Tag: British

Taylor Wimpey Invests €95M in Costa del Sol to Meet Demand from Brits

14 June 2018 – Eje Prime

Taylor Wimpey España is going to invest €95 million in seven of the developments that it has up for sale on the Costa del Sol. The property developer is strengthening its commitment to the Malagan coast after verifying that Brits, one of its main client cohorts, have doubled their investment in housing in Spain.

“Demand is increasing in general”, explained the Director of Sales and Marketing at  Taylor Wimpey España, Marc Pritchard. The executive also added that “although the Brexit effect caused Brits to buy less in 2017, the fear is disappearing”.

Another important factor in the evolution of house purchases by Brits is the devaluation of the pound, which last year made investment in Spanish housing more expensive for buyers from the islands.

Nevertheless, Spain is still the preferred destination for Brits looking to buy a home, something that is reiterated by the British Embassy in the country. Across the whole of Spain, there are around 300,000 British citizens and “they are still the main overseas buyers of homes, accounting for 15% of the total”, says Pritchard.

In the ranking of foreign nationalities who buy homes in Spain, the Brits exceed the French, who account for 8.64% of the total; the Germans, with 7.77%; the Belgians, with 6.39%; and the Swedes, who continue as a historical investor, accounting for 6.38% of the total.

Original story: Eje Prime

Translation: Carmel Drake

INE: Foreign Visitors to Spain Rose by 6% in Q1

4 May 2018 – Eje Prime

Tourism in Spain is on a roll. During the first quarter of 2018, 13.7 million overseas visitors came to Spain, up by 6% compared to the same period in the previous year, according to data from the Statistics of Tourist Movements across Borders (Frontur), compiled by Spain’s National Institute of Statistics (INE).

By country of origin, the British were once again the most prevalent tourists in the country between January and March, with 2.9 million visitors of that nationality. They were followed by German visitors, with 1.9 million people. The number of French tourists, the third most frequent visitor group, amounted to 1.7 million people.

The Canary Islands accounted for most of the international tourist visitors to Spain during the first three months of the year, with more than 3.7 million visitors, becoming the autonomous region of choice. Meanwhile, 3.1 million foreigners arrived in Cataluña, and Andalucía was the region that completed the Top 3 most visited during the period, with 1.9 million tourists.

In March alone, the arrival of overseas visitors to the country gained momentum with an increase of 9.6% with respect to the same month last year, to 5.4 million people. This increase contrasts with the rises recorded in January and February, which amounted to 5.2% and 2.6%, respectively.

Original story: Eje Prime

Translation: Carmel Drake

Lucas Fox: Luxury House Prices Rose by 18% in Q1

23 April 2018 – Eje Prime

Luxury homes in Spain are becoming increasingly more expensive. The luxury residential market saw the value of prime homes increase by 18% during the first quarter of this year. The average price paid during the 3 months to March for these kinds of properties amounted to €924,000, significantly more than the €780,000 recorded by this exclusive branch of the segment during the same period last year, according to data from Lucas Fox.

The strong performance of the Spanish economy in recent times is once again stimulating demand from domestic and overseas investors to purchase homes in the country, above all along the coast and in the major cities.

According to the report from the real estate agency specialising in luxury homes, Marbella and Sitges are the most prime area of this market, and they are monopolising business along the coastlines on which they are located, the Costa del Sol and Costa Brava, respectively.

In the case of Marbella, the city accounted for 67% of the sales that were completed in the region, whilst on the most southerly coast of Cataluña, Sitges accounted for half of all the business on the Costa Brava. “We saw a tremendous rate of growth in sales in Girona and its coastline during the first quarter of 2018”, said Tom Maidment, Director of Lucas Fox Prime.

Foreign investors account for 13% of the prime market  

“International buyers of second homes have been more active, with a notable increase in the number of British buyers”, explained Maidment. In this regard, the director added that “confidence in the market and in the Spanish economy has been consolidated and concerns over Catalan independence have disappeared”.

In total, in 2017, 13% of the purchases undertaken in the luxury residential sector in Spain were made by overseas investors, who acquired 61,000 homes, almost as many as the 65,000 properties bought by foreigners in 2007.

By nationality, the British were the most active buyers, accounting for 15% of the sales made by foreigners, followed by the French, 8.6%; and the Germans, which accounted for 7.8% of the acquisitions of this type of luxury real estate by foreigners.

In the case of Lucas Fox, 77% of the operations that the agency closed during the first quarter of the year related to international clients, most of whom came from the United Kingdom, but also from neighbouring France, the Scandinavian countries and the USA.

Original story: Eje Prime 

Translation: Carmel Drake

Registrars: House Prices Rose By 7.7% YoY In Q1

18 May 2017 – El Mundo

Homes are becoming increasingly expensive. House prices rose by 7.7% during the first quarter of 2017 in YoY terms, according to the real estate statistics published by the College of Property Registrars. With respect to the last quarter of 2016 – i.e. looking at the QoQ variation – the increase amounted to 4.1%. With these new increases, the cumulative adjustment since the peaks of 2007 continue to fall and now amount to 22.8%.

On the other hand, 113,738 house sales were recorded between January and March, representing the highest quarterly figure since the first three months of 2011. The increase amounted to 21.8%, with respect to the previous quarter. In interannual terms, the positive trend continued: prices rose by 14.4% with respect to the same quarter in 2016.

On this occasion, contrary to the trend seen in recent years, new house prices performed in line with the general increase, accounting for 18% of the total number of sales, with a significant QoQ rise of 27.5% (20,490 sales), whilst the sale of second-hand homes rose by 20.6% compared to the previous quarter, to reach 93,248 operations.

Purchases by overseas buyers reach peak levels

The weight of house purchases by overseas buyers remained relatively stable during the first quarter of the year to account for 13.1% of all registered sales. That corresponds to sales of around 15,000 properties per quarter. In cumulative YoY terms, foreigners accounted for 13.3% of all purchases, a historical maximum, and corresponding to more than 55,000 house purchases per year by overseas buyers.

By nationality, the British continued to lead the ranking, accounting for 14.5% of all purchases made by foreigners, although their continued fall over the last few quarters (during the previous quarter, they accounted for 16.4% of all purchases made by foreigners) has brought the figure to a new historical low over total purchases by foreigners. The French rose to second place with 9.6%, followed by the Germans (7.7%), Belgians (6.9%), Swedes (6.3%) and Italians (6.1%). These first six nationalities accounted for more than half of all house purchases by foreigners.

Average mortgage amounted to €116,182

Mortgage debt to buy a home increased by 3.6% compared to the previous quarter, to reach €116,182, whilst the number of fixed rate mortgages continued to rise sharply, in line with previous quarters, to account for 38.7% of all new contracts, compared to 31% in the previous quarter, a new maximum in the historical series.

This situation leaves variable rate mortgages at their lowest figure to date, especially, Euribor, which was the reference rate for just 60.3% of all mortgages. The average initial interest rates on new loans decreased slightly to reach 2.3% from 2.4% in the previous quarter.

The terms of new mortgage loans remained relatively stable, recording a slight increase of 0.7% compared to the previous quarter, and an average term of 23 years and four months.

Access to housing saw a slight deterioration: the average monthly mortgage repayment during the first quarter amounted to €536, representing a QoQ increase of 2.2%, whilst the percentage of that repayment over wage costs rose to 28.3% from 27.6%.

Original story: El Mundo 

Translation: Carmel Drake

House Sales To Foreigners Soar By 30% In Málaga

13 March 2015 – Diario Sur

In 2014, in the province of Málaga, 9,140 homes were sold to citizens from other countries, a figure that comes close to levels last seen before the crisis. This means that foreign buyers accounted for 38% of all real estate transactions in the province last year.

Foreign demand continues to be high in the Malaga property market, which recorded an increase of 28% in house sales last year, according to data published today by the Ministry of Development. Of the 23,929 homes sold in the province in 2014, 9,190 were to foreign buyers, which represents a percentage of 38%.

And the volume of house sales to foreigners has almost doubled in two years: from 5,140 in 2012 to more than 9,000 last year, representing a growth rate of almost 80%. Transactions involving Spanish buyers also increased in 2014, specifically, by 29%. However, according to the Chairman of the Association for Builders and Developers, José Prados, demand for primary residences, i.e. demand from buyers from Malaga itself, continues to be “very static”.

In terms of the foreign nationalities that are buying homes in Malaga, the ranking is led by the British, Scandinavians, French, Benelux, Germans and Russians, in that order, according to Prados. “Demand from Russian buyers, which peaked to compete with that shown by British buyers at one point, has cooled off significantly as a result of the internal problems facing the country”, he adds.

The vast majority of the foreigners that buy homes in Málaga (8,010 out of 9,190) are resident in Spain. The number of non-resident buyers has not increased significantly, despite the incentives introduced by the Government to grant residence permits.

Original story: Diario Sur (by Nuria Triguero)

Translation: Carmel Drake

Britons Buy Homes In Spain, Driven By Strong Pound

5 March 2015 – El Economista

The strength of the British pound makes (house) purchases in Spain more affordable.

Low returns on deposits (at home) encourages Britons to seek alternative investments.

Sun, financial repression and low prices. This perfect cocktail is converting Britons into the main buyers of homes in Spain, especially in areas near the beach. That is because, in addition to the traditional appeal of the coast, Britons are now facing poor returns on their savings at home, due to measures taken by the Bank of England, and because they expect to see a recovery in the real estate sector in Spain. The appreciation of the pound against the euro makes the investment even more affordable for the average Brit, who is also seeing prices in his own country year on year.

An example is Londoner Barry Leverington, who thinks that his money is better off in a Spanish home than it would be earning next to nothing in a British savings account. The bank employee, aged 33 years old, is looking at properties in the Mazarrón Country Club, in Murcia, where two-bedroom villas cost as little as €75,000.

“Anyone who has some capital can buy in Spain, with almost no mortgage, and there is potential for prices to rise”, explains Mr Leverington in a telephone interview. “I grouped together some savings, and with the current low interest rates, I realised they were dormant, not doing anything”.

Foreigners return to Spain

Mr Leverington is not the only one. Foreigner buyers are returning to the Spanish real estate market, attracted by economic growth that exceeds the rates in most of the rest of Europe and by the signs that prices are bottoming out after years of decreases. In fact, sales of homes to foreigners accounted for 13.9% of total sales in the fourth quarter of 2014, a new record.

Britons are the biggest foreign investors, because the zero interest rates on savings accounts (at home) and the prospects for rising house prices in Spain mean that keeping their money in their own country is a much less attractive option.

In total, foreigners invested €6,050 million in Spanish properties during the first nine months of last year, 30% more than during the same period in 2013, according to data from the Ministry of Development. The 40,338 homes purchased represented an increase of 27% with respect to the same period a year before, with Valencia, Andalucía and Cataluña topping the list as the favourite destinations for foreign purchasers.

Interest from overseas investors is increasing after many left scarred, following the collapse of the Spanish real estate market with the onset of the global financial crisis and the burst of the local property bubble. The legacy from this collapse is a stock of more than 1 million homes, many of them in the South and East of the country, in areas very popular with Britons and Europeans.

House prices have also suffered a corresponding crash, having fallen by 42% since their peak in 2007, although in coastal areas, some properties have lost up to 50% of their value, according to estimates from the property appraiser, Tinsa. Nevertheless, it seems that the trend has changed, as the rate of decrease slowed from 9% in 2013 to 3% last year.

Deposits with no returns

The Bank of England has maintained interest rates at a historical low of 0.5% since 2009, which has impacted the interest rates offered by banks on British savings. A financial repression, which is making Britons look for alternatives for their savings, and from there Spanish property looks like a good option.

In addition, it is becoming increasingly expensive to invest in homes in the United Kingdom, where prices increased by 25% between December 2007 and December 2014, according to the Office for National Statistics, led by London, where prices increased by 18% last year alone.

Moreover, the recent increase in the value of the pound against the euro, which has appreciated by 13.5% in the last 12 months, means that homes in Spain are even cheaper for the Brits. This is an important effect to consider, according to the real estate expert José Luis Ruiz Bartolomé, “when something is gifted, it is even more attractive than when you purchase it with a strong currency”.

“People like me want to achieve some kind of return on their savings and they won’t get very far in the real estate market in the UK at the moment”, says Mr Leverington. “Properties in Spain are currently under-valued. It is a win-win situation for everyone”.

Spaniards are also returning to the market, although at a slower rate. The purchase of homes by Spaniards increased slightly by 2.2% in 2014 to reach 319,389 properties, the first increase since 2010, according to date from INE. A ray of light for the sector, although it is still a long way from the highs of 2006, when 955,186 homes changed hands.

Marbella, at its peak

Another symptom of the improvement is that despite the (housing) stock, cranes have reappeared in some areas of major cities and on the coast. Darío Fernández, from the consultancy Jones Lang LaSalle, explains that “we are seeing demand for primary residences from Spaniards in Madrid and Barcelona, and demand for second homes from foreigners in coastal regions. People are confident that the economic risks have disappeared, and see that prices are still very low”.

In fact, in some areas, such as Marbella, demand is so high that international funds are partnering up with local players to buy land and build new homes, adds Fernández. Currently, there are 400 homes under construction in the Malagan town, the highest number in the last six years.

Mr Leverington, the London bank employee, is going to travel to Murcia in June to get to know the area, and if he finds a property he likes, he will buy it. “I have already spoken to some estate agents, I don’t want to wait much longer, because as soon as there is any good news, the market will recover and I don’t want to miss out”.

Original story: El Economista

Translation: Carmel Drake

House Prices Rose By 2.5% In 2014, After Six Years In Decline

16 February 2015 – Expansión

Changing trend / The Association of Registrars (el Colegio de Registradores) reports the first house price increase since the real estate bubble burst. House purchases by foreigners break historical records.

The housing market is generating positive results in a disparate and heterogeneous way, step by step, but it is on the road to recovery and that is what matters. The figures vary a lot depending on the statistical source chosen, but the trend does not: the residential real estate market has changed direction and is heading towards the famous light at the end of the tunnel. That was certified by the Association of Registrars yesterday, which announced a 2.55% increase in house prices in 2014.

This is the first rise in house prices since the crisis erupted in 2008. Based on these results, the cumulative decrease in prices from the peak levels achieved in 2007 is almost -32%, according to the registrars’ methodology, which is based on the methodology of repeated sales, proposed by the economists Case and Shiller, which takes into consideration only data from those homes that have been sold at least twice during the period under analysis (1995-2014, in this case).

The Repeated House Sale Price Index (Índice de Precio de la Vivienda de Ventas Repetidas or IPVVR) “shows the change in the trend that we have observed during the last few quarters, leaving behind a long period of price decreases, and making way for a phase characterised by stability and small quarterly increases”, say the registrars.

Specifically, the IPVVR “shows that prices increased by 0.91% during the last quarter, taking the cumulative annual increase to 2.55%”. In this way, 2014 “was the year in which the house price trend turned a corner”, they explain.

This means that “in terms of prices, the real estate market seems to be bottoming out and heading towards price consolidation, at levels similar to those last observed in 2003”.

Sales

77,881 house sales were recorded during the fourth quarter of 2014, representing an increase of 7.33% on the same period in 2013. In 2014, 318,928 house sales were recorded in total, which represented a decrease of 3.1% with respect to 2013. This data is almost identical to that compiled by INE (319,389), although according to the National Institute of Statistics (Instituto Nacional de Estadística or INE), the volume of sales increased by 2.2%. In both cases, the data shows a trend towards stabilisation.

One of the main stories to come out the registrars’ statistics is that the purchase of homes by foreigners reached a new record high last year: accounting for 13% of all transactions. Foreigners acquired 41,492 residential properties in total, whereby completing five consecutive years of growth, up from from 4.24% in 2009.

The composition of nationalities remained relatively stable, although the decline in the number of Russian investors was noteworthy; they moved from third place (in the ranking of foreign purchasers) to sixth place in a single quarter. Thus, the British led the ranking, accounting for 18.6% of foreign purchases in the fourth quarter, followed by the French (9.4%), German (7.2%), Belgian (6.9%), Italian (6.1%), Russian (5.8%), Swedish (5.8%), Chinese (4.1%) and Norwegians (3.7%).

Finally, mortgage debt per household grew by 0.89% year-on-year in the fourth quarter.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake