BARGAINS
IN IBERIA- AUG 2010
During
the course of my work I have been increasingly coming accross properties
that seem to be realistically valued for a quick sale. I have, for
example carried out a survey this August of a house where the owner,
who is English, is keen to sell and has priced accordingly. The three
bedroom house and barn is set in the hills close to Cangas de Onis
with views to the Picos de Europa. The house has been restored with
a new roof. In my view it would have been worth at least 250,000€
in 2007 but now it is on the market for 135,000€ and I suspect
offers will be acceptable. Anyone interested can contact me for further
information. At this price the value per sq. m is around 843 euros
!!
ACTUAL
PRICES PER SQAURE METRE - MAY 2010
Transactions
are currently taking place on second hand properties at prices as
low as 900 euros per square metre in comparison to 2,000 euros in
2007. The Spanish eceonomy with it's high unemployment rate is weighing
heavy on the property market.
WHAT
INFLUENCES THE FUTURE MARKET - FEB 2010
The
exchange rate between the pound and the euro, the general economy
at home, the general election and the spanish property market. All
of these will provide different influences on the prospective UK purchaser
or even seller in northern Spain. Activity levels and levels of enquiries
currently remain low and until after the UK general election the northern
Spanish rural estate agents will continue to suffer from a lack of
UK purchasers. What about other foreign buyers? - there are some euro
based buyers but at a very low level of activity. In my view the UK
will dominate this niche rural market in the future but as always
at a very sustainable level.
This
time next year could see significant changes in the levels of activity.
BUYERS
ARE WAITING FOR THE BOTTOM- MAY 2009
There
is currently not significant activity in the property market in northern
Spain and in my conversations with potential clients there seems to
be a general belief that prices have further to fall. I am inclined
to agree with this view but I do advise keeping an eye on the situation
so that when the time is right opportunities can be snapped up quickly.
I
believe that the next 12 months will be significant in terms of the
level of market activity with an upturn of interest towards the end
of 2010 as sellers require to sell and prices reflect this need to
sell. Perhaps good times could be here sooner than we think?
MARKET
ADJUSTMENTS CONTINUE - DECEMBER 2008
2008
has seen dramatic changes in the Spanish property market and the northern
part of Spain is no exception. The euro is now far stronger against
sterling and the cost of property for the British purchaser in Spain
is now increasing. However, if as a British purchaser, you are funding
your purchase from sterling savings then it could be argued that the
time has come when real value is beginning to be seen. In short, the
value of sterling against the euro has slipped by approximately 20%
whilst there are signs that northern Spanish property prices are falling
by a greater rate - in some cases up to 40%: READ
FULL ARTICLE
SPANISH
TELEVISION NEWS 27 MARCH 2008
The
mainstream television in Spain today reported an approximate 27% reduction
in property transactions. In order to simplify the ever changing financial
situation perhaps the following will help:-
The
pound has reduced in value against the euro by approximately 15%
since the previously steady days of a 1.45 rate held for several years..
The
property market in the north of Spain has an underlying trend to a
decrease in value of about 15%.
Therefore
the indication is that a natural adjustment is taking place and that
the northern Spanish property market was not and is NOT OVER VALUED.......
--------------------------------
THE
IDEAL CLIMATE- the garden paradise February 2008
I
always say to my clients that the weather in Asturias and the Costa
Verde provides the perfect climate. These are perhaps strong words,
but considering that since september 2007 there have been mild conditions
with practically no frosts on the coastal strip and since Christmas
we have enjoyed sunny and warm weather with some days reachinng 22ºC.
Infact last year in January there was the odd day when temperatures
reached 24ºC.
There
is, this year, a shortage of rain in Spain and this seems to be more
habitual each year that passes. However, Asturias and the Costa Verde
do usually get sufficient and although Galicia has suffered a shortage
this year, as I write this column, rain is falling.
Those
of you who have a passion for gardening, or for those who fancy a
slice of northern Spain to start your vegetable patch then consider
this region as having the potential to provide the classic English
garden intertwined with that tropical feel.
------------------------------------------------
NORTH
SPAIN PRESS RELEASE - 23 January 2008
SEEKING THE ALTERNATIVE TO THE MEDITERRANEAN COSTAS - IS THE SECRET
OUT !
According to a recent report in the Spanish financial press all is
doom and gloom on the mediterranean costas with Taylor Wimpey selling
up to 44% less new homes in 2007 compared with the previous year.
But all is not lost.
Asturias,
Cantabria and Galicia are regions that, for some people,
are becoming of interest as an alternative to the potentially over-developed
south. The Costa Verde running from the French border in Biarritz
to Galicia in the north-west of Spain, is little known as yet by the
British investor. Over the next few years the affordability factor
found in the north and the obvious value for money presented in this
region will no doubt influence the potential foreign investor who
is seeking property abroad.
Many
who have already bought property in northern Spain hope that this
quiet zone remains a secret. One thing is for sure, the same mistakes
that have been made on over-development etc. in the south, are extremely
unlikely to occur here with the benefits of mountains, open country,
culture, food and fantastic beaches. The weather, as I write this
piece, is sunny and 20ºC and has been for the last week or so.
This
area is a relative paradise both literally, and from the foreign property
purchaser's point of view - even in times of global crisis!
-----------------------
NORTH
SPAIN PRESS RELEASE - 3 January 2008
PURCHASE
COSTS AND THE PRICE OF PROPERTY
The average price
of a new flat (up to two years old) is now €1,952 per square
metre in Asturias as compared with €2,921 in Madrid. However,
if you want to buy a small flat the price may only be €1,600
per square metre in Asturias. In fact, the statistics show that on
average more is paid per square metre the larger the property is.
The price of houses
built more than two years ago ranges between €1,263 and €2,318
per square metre.
The facts
currently are as follows: there has been a construction boom.
The population has not increased in Asturias and the main demand in
recent years has been from new households forming from existing ones
as children try to get a foot on the property ladder at an earlier
age. Secondly, there has been significant activity from people outside
the region buying second homes, including those from the UK as a substantial
proportion.
Most of the UK
interest is for the older rural housing stock
in need of renovation and prices in this sector have been influenced
by the general market. Buying a 120 square metre traditional stone
house in need of renovation and modernisation including a new roof
will cost somewhere between €650 and €1,200 per square metre.
Due to global
and national economic conditions there may be significant pressure
on prices to fall in the coming year. Those of you wishing to fulfill
their property dream in Asturias may be pleasantly surprised. From
the UK buyer perspective the rural properties may start to reduce
in price albeit from a relatively low level. A good percentage of
our clients are buying older stone rural properties in need of renovation
in ranges between 100,000 and 200,000 euros. A ten percent drop would
therefore be significant but in the rural property market there are
probably more important issues to consider such as the legal
and technical checks that should be carried out prior to purchase
and perhaps more importantly the consideration of the costs of the
planning process and the actual renovation itself.
The fees for obtaining
all the relevant building licences and permissions will utimately
depend on the amount of work that is being carried out and how many
square metres it involves. There are taxes to be paid to the relevent
council and the architect and building team need to be employed under
leglislation. You may have to allow as much as €200 per square
metre to cover these necessary costs.
Clive Robbins
MRICS (Managing Director)
