Thursday 10th January 2013
Cash Buyers will Lead Spain’s Property Market to Recovery in 2013
As Spain prepares to head into a new year, its real estate market is showing promising signs of a recovery. After a turbulent few years, the country ended 2012 on a high note, with reports rife of sales increases among real estate agents. Sales from overseas buyers increased throughout the year, as did investment and cash purchases, which helped to lead the market out of turmoil and into a new state of hope.
No easy road
Although a recovery is in sight for many parts of the country, experts warn that it is not going to be an easy ride for both those looking to sell and those looking to buy a home in Spain. The country’s lending situation still presents large challenges for those that do not have large deposits; many lenders throughout the country stopped lending to foreign buyers in 2012, and many others only offered deals to buyers that could provide deposits that were greater than 50 percent. However, this has led to a new breed of buyers for which Spain offers excellent prospects.
Cash buyers in strongest position
Nick Stuart, director of Spanish Hot Properties, said that the banks' reluctance to lend has led to cut-price deals for those that have a lot of capital. "We will find that cash buyers will be in a strong position to negotiate,” he said, "and will generally get discounts on properties up to the €300,000 mark.” House prices in Spain have generally never been so affordable for those with cash; along with the sharp increase in number of repossession, it is not uncommon for buyers to be snapping up properties in popular locations for as little as 50 percent of their pre-recession price.
Leading the way for the country’s property market is the Costa Blanca. Javea, which enjoys a prime spot looking out to the Mediterranean sea, has long been an area popular with tourists, expats and foreign buyers looking for a summer holiday home. Situated on the nearest point of mainland Spain to the Balearic Islands, Javea enjoys outstanding natural beauty and an enviable coastal location next to the Parque Natural El Montgo. Although property prices in Javea have fallen since the height of the property boom, interest in this popular area has increased as a result.
The average house price in the Javea region has fallen from €468,000 in 2006 to just €374,000 in the second quarter of 2012. However, for the first time since the start of 2011, house prices increased by the end of quarter three of 2012 to €387,000, signalling that those buyers in a strong financial position (largely cash buyers) were starting to take advantage and cash in on some of these reduced home prices. It is hoped that the increased investment appeal and injection into the upper end of the housing market will lead the whole market to recovery throughout the next couple of years.
Overseas buyers snap up high-end properties
Official figures indicated a common theme throughout 2012; that confidence in Spain's economy was returning to overseas buyers and sales levels were increasing. The prospect of bagging a bargain on investment property and holiday homes has led to a surge in the number of UK buyers in particular, boosting the profile of locations typically popular with British holiday-makers, such as the Costa Blanca.
Light at the end of the tunnel for domestic buyers
There is no doubt that Spain’s high unemployment rate has had a huge impact on the domestic property market. Affecting almost 25 percent of the Spanish population, unemployment has lead to many buyers being priced out of the market. This, coupled with reduced wages and rising living costs, has meant that many people have not been in a position to buy a home. However, planning approvals on new build residential complexes have fallen by more than 90 percent in the past two years, meaning that the amount of available properties has started to fall. Spain’s excessive number of unoccupied and unfinished new build properties once led to a saturation of the market. However, now that new build levels have been controlled and capped, domestic buyers are able to have their pick of available properties, and are slowly buying this previously unsold stock. It may be a slow process (the number of approved mortgages during 2012 had fallen more than 35 percent compared with in 2011), but it is a feeling among real estate agents that recovery will start in 2013.
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Thursday 17th May 2012
There was a 27% rise in the volume of overseas nationals who bought properties in Spain last year, according to official figures provided by the Bank of Spain.
According to the data, foreign property buying activity in Spain is back to levels last recorded in 2009, suggesting that international consumer confidence is improving.
While some foreign buyers are purchasing for investment purposes, others are simply taking advantage of the distressed nature of the market, with a view to securing a cheap holiday home in Spain.
Spanish property commentator Mark Stucklin says: “What is driving this increase in foreign investment in Spanish real estate? At least part of it will be due to a significant increase in the number of foreigners buying holiday-homes and retirement homes on the Spanish coast, which some of the estate agents and developers I talk to have noted.”
The Spanish property market is ultimately suffering from a chronic oversupply of homes, which explains why the supply of new homes has come to a virtual halt in order to allow the existing glut of properties to be absorbed.
According to the latest figures from the government, the existing level of planning approvals for new residential properties has fallen by 93% since the peak of the market in 2006.
Article taken from International Estate Agent Today. 17th May 2012
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Saturday 26th November 2011
Statistics have recently been published declaring that the UK has the highest level of overweight women in Europe, approximately one quarter are classed as “obese”. Men are not too far behind the fairer sex. Why? Maybe their lifestyle is the big issue, for example taking the children to school and back, the infamous “school run”. When I was a lad, I walked 3 miles to school and 3 miles back, in all weathers. Today parents will say that it´s not safe for their children to walk to school, how sad. But I digress. Eating habits have also changed and it is a big concern that these habits will be passed on down through the next generations.
In south-east Spain we have the wonderful “Mediterranean” diet, a great balance of fresh fruit and vegetables, fish and good quality meats. I must admit, the Spanish can be seen having ‘almuerzos’ at 11.00 am, with wine and brandies, then proceed to climb up trees or buildings to continue their daily jobs. Take a note of what they are eating though, olives, artichokes, small fish and green peppers, home made stews. Not a full “English” breakfast! Combined with the fact that the locals may also sleep for a short while in the afternoons (the Spanish “siesta”), which allows the body to rest and relax, taking away the stress and strains of modern living, very different to the lifestyles of many people who live in the UK.
So, a good diet, rest periods, less stress, outdoor living (with lots of sunshine!) and short periods of exercise, seems to be the answer.
Best still, why not move to Javea! We have one of the healthiest climates in the world, the best food and the best property prices during the last 10 years. Relocating to Spain may be a great option to secure future health and happiness for you and your family. You know it makes sense!
Contact me for further information on Telf. (0034) 669 908 353.
Steve Nott, www.javeacasas.com.
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Monday 3rd October 2011
If you have recently dined at a good restaurant in Javea or nearby, please write your reviews and remarks here.
We have just visited a new restaurant in Javea, opposite the well known Mesena restaurant, telephone 96 579 3764, which has good food and great service.
The new Bon Amb, visited in September, 2011. It was a real disappointing night, very expensive food that wasn’t worth the prices asked. I don’t like to report on negative venue’s, as they have spent a lot of money on the property and the gardens. They just have not got the food right, which is why we went there after all, a real shame.
We were tempted to try it for a second time, in April 2012.
Bon Amb is expensive, and the portions are small, but the presentation, the flavours, the ambience and service are all outstanding. There is an excellent wine cellar.
They have set out to make this a top class venue, and they have so far succeeded. It will not appeal to everybody’s palate or their wallet.
Carretera de Benitachell 100, JAVEA
Tel: 965 084 440
Visited April, 2012
Image by Omar Franco
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Monday 3rd October 2011
In the last 17 years I have visited hundreds of properties in Negative press always sells newspapers, that is why the average people buying a Spanish property beleive that they can offer 30 – 40% off the price that is asked. This may be true in other parts of Spain, but not here in Javea and Moraira.
Javea, Moraira do not have hundreds upon hundreds of new builds to sell. Most of the promotion and developers build just a few new villas in lovely areas with 20% green zones.
New apartment complex’s have a height limit of two floors and
aticos. No more than 30 apartments are built on each new project. These are normally purchased off plan by families from Madrid or Valencia, then the over seas buyers.
So there is not a huge amount of un sold properties in Javea or Moraira.
Bank repo’s are not that many in this area, look at the areas where there are hundreds and that is where you will find the town halls and developers have been silly for the past 10 years, a long with the greedy bank directors.
Keep your Javea property clean and tidy, free of nasty odors and ask a sensible price. Good luck because if the price is right, you will sell in Javea and Moraira.
Come for a holiday – Stay a lifetime!
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