The valuation index TINSA fell at an inter-annual rate of 8%. The decline is accelerating and the graph is now starting to look like a classic price crash.
During the property crash in Japan in the 1990's property prices fell 90% from peak. That now seems possible in Spain.
The underlying reasons for the drop in price continue to force prices down:
The awful outlook in the Euro Zone and the wider global economy.
Spain's debt crisis, and corresponding austerity measures continue to suck money out of the economy.
The continued bad press of unresolved property abuse cases. (Hopefully the new PP government will offer some solutions to this).
The demographics of the buyers during the boom years is on the wane. Are there enough buyers to replace those who move on beyond this life?
Poor housing markets internationally mean there is less people buying and doing so with less money.
Increased repossessions continue.
Loan availability is in decline.
Banks have slashed their prices to keep pace with the decline.
The scale of unemployment in Spain continues to rise toward revolutionary levels.
There are a lot of negative feedback loops in this horrendous death spiral.
2012 could well be the apocalypse for the Spanish Property Market.
Tuesday, December 13, 2011
Wednesday, October 19, 2011
TINSA August 2011
With Spain posting falling employment figures, and the fear of another recession on Spain's already beleaguered property market is diving fast.
They continued advice of this blogger is to rent unless you can find a real bargain.
Spanish Property prices are declining at a faster rate than they were ayear ago.
The government has announced that they will be launching another Spanish Property Roadshow. Their last effort was dismal and attracted
Until Spain can resolve the problems experienced by some foreign buyers, such efforts will only be seen as a poor PR exercise. The government should stick to creating a system in which buyers can have confidence. Pressure groups are quite rightly expressing legitimate greviances, if the ministers wish to help the property market, then they should listen to these people and resolve their problems.
It makes an estate agent's job very difficult when people are worried about the horror stories they have read in the press and online.
The banks and politicians have to realise that they aren't estate agents. They aren't very good at selling houses.
When will things start to get better? When will prices stabilize?
The philosophical/psychological answer, is that in a market that is based largely on confidence is that things will only level off, when people don't think prices can fall any further.
They continued advice of this blogger is to rent unless you can find a real bargain.
Spanish Property prices are declining at a faster rate than they were ayear ago.
The government has announced that they will be launching another Spanish Property Roadshow. Their last effort was dismal and attracted
Until Spain can resolve the problems experienced by some foreign buyers, such efforts will only be seen as a poor PR exercise. The government should stick to creating a system in which buyers can have confidence. Pressure groups are quite rightly expressing legitimate greviances, if the ministers wish to help the property market, then they should listen to these people and resolve their problems.
It makes an estate agent's job very difficult when people are worried about the horror stories they have read in the press and online.
The banks and politicians have to realise that they aren't estate agents. They aren't very good at selling houses.
When will things start to get better? When will prices stabilize?
The philosophical/psychological answer, is that in a market that is based largely on confidence is that things will only level off, when people don't think prices can fall any further.
Spanish Property VAT (IVA) reduced from 8% to 4%
In an attempt to jump start the Spanish property market, the ministry for housing has halved the tax on new homes from 8% to 4%.
The reduction in IVA only applies to new properties. The transfer tax for second hand properties remains at 7%.
This is a clear policy U-turn from the government, last year an ill-judged and vain attempt to increase the tax take from property transactions the government raised IVA from 7% to 8%.
The reduction is a temporary measure and will last until December 2011.
Whilst this will have some effect on shifting the it may have the unintended consequence of driving down prices in the second hand market.
The reduction in IVA only applies to new properties. The transfer tax for second hand properties remains at 7%.
This is a clear policy U-turn from the government, last year an ill-judged and vain attempt to increase the tax take from property transactions the government raised IVA from 7% to 8%.
The reduction is a temporary measure and will last until December 2011.
Whilst this will have some effect on shifting the it may have the unintended consequence of driving down prices in the second hand market.
TINSA July 2011
Some more optimistic commentators have been suggesting since the start of the house price crash, that the end is nigh. The end of the crash that is. These soothsayers of blue horizons perpetually churn out articles proclaiming they have second guessed the market and now is the time to buy.
The latest figures compiled by TINSA suggest nothing of the sort.
Download the July 2011 TINSA report.
The drop in property prices is, if anything, currently accelerating. That is to say that house prices in Spain are falling faster than previously and the general advice to potential buyers out there is to continue to wait.
The latest figures compiled by TINSA suggest nothing of the sort.
Download the July 2011 TINSA report.
The drop in property prices is, if anything, currently accelerating. That is to say that house prices in Spain are falling faster than previously and the general advice to potential buyers out there is to continue to wait.
Saturday, July 16, 2011
TINSA June 2011
Spanish property prices continue on there downward journey, with no signs of slowing up. The downward trajectory is a sustained year on year trend that shows no signs of abaiting. The reasons for the continued decline are much the same as they were this time last year.
- A glut of new properties still unsold.
- General malaise across other property market's
- Property scandals not resolved.
- Unemployment still very high (20+%)
- Instability in the Eurozone.
- Poor outlook for Spain
Prices are failing, so it's therefore not a good time to buy, since you can purchase in the future for less money. This in itself puts further downward pressure on the property market.
For prospective buyers looking to invest in Spain, unless you find a great bargain, sit on your money and wait. Rent instead.
Tinsa report
Tuesday, April 12, 2011
TINSA April 2011
Unsurprisingly the TINSA index of the Spanish property market indicates that prices are continuing to fall.
Prices have now been falling for continually and consistently for over 3 years and most analysts expect prices to continue to fall throughout 2011.
TINSA suggest that prices are falling at an interannual rate of -3.7% overall:
The breakdown is as follows:
Provincial Capitals and large cities -4.6%
Metropolitan areas -5.3%
Mediterranean coast -5.7
Balearics and Canaries - 3.0%
Other municipalities -1.1%
TINSA estimate that the biggest drop in property values continues to be the coastal areas.
With record unemployment and a swath of properties swamping the markets, there is little to be optimistic about. The conditions that have previously pushed down prices are still acting and will continue to act for the medium term.
Repossessions are at an all time high and interest rates are set to go up. Most mortgages in Spain are based on the Euribor and as their payments increase more people will default on their mortgages forcing the banks to acquire yet more properties.
Many of the properties that have been repossessed by the banks are optimistically priced to say the least, and if the banks are going to move them off their books their will need to be reduced in price. This can only mean more downward pressure on property prices.
The advice to people looking to buy a property in Spain is to wait and consider renting.
Prices have now been falling for continually and consistently for over 3 years and most analysts expect prices to continue to fall throughout 2011.
TINSA suggest that prices are falling at an interannual rate of -3.7% overall:
The breakdown is as follows:
Provincial Capitals and large cities -4.6%
Metropolitan areas -5.3%
Mediterranean coast -5.7
Balearics and Canaries - 3.0%
Other municipalities -1.1%
TINSA estimate that the biggest drop in property values continues to be the coastal areas.
With record unemployment and a swath of properties swamping the markets, there is little to be optimistic about. The conditions that have previously pushed down prices are still acting and will continue to act for the medium term.
Repossessions are at an all time high and interest rates are set to go up. Most mortgages in Spain are based on the Euribor and as their payments increase more people will default on their mortgages forcing the banks to acquire yet more properties.
Many of the properties that have been repossessed by the banks are optimistically priced to say the least, and if the banks are going to move them off their books their will need to be reduced in price. This can only mean more downward pressure on property prices.
The advice to people looking to buy a property in Spain is to wait and consider renting.
Tuesday, April 5, 2011
TINSA March 2011
TINSA property valuations continue to estimate that the Spanish Property Market is in decline. They estimate that Spanish residential property has declined by 4.5%, with the Mediterranean coast showing the steepest price drop at 6.7%
The latest TINSA report can be downloaded here
TINSA market can be broken down into different areas:
The index indicates that the Canaries and Balearic's Islands are close to the bottom of the curve.
Some analysts have been proclaiming that the price decline has already hit the bottom, however the conditions that have pushed prices downward continue to act, and Spain's wider economic woes continue.
Those looking to buy on the Mediterranean coast should continue to wait or consider renting property until the market hits the bottom.
Those buyers looking for a property in Mallorca, Ibiza, Menorca, should probably start bargain hunting.
The latest TINSA report can be downloaded here
TINSA market can be broken down into different areas:
- Balearic Islands / Canary Islands -0.8%
- Large Cities / Provincial capitals -5.2%
- Metropolitan areas -5.4%
- Mediterranean Coast -6.7%
- Everything else ( Inland / Rural properties) -3.3%
The index indicates that the Canaries and Balearic's Islands are close to the bottom of the curve.
Some analysts have been proclaiming that the price decline has already hit the bottom, however the conditions that have pushed prices downward continue to act, and Spain's wider economic woes continue.
Those looking to buy on the Mediterranean coast should continue to wait or consider renting property until the market hits the bottom.
Those buyers looking for a property in Mallorca, Ibiza, Menorca, should probably start bargain hunting.
Thursday, March 31, 2011
Caja Mediteraneo
Caja Mediteraneo or CAM announced the need to seek bailout funding to the tune of 2.8 Billion Euros.
Following the collapse of a merger agreement,Spanish savings bank Caja Mediterraneo (CAM) declared it would apply for state funds to meet capital requirements.
CAM was due to merge with other cajas, but three of the partners in the state-driven Banco Base merger voted against an association with CAM.
CAM which mainly operates all across Spain, has lent heavily to both property developers as well as domestic mortgages. These loans are not looking as healthy as they once did, given the downward spiral of the property market and unemployment.
Only yesterday in response to the 9Bn bailout of Caja Castilla La Mancha, Pedro Solbes Finance Minister said,
"The cajas are solvent, as is the financial system".
Following the collapse of a merger agreement,Spanish savings bank Caja Mediterraneo (CAM) declared it would apply for state funds to meet capital requirements.
CAM was due to merge with other cajas, but three of the partners in the state-driven Banco Base merger voted against an association with CAM.
CAM which mainly operates all across Spain, has lent heavily to both property developers as well as domestic mortgages. These loans are not looking as healthy as they once did, given the downward spiral of the property market and unemployment.
Only yesterday in response to the 9Bn bailout of Caja Castilla La Mancha, Pedro Solbes Finance Minister said,
"The cajas are solvent, as is the financial system".
Monday, March 21, 2011
National Speed limit lowered to 110km
Many people have labelled this a distraction and a revenue raising tactic....
Certainly Spain has more important issues to deal with and this measure is likely to catch driver out and therefore raise more revenue.
The goverment's claim that lowering the speed limit will increase fuel effiency by 15%. Motoring organisations claim that the figure is closer to 5%.
If the government wants people to use less fuel and raise more revenue, why not just increase fuel duty?
Tuesday, February 8, 2011
TINSA February 2011
The Spanish property price valuation index as estimated by TINSA has dropped by an average inter-annual rate of -5%
Download the latest TINSA property price index
The interannual rate of change was steadily decreasing toward the end of 2010, but the downward drive in prices seems to be showing steeper falls once again.
The biggest drops in inter annual valutaion were seen in large cities (-6.5%) and the Meditereaean properties (-8.4%)
This indicates that confidence in property prices across Spain is falling, and that prices are yet to hit the bottom.
The estimated price drops may be due to the banks revising the prcies of their property portfolios that they have respossed from people who have been unable to keep up their mortgage payments.
An increase in the unemployment figures published last month is alos likely to be a contributing factor as more and more people are forced to hand the keys to their properties back to the banks.
Bank Respossesions act as a negaitive feedback into the system, forcing prices down further.
Investors looking to purchase at the bottom of the curv would be best advised to bide their time.
The general message to potential buyers is to continue waiting as property prices continue downwards.
Those looking to move to Spain would be best advised to rent.
Download the latest TINSA property price index
The interannual rate of change was steadily decreasing toward the end of 2010, but the downward drive in prices seems to be showing steeper falls once again.
The biggest drops in inter annual valutaion were seen in large cities (-6.5%) and the Meditereaean properties (-8.4%)
This indicates that confidence in property prices across Spain is falling, and that prices are yet to hit the bottom.
The estimated price drops may be due to the banks revising the prcies of their property portfolios that they have respossed from people who have been unable to keep up their mortgage payments.
An increase in the unemployment figures published last month is alos likely to be a contributing factor as more and more people are forced to hand the keys to their properties back to the banks.
Bank Respossesions act as a negaitive feedback into the system, forcing prices down further.
Investors looking to purchase at the bottom of the curv would be best advised to bide their time.
The general message to potential buyers is to continue waiting as property prices continue downwards.
Those looking to move to Spain would be best advised to rent.
Sunday, February 6, 2011
Market report for 2011
Nick Hagan a reporter from adferro asked me 4 questions:
Will we see an ongoing decline in Spanish property prices in 2011 ?
The best data indicates that prices are still falling and will continue to do so throughout 2011. The rate of decline appears to be falling so those looking for the bottom of the market should probably continue to wait.
Will low-rate mortgages continue to be widely available in Spain?
Most analysts are predicting modest rate rises but finance is still relatively cheap and easy.
The easiest way to get finance is to purchase a property from the bank itself, many are offer rent to buy options or low or no deposits. That said bank repossessed properties don't always offer the best value for money.
What should bargain hunters be looking for when searching for Spanish property?
Bargain hunters should be looking for "Pre-repossession distressed property". This is property that still has equity, where the owner cannot keep up to date with the payments and is in a position where he is forced to sell or give the keys to the bank. These properties often represent the best value for money.
As the banks that have been forced to repossess properties need to liquidate these assests, they will have to reprice their property portfolios. Look out for bank properties that have been significantly reduced in price.
Don't pay the full asking price. It's a buyer's market, make a low offer
More generally, what are your predictions for the Spanish property market in 2011?
I think we will see a modest improvement in the number of transactions as the bargain properties are hovered up.
The conditions that have caused the crisis in Spain are not going away:
Will we see an ongoing decline in Spanish property prices in 2011 ?
The best data indicates that prices are still falling and will continue to do so throughout 2011. The rate of decline appears to be falling so those looking for the bottom of the market should probably continue to wait.
Will low-rate mortgages continue to be widely available in Spain?
Most analysts are predicting modest rate rises but finance is still relatively cheap and easy.
The easiest way to get finance is to purchase a property from the bank itself, many are offer rent to buy options or low or no deposits. That said bank repossessed properties don't always offer the best value for money.
What should bargain hunters be looking for when searching for Spanish property?
Bargain hunters should be looking for "Pre-repossession distressed property". This is property that still has equity, where the owner cannot keep up to date with the payments and is in a position where he is forced to sell or give the keys to the bank. These properties often represent the best value for money.
As the banks that have been forced to repossess properties need to liquidate these assests, they will have to reprice their property portfolios. Look out for bank properties that have been significantly reduced in price.
Don't pay the full asking price. It's a buyer's market, make a low offer
More generally, what are your predictions for the Spanish property market in 2011?
I think we will see a modest improvement in the number of transactions as the bargain properties are hovered up.
The conditions that have caused the crisis in Spain are not going away:
- Massive unemployment
- Bank repossessions
- A huge glut of property on the market
- The global financial crisis and property crisis continues to exert a downward pressure on prices.
Thursday, January 27, 2011
Spanish court rules that repossession cancels debt
A court in Pamplona, Navara in the North of Spain ruled that reposession of the a debtor's property cleared the debt owed.
Previously a mortage debtor, whose property was reposessed and subsequently sold for less than the debt, continued to owe the remainer.
The bank, BBVA, sued the borrower to reclaim 28,129 euros of debt outstanding on a 71,225 Euro mortage after respossessing the property and then selling it for for 42,895 euros.
The judge ruled it was "morally repellent" that the bank should make additional claims on the borrower. BBVA plan to appeal the decision.
There have even been cases where EEO order have been used to pursue a debtor in another European country.
If the ruling is upheld at appeal, it's likely to encourage more conservative bank valuations, make loan to value ratio lower and make mortgage lending conditions in general tougher.
Previously a mortage debtor, whose property was reposessed and subsequently sold for less than the debt, continued to owe the remainer.
The bank, BBVA, sued the borrower to reclaim 28,129 euros of debt outstanding on a 71,225 Euro mortage after respossessing the property and then selling it for for 42,895 euros.
The judge ruled it was "morally repellent" that the bank should make additional claims on the borrower. BBVA plan to appeal the decision.
There have even been cases where EEO order have been used to pursue a debtor in another European country.
If the ruling is upheld at appeal, it's likely to encourage more conservative bank valuations, make loan to value ratio lower and make mortgage lending conditions in general tougher.
Tuesday, January 11, 2011
January TINSA 2011
The Spanish Property Market continues it's downward trend for the third concurrent year.
The properties leading the downward trends are those situated in the larger towns and cities and those situated on the Mediterranean costas.
TINSA estimate that prices have seen a year on year fall of 3.9%, with Mediterranean Properties dropping by an estimated 6.8%
The tinsa index can be downloaded here:
TINSA December 2010
2011 is likely to see the banks reprice much of their repossesed stock of property, meaning that prices are likely to continue to fall.
So in the mean time the genral advice is to rent until you find a bargain.
It's possible to rent a three bedroom two bathroon town house in the Port of Mazarron for as little as 500 euros per month
The properties leading the downward trends are those situated in the larger towns and cities and those situated on the Mediterranean costas.
TINSA estimate that prices have seen a year on year fall of 3.9%, with Mediterranean Properties dropping by an estimated 6.8%
The tinsa index can be downloaded here:
TINSA December 2010
2011 is likely to see the banks reprice much of their repossesed stock of property, meaning that prices are likely to continue to fall.
So in the mean time the genral advice is to rent until you find a bargain.
It's possible to rent a three bedroom two bathroon town house in the Port of Mazarron for as little as 500 euros per month
Tuesday, December 14, 2010
December 2010 TINSA index
The December Tinsa Spanish property price index report estimates that prices are falling at an inter annual rate of 3.6%.
This is the 36th consecutive month that TINSA have opined that residential property in Spain has fallen in value, with the Balearic Isles and the Mediterranean coast falling by the highest margins.
TINSA's index implies that prices aren't falling as steeply as before. Oversupply, massive unemployment and weak demand continue to drive down prices.
The market analytsts, Fitch, have estimated that the down turn in prices will continue throughout 2011.
The rate of decline has been slowing since a early 2009, a simple extrapolation of the change in rate indicates that the market should bottom late 2011. However other factors may come into play, forcing prices down further. The withdrawl of extra unemployment benefit in February and the repricing of Spanish properties held by the banks is likely to depress prices further.
This means that those wishing to move to Spain should probably consider renting rather than purchasing at this stage. It's a buyers market so take your time and start by making a low offer.
The TINSA index is based on the opinion of valuers, rather than actual sale price data. The word on the street is that there are some great bargains out there, but there is a lot of property over-priced on the market.
Original article Spanish Property Magazine
This is the 36th consecutive month that TINSA have opined that residential property in Spain has fallen in value, with the Balearic Isles and the Mediterranean coast falling by the highest margins.
TINSA's index implies that prices aren't falling as steeply as before. Oversupply, massive unemployment and weak demand continue to drive down prices.
The market analytsts, Fitch, have estimated that the down turn in prices will continue throughout 2011.
The rate of decline has been slowing since a early 2009, a simple extrapolation of the change in rate indicates that the market should bottom late 2011. However other factors may come into play, forcing prices down further. The withdrawl of extra unemployment benefit in February and the repricing of Spanish properties held by the banks is likely to depress prices further.
This means that those wishing to move to Spain should probably consider renting rather than purchasing at this stage. It's a buyers market so take your time and start by making a low offer.
The TINSA index is based on the opinion of valuers, rather than actual sale price data. The word on the street is that there are some great bargains out there, but there is a lot of property over-priced on the market.
Original article Spanish Property Magazine
Smoking Ban in Spain
Spain will ban smoking in public areas on the 2nd of January 2011.
The legislation has been pushed on Spain by the EU. It's a slippery slope and an affront to democracy and personal liberty.
I agree that smokers should be considerate, especially around children, diners and flammable flora. I hate seeing cigarette butts in the sand.
I don't see the need for governments to tell us what to do. It's a slippery slope. If you leave it up to the government, you remove the responsibility from the citizens. Good respectful and careful behaviour becomes enforced by the state rather than society.
At least in Spain you don't have to standing outside in the rain.
There should be smoking bars, not out right bans. Cigarettes go well with coffee and drinks. Some people enjoy it. It's also quite social.
The science behind the ban is flimsy at best. Of the 92 peer review scientific journal articles on passive smoking, none conclusively show that passive smoking causes disease.
The smoking bans have been introduced largely because of lobbyists such as ASH
The diffusion gradient of cigarette smoke from the smoker to the passive smoker is such that it's impossible to accumulate toxins at a level that causes cancer. Anti-smokers may find it unpleasant, but it's not as much of a health hazard as walking next to a line of traffic.
For more information on the history of the anti-smoking movement visit www.velvetgloveironfist.com
Tuesday, November 30, 2010
European Enforcement Order - "Costa Nightmare"
The infantile news jocks at the mail on Sunday, ran a piece about Spanish Property predictably entitled, "Costa Nightmare" - yawn. The story about how, Banco de Sabadell, a Spanish bank obtained a European Enforcement Order to recoup monies owed to them.
In 2004, an English couple, the Chatterton's signed a contract to purchase an apartment in Duquesa, on the Costa del Sol.
They found it difficult to make the repayments and offered the property back to the bank. The property was in negative equity and the bank wanted to recoup the rest of the money the Chattertons owed. So the bank has used a piece of EU legislation to claim assets from an uncontested debt.
The mail's skew on this story is that it's somehow unfair, and that the big nasty EU is interferring in our lives.
It's one example of where the EU's legal to our lives is justified and wanted.
The ability to more easily recoup monies from debtors across european borders, makes Europe a better and more financially sound place to live.
Whilst it's sad that people should find themselves ina situation where they lose their home because they are unable to pay back a debt. A contract is a contract and a debt is a debt. Were these people naively thinking that the shores of blighty somehow protected them from their creditors?
Wiltshire MEP Ashley Fox (Conservative) is reported to have said; ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Does Mr Fox believe that debtors should be able to escape their creditors, simply because they live in Wiltshire and not Malaga?
Perhaps Mr Fox should leave the conservatives and join the natural law party.
Mail ARTICLE:
Details of the eu legislation can be found here.
European Enforcement Order Legislation
In 2004, an English couple, the Chatterton's signed a contract to purchase an apartment in Duquesa, on the Costa del Sol.
They found it difficult to make the repayments and offered the property back to the bank. The property was in negative equity and the bank wanted to recoup the rest of the money the Chattertons owed. So the bank has used a piece of EU legislation to claim assets from an uncontested debt.
The mail's skew on this story is that it's somehow unfair, and that the big nasty EU is interferring in our lives.
It's one example of where the EU's legal to our lives is justified and wanted.
The ability to more easily recoup monies from debtors across european borders, makes Europe a better and more financially sound place to live.
Whilst it's sad that people should find themselves ina situation where they lose their home because they are unable to pay back a debt. A contract is a contract and a debt is a debt. Were these people naively thinking that the shores of blighty somehow protected them from their creditors?
Wiltshire MEP Ashley Fox (Conservative) is reported to have said; ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Does Mr Fox believe that debtors should be able to escape their creditors, simply because they live in Wiltshire and not Malaga?
Perhaps Mr Fox should leave the conservatives and join the natural law party.
Mail ARTICLE:
Details of the eu legislation can be found here.
European Enforcement Order Legislation
Monday, November 29, 2010
Euroland La La La
Many said that the Euro couldn't work without debt union and fiscal union. The bond markets are pushing hard. The cracks are being patched over (Greece and Ireland), but if the euro is to survive debt union and fiscal union. Will the Irish and greeks accept the loss of fiscal sovereignty to the EU? In
Spain has to refinance it's debt and there are doubts as to whether the political will exists for the surplus countries (Germany, France and teh Netherlands) to take on the debt of their Southern neighbours.
If the eurozone breaks up and Spain goes back to the peseta at the level at which it joined.
166.386 Ptas = 1 Euro
Many analysts are predicting a drop in the value of the euro, meaning that property in Spain for those wishing to purchase will become cheaper.
Spain has to refinance it's debt and there are doubts as to whether the political will exists for the surplus countries (Germany, France and teh Netherlands) to take on the debt of their Southern neighbours.
If the eurozone breaks up and Spain goes back to the peseta at the level at which it joined.
166.386 Ptas = 1 Euro
Many analysts are predicting a drop in the value of the euro, meaning that property in Spain for those wishing to purchase will become cheaper.
Sunday, November 28, 2010
Spanish Property Prices Decline for three consequctive years.
Throughout the late 90's and early noughties the Spanish Property saw an explosion in popularity, construction and price. Any boy from the country who knew how to mix cement or carry bricks could get a job.
Spain has massive a glut of unsold properties, and as developer and individuals continue to go into liquidation banks are resposse
The bubble burst in November of 2007 and since then prices have dropped some 25% (depending which measure you look at), with many analysts predicting that property prices will continue to fall.
The word on the ground is that many properties on sale are often over priced, but if you can find the bargains, these are selling for around 50% of their pre-boom prices.
Spain has massive a glut of unsold properties, and as developer and individuals continue to go into liquidation banks are resposse
The bubble burst in November of 2007 and since then prices have dropped some 25% (depending which measure you look at), with many analysts predicting that property prices will continue to fall.
The word on the ground is that many properties on sale are often over priced, but if you can find the bargains, these are selling for around 50% of their pre-boom prices.
Thursday, November 18, 2010
TINSA - Sold!
The Spanish Property valuation company TINSA, has been acquired by Advent, a Boston based private equity firm.
TINSA publishes an index of Spanish Property prices based on valuations.
Advent paid 100M Euros for a 94.5% stake in TINSA. TINSA posted a turnover in excess of 80Million Euros for 2010.
Advent are hoping to grow the company by expanding into other regions and by buying up other similar businesses.
It is rumoured that Advent are also looking at Servetas, another Spanish valuations company.
TINSA publishes an index of Spanish Property prices based on valuations.
Advent paid 100M Euros for a 94.5% stake in TINSA. TINSA posted a turnover in excess of 80Million Euros for 2010.
Advent are hoping to grow the company by expanding into other regions and by buying up other similar businesses.
It is rumoured that Advent are also looking at Servetas, another Spanish valuations company.
Tuesday, November 9, 2010
November 2010 TINSA price index
The November (For October 2010) price index indicates that Spanish Property prices are continuing to decline.
Download the TINSA index for spanish property
TINSA estimate that prices are falling at an interannual rate of an estimated 4.6%, at the same time the Spanish national institute of statistics have recorded an increase in property transactions.
TINSA base there Spanish Property price index on valuations, so they should be taken as collective opinion of valuers rather than hard fact.
Prices are decreasing as vendors lower there prices in order to attract the scarce number of buyers.
Banks are revising the prices of properties they have repossessed over the few years. In order to clear properties banks are having to cut prices in order to get the property off their books.
Banks are sometimes offering 100% loan to value mortgages, often for the value of the outstanding loan at the time they where repossessed. It should be pointed out that many properties from the banks don't offer value for money, as similar properties can often be purchased for less.
On the other side of the coin an investment fund Taurus Ibérica has been set up with a view of purchasing bargain properties and turning them round quickly in order to make a quick profit.
It is expect that as serious investors come into the market, who aim to make a quick profit when the market bottoms, this will be the time to buy.
The general advice to buyers out there is to either wait as prices to continue to fall or if you can find a property at considerably lower than the market value.
Download the TINSA index for spanish property
TINSA estimate that prices are falling at an interannual rate of an estimated 4.6%, at the same time the Spanish national institute of statistics have recorded an increase in property transactions.
TINSA base there Spanish Property price index on valuations, so they should be taken as collective opinion of valuers rather than hard fact.
Prices are decreasing as vendors lower there prices in order to attract the scarce number of buyers.
Banks are revising the prices of properties they have repossessed over the few years. In order to clear properties banks are having to cut prices in order to get the property off their books.
Banks are sometimes offering 100% loan to value mortgages, often for the value of the outstanding loan at the time they where repossessed. It should be pointed out that many properties from the banks don't offer value for money, as similar properties can often be purchased for less.
On the other side of the coin an investment fund Taurus Ibérica has been set up with a view of purchasing bargain properties and turning them round quickly in order to make a quick profit.
It is expect that as serious investors come into the market, who aim to make a quick profit when the market bottoms, this will be the time to buy.
The general advice to buyers out there is to either wait as prices to continue to fall or if you can find a property at considerably lower than the market value.
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