Blakemore Walker Chartered Surveyors and Legal Consultants

NORTH SPAIN AND THE COSTA VERDE

SPECIALISING IN PROPERTY PURCHASE AND SALES IN ASTURIAS, CANTABRIA & GALICIA

email GENERAL ENQUIRY ......Telephone (0034) 985 899 077

SURVEYING AND LEGAL PRACTICE ADVISING ON ALL PROPERTY RELATED MATTERS IN NORTHERN SPAIN

 

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)

OFFICIAL DATA:- ASTURIAS

SECOND HAND PROPERTY SALE PRICES IN ASTURIAS EUROS PER SQ. M

: YEAR 2009 = 1,759 average for properties priced between 150,000 and 300,000 euros

SOURCE : MINISTERIO DE VIVIENDA

-----------------------------

BLAKEMORE WALKER DATA:-

price of second hand modern construction property 2009

per sq. m in euros

Galicia = 1200

Asturias = 1850

-----------------------------

------------------------------

BLAKEMORE WALKER DATA:-

AVERAGE COST OF CONSTRUCTION OR RENOVATION IN EUROS PER SQ. M

STONE BUILT = 700 - 1,200 (renovation)

NEW BUILD FLAT = 900 - 1,100

NEW BUILD HOUSE = 1,000 - 1,400

------------------------------

The price of land as a percentage of the total costs of building a new house rose from 7.6% in 1996 to around 30% in 2008.

------------------------------------

PLEASE FEEL FREE TO CONTACT US IF YOU WOULD LIKE TO POST A COMMENT ON THIS PAGE

 

 

Calle José Cueto 3, 1º A, 33400 Avilés, Asturias, Spain
© Blakemore Walker 2004