Spain Real Estate News

That's what Spain's housing minister, Beatriz Corredor, has predicted.

"Forecasts by international and national organisations, as well as the government, point to an economic and property sector recovery beginning in the second half of 2009," she said.

Hmmm.  I think Ms Corredor needs to get out more.  The damage done by so many greedy developers and town halls building so many properties, with many illegal ones too, will take more than a couple of years to fix. 

The market was sustained by investors for many years and these have mainly now gone elsewhere.  Yes, there are some bargains to be had and many respossessions hitting the market, but this will take some time to correct itself.

2009 is not a realistic time to see the market getting all fired up again.

What do you think? Do you agree with Beatriz Corredor?

It seems Greenpeace are under threat of being sued for an image they published showing how they see La Manga del Mar Menor, an area in Murcia, to be in the future because of climate change.

Local developers are furious and and owners at La Manga are panic-sellilng.

Here is La Manga now:



Here is La Manga accordingly to Greenpeace in the future:



The comment from Greenpeace:

"We will continue to campaign against climate change, because time is running out for taking measures to prevent La Manga from becoming submerged," said Mario Rodríguez, Greenpeace's campaigns director in Spain. "To try to solve specific problems by attacking the messenger, whose only aim is to defend the environment, is a wrong strategy, as well as being unworthy and unfair."

Strike action by thousands of Spanish and Portuguese truckers produced ominous knock-on effects on food supplies, aviation and industry yesterday, as Lisbon airport ran out of fuel, car factories shut down and petrol stations and supermarkets reported shortages.

In a worrying sign for other European countries that face rising discontent at the spiralling cost of diesel, a third day of strikes generated widespread mayhem and the mood turned ugly after the first casualties of the standoff: two strikers died in clashes on picket lines.

Tourists flying to Lisbon faced delays after the airport ran out of fuel. Some flights were diverted to Porto. Only emergency, military or state flights were allowed out of Portela airport, a spokesman said. Only emergency fuel stocks saved Spanish airlines from similar disruption.

Supermarkets, meanwhile, reported dwindling supplies. Authorities at Spain's two biggest wholesale markets, Mercamadrid, in Madrid, and Mercabarna in Barcelona, reported deliveries of meat, fish and fruit were almost at a standstill.

In Barcelona, at a branch of Caprabo supermarket, there was no fresh fish or meat on the shelves. Shopper María Luz Martínez, 38, said: "The lorry drivers are looking after themselves while we are all suffering. But the government doesn't appear to be that interested."

As panic buying among motorists continued, petrol stations were running dry. Drivers in Lisbon trying to fill up their cars were turned away. In Spain, "empty" signs hung from pumps at hundreds of stations across the country. Three car firms, Seat, Nissan and Mercedes, suspended production because of parts shortages.

Some ferries from the Balearic islands to mainland Spain were cancelled due to lack of fuel. José María Pozancos, director of Spain's fruit and vegetable export federation, said the strike was costing the industry €25m (£20m) a day.

The action is being closely watched in France, Italy, Britain and other countries where the threat of a similar strike looms. Diesel prices have shot up on average around 40% over the past year amid record jumps in oil prices, and truckers say profits have been all but wiped out. Italian hauliers are planning a five-day strike at the end of the month, while their British counterparts are targeting central London again on July 2.

With unions talking of coordinated action in several countries at a time and policymakers in Brussels refusing to countenance tax breaks, the fear is that the action in Spain and Portugal could spread. Yesterday truckers in Thailand used a half-day strike to demand financial help.

As the Spanish government yesterday deployed 25,000 police to clear major routes, the mood among strikers was increasingly turning bitter. Scores of pickets were arrested in clashes with police and two drivers were killed at blockades.

Lorry driver Julio Cervilla Sojo, 47, a father of two, died after being run over by a lorry which was trying to pass picket lines near Granada on Tuesday. A man was arrested and appeared in court.

In Portugal, a 52-year-old man was killed on a picket line north of Lisbon, as he tried to stop a lorry passing a blockade.

Picketers in Spain have thrown stones at lorries trying to pass blockades. One driver suffered serious burns near Alicante when four trucks were set on fire.

Hooded strikers in Valencia were photographed brandishing knives. Riot police cleared pickets blocking routes into major cities and the La Junquera junction between Catalonia and France.

Alfredo Pérez Rubalcaba, the Spanish interior minister, said 51 people were arrested after violence on picket lines. He said: "There is a constitutional right to strike. There is no constitutional right to disrupt people's lives. Therefore, we are going to continue acting with maximum force and maximum firmness."

For Spain's prime minister, José Luis Rodríguez Zapatero, who is already facing a downturn in the economy since the end of the building boom, the strike is the most serious bout of industrial unrest since he took power in 2004.

About 70,000 mostly self-employed drivers from two unions, which make up about 20% of the industry, are demanding guaranteed haulage rates so they can offset rising fuel prices. But the government, which has offered tax concessions to the lorry drivers, opposes fixing guaranteed rates, saying it would be against EU free-market principles.

Source Guardian.co.uk

It is not just UK mortgage lenders that are suffering as a result of the sharp decline in the housing market. Spain's bankers are also worried. The country's past decade of growth has largely been based on the construction business, but it is collapsing around their ears.

Now Spanish banks, many of which took full advantage of the building frenzy, face the very real threat of having to deal with developers and real estate companies who are struggling to meet payments.

Concerns mounted after figures from the Spanish National Statistics Institute (INE) showed that house sales in Spain for January fell by 27% year-on-year.

In some areas of the country popular with British buyers, such as Catalonia and the Balearic Islands, sales dropped by 40%.

Another alarming factor for the banks is that total lending to homebuyers dropped by 28% to €13.4bn (£11bn) - the biggest decrease since 2004. The size of individual mortgages has also fallen by nearly 4%, as lenders fear for the security of their loans.

Asprima, an organisation which represents Spanish developers, compounded the gloom by predicting that house prices will fall by an average of 8% this year - a record unheard of since the recession of the 70s.

As the expected slowdown in the building sector turns into a fully-fledged crisis, Spain's banks will find themselves vulnerable to mortgage borrowers or developers defaulting on their loans.

A series of Spanish construction companies are already struggling to meet loan payments. The Barcelona-based developer Fbex has a debt said to stand at €600m and is negotiating with a number of banks. Another developer, Habitat, recorded losses of €444.4m, which put it in "technical bankruptcy". Mortgages and lending to builders account for nearly 60% of all loans extended by Spanish banks.

The forecast does not look hopeful. The Bank of Spain lowered its 2008 growth forecast to 2.4% - a cut of 0.7 percentage points - and cut its forecast for 2009 to 2.1%.

Miguel Blesa, president of Caja Madrid, Spain's second biggest mortgage provider, was the first to articulate the concern felt in many boardrooms. He said: "This puts fear among a number of banks that rely on the construction sector. There will be more problems in the property sector in coming months, since the market in new homes is paralysed."

The present difficulties have made investors such as pension funds and insurance companies cautious about backing banks whose major source of business is the real estate sector. Blesa said: "Investors fear any exposure to the real-estate risk from the banks and it will take time to eradicate this fear."

The depth of the problem has been seen in the Bolsa, the Spanish stockmarket, where the country's major banks have seen €36bn wiped off their market value since the start of the construction sector slowdown last year.

The Bank of Spain sounded the alarm in 2006, pleading with banks and mortgage lenders to rein in loans as the building bubble appeared ready to burst after house prices had risen by 150% in a decade. But the warning fell largely on deaf ears.

The European Central Bank is providing funds to Spanish banks and taking mortgages as security. But Jean-Claude Trichet, the ECB president, had only bad news for Spain's bankers when he said: "The worst is yet to come."

Miguel Martin, the president of the Spanish Banking Association (AEB), admitted that, until the recovery arrives, debt defaults will increase and coverage will shrink.

Martin, whose body represents commercial banks but not publicly owned savings banks, said it was now more realistic to expect future lending to grow more in line with "nominal GDP", referring to the nominal economic growth of 7% last year.

"The banks have to get used to the fact that credit will not be growing at rates of 25%," he said.

But in an attempt to calm fears, Martin said Spain's commercial banks had high levels of solvency compared with European competitors.

The Bank of Spain's governor, Miguel Fernández Ordoñez, has ordered a closer watch on the cashflow of banks.

In an attempt to restore confidence, Spain's deputy prime minister, María Teresa Fernández de la Vega, said that the government would launch a series of measures to regenerate the construction industry, one of which includes a public housing programme.

Source.  Guardian.co.uk

Reading the latest newsletter from idealista.es it mentions that a recent survey of Spanish families with mortgages, found that 53% of these families would not be taking a summer holiday this year due to the increases in the Euribor, fuel price increases and the rising cost of living.

The newsletter also goes on to mention that many Britons are handing back their properties in Spain back to the banks as they just cannot afford to pay the mortgages, and essentially losing everything they have put into them so far.

It seems young Spaniards themselves are still struggling too.  The newsletter mentions that young people here need to earn another 137% more, an average of 3270 Euros, in order to afford to buy a 100 square metre property.  Ouch.

Press release from today:

With its aim to make Spain a great place to invest once again, established UK house builder Taylor Woodrow de España is currently offering a collection of high quality properties for sale with price reductions of up to 25%*.

London, UK (PRWEB) June 6, 2008 -- With both the UK and Spanish property markets experiencing their fair share of negative publicity, it's no wonder people are tightening their purse strings and choosing to hold on tight to their hard earned cash.

However, when it comes to a home in Spain would-be buyers could be missing a trick, as now is the ideal time to snap up fantastic property at amazing prices. With its aim to make Spain a great place to invest once again, established UK house builder Taylor Woodrow de España is currently offering a collection of high quality properties for sale with price reductions of up to 25%*.

Based on the 10 reservations so far we're confident that the remaining properties will sell out before the 31st July, which is why we're encouraging interested house hunters to find out more sooner rather than later.

Only 45 homes benefit from this fantastic offer and 10 have already been reserved meaning those wishing to take advantage need to move quickly to avoid missing out.

Nick Freeston, Head of UK Operations for Taylor Woodrow de España said: "Although it is not usual for us to reduce our prices we have had to look at the competitive nature of the current market and because of this we've selected a collection of properties in Spain that we are able to reduce prices on for a short period of time.

"These new prices present a fantastic long term investment opportunity for those looking to buy a home in Spain as a place to retire to, or for their friends and family to enjoy for years to come. Whilst it's true that Spain may not be experiencing the boom it's enjoyed for so long and that some buyers have had their fingers burnt, there is still a great deal of interest in our homes and we do expect the market to pick up. This is why buyers should be looking forward to enjoying their home and the long term benefits it can provide rather than the short term. "

One of the developments offering a collection of two and three bedroom apartments at reduced prices is Pollentia Mar in Puerto Pollenca, Mallorca.

Set only 50m from the beach and famous Voramar seaside promenade these two and three bedroom apartments benefit from a communal swimming pool and landscaped gardens. Prices were 254,000€ and now start from 210,000€.

Another development is Calpesol in Alicante on the Costa Blanca. This development of three bedroom townhouses is set just five minutes away from the beach and pretty fishing port. Residents in this peaceful location can also enjoy a communal swimming pool and landscaped gardens. Prices were 274,549€ and now start from 186,000€.

Nick adds: "Both developments are set in stunning locations and offer fantastic high quality finishes as well as close proximity to local amenities, airports and major road networks. As well as developments in Mallorca and the Costa Blanca we also have a selection in the Costa del Sol, giving those considering buying a home in Spain plenty of choice at great prices.

"Based on the 10 reservations so far we're confident that the remaining properties will sell out before the 31st July, which is why we're encouraging interested house hunters to find out more sooner rather than later."

Taylor Woodrow de España has been building homes in Spain for 50 years and during this time has built up a strong reputation as a quality company that can be trusted. Buyers of a Taylor Woodrow home can be safe in the knowledge that everything about their property is structurally sound and legally above board. An experienced sales team is on hand to guide all purchasers through the process of buying a new home in Spain, both before, during and after the sale is complete.

This offer is only available until July 31st 2008, so those dreaming of owning their own home in Spain should find out more now. For further information contact the sales team on 08000 12 10 20 or log onto www.taylorwoodrow.es

*Offer on selected plots only, terms and conditions apply.

Taylor Woodrow España is a wholly owned subsidiary of Taylor Wimpey plc, a homebuilding company with operations in the UK, North America, Spain and Gibraltar. It aims to be the homebuilder of choice for customers, employees, shareholders and for the communities in which it operates.
On 3rd July 2007, Taylor Woodrow plc and George Wimpey Plc completed their merger to form Taylor Wimpey plc, the UK's largest homebuilder.

For further information please visit the company's website - www.taylorwoodrow.es

For further press information and photography, please contact:
Rosie Gurnett
Haslimann Taylor PR
Tel: 0121 355 3446
rosie @ haslimanntaylor.com

Source PRWeb

Taken from here.

Whatever the property and stock market conditions around the world, one fact remains certain - property is one of the most secure, better performing assets in which you can invest your hard earned cash over the longer term.

Now, the key to the truth in this statement is that you have to be prepared to retain your real estate asset for the long term...but you can still make money from it even during the most uncertain times. To do so you have to be prepared to let your property.

Spain, possibly one of the least likely locations you would consider for property based potential at the current time, may actually be your best bet if you want to take this approach to profiting from property.

Spain has been rocked by reports of planning permission problems and by talk of a downturn in interest from second home purchasers. However, Spain has already seen a negative correction in real estate prices meaning that its property market is better balanced, and at the same time it has retained its record for being the number one holiday destination in the world with British holidaymakers and it also remains in the top ten destinations in the world for global travel interest.

These factors mean that Spain is an ideal location for those seeking well-priced property stock. However, Spain is a large nation and one really needs to be more location specific when it comes to choosing where best to invest for the long term. The one location that stands out above all others in Spain at the moment is the Costa Tropical or Tropical Coast.

The Tropical Coast is in southern Spain and it spans a stunningly beautiful, sun kissed and beach framed region that reaches from Almunecar in the west to Albunol in the east. It is easily accessed from the UK, Ireland, mainland Europe and the rest of Spain via Malaga and Granada airports, and what's more, the Costa Tropical in Spain is also benefiting from significant road development plans, which means more of the stunning coastline is becoming accessible.

According to Martin Dell, MD of award winning Spanish property portal Kyero.com: "previously the Costa Tropical was overlooked by second home hunters in Spain simply because it was less accessible - but now all that is changing and the region is benefiting from significant growth in the numbers of visitors it is receiving. Meanwhile, property prices have yet to reach anywhere near the national average meaning that anyone looking for a second home, holiday home or investment property can benefit from real estate that is up to 31% cheaper than the Spanish median.

In terms of what the Costa Tropical has to offer, it enjoys a micro-climate that allows local food producers to grow tropical fruits such as mangoes for example, and which means that those who visit can enjoy up to 320 days of unadulterated sunshine every year. Having been less well explored over the years, the Costa Tropical has been thankfully untouched by mass tourism or heavy development and it remains truly Spanish and truly beautiful.

The beaches, many of which have been awarded the coveted Blue Flag standard, are pristine and give soft sandy access to the crystal clear blue waters of the Mediterranean Sea from which your evening meal is highly likely to have been freshly caught. And if you tire of beach hopping and lazing in the sun, another fantastic factor of the Costa Tropical is that there is just so much to do, to see and to enjoy.

Tourists can dive, snorkel, sail, they can fish, hike, bike or even fly a kite, play golf, ride a horse, climb a mountain or take in the historic sites for which the entire region of the Tropical Coast is world famous.

All of these factors mean that there is not only strong interest in visiting the region already, interest is growing and likely to remain intense because the Costa Tropical has so very much to offer. On top of this, the rental season is year round meaning that a well located property can be let out for up to 52 weeks a year, thus maximising an investor's return. Over the longer term, the increasing improvements in accessibility to the region can only serve to push up interest and therefore property prices as well.

In conclusion, if you want to invest in an asset that is more likely to serve you well in capital appreciation terms over a longer period, and you want to profit from that investment in the interim in the form of rental yields, a well located property of interest to an expanding base of demand is probably your best choice. Costa Tropical in Spain is a region of the world where tourism is expanding, property prices have balanced out, and where demand for rental and resale stock is increasing - meaning this is one location in the world where an investor can consider committing to a property purchase even during these uncertain financial times.

Anyone have an opinion on or experience of the Costa Tropical market?

I was reading this article today and was surprised at the quote:

""Spain, unlike the UK and USA, has a silver lining though, as many Spanish nationals have not spent excessively. Therefore experts predict the property market will recover quickly and the levelling off of the currently high Euro will be instrumental.

"One must also consider the rental market. Differing from the UK, rental is a popular way of living in Spain and as such there is still a huge demand, which is likely to grow in the short-term and should help to keep the Spanish property market buoyant."

I beg to differ.  I have spent the past few days talking to various Spanish friends and they all tell me that they HAVE spent excessively as they've been enjoying the, up until now, booming Spanish economy.  This applies especially to the younger generation.

They also tell me that most don't want to rent, they would rather buy their own homes and own a property just like their parents.

In fact, various Spanish friends of ours are not in huge financial difficult due to unemployment, rising mortgage costs and fuel prices.

The Spanish government does have a scheme in place to help people afford to rent a property but it doen't mean that that's what they want to do.

I personally don't think Spain has a silver lining, these are tough times everywhere.

What's your opinion on this?

Published today by HIFX:

• Weak Pound means interest in France and Spain decreasing in favour of USA
• Emigration destinations Australia and New Zealand remain popular
• Brits struggling to sell UK homes have to put move overseas on hold

According to the report, enquires for France and Spain have decreased by 11% and 12.5% respectively since March.  Mark Bodega, Director from HiFX explains, “Sterling weakened significantly against the euro over recent months, reaching an all-time low of 1.2344 in April.  This has increased the cost of property for people buying in sterling. However Spain has also been particularly badly hit, with talk of falling property prices, especially in the over supplied Costa regions, making new buyers wary of investing in the country.  Property prices in France seem relatively stable although British buyers are negotiating hard to make up for the inflated costs caused by the weak pound.”

Popular emigration destinations Australia and New Zealand have continued to attract interest from Brits looking to move abroad.  Bodega continues, “We often experience a seasonal increase in emigration at this time of year because as Visa applications made during the autumn and winter months begin to come to fruition.  So, despite the pound looking relatively weak against both the Australian Dollar and New Zealand Dollar and there being a lot of fluctuation in both currencies, HiFX figures show that thoughts of moving to a new life overseas continue to burn strongly within much of the UK population.  However the feedback that we are getting from our customers shows that, whilst there are lots of people in the process of emigrating, many are unable to make the final jump as they can’t sell their houses in the UK.  For most this means they are unable to unlock the funds needed to secure their move overseas and they are being forced to delay.”

Sterling is currently trading at its lowest levels in 6 years against the Brazilian Real, after the Brazilian Central Bank surprised traders with a larger-than-expected interest rate hike in April.  While experienced investors have not been put off by this, HiFX warns holiday home owners to be very careful about committing to emerging markets and exposing themselves to the wild currency fluctuation experienced in these developing destinations.

Country	Change on previous month	% of enquiries for March	% of enquiries for April
Australia	▲	9	10
Austria	▼	3	2
Bulgaria	►	1	1
Canada	►	7	7
Cape Verde	▼	2	1
Cyprus	►	1	1
France	▼	26	23
Italy	►	3	3
Morocco	►	1	1
New Zealand	▲	8	10
Other (incl.	▲	14	17
Brazil,
Egypt,
Panama and the Caribbean)
Portugal	►	1	1
South Africa	►	1	1
Spain	▼	16	14
Switzerland	▼	2	1
Turkey	►	1	1
UAE	►	2	2
USA	▲	2	4

The slow down in the Spanish economy doesn't just impact the housing sector, car sales in Spain dived by 24% in May compared to the same month last year, further evidence that the Spanish economy is cooling faster than expected.

Apart from the high cost of fuel in Spain now (diesel is now more expensive than petrol) the reasons for the fall in car sales can be attributed to an increase in unemployment, the difficulty in getting finance and high interest rates.

Research from holiday villa rental specialist VillasForTravel shows that Spain is best for rental properties.

Holiday villa rental specialist, VillasForTravel, has published its league table showing which European locations enjoyed the most bookings, along with an analysis of where the greatest returns are to be made and where their customers want to travel next.

According to the report, three of the five most popular destinations were located in Spain in 2007, with the Balearic islands of Mallorca, Menorca and Ibiza taking the top position, followed by the Costa Blanca and the Canary Islands of Gran Canaria, Lanzarote and Tenerife. The study also revealed that Spain topped the list of the top five countries providing the top highest rental returns earnings, as well as being the country that the most VillasForTravel customers want to visit next.

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