Property News
THE SPANISH PROPERTY MARKET RECOVERY
The bust is dead, the Spanish property market's recovery has begun! That's how some leading daily papers like El Pais are interpreting the latest figures from the National Institute of Statistics (INE) showing the market grew ever so slightly in January. The market appears to have found a floor, which is an improvement on the 2 years plus of monthly declines we had before. Figures for January show there were exactly 34,000 sales, up 1.4% over 12 months. But of course we have to keep in mind that the market in January was 56% smaller than it was in January 2007. The figures show that most of the improvement is now coming from resales, not new builds.
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PUBLISH DATE : March 2010
SOURCE : Spanish property insight
MARCH 2010 EURIBOR AND SPANISH MORTGAGE NEWS
Euribor (12 months), the interest rate
normally used to calculate mortgage payments in Spain, fell 0.6% in February
compared to the previous month. Euribor now stands at 1.225%, the lowest
level on record. Euribor is 43% down over 12 months, and 77%
down from its all time high of 5.393% in July 2008. As a consequence of the latest reduction in
Euribor, repayments on a typical annually resetting mortgage (150,000 Euros, 25
years, Euribor +0.75%) will fall by around 65 Euros a month, or 780 Euros a
year. When Euribor rose a fraction in December I
suggested that, after 14 consecutive months of falls, a change of trend might
be in the offing. Despite a return to declines in January and February, that
still probably holds true. Flipping around is often consistent with a period of
change. Most of the savings from the fall in
Euribor have already been had, and Euribor is unlikely to go much lower. By
March borrowers on annually resetting mortgages will hardly notice any savings,
even if Euribor goes a bit lower. Euribor is based on interest rates set by
the European Central Bank. Base rates are expected to remain at 1% for the
first quarter of 2010, rising gradually after that. New mortgage lending fell by 34% last year.
PUBLISH DATE : March 2010
SOURCE : Spanish property insight
PROPERTY PRICES DROP
The average price of a home in the Valencia region dropped 3.16% during the first quarter of this year moving from 1,867€ a square metre to 1,808€. Figures released this week by the Indice de Mercados Inmobiliarias (IMIE) show that Benidorm is the most expensive place to buy at 2, 292€ a square metre and San Juan the cheapest with properties there costing 1,492€ a square metre. IMIE also said that on a national level the value of properties dropped by 9.2% in July when compared with the same period for 2008.
One of the worst hit areas is the Mediterranean coast where falls of up to 10.9% have been recorded. With no end in sight, the current economic crisis is having a serious effect on the real estate sector. This coupled with difficulties in obtaining mortgages and the strength of the pound against the euro, has seen many new building projects put on hold and those that are still ongoing are doing so at a vastly reduced work rate.
Analysts say this is the time to buy for anybody who is able to purchase without the need for a mortgage.
PUBLISH DATE : August 2009
SOURCE : Costa Blanca News.es
LATEST EURIBOR AND SPANISH MORTGAGE NEWS
Mortgages fuel the property market, so activity in the mortgage market is an important indicator for the property market.The latest figures from the National Institute of Statistics (INE) reveal that mortgage activity is still significantly down on last year, but may have turned a corner in May as key figures started to improve on a monthly basis.The number of new residential mortgages signed in May fell by 23% to 57,614 compared to the same month last year, but rose by 15% on a monthly basis.The average mortgage value in May fell 14% to 121,120 Euros year on year, but rose 5% month on month.
Overall new mortgage lending was 7 billion Euros, 33% less than a year before, but 20% higher than April.
The average interest rate agreed for new mortgages in May was 4.6%, 11% lower in percentage terms than a year ago, and 2.2% lower than the preceding month.96% were variable rate mortgages, the remainder fixed rate.
PUBLISH DATE : August 2009
SOURCE : Spanish property insight
VILLA PRICES AND BUYING
It’s been a dismal year for house prices – and not just in Britain. With the reality of a worldwide recession kicking in, the value of bricks and mortar just about everywhere is taking a tumble. The news is not all bad, though: at least not for those with the money to buy. In some cases, the pound’s dismal recent performance against the euro and dollar – in fact, against almost all currencies – is more than outweighed by cuts in the price of property,
Bill Blevins, director of Blevins Franks International, agrees. "If you’re buying for the long term, it’s as good a time as any,” he says. "We don’t know what prices worldwide are going to do – they could fall a further 10% – but if you are going to own it for 10-15 years, then who cares?”
PUBLISH DATE : March 2009
SOURCE : Times online
RIGHT TIME TO BUY PROPERTY ON THE COSTA BLANCA
Experts have said that the time to buy property on the Costa Blanca at the right price is drawing near after figures released this week show that an average home in the area now costs €30,000 less than a year ago. Official figures along the coast have seen prices drop by 14%. Average prices per square metre of new and resale property in Alicante province have dropped to €2,083m2 and €1,938m2.
In 2008 there was a general fall in property prices throughout the province, further falls are predicted , but not as severe.
Recent figures reveal that 40% of Britons intend to buy a home abroad as soon as circumstances allow and Spain is still ranked as one of the preferred destinations.
PUBLISH DATE : January 16 2009
SOURCE : J Parkes. Costa Blanca News.es
PROPERTY REPOSSESSIONS IN SPAIN
The amount of bank loan delinquencies has soared over the last months and is at levels unseen in more than eight years, according to the latest figures of the Bank of Spain. The underlying causes are related to the economic crisis. High levels of unemployment, rising inflation, the euribor having reached a historic peak, something which translates into higher monthly repayments. Also the strengthening of the Euro against other currencies such as the Sterling pound or US dollar makes it harder for these currency holders to meet their monthly mortgage repayments in Euros. Falling property prices have also discouraged many potential purchasers.
This fall in value means some people are not interested in continuing to pay their mortgages as they have run into negative equity. In the last few months some banks are accepting the return of keys and keeping the property as repayment. However this will only happen if there is no significant negative equity on the property.
As the influx of repossessed properties increases, banks will eventually be forced to go through a public auction. In these auctions the value fetched by properties can easily fall below 50% of the market value.
PUBLISH DATE : November 28 - 4 December 2008
SOURCE : Ray mundo Larrain Nesbitt Marbella-lawyers
OVER SUPPLY OF APARTMENTS FOR SALE IN JAVEA
Javea on the Costa Blanca is suffering from the same malaise that is prevalent in property markets across the globe. In recent years, developments of apartments between Javea port and the Arenal has created a new holiday village with row upon row of new apartment buildings set to cater for the increasing demand in property investment. Herein lies the problem. With the sudden downturn in demand for property, Javea has been left with an over abundance of new apartments in a market struggling to find buyers. Many agents are seeing buyers come and go without making a commitment to purchase as the majority sit on the fence waiting to see how far the market will fall. As with most investment vehicles this can be a dangerous game to play. It is only necessary to look at the trading patterns of the individual investor on the stock market to discover that most individual investors waiting for a market to turn get left behind and miss out on the best opportunities.
Whilst apartments for sale in Javea are currently in over supply, this should be seen as an opportunity rather than negative. Whilst the need to be discerning is more necessary than ever, those that look to find the value within the market will be tomorrows investment winners.
Whilst apartments for sale in Javea are currently in over supply, this should be seen as an opportunity rather than negative. Whilst the need to be discerning is more necessary than ever, those that look to find the value within the market will be tomorrows investment winners.
PUBLISH DATE : November 2008
SOURCE : AMLA Spain
PROPERTY SEARCHING IN SPAIN
Buyers looking to purchase a property overseas are increasingly using the internet to find investments, according to experts in the sector. Global Edge studied the search habits of purchasers on a variety of engines to identify which regions are the most popular. Second homes in Spain were found to be particularly desirable for UK buyers. Investors are beginning to broaden their search fields and that this could in part be due to the glut of new-builds on the Costas. This could mean that prices will be more negotiable in these areas as sellers struggle to sell their homes. According to Holiday-Rentals and Savills, Spain accounts for 34 per cent of all British-owned foreign residences, making it the most popular destination for UK buyers.
PUBLISH DATE : October 2008
SOURCE : propertyshowrooms international property & investments
PROPERTY PRICES IN SPAIN
It is clear that the property market has slowed. For some areas it has come to a standstill but in others it is the reverse. According to the Spanish Ministry of Housing the property prices in Alicante have increased in the last 12 months. Many may question how this is possible when properties remain unsold. There is one good reason why this situation may appear to be the case and that is that the actual price of property is decreasing and the amount of black money being paid is less showing the declared value as higher!
PUBLISH DATE : September 2008
SOURCE : Costa Blanca Lawyers
BARGAIN PROPERTIES IN SPAIN
Overseas property buyers have been advised to consider snapping up a bargain residence in Spain. It could be a good window of opportunity for lifestyle buyers to pick up a relative bargain in the country. Now appears to be a great time to negotiate a below market value property purchase. According to the Association of international property professionals Spain is currently the most popular location among British property buyers.
PUBLISH DATE : August 2008
SOURCE : propertyshowrooms international property & investments
SAFE PLACES TO BUY PROPERTY - JAVEA AND MORAIRA
There are undoubtedly good discounts to be found, but don't confuse bargain prices with value for money. Top quality always holds its value because it is in limited supply. You will pay more but you will get better value for money. Don't just look for low prices, because that doesn't mean it's a bargain. So where are the safest places to buy right now? There is a clear distinction between prime and non-prime locations in Spain. In some areas that are popular among wealthy Spanish buyers, supply is limited because land is limited and buyers are not over leveraged so there is no financial distress. An example being an area such as Javea, a prestigious resort with its upmarket villas.
Costa Blanca property market has seen a downturn, but towns North of Alicante such as Moraira, Javea and the Jalon Valley, where prices are higher, are faring better.
PUBLISH DATE : June 2008
SOURCE : Propertyinvesting.net
Ultimate Property - Estate Agents in Javea and Moraira.
