Property purchase in Spain is easier than UK

According to the data from Halifax society, Spain has witnessed the strongest gains in terms of property price increase percentages and the average value of a home has doubled. This is due to the consistent demand for property in Spain. A new research by SPC Overseas revealed that property purchase in Spain is easier than buying a house in the UK.

Property developer Lar Sol reports show that Britons purchasing a house on the Costa’s find it more comfortable than buying in the UK. Lar Sol international sales coordinator Katy Katani said that the exceptional demand for property outstrips supply and continues to propel Spain’s economy. The consistent demand for property in Spain, fresh supply of external demand annually and the great likelihood of property owners to reinvest their properties in Spain makes the residential real estate market more active.

Katy Katani further said that the several significant steps are taken by the government by introducing cuts in income tax and corporate tax, by planning to reduce the number of tax bands on Spanish property and to eradicate income taxes on mortgages. The real estate in Spain has remained upbeat despite European Central Bank increased interest rates in 2007.

She also confirmed that Britons like to buy from other Britons who have properties in Spain which make property purchase easier for Britons and that, as Spain has long been a favourite destination for holidaymakers, retirees and investors from the UK, they are creating a network of potential clients.

Recent survey by Clerical Medical Investment Group found that one in three Britons are planning a retirement abroad with the vast majority planning on relocating to Spain.

Buy-to-Let investors should look to the future

Investors in buy-to-let accommodation, irrespective of the recent dip has got encouraging news recently as Homes worldwide reports have said according to a study by VillasforTravel, owners of tourist accommodation in Spain have collected the highest rental returns in Europe in 2007.

Sun has reported that overseas property purchasers need to have a vision about the happenings in their chosen location in the next few years. The supply and demand ratio in a certain place could decide the all-purpose success of any investment. For instance, rental property nearby a place with a large number of available residences is less likely to appreciate in value. But a house in a limited supply area would have high capital appreciation provided other important factors are satisfied.

Recent enquiries in holidayrentals.com website suggest that Short Term Holiday lets in Spain have high returns potential with well-chosen properties in good locations than your investment than long term letting. Most experts predict that an occupancy level of around 15 weeks per year is enough to provide ample income to cover the payments on a typical 20 year 70% mortgage and maintenance costs.

But BuyAssociation recommended that short-term investors come up with an exit strategy if they desired to make riches from their rental property. Remember, short-term letting needs more work than long term. The most gainful approach is market your property yourself and usage of an excellent Short-Term Agent for property management.

Brits visiting Spain increases despite weak pound

Ignacio Vasallo of the Turespana Spanish Tourist Board has revealed that tourists in 2008 are likely to be comparable and possibly more than those in 2007. The fall of the pound against the euro did not have any impact in the number of British tourists in Spain.

Recent poll by MyChild.co.uk, Spain is the top destination for British families who are heading abroad this year. This is despite the fact that many consumers are experiencing financial constraints as a result of the credit crunch and weak pound.

In fact, majority of respondents said they are not going to be put off Spain holiday for the continuing economic crisis. Ignacio Vasallo further said that this is due to the fact that the regular economic growth for British consumers over the last decade, which means they have sufficient reserves to handle existing financial problems. The credit crunch won't dissuade them from going on holiday this year. As Denise Roberts of MyChild.co.uk has said that British Families are increasingly seeing the family holiday break as a requirement rather than a luxury.

Spain is currently considered to be the cheapest country in the Eurozone and according to the Post Office; the cost of general expenses is comparatively lower than in places like France and it is nearly 15% lower than that of France. Helen Warburton, of Post Office, observed that people will be looking to visit countries like Spain where a lower cost of living will offer them more for their pound.

Official government figures say the overall number of holidaymakers in Spain increased by 1.7 per cent to more than 59 million when compared to last year.

Experts recommend property in Malaga

Despite all gloomy predictions about property in Spain and increasing pessimism about Spain’s housing market, Spain’s property market’s performance in the last quarter is not as bad as it was projected. Spain’s real estate is now a buyer’s market, but it is also a intricate situation of local markets performing in different ways. Overseas property buyers could find a number of good investment opportunities in Malaga, experts have stated and Buyers have to adapt to the conditions of local markets.


The house price inflation rate in Malaga when with other areas is favourable for the investors even though at first look it seems bad. Homes Worldwide has reported that house prices in many parts of the Costa del Sol are increasing at a slower rate and Malaga showed increase of only 1.5% in 2007.

Homes Worldwide believes that market conditions will pick up sooner or latter. This is the perfect time overseas investor’s could grab a property for a bargain price before the market picks up again. Sociedad de Tasacion, one of the Spanish appraisal companies expects that Spanish property will continue to deliver higher returns with less risk than the stock market.

Figures from Kyero.com show big variations in changes of regional asking prices in 2007. Property asking prices appear to have increased by 10.7% in Malaga province. Mark Clifton of the International Property Partners in Marbella has said that property prices are back where it was 3 years back.

There are reasons to consider purchase in Malaga. The expansion of Malaga airport and construction of new rail links along the coast would increase the visitors numbers and for Attractive properties in the right areas combined with realistic prices can put Malaga property back in track again. This could be the best time in years to get quality property for reasonable prices in Malaga.

Possible Tax rebate for overseas investors

Emilio Alvarez, a Spanish lawyer, recently said that Non-Spaniards who have sold property between March 2004 and December 2006 in Spain could be in line for a substantial tax rebate.

CAM&A (Costa, Alvarez, Manglano & Associates) and HiFX has said that overseas investors who sold their properties between March 2004 and December 2006 paid an income tax rate of 35% on any capital gains. On the contrary, Spanish nationals paid only 15%. These disproportionate charges breach the EU Treaty. The non-residents have paid 20% over the usual limit equates to a total income of nearly £37m and average at £11,000 each including interest.

Capital gains tax (CGT) rate forced non-residents paying inflated CGT bills to the extent of 20%. This tax is thought to have affected thousands of overseas investors.

The capital gains tax for non-residents has now been reduced from 35% to 15% in 2007. Consequently, thousands of overseas investors who’d previously sold property in Spain are entitled to a 20% rebate.

More details is available on www.Spanishtaxreclaim.co.uk or by calling their helpline on 0845 680 3849.

New flights boost property investment in Murcia

The introduction of new flights and the plans to double the size of Murcia airport and turn it into a major international hub is fantastic news for overseas property buyers. Monarch Airlines has just launched operating services to San Javier International Airport, Murcia from Manchester Airport in the UK.

The introduction of flights means increased accessibility of the area to property purchasers from north-west of England and this could make it more attractive to home buyers as more people from the UK are buying properties in Murcia in recent times. Murcia is considered to be a very safe investment. Property prices are pretty much guaranteed to remain steady due to the fact there is limited land available for new construction.

The low-cost carrier in their press release has said that flights to Murcia have been in strong demand which implies that tourism is set to boom in this region. The launch of new flights is due to the direct response to requests from the customers. This would result in the demand for rental accommodations.

Liz Savage, managing director of flymonarch.com has said that this has already become a phenomenal success as the first flight is fully booked and over 20,000 bookings are taken already. Paul Collins of BuyAssociation website has recommended Murcia as an emerging market with great potential for property investment.

Spanish property inflation rates

The quarterly figures released by the Spanish Ministry of Housing (Ministerio de Vivienda) is the most commonly used housing market statistics for property prices in Spain.

The figures for the third quarter (Q3) in 2007 shows that average national Spanish property prices rose by 0.3%, which translates itself into an annual increase of 5.3%. This is a deceleration compared to second quarter (Q2), when prices rose by 1.5% for that quarter, and 5.8% over 12 months. Average Spanish property inflation rates have been progressively falling after peaking 18.5% in 2003, to 9.8% in 2006, to 5.3% in 2007.

The deceleration in the rate of house price inflation and a drop in demand in certain places don’t mean the end of decade long property boom. The fall in the inflation rates do not pertain to the country as a whole. Murcia region's property market is expanding at a considerable pace and is likely to keep growing as Madrid saw rates drop to two per cent, but Murcia had 10.7% annualised price growth.

This is the forecast by the experts for 2008

BBVA (Spanish bank) : prices +1.4% in 2008 and -1.9% in 2009
Deutsche Bank: prices -2% to -8% in 2008
Natixis (French bank) : prices +2% to +3% in 2008
Crédit Agricole (French bank) : -10%

This comes after the recent survey by Yorkshire Bank which revealed that Spain is one of the most popular foreign destinations among overseas property investors from the UK. This shows after all the negative publicity in the media; Spain is the perennial favourite for British buyers.

Spanish Costas entice property purchasers

Industry analysts revealed that Spanish costas are still trendy location for property purchasers and there is intense demand for property for sale.

Spanish property portal Kyero.com claimed that Costa Blanca itself accounted for more than 25 percent of enquiries in 2007 regarding properties in beachfront.

The beauty and stunning climate of Costa Blanca and affordable property prices are the main reason for its huge popularity among overseas investors. This region is favourite place for holiday makers and overseas retirees. A large number of British expatriates have already homes in this region which speaks out for the fact of its popularity.

Martin Dell, managing director highlighted the appeal of Costas and indicated about the variety of properties it offers to property purchasers. However, he also recommended property purchasers to check the other factors like accessibility, amenities when purchasing the property.

The recent survey by Kyero.com confirmed Spain as a whole is proving to be particularly popular among expats from the British Isles. More than 750,000 of Brits own property in Spain and around 160,000 Brits have settled there permanently.

The website said that the gorgeous beaches, exciting nightlife, British food, English TV channels and harmonious relationship with Britain which makes Spain a popular destination for Brits.

Spain's family focused lifestyle attracts Britons

The number of Brits looking to buy property overseas has skyrocketed in recent years is because of the fact that Spain offers more family oriented lifestyle.

Paul Collins of BuyAssociation has said that people consider moving abroad are enticed by Spain because of its culture, lifestyle, valued properties, good accessibility, and potential capital growth. British who appreciate the laidback lifestyle of Spain end up purchasing properties in Spain.

British feel that Spanish community and lifestyle is easy to get into as they miss the family focused lifestyle in UK and they don't have to compromise on their standard of living. ‘The Sun’ has reported that many are choosing to leave the UK and live in Spain on a permanent basis.

The report from holiday rentals has revealed that Spain is hot favourite for Britons and showed that Spain accounted for 31 per cent of British having holiday homes in Europe and 28 per cent of all British-owned holiday homes worldwide.