A recent study by Harvard University indicates that renting a property in the European Union is becoming less and less accessible to citizens, specifically about 27% of renters spent more than half their salary to pay the rent in 2010 compared to 19% who did so in the year 2000, in the case of Spain the rents are reduced at the same time wages are also adjusted downward.
Article By Rughead
The sale of homes, the price, the stock of unsold homes and the rental market are among the ten leading indicators of the residential property market. The latest report from the Institute of Business Practice ( IPE ) notes that six of them continue to worsen while four of them have improved, so in his view the construction of homes has already bottomed out and the stock of homes is starting to shrink.
The stock of unsold homes in Spain has been reduced in 2013
– Real estate transactions : The sale of homes rose earlier this year due to the effect of the personal income tax relief in VAT and rising, ipe estimated that at the end of 2013 there will be another spike in this type of operation
– Housing prices : The value of homes continues to decline but at a slower pace. addition , the latest statistics from the ministry building pointed to a rise in the price of houses in four CCAA
– Mortgages: Loans for homeownership continues its pace of decline and improvement is glimpsed
– Construction of new work: Building houses stabilizes but these figures do not reach a sixth of what they were in the time of the boom. this figure is expected to end the year at 90,000 new homes
– Stock of unsold homes : The stock began to decline, albeit timidly in 2012. This year the decline has been substantial, in particular, it has gone from 872,697 to 777,000 homes
– Renting : The problem of unemployment has sunk the rate of families who choose to go into home ownership, and thus has increased the number of rental leases
– Collection : Real estate fund in 2006 was 43,200 million euros and now it is just over 9,300 million
– Financial effort of families : The percentage of annual income families must spend to pay the housing moves to 31.9 %, the lowest since March 2002
– Rehabilitation of buildings : There are no statistics that reflect the reality of this business given since visas are not required
– Foreign investment : According to figures from ipe, house sales by foreigners has increased by 17%
Article By Rughead
The Costa del Sol is committed to the Health and Wellness Tourism, a segment on the rise and according to estimates is expected to attract about 40,000 tourists in the next three years, that would bring about 300 million euros in to the province.
This data is shown in the panel on Health Tourism organized by the University of Malaga that has participated in the CEO of the Board of the Costa del Sol, Arturo Bernal who has stressed the importance of branding Health & Wellness and the need to organize international forums on this segment to position itself as an international leader in the Health and Wellness tourism industry.
Thus stressed the appropriateness of combining the business sector under the Health & Wellness segment and the need to base its momentum in several aspects: the organization of international forums, the establishment of partnerships in health between different countries, loyalty prescribers who have tried the virtues of health tourism in the Costa del Sol and the creation of tourist packages that include treatments, along with a single platform that integrates supply of health clubs.
In this regard he referred in his speech to the strengths of the destination Málaga, such as accessibility, reputation of trademarks Spain and Costa del Sol..
The panel, moderated by journalist Angel Escalera, has attended the Dean of the Faculty of Tourism, Antonio Guevara the cluster manager & Health Tourism Spain, José Navas and the director of the department of Tourism Ricardo Pagan.
Over the next three years health tourism on the Costa del Sol will rise
This type of tourism attracts every year worldwide about 70,000 million people. In Europe, about nine million tourists a year are recorded with these motivations and this is expected to grow by 90 percent by 2020.
The Costa del Sol, which has been recognized by the central government as one of the national centers of reference, has ” excellent facilities ” in these segments, as indicated from the County Council in a statement. Thus home to half of private hospital beds in the Autonomous Community of Andalusia, in addition to that 90 percent of facilities are five star and and they have related facilities such as spas or spa facilities.
HEALTH PROFILE OF THE TOURIST
The profile of this type of tourist usually comes from Germany, UK, France and the Scandinavian countries this corresponds mostly with over 50 treatments that require surgery and also to younger people opting for cosmetic treatments and dental work.
Its average budget is a step up to 10 times higher than average, varying between 1,200 and 10,000 euros, depending on the type of treatment needed, and the tourists stay well beyond the average: 10 to 20 days.
The fall of the housing market could touch down in 2014 if the Spanish economy continues to recover writes the German bank Deutsche Bank, in 2014 we will see an end to declines in both Spain and in Holland, this review adds to the BBVA and Goldman Sachs conclusion, they estimate that housing prices will further drop.
The number of experts who foresee the end of the adjustment of housing in Spain in the coming months is increasing, from the BBVA Javier Sainz, director of the developer of the bank Anida, he said in an interview recently that ” the price of home sales that are closing is the lowest we’ll see “, the reasons given were the reforms that have been made in Spain in recent years. For its part the bank Goldman Sachs in its latest report asserted that the stabilization of the unemployment rate in Spain would suggest that the bottoming out of the price of housing is close.
Deutsche bank says prices in Spain have bottomed out
But not everyone is so optimistic, for example the U.S. bank Morgan Stanley said in its latest report on Spain that housing should drop by a further 30% to match families income, his conclusion is that the bursting of the housing bubble will still carry on.
Deutsche Bank catalogues Spain in the group of countries with a weak economy and falling house prices, included in this group is Holland, Ireland and Greece, according to the report drawn up on the housing markets in major countries of the eurozone, in recent years housing prices in these four countries have fallen and have become more affordable again, ie affordability ratios have fallen.
The price of housing goes up for the first time in five years, between July and September the average house price rose almost 1%, according to the Association of Registrars, while over the same period last year, prices fell 5.35%. Registrars data suggest that the coming quarters will show whether this incipient ” turnaround ” is fact or merely a temporary situation.
The average house price rose 0.91 % in the third quarter compared to the previous three months, which is the first quarterly increase in five years, according to the statistical property of the College Registrar.
The report finds that the prices of apartments may have touched a minimum and be showing ” a turnaround. ”
For the third quarter of this year, the average cost of buying a flat resulted in a drop of 5.35% compared to the same period in 2012, ” a much milder decline than that achieved in previous quarters, where we saw annual double-digit declines “, says the study.
Property prices in Spain are 1% up in the last quarter
The slight upturn in prices recorded after they have contracted by 31.07% from the highs that were reached in the upward cycle, before the crisis, which has led to today are placed in ” mid- levels seen around 2003. ”
However, registrars estimate that ” it seems clear that something is changing in the pricing of housing. ”
Also the institution estimates that ” a positive sign of quarterly results, despite its small claims, is undoubtedly an additional sign to indicate that possibly the current housing prices, on average, are close to their lowest levels. ”
Increased demand from foreign buyers
Regarding the reasons for this eventual turnaround in the price, the report points to increased housing demand by foreigners, but in any case its deemed ” insufficient to justify a price recovery. ”
However, registrars estimate that the current economic situation does not seem to have ” sufficient strength to create change “, and that the demand for housing ” has not yet recovered. ”
” Possibly the current price levels may already be proving attractive to those with purchasing power, leading to a slowdown in the intensity of price adjustment, being able to even slightly overall increases quarterly, ” argues the College Registrar. ”
As for sales data, statistical records reveal that foreigners were responsible for 12.16% of the total 76,818 transactions recorded between the months of July and September property transactions.
This figure, although yields an increase of 2.06 % compared to a year earlier, shows a decrease of 2.76 % from the previous quarter and is the second lowest quarterly volume purchases of the last nine years.
Of the total volume of transactions, more than half ( 55.3 %) were resale properties and new homes 44.6%, while the latter experienced an increase of 4.35% from the previous quarter.
As for foreign demand, the British maintained the first position with 14.75% of the total, followed by French (11.45% ), Russians ( 9.35% ), Belgium (7.25 %), German ( 6.94% ), Sweden ( 5.87% ), Norway (5.15 %) and Italian (3.64 %).
The amount of people unemployed in Spain fell by 2,475 in November from the previous month. It is the first time a decline has been registered of falling unemployment in November, the ministry of employment says this is the first this has occurred, the total number of unemployed stood at 4,808,908 at the end of November.
Unemployment has dropped in Spain in November
In the last year, registered unemployment has fallen by 98,909 people.
Since its entry on 1st of June 2013 much has been said about the energy performance certificate but always from the point of view of the owner who is the person required by law to obtain the certificate, however some see it as another tax the government has pushed through and even a way to create jobs.
It is now law to have an energy certificate if you have a property for sale or rent
Here we easily explain how to interpret some of the ratings etc:
– Note that there are potential ratings can be a, b , c, d , e, f , g .
– Note that no average rating is between letters, so these letters mark the ” thumbs up” on energy efficiency
– Where a, b and c are indicative of lower energy consumption , and g marks greater consumption
– In this sense could be estimated , for example, for a standard household with an average receipt of supplies of 60 € / month if I had assumed that rating :
a spend less than average ( up to 35 € )
b spend less than average (35 € to 45 € )
c spend less than average (45 € to 54 € )
d spend half (57 € to 60 € )
e spend half (60 € to 66 € )
f spend more than average (66 € to 75 € )
g spend more than average ( minimum 80 € )
Remember that all contracts issued since 1st of June 2013 should have its certificate of efficiency, but it never hurts to request information from the owner of the monthly spending on energy, especially in the case of rental properties.
If you have a property on the market for sale or rent it is NOW THE LAW to have an energy certificate available to show prospective buyers or tenants, you could risk a fine if you do not have one.
For more information about obtaining an Energy Certificate for your property Click Here
Not one, not two …but Spain takes four quarters to lead the ranking of declines in housing prices in the euro zone.
From the second half of 2012 has caught the national brick over from Ireland in the fall, one of the victims of the housing boom, to star in the biggest slump in house prices in all euro countries last year ( -13.7 %).
Spain is having difficulty digesting the adjustment housing prices more than other countries in the euro zone, in the last twelve months the country has led in the declines in the value of homes on-year, only once during this period Spain was relegated, however little to second place, this occurred in the fourth quarter of last year when the price of houses in Greece fell by 13% compared to 12.8 % in Spain.
The leadership of the Spanish residential market in lower prices in the euro area occurs after the falling value of homes in Ireland has moderated, the so -called Celtic Tiger was in the first half of 2012 the country with the biggest fall in the price of housing, in particular it fell 17.2% in the first quarter and 15.4 % in the second last.
In those months the value of houses in Spain depreciated by 12.6% and 14.4 %, respectively, however unlike the Irish case, in Spain fall rates have not been moderate but have even increased, for example between July and September 2012 , this figure fell by 15.2 %.
Marbella seems to be weathering the storm better than than the rest of Spain with its micro-climate where property prices have fell over the last few years, could it be the right time to start looking for that place in the sun?
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| 2005 | No data | No data | € 572K | € 570K |
| 2006 | € 530K | € 535K | € 541K | € 578K |
| 2007 | € 545K | € 510K | € 512K | € 513K |
| 2008 | € 562K | € 603K | € 675K | € 653K |
| 2009 | € 653K | € 676K | € 688K | € 688K |
| 2010 | € 696K | € 658K | € 654K | € 673K |
| 2011 | € 654K | € 639K | € 650K | € 648K |
| 2012 | € 650K | € 635K | € 598K | € 608K |
| 2013 | € 637K | € 596K | € 613K | No data |
The real estate consultants association of Spain ( ACI ) has published a document that discusses the importance of due diligence and proper conduct in the valuation process of real estate assets, so for example, to prepare the sale of a property it is necessary to analyze those in the area of influence or compare the property with other similar transactions.
The ACI indicates that when an asset sale process is prepared it is essential to have accurate and organized information to allow potential buyers to know what the reality of it and the factors taken into account for in its financial proposal, this process of documentation and information held within an organized sales process is called due diligence Information or vendor due diligence.
Information due diligence is a necessary tool when it comes to conduct a competitive process with the objective of maximizing the value of the asset for the owner and to meet deadlines, also keep in mind that a process of this magnitude without sufficient information may discourage a significant number of investors who are not willing to mobilize resources in the study of the operation
The goal of due diligence is to provide Information of trust and transparency of the relationship between the parties involved in the process, and thus its performance was often undertaken by an independent third party.
The association notes that international real estate consultants are accustomed to perform this process but it has not been common practice in Spain that is until foreign investors began to demand it.
The advantages:
– Transparency of information : all participants have the same information
– Control over the questions and requests for additional information
– Brings credibility to the information content of the dossier
– Rigorous : offers are made taking into account the reality described in the due diligence
– Shortens the process and reduces individual requests for information
– Identify in advance those issues on which misunderstandings may arise
All this information is available to participants through the process called data-room, which is just a point of information where when interested in a project you can share the available data
Currently new technologies for remote access to documents in digital format are used by the so called virtual data-room ,which maximizes security and confidentiality of information at a lower cost and with greater efficiency.
What is it ?
Due diligence is a detailed study that completely covers everything you need to implement whilst in the process of buying or selling a house:
– Analysis and study of the property from a business perspective and value estimation
– Audits ( due diligence) on facilities and urban and structural aspects of the property
– Advice in negotiating and closing the transaction
From a commercial point of view, the main objective is to analyze the influence of the active area through the completion of a market study where the following aspects are taken into account :
– Availability of assets similar
– Properties for sale in the area of influence
– Requested prices for comparable assets within the area of influence
– Analysis of market behavior in recent years from the point of view of income
– Historical comparable transactions both by location and by type of asset
– Analysis of unit prices and yields comparable transactions
Parallel to business analysis, it is necessary to conduct an analysis of the characteristics of the active real estate encompassing the following:
– Location of the property
– Representativeness
– Architectural uniqueness
– Visibility
– Communications and access
– State of the building and facilities
In reference to a technical analysis of the asset, it must include three main parts: planning, architecture and facilities.
Urban analysis :
– Urban characteristics of the environment
Rules applied in the house:
planning and management level of the property record
building conditions
study uses
licenses urban analysis , process monitoring and processing:
local licenses ( provided by the property)
licenses tenants ( those provided by the client and / or tenants )
summary, recommendations and conclusions
– Architectural analysis :
visual perception of the property
description of the building
analysis of the building and the project as built or building book
structures
construction
facades
cover
communication nuclei
Fire protection . passives
economic forecasts
photographs
summary, recommendations and conclusions
analysis facilities:
– Introduction :
Details of the visit
documentation
air conditioning system
wiring
Installation p.c.i.
plumbing and sanitation
several facilities
comments on the facilities
economic forecasts
photo report
summary, recommendations and conclusions
– Surface analysis :
surface analysis (if available in CAD drawings of the building)
cad drawings available validation ( comparison of dimensional consistency in situ )
measurement of floor area
measurement of floor space
uses breakdown surfaces
The property arm of BBVA bank Anida has become the developer of the moment, in the past two years it has completed more than 3,000 housing units and by the end of 2014 will have provided over 5,000. In an interview Xavier Sainz, the director of Anida, says the housing market has bottomed and that “what we see coming from now on is the start to a slow recovery in prices and demand “.
Question : How do you see the real estate sector currently? And what about prices?
Answer : I see real estate sector having starting a strong recovery since the beginning of 2013 and especially before summer there has been a feeling that we have bottomed out and that starting from now it will not go further downwards, but stabilize and we will see a start of a slow recovery in prices and also in demand.
BBVA Banks property arm Anida says prices in Spain have bottomed out
Question : So what factors lead him to believe that the market is recovering?
Answer : Mainly from all the reforms that have been made in Spain in recent years, these have now begun to have the desired effect, there is a great demand both from foreign and the domestic market, having liquidity available to start investing for both home ownership and as an investment and the thinking is that the time to invest is now because we will not see a lot more price decreases as has happened in recent years.
Question : How do you think things will evolve for housing prices for the remainder of the year and in 2014?
Answer : There are areas with higher demand that are already producing a recovery of the prices and also we are seeing prices starting to climb month to month in general. Estimates that the prices have bottomed out, what we are seeing is that the price of sales transactions currently being closed is the lowest that we will see and from now on a plateau and then a recovery closely linked to the arrival of foreign investment and also the slowdown in job losses will follow.
Question : What factors have pushed you to build housing developments ?
Answer : Clearly demand in areas where we see an unmet demand for housing, that is where we invest. In the last two years we have completed more than 3,000 homes a year and from now until the end of 2014 we will sell more than 5,000 newly built houses.
Question : What is the type of houses being sold?
Answer : We are committed to build a home that has better value than the rest, that is what is helping us to sell, when in areas where housing is needed and where the property is located in an area of demand and at the right price. We have housing at all levels and for all tastes, what are most in demand are homes with 3 bedrooms.
Question : What do you think about renting property?
Answer : Renting is a way to meet the housing needs of any citizen and the decision between buying and selling is influenced by the current interest rates, the prospect of appreciation in housing and labour geographical mobility buyer / tenant. BBVA does also have rental housing developments available.
