The current state of Spain’s housing stock summarised

The surplus of unsold new properties in Spain reached 389,000 units, according to a report from Tinsa ( property evaluation company ) , a figure that will require two and a half years for the stock to be absorbed. This means that the date of reference is the first half of 2008 and that the demand will be for around 150,000 new houses a year. Their statistics indicate that the current stock of h

2015 Property Investment demand in Spain is ten times higher than offer

In 2011 the Spanish position in the international market was nearly desperate: nothing with a Spanish surname interested investors from London. Currently, and quite the opposite, candidates are multiplying, specially in the Spanish Real Estate Investment industry. Not even the political uncertainty casts a long shadow. "Although it can slow down investment decisions, a large aircraft carrier

Beach vacation rentals: How much can you earn renting a beachfront apartment in August?

The rental market on the coast, called either vacation homes or touristic homes, is flexing its strength recently, spurred by, above all, Internet portals.  According to a report from the consulting firm Ernst & Young, Spanish residences destined for this type of rental have the capacity for a total of 2.7 million rentals, with beach cities among the biggest epicenters.  This rising force ha

The Market is Taking Off in 2015

The latest statistics that the National Institute of Statistics has published make it clear that the recuperation of housing activity has picked up speed in 2015.  In the first three months of the year, investment in assets has seen the greatest increase since 2006, while the wealth generated by the sector has seen its best quarter in 14 years.  In terms of employment, we also have good news: we

2015 is expected to be a good year for Properties in Spain

The real estate sector in general – and in particular the housing market – faces 2015 with optimism.  It has left behind a hopeful 2014 where, besides coming back to warm green numbers in many aspects, it has settled the bases for a new cycle. A new period, above all, for potential house buyers. According to the experts, 2015 – apart from being expected to secure the launch of the real e

What’s trending with the housing market in Spain? From 2007 to 2015

Some of the smaller markets in Spain saw sales increases in the summer of 2014 (up 8.8 percent from 2013) and an increase in the number of mortgages being given and taken (up 19 percent).  Even prices rose slightly, up 1 percent after six years worth of drops.  Could this mean recovery? Well, we will just have to wait for the next two or three quarters to see if things keep coming back. Wh

Rental returns in main Spanish cities are above that of the average return in London

Property not only provides much better returns than any deposit in the bank and is less risky than alternative investments, since you hold the asset and can use it, but the mature rental markets are also close to where they started, such as in the UK and in London itself. Property investors in Spain understand that rental returns have some limitations in the crisis that is happening, and that buy

Are you a buyer? Doing an inspection? Or a holiday maker?

  There are buyers that need help to understand the market and pick the opportunities.  That is fine.  To give support and advice to get the right property is what we do.  If your budget is tight, that is fine.  It is normal that you want to buy a good property for you whatever is in your budget. Depending on the location, you can get a decent apartment starting at  €70k as a hom

When the big fish move to a market, the small fish…

Big property investors are positioning themselves in the Spanish property market. Not only the market, but also timing   seems to be crucial. Blackstone is the biggest mutual fund in the world, and, in the housing market alone, it manages 64 billion dollars in assets.  According to one if its top executives, “the housing sector in Spain is absolutely one of the areas where we are focusing.

Homes are Savings Shelters for Spaniards

The economic crisis is stimulating transactions in the housing market against all predictions. The fall of prices is stimulating the thrifty to buy low-cost homes as an investment, not only foreigners but nationals also, of course. The economic crisis is stimulating transactions from domestics and also overseas property investors in the housing market against all predictions. The increase in

Rental Yields closed 2012 at their highest level in eight years

  Buy to Let in Spain is gaining more interest for investors.  According to figures from the Bank of Spain (BDE), profits from home rentals reached 4.3% at the end of 2012, the highest level since September of 2004.  Therefore, the path to this increase was consolidated at the end of the last financial year.   In particular, gross profits from these assets have gone up progressively

Rental yields in Madrid and Barcelona are greater than in Rome

If there is a golden rule for buy-to-let investors in Spain, it is to always invest in markets where the rental demand is strong and constant: if tenants leave, you can potentially get other tenants within a short period of time. That is why cities are great… and if the population in the city keeps growing, the scenario looks perfect, since the higher demand should push rental prices up.  

Should I Pay a Finder’s Fee to Source a Spanish Property?

Should I pay a Finder's Fee (FF) to source a Spanish property investment? Well, that is a good question now, given that the Spanish property market is supposed to be a buyer's market instead of a seller's market, as it is now in London, for example. To find the right property is a very hard job that requires skills, contacts and lots of time. Any professional agent and/or property finder should

Dealing with Spanish distressed sellers who have good property bargains-Part I

Spain is a distressed property market with thousands of motivated sellers looking to sell their properties. Not very long ago (from around 2004 to 2007), we were talking about a seller's market where prices were increasing to their peaks and difficult price negotiation processes were undertaken. I would have said that sellers were too spoiled at the time. Now the market has changed and sellers are

Be clear about your goals before searching for a property in Spain

  Before buying, be ready to see a lot of properties. During the property boom, home buyers would visit 4 or 5 properties before buying, whereas nowadays they may have to visit up to 20, 25 or even 30 different properties. If you are a home buyer you may need a second inspection trip.   Be clear about what your goal is in buying a property:   1) Is it for a permanent residence?

Low budget investors are chasing after the Spanish market in the current crisis climate

Ten years ago it was very expensive to buy and invest in property in Spain. Now, after the credit crunch and the current property market crisis, Spain offers an opportunity to buy and even to invest in property that is not to be missed.   We have received dozens of enquiries from low budget investors and home buyers who want to take advantage of the opportunity that the current market clima

Spain occupies fourth place in the European ranking of attraction for investors

  The current economic situation has not prevented foreign investors from glancing at Spain when they are looking for destinations for their business initiatives. In fact, direct foreign investment shot up by 62% in 2011, which situates us as the fourth European country as far as having the most projects of this type received in the last year, only behind the United Kingdom, Germany, and Fra

Why Spain is still the country of choice to visit and to invest?

Four good reasons why investors and buyers continue to regard Spain as a safe and attractive choice to invest and enjoy   1) Spain is the main destination for British tourists and overseas property investment. Even in crisis the market is showing potential for overseas buyers, including Brits. Positive changes are taking place. According to the latest housing records (kept by registradores.

Will Prices Rise Again and When? what Values Should I be Looking for?

  The market in Spain is appealing for investors because of the fact that prices have been dropping and are lower than ever before.  People can't avoid at least looking for properties there when flats can be found for 46 thousand euros and houses for 79 thousand....even city and coastal properties!   TINSA, the main property price index group, states that falling prices have reached

Getting to the Point of Property Investment in the Current Market

  Property investment in Spain is currently a good opportunity to generate cash flow from buy-to-let, but only in an area with a solid rental market.   We believe that in the current property market climate, the only effective strategy for a first-time investor is to buy well below the market value from motivated sellers. Furthermore, investors must buy in cities where the rental dema

The Brits did the largest property investment in Spain in the last year

Spain is suffering probably the worst crisis since the Civil War in 1936-39. There is a lack of finance, huge amounts of debt and cuts, rising unemployment and a dramatic fall in property prices. The front pages of the media always show the worst side of Spain, but to be honest, life is going on in Spain and the country still has an interesting property market with succulent prices for home buyers

Property investors’ challenge: Rental yields above 4.7%

The challenge for property investors in Spain is to find a property investment that could produce the highest rental yield in locations where price drop is close to reaching rock bottom. A rental yield above 4.7% is achievable. By picking the right investment it could be secured a cash flow from the very beginning and a capital growth in the mid to long term despite the market crash. Main citie