Spanish Property Magazine – Spanish Property Magazine

Spanish Property predictions 2019

Post author By will Needham
Post date 27/12/2018

Check back next year to see how many come true.

1. Stronger sales in Murcia province due to the opening of Corvera airport.

2. Stronger sales in Valencia city as people look beyond Madrid and Barcelona.

3. Brexit – UK reaches a EFTA deal agreement and a reciprocal healthcare deal with Spain. Spanish property market gets a boast from increased sales to Brits. I expect this to be on the table by early Feb.

4. Euro – on the back of the EFTA Brexit deal, GBP rises to between 1.2 and 1.3

5. Property sales commissions continue their downward trend as fixed fee and low commission agents increase their market share. This makes income from cross selling opportunities such as currency, insurance, security systems and intelligent home systems even more important.

6. An inter-annual property price increase 5 – 7% on average across the country. With prices rising above average in areas of interest to international buyers and investors.

7. Banks struggling to shift very low quality properties even at heavily discounted prices. Indicating that some areas of some cities should be demolished to make way for redevelopment.

8. The city of Cartagena, Murcia will see increased investment in people buying up properties in the old town and tourism will increase, due to more cruise ships stopping there in 2019.

9. Property sales volume will increase YOY by 4 – 7%

10. Property buyers move to mobile increases. Clients get ever more tech savvy and the need for Estate agents to move with the times increases.

11. Negotiation margin to drop. Vendors less willing to accept lower offers.

12. Collaboration between agents increases. More agencies waking up to collaboration.

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TINSA market report October 2018

Post author By will Needham
Post date 13/11/2018

The valuations compiled by TINSA have been suggesting a good return on investment for property investors. With property prices predicted to increase siggificantly in most areas.

Where are prices rising the most ?

According to Tinsa, property prices in Spain are rising fastest in the big cities (Madrid, Barcelona, Valencia…) at a whooping 8.3% interannually and along the Mediterranean coast.

Capitals and big cities: 8.3%
Metropolitan Areas: 3.8%
Mediterranean Coast: 6%
Balearics and Canarys: 4.5%
Other Municipalities: 0.9%

Rising the least, smaller towns in inland areas.

Prices are still 37% off peak prices

TInsa Report October 2018 (Spanish)

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Buying Properties

Supreme Court rules that Banks, not Clients must pay Mortgage Tax

Post author By will Needham
Post date 07/11/2018

On the 16th of October the Spanish supreme court ruled that banks rather than property purchasers should pay the AJD (Actos Jurídicos Documentados), tax on mortgages. This overturns the Supreme Court’s own ruling from February.

The court reasoned by 15 – 13 that it is the banks, not the buyer that benefit from the mortgage being notarised.

The effect of this decision was seen in a fall in share prices of some of the major Spanish banks includin: Bankia, Bankinter, BBVA, CaixaBank and Sabadell.

The banks in Spain have been hit by a number of legal decisions that have effected the profitablity of mortages, including the “Clausula Suelo” (Mortgage rate floor clauses).

The likely effect will be that as mortgage loans become less profitable for the banks, borrowers can expect higher fees, rates and increased costs to offset the expense to the banks.

Purchasers affected by this ruling will be able to claim, but it’s as yet to unclear how far back claims can be made retrospectively. Legal analysts have stated that they expect the period covered by the ruling will be at least 4 years.

Mortgage set-up costs in Spain are high compared to other countries and it may be worth looking at alternative financing options.

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Uncategorized

5 things to bear in mind

Post author By will Needham
Post date 01/11/2018

Shoes on a wire. – You may have seen shoes hanging over a wire before and wondered what it means, Well, it can signify that drugs are sold in the vicinity. So bear this in mind if you are being shown a property in an area where you see shoes on a wire.

Urbanistic Infraction – This means that there is a problem with the legality. If an agent shows you a property with one of these signs outside it. Don’t view the property and choose another agent. AVOID! AVOID! AVOID!

Bottle bank too close to the property. It’s not uncommon for these things to be emptied in the early hours of the morning and for them to be filled late at night when restuarnats and bars close. They are very noisy and will disturb your sleep.

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Brexit

Despite Brexit, the British are the most significant of foreign property buyers in Spain

Post author By will Needham
Post date 29/10/2018

Despite the Brexit doom and gloom which seems to be a constant feature of the UK press, the Brits are still the most important foreign buyers in Spain by a large margin. In fact the British market is larger than both the French and the Germans markets combined.

It’s also interesting that other non-EU nationals, China and Russia also feature in the top ten foreign buyers.

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Uncategorized

Property price rises accelerating

Post author By will Needham
Post date 10/07/2018

It’s not just the

The TINSA 2018 second quarter report predicts a national interannual price rise of 6.6% but there are significant variations

The average price in Spain * stands at € 1,328 / m2 and has grown b 10.9% since the first quarter of 2015.

House Price revovery continues

Despite everything, housing remains at 35.2% below the 2007 level. Madrid’s capital has been revalued by 41.8% and Barcelona by 48.8% since its minimum prices touched in the crisis.
The finished housing (new and used) in Madrid is 18.9% more than a year ago and stands out with the largest interannual increase among the capitals in the second quarter, followed by Malaga (+ 15.8%) and Palma de Mallorca (+ 12.9%). They also recorded increases of over 6% in the last 12 months Pamplona *, Valencia, Castellón, Logroño, Valladolid, Granada, León, Huelva and Bilbao.
Market indicators

Big regional variation in the evolution of the propert market.

Prices are still falling in Galicia, Extramadura and Castille La Mancha. These areas have considerably less foreign demand and two are away from the coast. regarded as less desirable places to live by foreigners.

The biggest price rises are seen in the Madrid and the Balearic Islands.

Immigration pushing up house prices

Spain has seen a return to an increase in net migration into the country. Consistent with the property price rises, it seems that immigration housing demand is pushing up prices and this correlates

Property prices in all the Mediterranean communities have risen and are expected to continue rising for the next period and beyond.

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Real Estate

Corvera Airport opens to passenger air traffic in December 2018

Post author By will Needham
Post date 30/05/2018

The long anticipated opening of the international airport at Corvera, Murcia is due to open to passenger air traffic in December 2018. It’s already possible to book flights to Corvera Airport from Leeds-Bradford and Manchester Airports, via Jet2.

Corvera Airport has been designated with the code RMU

The airport at San Javier, Murcia (MJV) will close to civilian air traffic and revert to being a military airport.

What does this mean for the local property market? The increased capacity is likely bring more people to the area and

We expect this will increase

The airport is relatively close to a number of Golf resorts in the murcia Area.

Proximity to an international airport is known to affect property prices. Generally speaking

The new airport is likely to pull passengers from Alicante Airport

We spoke to local property expert, XXXXX, director of XXXXX and ask him what he expected

Location

Corvera Airport is located between the towns of Corvera and Balsapintada.

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Property

Property Running Costs

Post author By will Needham
Post date 27/11/2016

Running a property in Spain is considerably cheaper than

IBI SUMA (council tax) – This is levied by the municipality where the property is located. The rate de

https://www.suma.es/PortalWeb/cuerpo_infmunicipal.xhtml

Community charge – Not all properties are on communities and as such do not incur a communal charge. For properties that form part of communities the charge is set by the community itself often in conjunction with a company that manages the community – Administración de fincas.

Electricity – Electricity is general contracted through Iberdrola. Electricity Tey offer online billing and

When you buy a new property

Water – Normally metered

To change the name on a water contract you will need a valid Habitation Certificate

Rubbish Collection – This is normally included in your water bill but not always.

Sewage –

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