Wait and see “mañana property buyers” looking for further price drops in Spain should finalise their research, get pre-approved for a Spanish bank mortgage, shortlist the best deals and fly to buy without delay.

That's the view of a leading Spanish property specialist after a new report suggested prospective buyers would continue waiting for further property price falls in 2012 before taking the plunge.

A ‘Demand Thermometer' survey compiled by the Spanish property portal Idealista reveals that potential homebuyers are looking for a property asking price discount of 21%, on average, despite the fact that prices across Spain have plunged well below that point in recent years.

Data provided by Idealista shows that Spanish home prices dropped for the fifth consecutive year in 2011, with the average asking price now 20% below the peak of the market in 2007.

But property investment expert, Marc Armando Tomás said: “There is no point in waiting for an additional 1% price drop, when there are already bank-owned bargains in three of the most popular areas of Spain which offer discounts of 43% - twice the discount this survey claims prospective buyers are demanding.

“The Spanish Government is already cutting taxes and buying costs by an average of EUR 8,000, the Euro is cheap compared with Sterling and many other currencies and the banks are taking the most toxic properties off the market to concentrate on the most saleable. The big Super Deals, the best of the bank-owned bargains , have sold out within a month on the Property in Spain website.”

He claimed the over-supply of Spanish bank repossessions in recent years could turn to shortages where Location, Location, Location criteria is applied. Savvy investors returned to the Spanish market in the last quarter of 2011 as prices of well-located key ready holiday homes plummeted by up to 50% in Costa Calida, Costa del Sol and, already in 2012, Costa Almeria.

Spanish property commentator Mark Stucklin said: “2011 was another bad year, if not the worst since the crisis began. Property sales, house building, mortgage lending and confidence all tumbled to new lows.” He expects home prices in Spain to continue falling in 2012.

By Kevin Barnett. First published in www.propertyinspain.net

According to the latest figures released by the Spanish statistical institution, the Instituto Nacional de Estadística (INE), house sales figures in November last year continued to show a steady increase in the reduction of units sold.

In October of 2011, property sales were down by 18%, compared to the same time in 2010, but the November figure shows that the gap in the drop had started to close and an improved figure of 14.4% drop was recorded compared to the same month of 2010.

The difference has been relatively consistent throughout most of the year, with March showing an 11.9% decrease on the previous year, which then shot to 29.7% in April, 18.3% in May, 22.9% in June, 34.8% in July, 28.2% in August and 18% in September, the same as shown in October.

These figures are thought to show how the property market is starting to pick up and although unlikely to reach the same sales figures of the boom years, this marks another turning point for the future stability of the country.

According to the latest figures released by the Spanish statistical institution, the Instituto Nacional de Estadística (INE), house sales figures in November last year continued to show a steady increase in the reduction of units sold.

In October of 2011, property sales were down by 18%, compared to the same time in 2010, but the November figure shows that the gap in the drop had started to close and an improved figure of 14.4% drop was recorded compared to the same month of 2010.

The difference has been relatively consistent throughout most of the year, with March showing an 11.9% decrease on the previous year, which then shot to 29.7% in April, 18.3% in May, 22.9% in June, 34.8% in July, 28.2% in August and 18% in September, the same as shown in October.

These figures are thought to show how the property market is starting to pick up and although unlikely to reach the same sales figures of the boom years, this marks another turning point for the future stability of the country.

According to the latest figures released by the Spanish statistical institution, the Instituto Nacional de Estadística (INE), Spanish property sales figures in November last year continued to show a steady increase in the reduction of units sold.

In October of 2011, property sales were down by 18%, compared to the same time in 2010, but the November figure shows that the gap in the drop had started to close and an improved figure of 14.4% drop was recorded compared to the same month of 2010.

The difference has been relatively consistent throughout most of the year, with March showing an 11.9% decrease on the previous year, which then shot to 29.7% in April, 18.3% in May, 22.9% in June, 34.8% in July, 28.2% in August and 18% in September, the same as shown in October.

These figures are thought to show how the market for property in Spain is starting to pick up and although unlikely to reach the same sales figures of the boom years, this marks another turning point for the future stability of the country.

According to figures released by the Sociedad de Tasación, the price of new houses in Spain fell by 4% in 2011, resulting in an average price of 2,376 euro per square meter, meaning the overall cost of an average home was 213,840 euro.

Experts feel that the trend may continue in some parts of Spain in 2012, whereas other places have already seen prices start to increase over last year. Of the 50 provinces of Spain, 48 of them still dropped slightly last year, Pontevedra levelled out and Zamora actually started to increase in property value.

This turn around trend in terms of value is expected in some of the provincial capitals such as Madrid, Barcelona, San Sebastian and Bilbao where property prices are already more expensive than the national average, whereas sales are expected to increase in volume in coastal and tourist areas, as well as Murcia, Cáceres, Badajoz, Pontevedra, Jaén, Lugo, Zamora, Tenerife, Avila and Ciudad Real, where the average price stands at just 1,500 euro per square metre, nearly 900 euro per metre cheaper than the national average, which is where some experts feel that astute bargain hunters will be snapping up property in the first half of the year, especially in places that are already starting to grow in investment terms, following the announcements of developments such as the Paramount theme park and the transfer of flights from Murcia San Javier airport to the brand new hub at Corvera.

In 2011, the number of first homes stood at 81,000 units. In the first half of the year this started to look stagnant as there were difficulties in gaining finance for property buyers, but the problem reduced in the second half of the year, as confidence started to return.

The Sociedad de Tasación has also stated that there has been an increase in properties being purchased by individuals, rather than real estate or investment companies and that there has been an increase in the ‘rent to buy' options that ease first time buyers onto the property market.

The society also see an improvement in the marketplace for property as the number of units available is more realistic to the demands of the market, rather than overbuilding of previous years, which is also set to improve through 2012 as the demand increases, thus reducing the available stock.

According to figures released by the Sociedad de Tasación, the price of new property in Spain fell by 4% in 2011, resulting in an average price of 2,376 euro per square meter, meaning the overall cost of an average home was 213,840 euro.

Experts feel that the trend may continue in some parts of Spain in 2012, whereas other places have already seen prices start to increase over last year. Of the 50 provinces of Spain, 48 of them still dropped slightly last year, Pontevedra levelled out and Zamora actually started to increase in property value.

This turn around trend in terms of value is expected in some of the provincial capitals such as Madrid, Barcelona, San Sebastian and Bilbao where property prices are already more expensive than the national average, whereas sales are expected to increase in volume in coastal and tourist areas, as well as Murcia, Cáceres, Badajoz, Pontevedra, Jaén, Lugo, Zamora, Tenerife, Avila and Ciudad Real, where the average price of a Spanish property stands at just 1,500 euro per square metre, nearly 900 euro per metre cheaper than the national average, which is where some experts feel that astute bargain hunters will be snapping up property in the first half of the year, especially in places that are already starting to grow in investment terms, following the announcements of developments such as the Paramount theme park and the transfer of flights from Murcia San Javier airport to the brand new hub at Corvera.

In 2011, the number of first homes stood at 81,000 units. In the first half of the year this started to look stagnant as there were difficulties in gaining finance for property buyers, but the problem reduced in the second half of the year, as confidence started to return.

The Sociedad de Tasación has also stated that there has been an increase in properties being purchased by individuals, rather than real estate or investment companies and that there has been an increase in the ‘rent to buy' options that ease first time buyers onto the property market.

The society also see an improvement in the marketplace for property as the number of units available is more realistic to the demands of the market, rather than overbuilding of previous years, which is also set to improve through 2012 as the demand increases, thus reducing the available stock.

According to figures released by the Sociedad de Tasación, the price of new property in Spain fell by 4% in 2011, resulting in an average price of 2,376 euro per square meter, meaning the overall cost of an average home was 213,840 euro.

Experts feel that the trend may continue in some parts of Spain in 2012, whereas other places have already seen prices start to increase over last year. Of the 50 provinces of Spain, 48 of them still dropped slightly last year, Pontevedra levelled out and Zamora actually started to increase in property value.

This turn around trend in terms of value is expected in some of the provincial capitals such as Madrid, Barcelona, San Sebastian and Bilbao where property prices are already more expensive than the national average, whereas sales are expected to increase in volume in coastal and tourist areas, as well as Murcia, Cáceres, Badajoz, Pontevedra, Jaén, Lugo, Zamora, Tenerife, Avila and Ciudad Real, where the average price of a Spanish property stands at just 1,500 euro per square metre, nearly 900 euro per metre cheaper than the national average, which is where some experts feel that astute bargain hunters will be snapping up property in the first half of the year, especially in places that are already starting to grow in investment terms, following the announcements of developments such as the Paramount theme park and the transfer of flights from Murcia San Javier airport to the brand new hub at Corvera.

In 2011, the number of first homes stood at 81,000 units. In the first half of the year this started to look stagnant as there were difficulties in gaining finance for property buyers, but the problem reduced in the second half of the year, as confidence started to return.

The Sociedad de Tasación has also stated that there has been an increase in properties being purchased by individuals, rather than real estate or investment companies and that there has been an increase in the ‘rent to buy' options that ease first time buyers onto the property market.

The society also see an improvement in the marketplace for property as the number of units available is more realistic to the demands of the market, rather than overbuilding of previous years, which is also set to improve through 2012 as the demand increases, thus reducing the available stock.

Mr Rajoy has acknowledged that it is essential that the country begins to understand the true value of the so-called toxic assets which are currentkly being held by the country's financial institutions.

The Prime Minister is quoted as having said, "We must clear up doubts about the value of certain assets, especially in real estate, which make access to the markets for the financial sector more difficult and also damage the credibility of our public debt."

It is thought by some analysts that the Bank of Spain is considering the possibility of establishing a "bad bank" which will be used to deal with all the toxic assets. Doing so will allow Spain to reduce its exposure to around 4% of GDP - the target set by the European Central Bank.

Spain's property market has seen the value of homes fall substantially, with the most recent data published by Tinsa showing the price of property in the nation has fallen by eight per cent between November this year and the same month in 2010.

However, the outlook for Spanish property is beginning to look positive with more constructors beginning to speculate on growth in 2012 and 2013.

According to the Holiday Lettings’ Insight Report for 2011, the nation was the second most-enquired about destination among such investors, after the UK, between January and October this year.

There was also a three per cent rise in the number of queries about buying a property in Spain, compared to the same period in 2010, the survey noted.

Meanwhile, five of the top ten most-enquired about regions are found in the country, with the Costa del Sol leading the way, followed by the Costa Blanca in fifth place, Tenerife in sixth and Mallorca and Lanzarote, which were ranked ninth and tenth respectively.

The firm also highlighted three Spanish destinations where demand currently outstrips supply for holiday rentals, which may make Playa d’en Bossa and San Antonio in Ibiza, as well as Playa Del Ingles in the Canary Islands, safe choices for investors.

Mallorca is one destination that property buyers may want to consider, after Stephen Dight, managing director of Mallorca Sotheby’s International Realty, recently stated the number of tourists arriving on the island has increased, which is often a precursor for rising real estate values.

via Spain ‘a Top Choice Among Buy-to-let Investors’.

Following on from the announcement that the eagerly awaited Paramount Theme park has been given the final go ahead in Madrid, we spoke briefly to Roy McDonough from The Leader Property about the impact this will have on property prices in the area.

“The minute a shovel hits soil, there will be a jump of between 15,000 and 20,000 euro in price,” he said.

“At the moment, it´s still not real. Everything´s been signed and sealed and it will happen, but everybody is waiting for the work to start. That´s why the clever investors are snapping up properties now”.

It is true that property prices are at an all time low and with many of them offering instant finance, the opportunity to become a property investor has never been so high. Some new properties are listed at up to a third of the price they were in their prime, still with the same quality structures, still backed by bank guarantees, but now with a massive discount in property tax and the future looking brighter all round.

Roy continued, “The Paramount Park is not only going to attract millions of tourists every year, but the thousands of people working at the site will need somewhere to live”. With workers at another theme park taking to the streets to protest over poor pay and conditions, many of them are not in a position to buy, or have never even considered and are likely to be looking to rent initially. That gives these properties huge rental potential.

Tourists always pay premium prices for holiday lets and workers provide stability and long term commitment.

With a wide portfolio of new properties in the area, and a depth of knowledge that is second to none, Roy is heading a team of specialists who will be able to advise you on every aspect of buying your property, whether it be just the one for yourself, or a whole urbanisation to make you the next property tycoon, whatever you need, however big or small, give Roy a ring today direct on (0034) 667 592 467, or The Leader Property office on (0034) 96 897 1860, visit the website www.theleader.info/property, email property@theleader.info or visit our main office situated in La Zenia.