Carlton to invest billions in Spanish property

Carlton Group Inc.’s clients have earmarked 7.5 billion euros ($10 billion) to buy real estate in Spain and Portugal over the next 12 to 18 months as risks diminish and prices adjust to what buyers expect to pay.

“A combination of reforms in Spain, stabilization of sovereign debt yields and reduction of risk perception for Europe as a whole has made investment in Iberia far more attractive,” Javier Beltran, head of Spain and Portugal for the U.S.-based real estate investment bank, said in an interview. More..

2 months of spanish property market expansion

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Aifos proposes paying buyers back in 10 years’ time

The Aifos real estate group has outstanding debts of 500 million euros in amounts owed to 5,000 creditors, of which approximately 1,000 are property buyers whose homes never materialised. Now a deal has been proposed that would allow them to recover at least part of their investment. More..

Spanish property market transparency

I have just found an interesting news blurb by Mark Stucklin on a study by Jones Lang Lasalle. Based on this study it appears that the Spanish property market is more transparent that quite a few of its fellow European countries including: Belgium, Norway Italy, Portugal and Italy are all less transparent that Spain.
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Spanish property sale increase 21.9 percent

The number of property sales reached 92,211 in the first quarter of 2012, representing a 21.9% increase over the previous quarter, according College of Property Registrars.

These data shows a “relative recovery” from the previous falls. However, the property registrars have warned that these results should be viewed with “caution” because they are influenced by the particularly strong decrease property prices over recent quarters of banks real estate assets, as well as measures such as the halving of IVA (VAT) that needs to be paid on the purchase on new properties.
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New train corridor connecting Andalucia with Europe

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Spanish property market still weak in June

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

Spanish property market dips in September after 8 months on the up

After the euphoria of August, when the market surged 27pc, a major blow to morale in September, as the market shrank 4.5pc compared to last year, ending a run of 8 months uninterrupted growth.
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Spanish property market grows 27 percent in August

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What Spain can teach us about the UK housing market

There’s one factor more than any other that UK house price bulls use to back up their views. Supply and demand.

There are plenty of variations on the theme. But the general argument goes like this: “We live on a small island, our population is growing, and there just aren’t enough houses to go around.”

And the rebound seen in the market last year simply seems to confirm this view. There aren’t enough houses – so you can’t go wrong with bricks and mortar.

The bulls have got it right in one sense. House prices are indeed all about supply and demand. But it’s supply and demand for credit, not houses.

If you want the proof, just look at Spain…
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Retirees Happy to Stay in Spain

In recent article in the Daily Mail sheds some light on the amount of retired individuals from the UK looking at moving back to the UK in this more difficult climate that we are finding ourselves in. Based on the same population it appears that even with bad exchange rates and a quiet Spanish property market, more Britons are still happy to stay in their adopted country.

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Spanish property valuations down 41pc in 3 years

In yet another sign of continued weakness in the Spanish property market, the number of property appraisals carried out last year fell 4%, according to a new report from the Bank of Spain.
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Searches for Spanish property at record high?

I have just been reading a positive article in the telegraph.co.uk that claims that the amount of enquiries for Spain are up quite drastically from last year. A good sign! I should just point out though that ‘interest’ does not equate to sales and has the figures are given in percentages, they do not give a clear indication of how many individuals are actually looking at buying in Spain. From my point of view the demand for Costa del Sol property from the British market has picked up slightly, but remains weak due to exchange rates and other financial considerations.

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Property in Spain still to expensive

Asking prices are still between 10% and 20% too high, reveals a new survey of house-hunters carried out in March by the Foundation of Savings Banks (FUNCAS).

84% of Spaniards think that vendors are still asking too much, and more than half think prices will fall around 10.5% this year.
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Spanish property shortage in the next 3 years

The G-14 (group of largest developers in Spain), claim that there will be a shortage of properties in Spain in the next 2 to 3 years in certain areas if the level of granted licences continues to drop. Pedro Perez (General Secretary of the group) claims that due to the lack of building permits having been handed out, prices on newly built properties in urban centres have already been adjusted via supply and demand.

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