Spanish Real Estate and Property News from SpanishEstate.com
25 March, 2008
The New Face of Spanish Property: A More Consumer-Friendly Market
The real estate boom experienced by the Spanish property market during the last decade finally saw its conclusion throughout 2007, when national prices rose by just under 5%. This figure, although normal compared to other European property markets, represents a modest rise compared to the yearly increases of nearly 20% experienced at the height of the property boom.
The shift in Spanish real estate is certainly a negative for powerful investors - who are no longer able to buy and sell Spanish property on a large scale to make huge profits - but doesn't reduce the appeal of a Spanish home for private homebuyers looking for a home abroad in a beautiful, relaxing environment.
In fact, the re-stabilization of property prices, while reducing the short-term profits appeal of Spanish real estate, has made the Spanish property market a more hospitable place for individual buyers in search of a place to retire, relocate or buy a vacation home in.
From an individual consumer's point of view, the booming market in years past created a tense situation that put buyers in disproportionate competition with each other. Sellers had it too easy with quickly rising prices that guaranteed a nonstop flow of demand, and very little emphasis was placed on the rights and needs of the buyer.
The market then was a playground for investors with deep pockets and businesses related to the construction and sale of Spanish property. Upstart estate agencies intent on getting a piece of the action sprang up like so many weeds in an abandoned garden, and towering construction cranes dominated the Spanish cityscape.
This situation endured for a decade, during which time the Spanish economy thrived off the massive influx of investment from across the globe. Spanish cities were revolutionized and acquired the modern face and excellent infrastructure they enjoy today.
With the conclusion of this mad scramble for construction and profits - which had both negative and positive consequences at various levels of Spanish life - individual homebuyers face a much friendlier, accessible market. With today's moderate increasing property prices, consumer satisfaction has once again been given the attention it deserves.
Perhaps most importantly (since quality services are always available to one degree or another independently of market conditions), consumers looking to buy a Spanish home no longer find themselves in fierce competition with one another. Buyers are free to approach the purchase of a Spanish home in a more relaxed manner, and have gained added leverage at the bargaining table.
Greater accessibility and bargaining power for the buyer increases the appeal of Spanish property for those interested in a long-term investment in quality of life. While market conditions remain in a constant state of flux, the actual experience of life in Spain presents a more unchanging reality.
Spain's sunny weather, beautiful natural surroundings and wonderful culture make enjoying each moment life has to offer a natural, effortless experience. As long as Spain retains its priceless natural and cultural heritage, it will remain as one of the world's most favored destinations for an overseas property.
Article provided by: Off Plan Properties
17 May, 2007
Spanish property prices could drop 5% in 2008
According to a study conducted by the American bank Morgan Stanley property prices could fall by 5% and demand could also fall from 760.000 to 475.000.
11 May, 2007
New Spanish property law "Ley de Suelo" to fight against real estate corruption
José Luis Rodríguez Zapatero, the Spanish Prime minister, announced yesterday a new law against real estate corruption that will come into effect on July 1.
The new law regulates the value of property by excluding future valuations. This law is also meant to foster subsidised housing and by stating that 30% of building developments should be destined for this goal.
10 May, 2007
Foreign distrust towards Spain decreases the price of coastal properties
Vacation residences and second homes in Spain are heavily influenced by the negative investing reports and corruptions scandals. Foreign property buyers are thinking twice before purchasing a property.
According to Brian David, president of the National British Association of Civil employees of State in Spain, prices have dropped dramatically during the last 18 months in Marbella and in the Costa de Sol.
Gordon Turnbull, an expert of the Murcian area, totally agrees with David. “The are too many houses being build and there are too many being sold which were bought to make a future profit, but this is not happening”. “2 Years ago you could sell an apartments in the coast with two bedrooms, a hall, a bathroom for 155.000 Euro and now its only worth 135.000 Euro”.
26 April, 2007
Spanish real estate is exhibiting all signs of a bursting bubble
Only a week ago the news shares of the developer Astroc were trading for 45€ and on this Tuesday they fell 29€ to a record low of 16€ (see the Astroc shares now).
This sell-off has had a negative effect to almost all Spanish developers and has also spread into the local construction and banking sectors.
25 April, 2007
Real Estate companies suffer collpases in the Spanish Stock Market
Yesterday the company Inbesós suffered the greatest losses with 18.4% decrease, followed by: Colonial with a loss of 12.4% , Cleop 11.4% and Urbas 10.3%.
According to analysts, Astroc was the first company to initiate this domino effect collapse.
The weak demand for Spanish property buyers and the great supply of property may have contributed to this collpase. Furthermore, experts also claim that these companies may also be overvalued.
24 April, 2007
95% of all new houses in Spain display more than 10 flaws on delivery
It seems that haste of developers and the lack of specialized workers are the main causes of these flaws.
These flaws are mainly related to humidity and heating as well as bad carpentry and painting finishings.
Nevertheless, 88% of Spanish developers have a post sales department to solve these issues.
With regards to the time of repair, 63% of the flaws are solved after 2 weeks, 29% within 1 to 2 weeks and 8% within a week. The costs for these repairs mostly between 300 and 600 euros and only 11% are higher than 600 euros.
18 April, 2007
The Association "Ciudadanos Europeos" recommends foreigners not to buy property in Valencia
"Ciudadanos Europeos" the association in charge of promoting the interests of European citizens in Spain, has recently advised in a press conference not to buy property in Valencia whilst the current abusive Spanish laws on real estate property are not changed.
The European parliament proposed changing these abusive laws, but the Valencian government is doing little to implement these changes by covering up its real estate scandals and protecting property buyers and owners.
16 April, 2007
It takes an average of 118 to sell a property in Madrid
According to a study conducted by Real Estate Group Tecnocasa, it takes 20 days more in comparison to the past to sell a property in Madrid.
The areas where it takes longer to sell a property are: Tarrasa taking an average of 142 days, followed by Seville with 136 days and Valencia 130 days.
On the other hand, the areas where properties are being sold the fastest are: Bilbao with 67 days, followed by Valladolid with 85 days and Alicante and Huelva with 92 and 95 days respectively.
Noticeably, Alicante and Valladolid are the only 2 areas were there has been a decrease (7 days) in the time to sell a property.
10 April, 2007
The Spanish Hosing Minister, María Antonia Trujillo, praises her ability in managing the Spanish property market
María Antonia Trujillo, Spanish Hosing Minister, pointed out yesterday in a conference in Valladolid that property prices in Spain raised 50% less since the socialist government of PSOE has been in power.
The Minister claims that the increase of property prices have dropped from 19 to only 9% in the last three years.
However, Spanish property experts claim that increases or decreases in property prices does not have anything to do with the work of the Housing Minister.
4 April, 2007
Spanish Confederation of Savings Banks (CECA) predicts a deceleration in Spanish property prices
Mr.Juan Ramón Quintás, president of Spanish Confederation of Savings Banks, assured yesterday that there are certain symptoms that anticipate a change in the economic cycle.
He also pointed that decrease of demand for Spanish property is already taking place but in a gradual and slow manner in contrasts to the still increasing construction sector, which forms a key component for the Spanish economy and the creation of labor and wealth.
In anticipation to this fall in demand, Quintás expects a decrease in Spanish property prices, which will only grow between 4% to 5% this year, and is expected to be 0% or -1% in 2008 and 2009.
3 April, 2007
Hemp, some smoke it but some use it for building
Hemp as many uses, but who would have though you could also build a house from it.
In the challege to combat global warming hemp is proving to one of the best construction material as it is: islotaing, impermebale, and resistant.
Green building or as they call it is Spain "bioconstrucción" is based on using environmental friendly materials. Although using hemp might be a bit more expensive, in the long run it is proven to be more economic due to its properties.
The stem of the hemp is used as an insulator for walls and partitions and mixed with other materials for making bricks and other structures.
2 April, 2007
Catalonia & the Basque Country are the most Europeanized areas in Spain
Catalonia and the Basque country are taking measures to combat the vacancy of flats.
The local government of these 2 areas are proposing to temporarily confiscate vacant flats in a similar fashion as it is already being done in the old Spanish continent.
Javier Burón, in charge of the office of planning and operating processes in Housing in the Basque Country, pointed out that these proposals are meant to foster property renting and implement punitive measure to those not wanting to rent their vacant houses.
30 March, 2007
The Spanish mortgage indicator "Euribor" reaches 4,1% in March
The Euribor has not dropped since 1 1/2 years, which represents an increase of about 1000 euros a year.
Spanish banks consider that there is too much being build in comparison to the weak demand for property.
Experts predict a slight but steady increase of the Euribor, which most probably will end up around 4,25% and at the most 4,5% at the end of the year.
22 March, 2007
The Spanish Costa del Sol suffers the consequences of corruption
The Real Estate market in the Costa del Sol is losing its strength.
The scandals surrounding the politic and building irregularities in the so called operation Malaya have greatly influenced the residential touristic sector.
According to a study conducted by Aguirre Newman, a Spanish consultancy, the housing prices have dropped 4,7% in this area during the last 12 months. As a consequence the price per m2 has also dropped by 3,9% and there has also been a reduction of the build area of 1%.
8 March, 2007
One out of three estate agents in Spain could disappear
The Professional Real Estate Agents Association in Spain estimates that the decrease in the Spanish property market will reduce considerably the number of estate agents in Spain during the coming months.
More precisely this situation could affect 30% of a the total of 60.000 estate agencies in Spain. The Professional Real Estate Agents Association also states that this radical change in will shape the Spanish Real Estate sector in a positive way and will foster more professionalism.
High property prices and high interest rates have slowed down the Spanish property market considerably to the point that it takes an average of 9 months to sell a property.
Positive factors in this situation is that Spanish property buyers will be presented with lower commission rates and with better quality service and a greater collaboration between professional estate agents.