Foreign investment in Spanish property on the increase


Prices down 30 percent since 2007

According to TINSA, house prices in Spain fell by 11.2% in July year on year.

Thus accumulate prices are down 31% from the peaks in December 2007.

Balearic and Canary Islands were the regions where the largest decreases were found in the seventh month of the year, recorded annual declines of 14%, TINSA said in its report.

They were followed by capitals and major cities that adjusted their value by 11.8% in July from the same month in 2011, and repeated the metropolitan areas with falls of 11.6%. In all three areas the cut was higher than the market average.

IVA on new homes rising from 4pc to 10pc next year

The Government has confirmed that IVA (value added tax) on new homes will go up from 4 percent to 10 percent at the start of next year. More..

The danger of generalised property article

After posting the article on S&P and their property forecast I had someone contacting me panicking that these articles would be detrimental to Costa del Sol real estate. Although I can see why a negative article, would be viewed… well negatively, there are also reasons why it should be written about.

Property tax increases in Andalucia

With the ongoing financial crisis still affecting the Spanish economy, several autonomous communities are trying to combat the lack of funds by raising several taxes. It appears that Andalusian community has raised several taxes including those on property purchases.

Costa del Sol new build stock halved in 2011

Developers in Malaga province (home to the Costa del Sol) sold 10,000 new homes in the course of 2011, almost half the stock of 25,000 new homes on the market at the start of the year, according to the Association of Builders and Developers of Malaga (ACP). More..

Foreign investment in Spanish property increases 32.8 percent

It appears that foreign investment in Spanish property is once again on the rise. This new wave of investment in probably due to the recent reductions that have been seen in the property market since the end of 2010. Investment in property in Spain surged by 32.8% in the first half of 2011 over the same period in 2010, to 2,445 million euros, according to the Bank of Spain.


Costa del Sol property valuation – August

Please find below the latest figures supplied by Tasamadrid, a Spanish appraisal company. As always please remember these are general values given to different areas and can only be used as a general guide to the postcode area where you intend to buy.


Malaga sees sales decrease in 35 percent in the second quarter of 2011

The number of homes sold in Malaga in the second quarter of 2011 reached a total of 3,464 transactions, representing a fall of 35% compared to the second quarter of 2010 according to data published by the Ministry of Public Works. The fourth largest fall by province in Andalusia


Spanish property tax cut for new builds

Last Friday the Spanish government announced a temporary reductions in the value added tax (IVA), lowering it from eight percent to four percent for any purchase of a new property. The government’s aim is to rekindle Spanish property sales and help reduce Spain’s stock of unsold new homes, which amount to approximately 687.000 properties in Spain, and just over 20.000 in the province of Malaga.

Property sales, Spain down 18.3%, Malaga up 7.8%

The sale of Costa del Sol properties saw an increase of 7.8% in May compared to the same month last year according to Spain’s Institute of National Statistics (INE), with monthly sales standing at 1,931 sales (including VPOs).


Costa del Sol property decrease 5.4% in 2010!

After the recent article on the decrease of new properties on the market in 2010, I thought it would be worthwhile to review the statistics for the province of Malaga and the Costa del Sol.


Banks offering pre-crisis terms on Spanish properties

According to a recent newspaper article, Spain’s main banks are once again offering mortgage loans on the same terms as they did before the crisis in an effort to shift their backlog of properties, many of which were seized during that period.

Spanish property valuations March 2011

As a slight change, instead of posting the latest information from TINSA (a highly regarded valuation company) I will now be posting the updates on the valuations by Tasamadrid. They appear to concur with the valuations given by TINSA, except that it goes by post code, thus given us a better break-down of the different areas. Please remember these are still averages and should be treated as a guide only.

How the subprime mortgage found a home in the Spanish property market

To the rest of the world it became known as the subprime mortgage, but in Spain it is remembered as the “welcome mortgage.” It was specially designed for immigrants in 2005, at the height of the property boom, by Spanish mortgage brokers such as CreditServices. With nothing more than a three-month work record in Spain, these companies offered new arrivals to Spain mortgage loans that covered 120 percent of the value of a property. All the costs, fees and commissions would be covered by the loan, and the buyer would become a Spanish homeowner without having put down so much as a cent. The loans were organized through US companies, none of which had any physical presence in Spain, preferring to use fronts such as CreditServices instead.