PROPERTY G U I D E Currencies Direct • Let’s talk currency
Sun is shining
The Costa property market is on the up.
By Kat Ashton HE summer sun has really shone on the Costa del Sol real estate market this summer. Of the five Spanish municipalities boasting the highest number of property deals so far this year, two - Malaga and Marbella - are at the heart of the Costa del Sol. Madrid, Barcelona and Sevilla make up the others. There has been a 12 per cent surge in local property sales since 2016, with Marbella and Estepona leading the march. In the first three months of this year alone, more than 1,000 properties were sold in Marbella, 97 more than in the same period last year. Sales in Marbella have consistently risen since 2013, but with few new developments taking place, most are existing homes. That said, a new €200m luxury housing estate - with 98 new homes added to Marbella’s Golden Mile by 2019 - looks certain to provide a further fillip to the town’s property market. But not to be outshone by its near neighbour, Estepona with more than 940 properties sold locally from January - March this year has recorded an impressive 50 per cent
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sales increase on 2016. Meanwhile Mijas Council has also recently revealed British property developers are set to invest hundreds of millions of euros in the Mijas Costa area over the next decade. Additionally a whopping €10 million has been spent on new development in the area and the number of approved licences for housing projects has increased. One development will see more than 100 new properties in La Cala de Mijas completed probably within months. This project is the biggest housing development in Andalucia this decade and is backed by Taylor Wimpey PLC, who built more than 300 new homes in Spain last year. Further positive figures are spelled out in Terra Meridiana’s 2017 Residential Property Market Report for the Costa del Sol which reveals that of all the homes sold nationwide in 2016, nearly one fifth were in in Andalucia. The average price for property across Spain is also rising after the huge setbacks since the 2008 recession, with 5.3 per cent increases in the first quarter. Britons remain the largest group of overseas investors in Spanish property despite the uncertainty created by the Brexit plans.
MARKET LEADERS: Malaga (top) and Marbella.
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By Matthew Elliott WO thirds of all the second, or holiday, homes in Spain are on the country’s thriving Mediterranean coast. Real estate portal Donpiso found that there are roughly six million second homes in the country, with around four million squeezed between the Costa del Sol and Costa Brava. Researchers also put together a profile of the people most likely to buy a second home on Spain’s sunny coast. The typical buyers are couples aged between 35 and 49 with children and a combined income exceeding €3,500 per month. The average price of the summer homes these buyers are interested in is €200,000. Murcia offers the cheapest deals, averaging €150,000, followed by Tarragona on €160,000, and Alicante at €200,000. The Costa del Sol is the priciest coastal region, with seaside second homes
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Second homes reap fortune
Coast boast SECOND HOMES: Mostly on the coast.
costing €350,000 on average. Thousands of the homes are used by owners to reel
The average price of summer homes is €200,000.
in serious rental income during the busy summer months. Last year more than 20 million people
spent time in Spain’s six million holiday homes, paying almost €14 billion for the privilege.
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NY die-hard Game of Thrones fans now have the chance to own the ultimate fantasy castle in paradise. This eyecatching property in Estepona, just down the coast from Marbella, comes with its own towers, gargoyles and even a drawbridge - and will set you back a cool €760,000 (£690,000). While planning permission for the project was initially denied due to its unique design, local authorities were eventually persuaded and the owner then spared no expense in bringing his vision to life. As well as the more remarkable features of the property, it also has four bedrooms, three bathrooms, a swimming pool and a decorative fountain.
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BARGAIN: This unique castle could be yours.
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No pain in Spain S
ALES of second-hand homes have now reached the level seen just before the Spanish housing boom really took off in 2007. Figures from the second quarter of 2017 show a total of 119,408 residential property transactions. Of them 99,343 were second hand
properties, comparable to the roughly 100,000 being sold from April to June 2007. The sale of newly constructed homes is still well behind the heights of a decade ago. With just over 20,000 sales in three months, new homes remain slow sellers. In 2007 more than 110,000 sold in the second quarter. Including both second hand and new homes, sales shot up by five per cent in the second quarter. They are at their highest level since the first quarter of 2011 accord-
ing to the Spanish Registrar's College. The group's quarterly report said the results "show a strong market on the demand side" but notes that it is "linked to a single leg of the market, that of used homes". Cofounder of the Idealista property portal, Fernando Encinar, says used homes are selling because that’s essentially all there is on the market. He is critical of delays across Spain in giving permits to new developments, which is holding up the new home market. Unless the green light is given to new developments, he warns, prices will rise dramatically as supply can't keep up with demand.
SECOND-HAND BUBBLE? Sales are on the up. PROPERTY portal Zoopla has clocked a 17 per cent increase in British searches for European homes in just the past six weeks. Spain is by far the most searched for destination, handily beating France and Portugal for the
Douglas builds ‘Scarecrow Trump’ PHOTO CREDIT FACEBOOK/FELIX RIEGER
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THE HORROR: Scarecrow Trump makes tomatoes great again. HOLLYWOOD star Michael Douglas has created a Donald Trump scarecrow to fend off birds from his Mallorca orchard. The s’Estaca estate is now protected by the most powerful man on the planet. The giant scarecrow is surrounded by tomatoes and even has a blonde wig that resembles Trump’s curious hair. The face has an unmistakably orange hue. Scarecrow Trump also dons a tie emblazoned with the American flag’s stars and stripes. It's a clear dig at the controversial new president by Douglas, who is still trying to sell the enormous Valldemossa estate he bought with ex-wife Diandra Luke in 1989. The asking price is now a mere €36 million. It is unknown whether the Trump scarecrow is included.
Wish we were there hearts of budding expatriates. Zoopla’s research revealed that ‘pool,’ ‘beach’ and ‘sea view’
were the most popular search terms among British householders seeking a place in the sun. Those selling homes in Spain would do well to emphasise those characteristics in their online adverts. Other popular phrases included ‘villa,’ ‘furnished,’ ‘golf course,’ ‘garden’ and ‘garage.’ The big question is whether the August upsurge in interest will be converted into hard sales. Or if it’s simply attributable to Brits coming back from holiday with a temporary conviction that they want to live in Spain permanently. Putting the summer surge aside, British interest in Spain has risen consistently and considerably over the past year. Since the Brexit vote property portals
SUN-SOAKED: Brits’ Spanish dream stronger than ever. have uniformly noted a rise in British views of Spanish properties online.
Many viewers are believed to be retired, or soon-to-be-retired, Brits, who are eager to
secure a Spanish home before possible postBrexit red tape comes into play.
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That’s a bit
rich! By Kat Ashton
HE luxury gated community of La Zagaleta in Benahavis has the most expensive houses in all of Spain, according to research carried out by the housing website Idealista. The study, which calculated the average house price on streets with 10 properties or more, revealed that houses in the most exclusive neighbourhood in the Costa del Sol are worth a staggering €5.6 million. This outstanding figure surpasses that of the up-
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IF you’re a non-resident expatriate and looking to buy a property in Spain, you might be caught out by some unexpected stipulations. Here’s what you should know before you apply for a mortgage on that dream home in the Spanish sun: A credit rating is necessary Spanish banks will expect a credit rating from your country of origin or residency. Any money the buyer invests must be accounted for. Twenty-year mortgages are standard Banks in Spain tend to offer non-residents a 20year, fixed-rate mortgage. This is to reduce risk for the banks and ensure steady repayments. Non-residents pay more Expats who aren’t Spanish residents pay more interest on their mortgages than those who are. You can expect this to be around 2.5 per cent for a fixed-rate mortgage. They are also lent less
La Zagaleta has the most expensive houses in all of Spain.
market La Moraleja in Madrid, which came in second place, by over half a million euros. The top five neighbourhoods in Spain are com-
EXCLUSIVE: La Zagaleta. pleted by Castillo de Aysa, also in Madrid, Avenida Tibidabo in
Barcelona and Pase de los Lagos in Pozuelo de Alar-
con; all of which average over €4.7 million in real estate prices. However it does not money as, in the case come as much of surthat the mortgage isn’t re- prise that La Zagaleta paid, the bank is only left came out on top. with the property itself as The neighbourhood, a guarantee. Non-resi- just a 20-minute drive dents can expect to re- from glitzy Marbella, ceive around 60 per cent is so upmarket that it of the total property val- is practically impossiue. ble to find out who When selling you have e v e n l i v e s t h e r e ; a l to pay 3 per cent tax though Hugh Grant, All foreign homeowners R o d S t e w a r t a n d are required to pay the R u s s i a n P r e s i d e n t same amount of tax on V l a d i m i r P u t i n a r e their homes as among the rumoured Spaniards, as well as 3 lucky few. per cent of the total value La Zalageta also to the Spanish Tax Office boasts a range of exwhen they sell the prop- c l u s i v e s e r v i c e s f o r erty. its residents, such as Documents must be a helipad, equestrian translated club and two golf All paperwork required courses. for the purchase of the All residents must mortgage must be b e a p p r o v e d b y a translated into Span- b o a r d b e f o r e t h e y ish. Some banks also c a n b e c o m e a n o f f i require that the docu- c i a l m e m b e r o f t h e ments are apostilled. community and even then are required to pay residence fees of Extra note: You will also need to obtain around €5,000 a year an NIE (Foreigner Identification Num- which does not ber) from the Local Police station or seem like a lot really embassy to open a bank account or if you can afford the apply for a mortgage in Spain. average price for a house there.
The ins and outs of getting a mortgage in Spain
MORTGAGES: Learn facts.
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UK pensioners rushing to Spain BREXIT has caused many pensioners to fast forward their plans to move overseas, according to financial advisors. It is widely believed that Britain’s departure from the EU will make a move to Europe significantly more difficult in the future; so many people are rushing to relocate to countries such as France, Portugal and Spain before the Brexit deadline takes hold. Blevins Franks, who provide financial advice
to those planning to move abroad, reported that business had increased by 25 per cent in the previous few months, and that monthly enquiries to the website had doubled. While it remains unclear what the rights for UK citizens living in Spain will be once Britain leaves for good, many are certain that those who have already made the move abroad will be in a better position than those still looking to do so.
French connection! Footballer opens doors to Ibiza pad
BREXIT: Many are rushing to relocate.
Picasso’s French villa on sale for €20 million
A VILLA that used to belong to Malaga-born artist Pablo Picasso is up for auction after a magn i f i c e n t transformation. The artist bought the Mas de Notre Dame de Vie estate in the French Riviera in 1961 and lived there until his death 12 years later. His wife continued to live in the property until 1986, but the house lay abandoned for nearly 30 years following her death. After a two-year renovation project, the
around 5,000 bottles. Interested buyers - or curious fans of the master - are welcome to arrange a viewing before bidding begins next month.
KARIM BENZEMA: A rare glimpse. THE life of one of the world’s highest paid footballers is something most of us can only dream about, but Real Madrid and France striker Karim Benzema gave his fans a rare glimpse into the high life during his recent holiday to the White Isle. In a series of videos posted to the football star’s social media accounts, fans were able to see the ins and outs of his luxury villa on the island, starting with the pool and amazing exterior. He then snapped one of the most important rooms for any footballer - the gym. The player even showed his fans how a millionaire footballer likes to spend his evenings on the infamous Balearic party island - driving dodgem cars with his mates of course!
house is expected to fetch at least €20 million when it goes up for auction in October. The main house is spread over two levels and has four sizeable bedrooms and a master bedroom. Other features of the property include a pool, gym, guest house and wine cellar that can hold
FRENCH VILLA: After a two-year renovation project.
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Proven sales technique ROPERTIES on the market are more than a third likely to sell if the advert makes use of virtual reality software. They will also sell much faster according to findings from a top property firm. Club Noteges manages a portfolio of more than 50,000 Spanish homes. Among them are 43,000 that are only advertised using photos. From January to July less than 3,000 of those homes sold, roughly 6.6 per cent. By contrast they sold more than 10 per cent of the 10,600 homes that offer virtual reality tours to prospective buyers online. The more than 1,000 homes sold using virtual reality were gone within an average of 52 days faster than the homes using only photos. VIRTUAL The findings are categorTOUR: 3D ical proof that sellers have guides help more chance of selling if homes sell they employ virtual reality in their adverts. much faster. The technology isn’t overwhelmingly complicated or expensive. Using record video footage it allows buyers to ‘step inside’ the home from the comfort of their living rooms or estate agents. Virtual reality just looks better to many buyers too. It shows that the seller is serious
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and confident in their property. Whereas few people would consider a home on a mere description without photos, soon buyers will expect a three-dimensional tour as a given. It is also especially welcomed by for-
Few people would consider a home without seeing photos.
eign buyers who have to be extremely selective in choosing which homes to visit in person. In some cases the quality of the virtual reality tours is such that a decision to buy is made without even physically seeing the property.
Bounceback-ability! Mallorca property market slowly reclaimed IN a market saturated with pricey holiday rentals and short-term lets, a ray of hope has appeared for those looking to rent cheap properties long term in Mallorca. In the weeks following the approval of new regulation to fine illegal sublets on the island, the number of apartments listed for less than €700 a month has increased by over 16 times the amount.
NEW LAW: Is good news for long-term residential rentals.
Many property owners on the island had been leasing out their homes to holidaymakers for high premiums on sites such as AirBnb and Homeaway. Those still renting their unregulated homes on these sites could now face fines of up to €40,000. The change to the law has allowed many locals to breathe a sigh of relief, as those working on the island were finding it impossible to find affordable long-term accommodation. Although prices remain high, long-term rental sites
such as Idealista and Fotocasa are beginning to see an influx of apartments offered with monthly contracts. On Idealista alone, the number of apartments listed for €700 a month or less has risen from just eight to 132 in the four weeks since the new law has been in place. The Mallorca government’s attempt to salvage the island’s properties from illegal tourist rentals and return them to the residential market seems to be working.
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Looking to sell your Spanish home? Bromley Estates, Marbella reveal some of their tricks of the trade that can help homeowners make a property more saleable.
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Take advice and set the right price
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Let there be light
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Declutter and personalise the space
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A fresh lick of paint and a neutral palette
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Always be prepared for viewings
An experienced real estate agent with an in-depth understanding of the property market will be able to provide a professional evaluation of your property. The estate agent will first visit your
A light and bright property adds to the sense of space and flow. If the lighting is right, buyers will automatically find the property more attractive. You can maximise the light, both natural and electric, by adopting a few simple tricks. Firstly, it may be simple but it’s also effective - make sure your
If we have said it once, we have said it a million times… buyers need to see beyond your decoration and knick-knacks, in order to see themselves living in (or owning) your property. If they can see past your personality, you are one step clos-
home to assess its position, condition, features and views. Based on these factors you will then receive a Comparative Market Analysis and will be advised to sell at a realistic and fair market price.
windows are clean; Second, change the light bulbs for a higher wattage: Third, remove or replace any dark curtains or blinds to let the sunlight flood in. Hot on the heels of location and views, a bright and airy interior is one of the must-have features buyers want to see when viewing apartments for sale.
er to that all-important sale. That said, there is no need to go overboard by dressing the property like an impersonal hotel, instead, simply filter the amount of personal clutter on show and remove any excess items of furniture to ensure a spacious feel and flow.
When selling a property, one of the most effective tricks is to spruce it up with a fresh coat of paint, and to remember the more neutral the palette, the wider the appeal. The key is to create a relaxing and inviting atmosphere with unobtrusive decoration
You only have one chance to make a first impression, so don’t get caught out. Make sure when you leave the property it is always show ready; no dirty dishes, muddy footprints, pet
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Fresh, clean and tidy
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Finish DIY jobs
Carrying on from the last point, you should always make sure that you clean up any mess. But just as important, you should undertake those pesky tasks that you
Most of us have undertaken DIY projects with varying degrees of success. But what about those jobs that are only half finished or you just haven’t got around to doing, such as repairing a cracked tile or attending to a patch of damp? These
DECLUTTER: Ensure a spacious feel.
and furniture. A pale palette will provide that allimportant blank canvas and will make the interior look more spacious. You can still include colour by using accessories to accent the scheme.
paraphernalia, overflowing washing baskets or general detritus of everyday life lying around. If possible, you can add to the ambience with some subtle room fragrances.
are always meaning to do, such as cleaning the top of the cupboards. Potential buyers will not be impressed by neglected dirty home or bad housekeeping.
are all red flags to a buyer, they say the property is unloved and needs work. The answer is to simply bite the bullet and tackle these jobs before your property goes on the market otherwise you are in danger of instantly alienating potential buyers.
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The Spanish property market is booming again, and now’s a great time to buy - but there are several things you ought to consider before taking the plunge. Why do you want to buy? Many people have different motivations for buying property abroad, so figuring out exactly why you want to make the investment will help you choose the right place for you. Those looking for a place that can eventually be sold for a profit should research popu-
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lar areas where properties are steadily increasing in value. If you’re hunting for a new, or semi-permanent, home, the distance to the local supermarket and restaurants may well be an important factor.
Location, location, location Most people have a good idea of the kind of lifestyle they want when they move abroad, so know whether they want a house in the city, country or
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somewhere in between. Other important factors to take into account may be how close you’ll be to the nearest beach, airport and shops.
Something old or something new? Many estate agents would recommend buying a new build as this is generally considered a better investment. As there have been changes to the standards that building contractors are required to meet, a new house is likely to be of better quality. If the
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property is still in development, you may also get to make decisions on the final layout of rooms and features so it will be more bespoke to your tastes. You will also be guaranteed a 10-year warranty if it is brand new.
Family first It’s also important to take into account the needs of everyone who will be living in the house. Anyone looking to move their children abroad permanently should check out the quality of the local schools before splashing out on an investment. Having
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a good medical centre in the vicinity should also be high on the priorities list, especially for anyone suffering from any health problems, and those with pets might see a garden as an important feature.
Know your neighbours When relocating, you’re not just buying a home; you’re also buying into the whole community. If you’re serious about a place, it’s a good idea to get to know the other people in the neighbourhood a little bit, so you know if it will be a good fit for you. If you don’t speak much Spanish, you
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may want to look for somewhere popular among expatriates. Or you could dive head first into Spanish culture and live among generations who have lived in the town for decades. In any case, if you can see yourself becoming an integrated part of the community this is often a good sign.
Become an expert on Spanish mortgages It’s always wise to enlist the help of a good Englishspeaking lawyer when looking to buy a property in Spain. Your lawyer can inspect all the documentation for you and act on your behalf in the buying process.
Don’t feel the pressure Spanish estate agents are very good at sweet talking clients over a glass of sangria, but make sure you don’t rush into a decision - even if they convince you that you’ve found the property of your dreams.
LIGHT: A bright and airy interior.
FRESH: Make sure clean and tidy.
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If you want to purchase a mortgage in Spain, make sure you obtain an NIE from the local authorities and be prepared to have all your documents notarised and translated into Spanish.
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There are so many things to consider when buying a new house, especially if you’re moving abroad in the process, so you should always take at least one night to sleep on it.
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EXCLUSIVE MARBELLA ESTATES is dedicated to providing the best quality service and advice to clients wishing to invest in property on the Costa del Sol and in particular in the Marbella area. As a leading Marbella Estate Agent, the company uses their 16 years of experience to offer clients an unrivalled level of service and professionalism. Managing Directors Danny Hull and Tracey Mcleod along with sales manager Muriel Bonetti, aim to assist their clients every step of the way to make their property transaction run smoothly. Whether you are buying to retire to spend time in the sun, an investor wanting to purchase for rental income or as your holiday home, or wish to buy off-plan and get top quality advice and an excellent service, this will be provided to each and every one who chooses Exclusive Estates Marbella. They are a full service Real Estate agency, handling all types of real estate from selling and buying to leasing and managing property. Specialising in the Marbella area they have a greater local knowledge when dealing with buyers and evaluating properties for sale. For those looking to sell their property, Exclusive Marbella Estates go above and beyond to en-
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| Advertising feature by Exclusive Marbella Estates |
Exclusive Marbella Estates; the strength FOR SALE: Calahonda villa priced at â‚Ź475,000.
ELVIRIA APARTMENT: Available through Exclusive Marbella. Exclusive Marbella Estates: Pinogolf de Don Carlos 27, Elviria - Marbella, Tel: 952 838 622 or 667 793 543 Visit: www.exclusive-marbella.com / Email: info@exclusive-marbella.com
sure you have the best opportunity to sell your home, offering extensive internet advertising, sale boards and working with collaborators and agents getting your property seen by agents across Spain, the UK and Europe. The team work closely with the client representing both the buyer and seller throughout the entire process. Exclusive Marbella Estates will assist you through all your negotiations, and when you have found your ideal purchase, will introduce you to a fluent English-speaking lawyer, or one who speaks your language, and will take care of all the necessary paperwork. This process ensures that the legal guarantees for the purchase of the property are provided, Spanish legal requirements are met, and the property is free of charges or debt. But their work does not end there thanks to their expert after-sales service and once you have bought your dream home in Spain, you will want to know your home will be well looked after whilst you are away. Lana Voronina heads the buoyant rental business and is supported by a reliable property management team offering a complete service from holiday lets to long term rentals, key holding, repairs and property checks and so much more.
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P R O P ER TY G U I D E Spanish mortgages up 16% THIS past June, 29,516 mortgages were taken out on properties across Spain, according to the National Institute of Statistics. This marks a 16.5 per cent increase on the same period last year and comes right on the back of a disappointing month in April, where numbers were down 11.4 per cent.
Average value of mortgages up 4.4%.
FAIR SHARE: Banks not paying their portion of community bills.
Tables turn on banks By Matthew Elliott
YPICAL property finances have been flipped on their head in Spain, where it is the banks who now owe householders money. During the crisis the banks embargoed and took over thousands of Spanish properties from owners struggling with debt. By doing so they took on the responsibility of paying community charges for lighting, cleaning, and the general maintenances of countless urbanisations. But they haven’t bothered paying the bills. A new report from Spain’s Council of Administrators (CGCAFE) estimates that banks now owe more than €330 million to housing communities across the country. Banks own embargoed properties in a quarter of a million communities, owing each of them an average of €1,100. Salvador Diez, president of the
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CGCAFE, says payment of these debts could make a huge difference to millions of residential buildings with electricity, insurance or hygiene problems. “If we talk about the whole country, the collection of these debts would have a very positive effect on the economy since communities of owners are an economic engine in their own right,” he said. The most dramatic example can be found in Madrid. A community of owners in Calle Toledo are owed €17,000 by Bankia in unpaid community expenses from an apartment embargoed in 2014. The 28 other residents in the building are mainly pensioners and could do with a €17,000 boost to the community coffers. Now they are set to become the first community in Spain to take the bank to court and demand payment of the communal fees.
COMMUNITIES: Are owed money.
This is the second good month in a row for Spanish mortgage brokers, following the previous surge of 9.2 per cent in May. The average value of home mortgages has also increased by 4.4 per cent since June 2016, while borrowed capital also shot up 21.6 per cent to over €3.4 million. Over 7,411 mortgage brokers also changed their terms in June, of which 50.9 per cent were centred on changes in interest rates. Once these changes were established, the number of fixedrate mortgages rose from 5.7 to 14.2 per cent and variable-rate mortgages dropped from 93.6 to 85.5 per cent.
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19TH CENTURY, onebedroom property, thought to be Britain’s tiniest castle, can be yours for a mere £550,000. The Grade 11-listed house sits in the grounds of Weston Park Estate in Warwickshire and comes with extended gardens, a self-contained annex and small orchard. The property is also located near two train stations, meaning you can travel to London in just an hour. Commuters looking for a place to unwind in the country should look no further. The estate agent Savills, who manages the property, claims that a lot of interest has already been shown from local residents looking to ‘downsize.’
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Small wonder
Can be yours for a mere £550,000.
CHARMING: Britain’s smallest castle.
Spain choosing fixed rate deals FIXED rate mortgages are in vogue. Caixabank has revealed that two out of every three of its new mortgages are now fixed rate. It’s a 45 per cent rise on the number of fixed rate mortgages granted last year. They now account for €2.2 billion worth of the bank’s current lending. Caixa CEO Gonzalo Gortazar said the refined new product “offers greater security to families, shielding them from possible
rate hikes and allowing better management of the household budget.” Fixed rate mortgages have been on the rise nationally since Spain emerged from the financial crisis. Last summer they accounted for roughly 30 per cent of new mortgages. If Caixa’s findings are replicated across the board that proportion will have more than doubled in just a year.
It’s an astronomical rise given that fixed rate products accounted for just 3 per cent of the total granted in 2009. Fixed rate mortgages see the banks set an interest rate which is higher than the Euro Interbank Offered Rate, thus raising their profit margins in the short term. Families are guaranteed fixed fees and no surprises during the entire loan period, regardless of market conditions.
Overseas boom INTERNATIONAL property buyers have invested a whopping €888 million in Spanish property in the first half of 2017. The amount has eclipsed last year’s investment of €330 million, proving the property market on Spain is not just recovering from the economic downturn, but is thriving once more. Experts predict that the amount of investment for the year is soon to exceed €1 billion, cementing the country’s reputation as one of
the favourites for expats buying property abroad. The main investors have continued to be from Britain, Scandinavia, Germany and Russia. The year has also been record-breaking for tourists coming to Spain, with over 36.3 million people visiting from January to June alone. This is a 12 per cent increase from the same period last year according to the National Statistics Institute.
Expat investors to claw back millions A MADRID ruling compelling banks to pay back investors who lost money on unfinished Spanish property is great news to expats, including over 60,000 Irish citizens, who lost millions in deposits trapped in Spanish banks. The ruling, which states that Spanish banks must pay back deposits lodged with them plus interest, will guarantee that investors with money trapped in the banks will be able to claim all or most of it back. A ruling by the European Court of Justice has also declared that the ‘floor clause,’ which forced customers to pay a minimum, higher rate on variable rate mortgages, is also unlawful. This means expatriates are also now able to claim miscalculated interest on their mortgages back. Many investors, however, are unaware that they can claim their money back, so those in the know are trying to spread the word as much as possible. Time is quite literally money in this case, given there is a 15-year statute of limitations to consider. People affected are advised to engage Spanish solicitors to work on their behalf and can expect to wait between 12-15 months for the refund to be processed.
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Real estate kings return By Matthew Elliott OCIMIS, Spanish Real Estate Investment Trusts (REITs), are on the rise once again. Having cleared out during the crisis, there are now 40 of them registered in the country, with two, Merlin and Colonial, on the Ibex 35. Today the top 10 Socimis in Spain are worth a combined €16.7 billion, a figure comparable to the pre-recession years, when Spanish property was the hottest ticket in town. Together they own vast swathes of Spain’s rapidly developing real estate. Merlin, for example, owns €10 billion worth of Spanish properties, including Madrid’s Eurostar hotel, and dozens of Catalan shopping centres. Colonial, which counts Mexican brewers and Qatari princes
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among shareholders, has a Spanish portfolio worth €8 billion, largely comprised of expensive downtown office buildings. Then there is Hispania, controlled by billionaire investor, George Soros, which is now the biggest hotel proprietor in Spain, owning 38 establishments across the country. The growing success of Spain’s Socimis is good news for everyone in the property game. Their long-term investments represent international confidence in the property market. It has a knock-on effect on the residential sector, which is now benefiting from a huge construction boom across the country, helping plug ever growing demand.
EUROSTAR: Owned by Merlin.
Going cheap! AS house prices along the Spanish coast continue to soar, it has become increasingly difficult to find a decentsized apartment for a good price. In fact, the only town where the average price of an apartment comes in at less than €500 a month is Castellon, just north of Valencia. According to the real estate portal Fotocasa, who regularly publish data revealing rental costs in Spain, a 90 square metre apartment in Castellon will set you back around €477 per month. This is the cheapest you will find on the entire Spanish Mediterranean coast, from Girona to Cadiz. To put this figure in perspective, the average price in Spain now stands at €730 a month, and a similar-sized apartment in Girona will set you back a whopping €1,158. With prices rising across Spain as a whole, it may soon become impossible to find anything this cheap on the coast. Even Castellon has reported record price increases; with average rent costs shooting up 5.5 per cent in the past year alone.
Drug lord’s lair NINE luxury villas which were abandoned in the town of Sant Vicenç de Montalt, near Barcelona, are finally to be put up for auction after nearly 10 years of uncertainty. Joaquín Moreno, owner of the Brava Park development company, started work on the villas in the popular seaside resort back in 2003. But Moreno then fled the country while being investigated for drug trafficking in 2008, leaving the properties 95 per cent finished. For the past nine years the ownership of the villas has remained uncertain, with Brava Park defaulting on the mortgage shortly after Moreno went into hiding. Needless to say, it wasn’t long before the properties became occupied by gypsy families and other squatters. Despite the neighbours’ complaints, the local authorities were powerless to evict them. Finally, the squatters were ousted and the development was repossessed. The entire asset was expected to go up for auction at the end of August. Given that returning to Spain would no doubt lead to his arrest, it is unlikely Moreno will make any claims over the vacant villas.
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Share prices down
ROOM-SHARING: Spain is cost effective.
Brexistential crisis? BRITISH citizens considering returning home because of Brexit uncertainty may be in for a shock if they follow through with their plans. It is thought that pensioners in particular will be hit hard financially if they choose to return, due to an increase in property value in the UK and falling house prices in Europe. Research conducted by the Retirement Advantage Equity Release concludes that an expatriate who exchanged a property in the UK for one of the same price in Spain in 2010 will lose out on approximately £65,000 should they choose to go back. This comes down to the fact that house prices in the UK have risen 12 per cent in the past seven years whereas in Spain they have decreased dramatically by 26 per cent, despite the recent boost in
foreign investment in the market. While Britons in other European countries such as France and Italy also face losses, the disparity between the UK and Spanish markets is still the highest. This is even more troubling given that more British expatriates live in Spain than any other European country; a third of these being pensioners. Although it isn’t yet clear what the implications will be for British citizens living in Europe after Brexit, many fear that the current arrangement allowing UK retirees to receive pension increases that mirror inflation will be demolished, which could leave many out of pocket. However, if British citizens fail to recoup the original value of their property overseas, they may find themselves at as much of a loss if they try to buy property back in the UK.
HE price of renting a room in Spain is 19 per cent cheaper than the European average, according to a study carried out by pisos.com. The average cost is just €299 a month, while the average in Europe goes for €370. This means Spain remains one of the most attractive destinations for students, given the rising rent costs in other European countries such as the UK (averaging €726) and France (€550). With that being said, rental prices for a room in a shared apartment is still higher than the European average in the major Spanish cities, such as Madrid (€482), Barcelona (€441) and San Sebastian (€434). In comparison, the cheapest cities such as Lugo (€187), Caceres (€192) and Badajoz (€198) come out at less than half the price, but have significantly smaller student communities. The European countries most attractive to student budgets are Poland (€115), Portugal (€225), Czech Republic and Belgium (€250 each).
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‘Great Gatsby’ mansion listed T H E h o u s e t h a t i s r umoured to have inspired F Scott Fitzgerald’s novel ‘ Th e G r e a t G a t s b y ’ i s n o w on t h e m ar k e t f o r €14.2 million ($16.88 million). Located in the upmarket Sands Point neighbourhood in New York, the mansion was origi-
n a l ly b o u g h t b y M a r y H a r ri m an R u m s e y, d a u g h t e r o f r a i lr o a d m a gn a t e E H H a r ri m a n and friend of Fitzgerald. It is believed his stays at the house inspired the ‘ E a s t E g g’ n e i g h bo u r hood where Gatsby lived in the novel. The estate is nearly
SANDS POINT: Upmarket New York.
12,000 square-feet in size and features 13 bedrooms, eight bathrooms, a private beach and even a boat house. The house was originally listed for €16.6 million in December, but owners decreased the asking price this month - a bargain by Gatsby’s standards.
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