I would just like to say a big thank you to all of those customers who have helped make 2014 a record breaking year for Spanish Hot Properties which culminated with August 2014 being the companies best ever month for new agreed sales in the history of the company.
To give you an idea of the breakdown of the clients that bought in August 40% from the UK, 15% from Russian, 30% from Scandinavia and 15% from mainland Europe. The most interesting stat is that 40% was from the UK a big increase and ahead of the 15% for 2013 for Spain as a whole. Finally they realise the recession is over but in reality most of the best deals have already gone but some opportunities still exist.
As to when prices rise again it’s clear that is already happening in prime location areas such as Mallorca and Marbella. Another question asked by our clients is a very simple one; can I lose money by investing in Spanish property now? The answer to the question is only if you buy badly natural economics say if you buy below the cost of replacement value eventually prices will rise. Also this summer in Marbella it was impossible to find a Hotel in August in the Marbella area and very difficult to find a holiday rental apartment so again you can work out the rest for yourselves.
The question for all of us is when a normal buying market will return where 50% of the properties sold are not bought by international buyers. Anyway once again a big thank you to all of you who have helped 2014 be such a great year for Spanish Hot Properties
2014 has seen lots of positive news surrounding Spanish property with improvements in Spain’s general economic outlook, increasing sales to foreigners and signs that prices may now be at the bottom and already starting to rise in certain locations. This has led to a mood of optimism in the Spanish real estate sector with Solvia, the estate agency of Banco Sabadell, going as far as to raise the prices on 450 of its properties and its likely other banks will follow.
Here we list 12 factors why it might be the right time to buy in Spain:
1. Attractive prices: Prices have dropped around 40% on average and in some areas up to 70%.. The low prices decrease the risk when buying a property as potential downside is low to non-existent in most cases.
2. Choice: Oversupply has been one of the main factors forcing down property prices in Spain but it does have an advantage in that it provides a potential buyer with ample choice when choosing a property, with homes of all types available in all locations.
3. Positive economic data: Many economists are now pointing to signs that Spain’s economy is on the road to recovery with the Spanish stock market making impressive gains, unemployment dropping and government tax revenue increasing. This eases concerns of instability and insecurity.
4. Buyers’ market: Buyers are in a strong position in today’s market and can use this to bargain for lower prices although signs of prices having bottomed out could mean that this will not be the case for much longer.
5. Banks lending again: It is becoming easier to obtain a mortgage in Spain as banks regain their willingness to lend to consumers. High interest rates have been one of the factors driving customers away from mortgages over the past few years but new deals being advertised by banks include much more attractive rates of interest.
6. Rental yields: Annual rental yields are currently at an average of 4.7% and are rising. Many investors are starting to look at buy-to-let as a better investment than other financial products.
7. Bank bargains: Many banks have slashed prices aggressively to sell their real estate assets with discounts of up to 70% available. This situation will stay the same in the short term with banks still holding vast portfolios but will not last forever.
8. Cheaper to buy than rent: At the moment the average monthly payment of interest on mortgages is around ?250 which is less than the average cost per month of renting.
9. Entry of investment funds: This provides a sign of confidence returning to the Spanish real estate sector as investment funds have started buying up the country’s real estate assets and taking advantage of the current low prices. This is leading many individuals to plan on following these funds in securing a bargain property.
10. Benefits of ownership: Many people still see property ownership as preferable to renting. Buying a property is an investment in a saleable asset whereas rental is not and many see greater security in ownership for themselves and their family.
11. Prices already increasing in certain areas, especially prime locations such as Marbella, Puerto Banus, Mallorca and Ibiza.
12. Banks actually starting to increase the prices of their properties in the areas where there is huge demand
If you would like advice about how Spanish Hot Properties can help you take advantage of the property market in Spain then we would love to help you so please contact us directly.
The reality is that in 2013 Spanish property sales are on the increase and in large numbers but the number of internet registrations and enquiries are down and the quality is very poor compared with 2012. So the obvious question is why?
I could see something different was happening as early as January 2 this year. December is normally the quietest month of the year and January normally one of the busiest. However this year where we normally see a tenfold jump in enquiries it was very minimal. Also agents sending us clients from their own website and portals had the same problem less enquiries and very poor quality enquiries. By poor I mean clients with unrealistic expectations as to what their money could buy them, especially in Marbella. This has carried on throughout the year and right now it’s even worse. Interestingly it’s across all languages except French where the enquiry levels are actually up and are of a vastly higher quality than the other languages.
The number of visitors to our various websites has actually increased but the registrations haven’t but sales in the market place have so where are those sales coming from? They are coming from 3 major sources number one is other international agents who recommend their clients to us. Secondly are existing clients of ours and thirdly referrals from clients who were very happy with the service they got from us when they bought. Internet enquiries are a distant 4th. Having spoken to a lot of fellow agents this is very much the case. There is also another factor in that a lot of people have already bought and taken advantage of the market so they are obviously no longer looking.
The big question is how much longer will this continue for and what does the small real estate agent in Spain do now they can’t get clients from the internet?
We just received a property for sale in Spain enquiry that just compelled me to write this blog and just illustrates why UK citizens are missing out whilst the rest of the world takes advantage of the Spanish property market.
To quote the buyer on a property that is on our site for 1.25 Million Euros, the clients proposed to pay 200,000 Euros Cash for the property. I suppose if you don’t ask you don’t get but it does show the ignorance of a lot of perspective buyers from the UK mainly being fed from the uneducated UK Press.
The reality is for these would be buyers the best deals were bought last year in the Golden triangle of Puerto Banus, Nueva Andalucía and Marbella or other similar prime location areas in the Marbella property area.
The first example is La Zagaleta where all the great deals between 2 Million and 3 Million Euros have now been taken from the market. So now you will have to pay closer to 3.5 Million Euros for a property you could have bought last year.
Another example is a very good client and friend of mine who bought in a development close to the beach in Puerto Banus for 399,000 Euros. Now the least expensive unit in this development is selling for 525,000€ so in reality my client could actually sell his property now for a profit.
There will always be exceptions to the rule but the reality is that the best deals are in the past and every month that goes by the more likely it is that your property in Spain will cost you more not less.
That is the reality of the market but unfortunately the majority of UK Buyers seem not to think that’s the case mainly fed by the UK Press.
With the Spanish property crisis continuing I thought it would be a good idea to take a look at the why property prices are so low and also see why these reasons don’t apply to luxury property sales in Marbella and Mallorca
1) Employment and expectations of finding a job: due to the unemployment rate in Spain (25%), most people are reluctant to commit themselves to buying a home. Obviously most people buying luxury villas in Mallorca or Marbella this is not a factor.
2) Financing: financing is non-existent in the real estate sector, and the granting of mortgage loans is unlikely to return to normal over the coming months due to uncertainty regarding the macroeconomic situation. In the current climate banks want to avoid any type of risk. Again the majority of buyers of luxury homes in Spain are cash buyers.
3) Interest rates: the euribor is at a record low level of 0.5%, which means that now would be a good time to take out a mortgage. However, the banks are applying ever higher differentials, a sign that they do not want to increase their property exposure any further. Again not a factor for cash buyers
4) Taxes and deductions: two factors which will push house prices down are the rise in VAT from 4% to 10% for new-build purchases and the end of home purchase tax deductions, which come into effect this year. However, falling house prices will offset the tax benefits which were available up until the end of 2012. So again not really an issue for would be high end buyers.
5) SOCIMIs and renting: the reform of Act 11/2009, which regulates SOCIMIs (listed real estate companies), has been approved with a view to incentivizing the house rental market. Furthermore, the government is currently pushing through a reform of the Lease Act, which shows that it is focusing on strengthening the rental market. According to Nick Stuart, the more rental housing available, the better for everyone and house prices will fall even further. Again this will have an effect but will be felt much more on the market below 600.000€
6) The stock of available housing: the more homes there are on the market, the lower house prices will fall. However, as Nick Stuart managing director of Spanish Hot Properties points out, the real estate market in Spain differs widely across local housing markets, and in some areas there is no stock of available housing, which means that this variable will be neutral with respect to house prices.
7) The creation of Sareb: the creation of Spain´s bad bank will not slow the downward trend in house prices, although it will not push them down either, in the opinion of the chief executive of a property valuation agency. In his view, the objective of Sareb will be the management and divestment of property assets, within a time frame of no more than 15 years. He added that Sareb will manage housing developments and land but will not sell homes to individuals. Instead, it will focus on institutional investors. Again the reality is that very few desirable homes are repossessed in relation to the rest of the market.
8) Finally and most importantly it’s one word CONFIDENCE or currently the lack of it when that’s low coupled with bad international press for Spain then it’s always likely to dent house prices. However in relation to the luxury property market most people buying are very savvy and can see though these mirages or reasons not to buy.
So in conclusion property prices are likely to stay low for the a little while yet but we are already at the bottom for the luxury property market in Mallorca and Marbella
——————————————————————————————————— Hi Nick I hope you had a wonderful trip to Paris. As you will be aware the deal completed so we now own 32.1.8 Los Lagos De Santa Maria Golf, Elviria. Your help was much appreciated, and your expertise and knowledge of the market and area is first rate. Thank you too for fulfilling my need for a good outside space, the terrace was spectacular last week in pefect weather conditions and the terrace size really makes the property. You were right about the sea views. Also Maria Rubino did a very good job on the legal side, thorough, good communication, and willing – thank you for introducing Maria to us we will be using her in the future as and when we have any legal requirement. Phil, Nicky’s husband has been booked to do some work for us. The furniture is all ordered. A keyholder has been appointed. So all in all things are moving forward. I hope they give you a good commission as you certainly earnt it. I look forward to the gift back towards our inspection trip expenses which will be going towards the building and aircon costs. If things progress well and we avoid too much “manana” then I hope we can invite you for a mojito on the terrace at Xmas. Thank you for your help Nick. Kind Regards Celia
Being an International real estate agent in Spain can sometimes be a thankless task but its moments and emails like this that make it all worthwhile and why I set up the business in the first place which was to help people buy safely and securely in Spain and also make a living at the same time. So Just like in the move Jerry McGuire its very nice when we have an agent to client relationship that others agent will very rarely have.
Our feelings about Celia and her husband David is just positive wonderful clients who we were really happy to help.
Just looking forward to our mojitos at Christmas now.
So for those who are looking at Spanish property investment or just buying a holiday home in Spain in 2012 a rule change will that almost went unnoticed could well change your plans for the buying in Spain this year.
The rule change I refer to is the fact that you now have to appear in person to obtain your NIE number which you must have before you can buy a property here in Spain. You can do this by either attending a police station in person or if you are not in Spain by visiting the Spanish Consulate. This is a major change as before January 2012 you could give power of attorney to you Lawyer who would go and get your NIE number for you just as I did back in 2012. However you can still give power of attorney to your Lawyers to complete the purchase for you without you having to be here in person
So how does this rule change effect overseas property buyers in Spain? The reality is that for most people it just adds some extra time which in a lot of cases is an extra day. We have put a system in place with our recommended lawyers that cuts it down to half a day but obviously for those buyers who just want to fly in view the property put a deposit down and leave it’s an inconvenience they could do without which means they will need to stay an extra day. Also it causes a problem where someone views at the weekend.
We recently had clients who made a decision to buy and returned to Australia not realizing they needed to get their NIE numbers but now they will have to either come back or make a trek to the Australian consulate or pull out of the purchase. Its cases like this that highlights the problem that this simple rule change could have on the property market in Spain.
So if you’re looking at investment property in Spain or a Spanish holiday home please bear in mind to allow that extra time in your schedule.
If you want any further information on NIE numbers in Spain please feel free to contact me
For those of you interested in buying at Samara Resort Marbella and love the pictures why not watch the video here
So as you can see from the video it is a stunning development and at fanatastic prices from the height of the Market.
Below are the basic details of the Develpment
Apartments from – 2 Beds €299.000 , 3 Beds €384,000
Penthouses from – 2 Beds €420.000 – 3 Beds €650.000
Samara Resort Marbella – Costa del Sol – Spain – Location
Samara is a residential resort with a difference, an excellent combination of quality right down to the last detail, a relaxed and healthy lifestyle which is connected to nature and the good life and its location, which offer magnificent views of the sea and Marbella. All these elements make this project special and make it stand out from the rest. It is situated in a peaceful setting and well communicated with the AP7 motorway a few minutes away which allows easy and safe access. It is only 40 minutes from the international airport of Málaga and 60 minutes from Gibraltar airport. In the vicinity there is the La Cañada shopping center, the Costa del Sol main hospital, more than 20 golf courses and the best beach and water sports clubs in Andalucía.
Samara Resort Marbella – Costa del Sol – Spain – The Project
Samara Marbella is simply stunning and stands out for its contemporary design, fantastic facilities and fine detail. Set into the hills of Southern Spain it offers spectacular panoramic views of the Mediterranean Sea and the magnificent mountains of Africa and Gibraltar. Venture just 5 minutes from Samara and you’ll be rewarded with long stretches of sun-kissed beach or perfect your golf swing at one of the many courses in the valley below.
All Samara properties are spacious, light and exquisitely finished, providing everything you need for a truly comfortable and luxurious stay. Each property benefits from an open-plan living room which has been carefully designed to maximise the spectacular views while still delivering complete privacy.
The attention to detail in Samara’s properties is clearly evident in the fittings and finishing touches. Kitchen furniture is by leading Italian specialists Snaidero, electrical appliances are all Bosch, and each property has a pre-installed Bang & Olufsen audio system. Bathrooms all have under-floor heating and every room benefits from cold/warm air conditioning. In addition, every apartment comes complete with it’s own secure parking space and storage area.
Truly desirable, all properties further benefit from terraces and/or balconies, from where you can soak up the sun and take-in the views.
Samara Resort Marbella – Costa del Sol – Spain – The Facilities
Samara Resort is a residential promotion of the multinational company Hines, one of
the most internationally renowned real estate groups with presence in 16 countries
and more than 100 offices throughout the world.
• Buildings – 25 blocks, 169 apartments, 1, 2 & 3 bed apartments, duplex and
penthouses of 2 and 3 bedrooms. Only 2 & 3 bedroom apartments are
available and penthouses of 2 and 3 bedrooms.
• Each apartment includes a parking space and storeroom, with direct access
Interestingly the two main ones done back in 2008 have really stood the test of time with the only downside being the reference to the strong and stable Euro but all things considered that’s not bad considering what has happened in the last two years plus.
This is our most recent uploaded video of the wonderful Capanes del Golf which shows the truly luxury that is for sale and and with 45% discounts you can see why they are selling out.
This was the Sotogrande Video we uploaded last night which really does show Sotogrande at its very best as to whether they will ever get this project off the ground time will tell.
The Benatalaya video was probably the biggest waste of time going as it has sold so well there are only two units left.
So I hope you get a chance to pay a visit to our You Tube Video Channel and let me know what you think.