Spain Real Estate News

Oct. 25 (Bloomberg) -- Banco Bilbao Vizcaya Argentaria SA faces a test of its 18-month-old assertion that defaults have peaked as growth stagnates in a Spanish economy that still accounts for about 60 percent of its loan book.

“Maybe they can keep this line going that bad loans have peaked for a bit longer but we all know things have got worse,” said David Moss, director of European equities at London-based F&C Investments. “They may have been better lenders than other Spanish banks but they can’t escape the market they’re in.”

Spain’s second-biggest bank has brought down its bad-loans ratio in the country after Chief Operating Officer Angel Cano said in April 2010 that asset quality was probably going to be “stable from now on.” While Chairman Francisco Gonzalez reiterated in February that the “worst was over” for BBVA, a deteriorating economic outlook will push up bad loans, said Moss, who holds the bank’s shares as part of the 8.5 billion euros ($11.8 billion) in non-U.K. equities he manages at F&C.

BBVA may say third-quarter earnings dropped 24 percent to 861 million euros when it publishes results tomorrow before the market opens, according to the average estimate in a Bloomberg survey of five analysts.

The bank was among Spanish lenders that had their debt ratings cut on Oct. 11 by Standard & Poor’s, which cited concerns about a “dimming” outlook for the economy and the prospect that bad loans will keep accumulating during 2012 and potentially into 2013.

Read more at Businessweek.com...

Brits are still the largest group of overseas buyers that purchase properties in Spain, new research has revealed.

Taylor Wimpey Espana published its sales figures for September, showing that Brits are responsible for 30 per cent of transactions, followed by Spanish and Russian buyers taking a 20 per cent share of the market each.

Germans comprise ten per cent, the company noted, while other nationalities to express an interest in Spanish real estate include the Swiss, Swedish, Dutch and Belgian.

In addition the property developer pointed out that its sales figures rose in September by 15 per cent, while enquiries were up by 45.5 per cent compared to the same month a year earlier.

Marc Pritchard, sales and marketing director of Taylor Wimpey Espana, commented: "September was a great month for us and October has been following in the same footsteps, with positive sales in the first 15 days."

Despite the rising sales for the firm, the Spanish real estate sector is still suffering, with the most recent government figures showing that, on average, property values dropped by 5.5 per cent in the third quarter, compared to the same period in 2010.

Source: Property Showrooms

Real estate prices in Spain continue to trend downward, although luxury properties are retaining their value and more foreigners are purchasing homes in the region. Tinsa, a Spanish appraisal firm, reports prices are down 7.4% in the last 12 months, and are declining to an ever greater degree in the country’s largest cities, with values declining as much as 31.9% from their historical peak.

High-end real estate, however, is doing well in the country. Places like Mallorca along the Mediterranean coast enjoy a strong market with plenty of demand, according to Sotheby’s International Realty.

Read more...

Marta Andreasen MEP has claimed Spain's secretary for housing 'is in denial' regarding the severity of the problems affecting British expats who have invested in Spanish property, following a heated exchange at an international property exhibition in London.

The argument took place following a speech delivered last week by the Spanish housing secretary Beatriz Corredor, who called for Britons to trust in Spain and to take advantage of its ripe property market.

UKIP's Marta Andreasen MEP said: "I was quite upset that she refused to accept or mention the fact that were serious problems affecting Brits in Spain.

"She referred to new reforms that had supposedly made Spain a safe country in which to buy, but these reforms neither resolve the past nor the present problems.

Read more at Telegraph.co.uk

Lots of interesting articles in the press today relating to Spain.  This is an interesting insight from various people living in Spain publish by Guardian.co.uk:

Readers' stories from Spain

A campaign group for the thousands of UK residents who have fallen into various Spanish property traps has been set up in the UK.

While there are similar groups already in existence in Spain, this group is the first of its kind in the UK and aims to raise awareness and pressure the UK Government and MEPs into taking action.

Many thousands of Britons are believed to have bought property in Spain and through the actions of various levels of Spanish government, property developers and banks, find themselves unable to enjoy the rights to these properties.

The Protection of Property Purchased in Europe (POPPIE) is run by husband and wife team Chris and Angela Beattie, who have first hand experience of the issues that surround buying in Spain.

Read more at Telegraph.co.uk