some price corrections in the third quarter of 2013, and has since steadied in price, maintaining an average price of €3,285 per square metre by the end of 2014. The affluent districts of Chamberi and Salamanca both saw slight price increases over the levels recorded at the end of 2013, at €3,260 per square metre and €4,138 respectively.

‘Last year was one of stability and growth for the property market in Madrid, according to Rod Jamieson director of Lucas Fox Madrid. ‘Following several years of crisis and an important price correction, positive economic indicators brought renewed interest from international investors,’ he said.

‘Madrid remains one of the most reasonably priced European capitals with a high growth potential. We believe that the market has bottomed out and predict that property prices in Madrid will remain stable during 2015,’ he added.
 


Report From: http://www.propertywire.com


 

Confidence has Returned to the Spanish Property Market

It is well known that the property market in Spain has suffered over recent years with some areas in Spain seeing their properties decrease in value by up to 48%.  Property agents are now reporting that there has been a steady increase in sales over the past year and that confidence is returning to the market.
 
It is reported that the property market will continue to grow in the most popular areas of Spain and that investors are returning to take advantage – snapping up property bargains knowing that they will get a good return on their investment.
 
The Spanish Parliament has also played a key role in restoring the property market by passing a new law that is aimed at encouraging non European Union investors to invest in the Spanish property market.  The law grants residency to non European Union Nationals as long as they are spending €500,000 or more in property.  This has shown a huge amount of interest from nationals from countries such as Russia, USA and China.
 
The area of Costa Blanca North with its beautiful coastline has attracted business from a lot of nationalities and modern, new build properties that are sea front or have sea views are the most popular sought after product.  In the areas of Javea and Moraira it has been difficult to keep up with the demand for such products.
 
It still remains a buyer´s market with sellers increasingly having to be open to negotiation on asking prices.  Most serious investors focus on the location and the quality as this will give them the best return on their investment.  The return of international clients is the main reason why the market is now on its way to full recovery.  The future is now looking positive …
 
EU PROPERTY INVESTORS AS NEW RESIDENCY RULES BECOME LAW
30 SEPTEMBER 2013

The long-anticipated legislation granting non-EU nationals automatic Spanish residency via property investments has now officially been made law. After having been approved by the Spanish Parliament, the law has been officially published in the state Gazette (BOE), opening the door to thousands of potential investors.

The new legislation states that investors outside of the European Union who spend half a million Euros or more on residential, commercial property or land in Spain will qualify for a visa allowing them to stay in Spain for 12 months (up from the current 90 days), plus a further two-year residency permit, renewable every two years.

The law is also retroactive, allowing those who have already invested half a million Euros or more on Spanish real estate to be granted residency. This is going to have a positive effect on the Spanish property market who are already seeing sales increase from investors keen to invest their money in property.

Key benefits of the new law are:

• initially entitle investors to stay in Spain for a maximum of one year (currently 90 days)
• entitle investors to obtain a further two-year Residency permit, renewable every 2 years as long as the investment threshold of 500, 000 Euros is maintained
• enable investors to travel without a visa within the 26-country European "Schengen zone”
• allow family re-unification. The spouse and children under 18 can apply for Residency at the same time as or after the initial application.

Preparing Your Property for Sale

Sellers Guide/Preparing Your Property for Sale

Look at your property from the road.  Does it need painting? Does the garden look tidy?  Does it have that "kerb appeal”
 
De-clutter – this is the single most important thing to do when you are going to be having people view your property.  Nobody wants to see your clutter – so pack away anything that is cumbersome and pack up posters on walls, knick-knacks, ornaments, books, children’s toys etc.  I know that you have to live but you will sell your home a lot quicker if you have a feeling of space rather than lots of clutter.  Consider having a garage sale to get rid of things that are no longer needed and get some extra cash for it.  The more you can depersonalise the property the better as viewers will then be able to visualise their belongings in your home.
 
Spring Clean – It is vitally important that the property looks clean and tidy and is free from any odours.  If you have pets, pay particular attention to this.  Nobody wants to come and view a home that stinks of wet dog!  Also if you are a smoker make sure that the smell of tobacco is free from the property and the walls are painted.  If you need to smoke do this outside until you sell your property.  A smoker will not smell the awful stale tobacco but a non smoker will and this could ruin your chances of selling.
 
Make it as light as possible – whatever you can do to increase the amount of light in your property – do it!  Most buyers will prefer the feeling of bright, airy space.
 
Think about spending a small amount of money by restoring and repairing as this will pay dividends in the long run.  First impressions always count
 
Contact us for free advice and honest valuation to sell your property quickly