Spanish property news
Adversity equals opportunity
The recent slowdown in the previously booming Spanish property market is not bad news for everyone.
As in any adverse situation, surprising opportunities can present themselves. Many owners wishing to attract buyers find themselves more willing to negotiate on price. Great news for buyers!
Many owners of older properties have seen the value of their properties increase beyond belief in recent years, these owners often have substantial equity and small if any mortgages remaining. Owners in this position, wishing to release the equity in their homes, have been caught up in the general malaise affecting the Spanish market, thus they find themselves increasingly open to offers. Arguably, the investor with an eye for a bargain is therefore in a strong position now to secure a deal.
28th November 2007
Boom or Bust on the Costas
As anyone involved in the Spanish property market knows only too well we are in the middle of a 'period of correction'! This is a nice way of saying that the market is in a bloody mess. Land Grab, Town Hall Corruption, Money Laundering are all headlines which have been seized upon by the world's press and which have conspired to bring about the situation we now face. It's easy to blame the press and, after all, we have to blame someone don't we?
The truth is that the Spanish Costas are suffering from oversupply of properties triggered by market hype and the greed of Developers and some of the bigger agents who have 'fuelled the fire' over recent years to build up a frenzy of investor activity aimed at making us all 'property magnates' on the strength of a continually rising market
Unfortunately there is a lot of truth in the old adage that 'what goes up must come down'; this has been helped in no small way by steadily rising interest rates and a tightening of credit worldwide. This is now having an affect not just on Spain but in other emerging markets too where the so called 'investors' who were just releasing cash from UK property for a punt in the overseas market have now largely scurried away to lick their wounds. The true Investors are of course still there and seeking opportunities to get a return on their capital, wherever in the World they can achieve their goals.
These are generally not the short term players looking to make a quick buck by buying off plan and selling before completion, but are more likely to be serious investors with a spread of properties in many different locations and with a variety of exit strategies.
Despite the seemingly sorry state of the Spanish property market in 2007 there is surprisingly still a place here for the serious investor; property prices have rarely been so low and are unlikely to fall further. There are many private owners needing to sell for personal reasons who cannot afford to wait for the recovery but who need to liquidate cash now. It is for this reason that The Property Shop International have formed an association with a UK based company specialising in investment properties, both in the UK and overseas markets, where their large database of investors are continually seeking below market investment opportunities in order to strengthen portfolios and build long term liquidity.
Whether an investor or an owner needing help moving property, registering with us could be the best move right now as our aim is to pull the market from the doldrums and match willing buyers with willing sellers. Why not register now for our regular bulletin of BMV opportunities?
29th November 2007
Inland Spain - Leading the Recovery?
Its a well know fact that throughout Northern Europe there are literally millions of people hoping to shed the beaurocracy and inclement weather of their home countries for the comparative warmth and more relaxed lifestyle of the Mediterranean. Whilst many head for the coast there are a growing number who prefer to integrate with the local people and where better to do that than inland where the influx of foreigners which has affected the coastal towns has not changed the lifestyle of the local residents for centuries. A small town which has been at the forefront of this trend is the hill town of Jimena de la Frontera in the Province of Cadiz.
Jimena lies just 35 minutes inland from Gibraltar and is strategically located equidistant from the Atlantic & Mediterranean coasts and in an area of extreme natural beauty just 1 hours drive from Ronda.Jimena de la Frontera is a historic village located about 35 kilometres inland from San Roque on the road and railway to Ronda. Surrounded by the Los Alcornocales Natural Park and at around 200 meters above sea level, Jimena is a surprising contrast to the coastal affluence of the nearby golf and polo belt in the exclusive area of Sotogrande below. Having been officially declared of Historical and Artistic Importance in 1983, the typical Andalucian architecture is now being carefully preserved. Many British people have chosen to settle there.
This gem of a village, has a fairly chequered historical past, having been inhabited at various times by the Iberians, Phoenicians and Carthaginians as well as by the Romans, who made good use of the rich metal deposits found there. Around the year 750, it was of great commercial importance to the Moors, who also used it as a strategic military point. Over the centuries Jimena was conquered and re-conquered on many occasions and twice fell into the hands of the Christians, but by in 1879, during the reign of Alfonso XII, Jimena was so highly considered that it was given the title of Cuidad (Town). With a present population of just over 9,000 inhabitants (some 1,000 of whom are foreign residents - many British), its narrow cobbled streets and white washed Andalucian houses, it certainly retains its village ambience and is a delight to visit.
The countryside around Jimena is as beautiful as it is varied. There are several 'cotos de caza' (game preserves) as well as rich forestland and mountains all around. Then there are the fertile valleys of the villages of San Pablo de Buceite and San Martín del Tesorillo, where orange groves and other agricultural activities, irrigated by the River Guadiaro, are important local industries in the area. From this description, you can begin to imagine how different it is from the manicured golf courses and grand villa gardens, less than 40 kilometres south on the coast. This village and its surrounding countryside is a joy for nature lovers and those looking for calm and relaxation.
The cobbled streets of the village are steep and narrow. While it is possible to drive up to the highest point and visit the castle, once the Moors vantage point (built on Roman ruins), better still is an unhurried 15-minute walk up through the little streets, taking in the village atmosphere. Then the views are even more worthwhile! Take care in the colder winter months, when rain can make the steep streets slippery. Once in the castle enclosure, you have clear views down the valley and over the bay to Gibraltar and Algeciras.
As well as a visit to the castle, you can't leave Jimena without trying some of the local gastronomic delights. Many of the dishes use the natural ingredients found in the surrounding forest, or from locally grown produce. Try local restaurants for; "Revuelto de esparragos" - asparagus in scrambled egg, and "Chantarella", a type of wild mushroom. For something sweet, the 'Piñonate' is a specialty in Jimena and is of Arabic origins. It is an artisan product of the surrounding Los Alcornocales Natural Park, whose recipe has been handed down through the ages. Ingredients include olive oil, honey, almonds, cinnamon and orange peel. The stunning countryside, historic interest and natural beauty are just topped off with this delicious natural cuisine.
Annual celebrations in Jimena de la Frontera are:
- Carnival in February
- Agricultural Fair in the second week in May
- International Music Festival (second week in July), featuring Classic, Jazz, Flamenco, Celtic and Ethnic music
- Annual Village Fair in the second week of August
- Devotion to the Reina de los Angeles in the first week of September
In the two years between 2001 and 2003 property prices in Jimena increased dramatically; this was largely due to the increased exposure from the annual music festival and to the increase in overseas buyers looking more further inland to discover ‘real Spain’ and to escape the often unaffordable prices on the coast.
Since the end of 2003 a degree of sanity has returned and inland properties in areas like Jimena are now on offer at more realistic and sustainable prices than in the years above. Also many of the older Spanish owners of properties near to the top of the village have taken the opportunity to realise the relatively high prices on offer for their older style village houses, selling to Northern Europeans who then reform the properties to combine the traditional features with modern architecture to create highly desirable homes, often with incredible views.
Many of these properties on offer until recent years had no escritura which meant a lengthy process to formally register the property and prohibited mortgage finance. Owners have now wised up to this and realised that by getting the correct documentation their properties will appeal to a wider market and fetch better prices. Also, many agents will not handle unregistered property creating an even greater need for owners to seek the necessary documents.
Despite increasing prices it is still possible for astute buyers to find an attractive and fully restored village house for less than the cost of a coastal apartment. For those a little more adventurous there also remain ample opportunities to find unreformed houses where it is possible to carry out the necessary improvements and thus provide a comfortable and attractive home, whilst at the same time adding substantially to the value of the property.
The close proximity of the coast and the easy access to Ronda and the Alcornocales National Park gives Jimena a unique strategic advantage in that it attracts visitors from far and wide. The extension of the polo belt from Sotogrande to Jimena and San Pablo has also brought new prosperity to the area as will the proposed new Golf Course under construction at San Pablo de Buceite.
10th December 2007
BMV in SPAIN ?
The over supply of property in the Spanish property market, coupled more recently with rising interest rates and the worldwide credit squeeze is creating an ever increasing list of properties being offered by owners in Spain at prices below what was the norm four years ago and substantially below market values.
The Property Shop International has formed an association with a company in the UK who specialises in finding buyers for bank repossessions and who are now targeting the Spanish market as a means of matching some of the many properties now available with a pool of potential buyers having a stong interest in acquiring BMV properties for Buy to Let or longer term investment.
Each day we will add to the list of properties available so if you have something new to offer then please do not hesitate to forward details to: peter@thepropertyshopinternational.com.
To view the current list of properties available visit: Below market value Spanish Property.
12th December 2007
Buyers Favour Resale Properties in Spain
Recent figures have shown that 75% of all property purchased by foreign buyers in Spain during last year were Resale properties as opposed to new build. According to the Spanish Ministry of Housing there were 955,000 property purchases last year with 104,168 (10.9%) made by overseas buyers. Of these 77,416 were Resales and only 26,843 were new build.
Valencia was the most popular area, followed by Catalunya & Madrid. Andalucia saw foreign buyers purchasing 12,292 homes.
A report by Kyero found that resale property prices were 4% lower than the the equivalent new build. This may be because cash strapped owners wishing to relocate can often be encouraged to accept offers considerably below the asking price whereas Developers are more likely to hold firm on prices preferring instead to encourage buyers with easier payment terms or a higher specification than normal.
This data certainly supports the fact that the pure investors have mostly deserted Spain for better returns elsewhere. The market currently has moved towards 'lifestyle' purchases for those looking to relocate or to buy holiday homes.
However, there are indications that UK & Irish Investors are now looking to the Costas as a source of below market value properties which will increase in value rapidly once the market begins to recover.
Report By: Peter Mitry, The Property Shop International
