Costa del Sol Property Blog

Home sales in June were the lowest since the property crash began, show the latest figures from the Statistics Institute (INE).

There were 24,699 home sales in June (excluding social housing), down 26pc on the same time last year, below even June 2009, when the crash was thought to be at its nadir. The graph above makes it clear that, after a deceptively promising start, 2011 (in red) is turning out to be the worst year yet.

Compared to June 2007, sales were down 60pc – a teeth-jarring fall by any measure.

Year-to-date, transactions are down 11pc compared to last year, 3pc compared to 2009, and 55pc compared to 2007, as illustrated by this table.

On an annualised basis, sales have fallen in 10 of the last 12 months.

Assuming that prices have fallen by an average of 30pc since 2007, then in value terms (Euros) the market has shrunk by 70pc since then. That means 70pc less money around for everyone who lived off the housing market, town halls in particular.

All this helps explain why many town halls are now in the jaws of a financial crisis: They ramped up their spending and overheads during the boom, assuming it would last for ever, but now the money has dried up and they can’t afford to pay their bills. A 70pc fall in revenues from real estate helps explain why.

Why are transactions still falling? Partly because the credit crunch is still in full swing – in Spain at least – and partly because the abolition of mortgage tax relief at the end of last year brought forward sales that might otherwise have taken place in the first half of this year. So the figures might make the market look worse than it actually is. To find out we will have to wait and see if there is a recovery in the second half of the year.

The following table summarises the key transaction data month-by-month for the last 5 years.

Article by Mark Stucklin

Dear fellow petitioners,
You may remember that 17 months ago I submitted a petition to the Governor of the Bank of Spain with regard to the non-compliance of the various Spanish banks who were not honouring the guarantees given by them to protect deposits paid by purchasers of off-plan properties. You very kindly supported this petition and were signatories to it. The petition was briefly brushed aside by the Bank of Spain’s legal representative who in so many words suggested we deal with the matter through the courts. This in spite of the public pronouncements made by the Governor himself when explaining his powers to deal with recalcitrant banks.
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After finding the article the Spanish property bust, I thought it would be of interest to look at how the province of Malaga has done by comparison. Although there are no specific figures for the Costa del Sol, we can work on the assumption that has most of the population and infrastructure are along the Malaga coast, Malaga province equates with Costa del Sol in reference to property transactions.
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With the success of the Andalucía Technology Park (Parque Tecnologico de Andalucía) in Malaga, the Junta de Andalucía has declared the establishment of a new Technology Park Marbella.

The head of Innovation, Science and Business for the Junta has said that the new site will cover 197 hectares on land that is currently made up of 300 privately owned estates and is designated as an “area of opportunity” for the Costa del Sol in the POT plan. The idea would be to reach a public-private agreement with the participation of Marbella Town Hall and the landowners along with the regional authority for the development of the project.
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When selling your property in Spain you may be subject to a Capital Gains Tax (CGT). This tax is on any profit the Spanish government perceives that you have made, which even in the present climate is an issue that many have to watch out for. Currently the rate is set at 18% and can make a serious dent in anyone earnings.

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In the current economic climate, which has seen a vast changes in interest rates, high unemployment and a very complex Inheritance Tax Law, I have decided to contact a financial services company. Siddals Spain has recently developed financial services specifically tailored to help people save time, money and combat the negative effect of the “credit crisis”.

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I have just reviewing a range of official statistics (Registro de Propiedades, INE, etc..) have compiled a brief analysis on how the Spanish property market fared in 2008. As can be imagined sales are down (surprised?), but not all appears to be doom and gloom.

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This month, a petition will be delivered to Number 10, requesting that Gordon Brown plays his part in helping solve some of the issues involving Spanish real estate and the UK investor.
The document asks that he lodge’s a complaint on behalf of British citizens who have become victims of Spanish property scandals and abuses. It also asks that Britain involve the EU.

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A while back I wrote this article, which can be found on the Buyer’s guide page, but I thought I’d put a copy here as well for general reading.
If you are looking at buying a property on the Costa del Sol, please read the summary I have written. I hope that this will help you avoid many of the problems that people face and allow you to have a successful purchase. Please note this is a personal recommendation and should not substitute for professional legal and/or fiscal advice.
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Well depending on which ‘experts’ you ask the answer if going to vary. Some are going to say yes while others say no. For myself and our office its quite simple. What sort of property are you looking for? What sort of budget do you have?
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I’ve just finished reading an article on the time.online about property in Spain and it actually made me laugh out loud. As with most media these days hyperbole and sensationalism to be the name of the game.

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Well in a positive sign of future development projects the Junta the Andalucia has approached the European Investment Bank (EIB) to seek funding for the Costa del Sol train network that will connect Fuengirola to Estepona.

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According to Tinsa’s property price index on the Mediterranean coast fell by 14,3% in 2008 with a lower drop in the towns and cities at 10,2%. For you information Tinsa is one of Spain’s leading appraisal companies.
It also appears that this fall applies to both newly built and resale properties.

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According to experts at the Spanish tax ministry (Gestha) around 36.800 properties are being rented in the province of Malaga, and are not declaring it to the taxman!!! According to these same experts this amounts to an income of 65.3 million euros a year. Still further around 73.6% of all rentals in the region of Andalucía or around 184.000 properties escape the taxman.

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A beautiful 2 bedroom, 2 bathroom apartment on sale in the renowned Cala Hills urbanisation by Mijas Golf on the Costa del Sol. This property has a large 24m2 terrace that has been enclosed with glass curtains. Great for taking full advantage of the terrace during the cooler months. The lounge itself is large and spacious while the kitchen is well equipped and modern. The property is being sold with parking included and the urbanisation offer community pool and attractive gardens. The property itself overlooks both the community pool and gardens and the surrounding green zones. Well located for golf enthusiasts. Very well priced for these sorts of qualities. Price: 229.000€

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