Higher Quality in Sight for Spanish Property

According to a study by property consulting firm CB Richard Ellis and Barcelona Meeting Point, the slowdown in the property market will have the positive result of increasing the overall quality of Spanish property.

Richard Ellis foresees a more sustainable period for the residential property market in Spain where each company’s business plan will play a much larger role. Edward Farrely, CB Richard Ellis’ Director of Research, pointed out that a decrease in the construction of homes is also foreseeable, which will make it so that the market isn’t affected solely by price variations.

This prediction stands in contrast to attention-grabbing warnings of a “sector catastrophe.” Instead of crashing, the study indicates that prices will see manageable adjustments – as long as appropriate measures are taken to “transmit confidence to the final buyer.” This would mean, among other factors, a standard of quality in Spanish homes that would act as a draw to potential buyers.

The slowdown in prices, says Richard Ellis, is a normal development since the increases of the last decade were “highly superior to the norm,” and couldn’t last forever. The report concludes that these increases were caused in large part by the interest of private investors and were maintained by the strong demand for property in Spain’s coasts.

As the study points out, it’s possible that the market slowdown will have a larger impact on market activity than on prices. From now on less homes will be built, making it easier to qualify new properties and elevate the quality-to-price ratio (which is currently one of the lowest in Europe). For these reasons, diversification and specialization will become important processes for sector companies.

Despite changes in the residential property market, the consulting firm believes investment in commercial real estate (such as in shopping malls and office buildings) will continue to grow at a rate superior to normal European levels; the first half of the year saw a 61% growth as opposed to the same period in 2006, while the average growth in Europe is of 17%.

Getting the Most from Property in Spain

A study by NatWest International revealed that at a quarter of a million Britons own a property abroad. Most of these, an estimated 56 percent, are located in Spain and France.

A similar study suggests that out of the 24 million Britons interested in buying property abroad, only 15% would consider renting this property for additional income.

According to the NatWest study, a considerable percentage of people who own property abroad – 30 percent – visit their property only two times per year. In these cases, not taking advantage of Spain’s healthy vacation rental market represents a significant loss in potential income.

Spain’s market is especially dependable in the holiday rental sector and is not slowing down along with residential property. It can be seen as a good investment for the future, since the characteristics that make Spain an attractive holiday destination are constant factors; good weather, ample coastlines and intriguing culture.

Foreign homeowners who make use of their property in peak vacation times, such as in summer and winter months, often assume incorrectly that there will be little demand for holiday rental in Spain during the rest of the year.

This autumn, for example, figures released by Gatwick airport in London showed that three out of the top five worldwide holiday destinations were Spanish cities. Faro in Portugal, near Spain’s Costa del Sol, was also on the top five and Alicante, in Spain, was within the top ten.

People from the UK who own a home in Spain also have the added benefit of being able to market their properties as holiday rental accommodation online without facing much competition from Spanish second-home owners.

Although it’s typical for Spaniards to own a coastal or rural second home, recent figures from a survey by the Center for Sociological Investigation (a nonpartisan government-supported research organization) show that more than half of Spaniards apparently never use the Internet.

Red.es, a branch of Spain’s Ministry of Industry, Tourism and Commerce in charge of measuring the use of technology in the country, found that a mere one-fifth of the population in Spain is interested in integrating communication technologies into their home.

In comparison, 70 percent of the population in the UK is already connected and surfs the web on a daily basis. This gives British people who own a second home in Spain a significant advantage over Spanish second-home owners in promoting their properties online, which nowadays accounts for an important part of the holiday rental sector.

Spain’s Property Slowdown Will Increase Quality

The slowdown in Spain’s residential property market will have a positive impact on the relationship between quality and price for homes in Spain, according to a market study by CB Richard Ellis and Barcelona Meeting Point.

The ratio between quality and price of residential properties in Spain at this point is one of the lowest in Europe, and with current market conditions is expected to rise to normal levels.

Richard Ellis says this doesn’t indicate a “sector catastrophe.” Rather, property prices will be adjusted in manageable steps as long as appropriate measures are taken to “transmit confidence to the final buyer.”

Spain Attracts ‘Elite Tourism’ From India

Spain has engaged in an intense campaign to promote itself as an elite tourist destination in India. According to the director of Spain’s tourism office, this Asian country represents a new and rapidly growing market whose economy has grown by 20 percent between 2004 and 2007.

Among other initiatives, including press releases, live cultural events and seminars, there will be a November supplemental issue about Spain in the travel magazine “Travel and Leisure South Asia.”

Enrique Ruiz, the director of Turespaña, affirms that so far the reaction in India has been “fantastic.”

Spain Still Wants Gibraltar Back

In a book published by the Spanish Foreign Ministry, La Cuestión de Gibraltar, Spain has officially reiterated its claim to sovereignty over Gibraltar.

On another front, the Spanish ambassador to the UN presented his case to the global organism’s Special Committee on Decolonization for Spanish re-possession of Gibraltar, which has been occupied by the UK since 1704.

While Spain has made progress towards gaining added control of Gibraltar – as evidenced by the Cordoba agreement, which resulted in shared access to the disputed territory’s airport – Gibraltar itself sees self-determination as the only solution to the colonization issue.

How Retirement Dreams Can Turn Into Nightmares

There is a growing concern in the number of British people retiring to Spain who are encountering financial strain. More and more people are retiring to the sun-nourished country, due to a heavy load of advertisements and television programmes.

However, as easy as it may look, there is an increasing problem with people enduring financial suffering. Experts say these problems are simply a cause of bad financial planning.

The human life-span has increased and in these critical years several people have not made any provisions for their future healthcare and the majority of these people end up struggling.

The common problems are bad judgements which include property investments and inexact budgeting of pensions. Though living in Spain is till cheaper than the UK, prices have gone up dramatically and the economic difference between the UK and Spain is tightening. People are being advised to prepare for old age and calculate their finances and future options professionally before making the big move.

The Pause in the Spanish Property Boom Might Affect Portugal

During the 10 year property boom in Spain, Portugal has also been taken a long for the ride. The ride however has halted and once you get on, you cannot just get off!

A large proportion of the Portuguese property market is economically dependent on its bigger neighbour, Spain. The economists analyzed the boom as a growth, fuelled only by an excessive expansion of the Spanish property market. This was always seen as unrealistic and rickety. The doubling of prices has left Spanish consumer dept at 100 percent of a disposable income, while Portugal is at a staggering 112 percent.

Now that the increase rates have slowed down in Spain and shares have fallen, Portugal could also suffer, due to one third of its export growth rate (the main driving engine to recuperation) relying on Spain.

Real Madrid wants Beckham Back in Spain

Real Madrid wants to invite Beckham and his team, the LA Galaxy, to play against them in a bid for the Bernabeu Trophy.

The game will take place at Real Madrid’s stadium, the Santiago Bernabeu, this December 5th. The club’s director of marketing has been negotiating with Galaxy officials at length, but as of yet no agreement has been made.

Bill Passed Condemning Franco’s Dictatorship

More than 30 years after Franco’s death, Spain’s parliament has passed a bill officially condemning the dictator’s 40-year reign.

Those opposed to the bill argued it would prove overly divisive for a country already faced with political tensions, but Prime Minister Jose Luis Rodriguez Zapatero - whose grandfather was executed by Franco’s party - placed it as a government priority and personally made sure of its passing.

Among other actions, the bill will force the removal of all fascist symbols from public buildings and prompt a search for mass graves from Spain’s Civil War in the 1930’s.

Spain Where Most Irish People Die Abroad

According to recent figures, 322 Irish people have died in Spain since 2002, making the country the holiday destination where most Irish die abroad.

Surprisingly, this number accounts for more than half of the 571 deaths of Irish people abroad in the last five years.

Labor Party Deputy Joe Costello warned that Irish people, especially the youth, visiting foreign countries are not taking appropriate precautions: “They are going out to enjoy themselves and they are likely to engage in greater consumption of alcohol."