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BANG FOR YOUR BRICKS: Prices remain well below the 2007 peak making now an ideal time to buy.
House about that By Matt Ford
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HE Spanish property market is well and truly on the road to recovery. And the upswing is backed by a slew of recently-published data. The Spanish Land Registrars’ Association has confirmed prices soared by 9.39 per cent on average in the first quarter of 2018, while the Spanish government’s official data shows that valuations shot up by 2.7 per cent. A March index from the Association of Spanish Notaries increased by 0.4 per cent and April figures from valuations firm Tinsa rose by 5.4 per cent. And registrars’ statistics demonstrate that house prices have climbed by 26 per cent since the low point of December 2014, although they remain 18 per cent down compared to the height of the construction boom in 2007. The Tinsa data also shows prices in Spain’s major cities displayed year-on-year growth of 8.7
Market recovery goes on per cent, those in the Balearics 5.6 per cent and on the Mediterranean coast 0.3 per cent. Mark Srucklin of Spanish Property Insight said: “These national indices don’t tell us anything about local markets, but they do give us some idea of where we are in the property market cycle. Spanish house prices are back in positive territory, whichever index you choose.” And holiday homes are also
back on the march, with British buyers leading the way as Brexit fears ease. Speaking exclusively with Euro Weekly News, Taylor Wimpey Espana’s Sales and Marketing Director Marc Pritchard used the Costa del Sol as an example. “The Costa del Sol holiday home market has provided scope for cautious optimism over the coming months. Prices
there have risen by 9.3 per cent so far in 2018, but there are still good prices to be had compared with 2007, which many buyers find encouraging,” he said. “Foreign buyers in the Costa del Sol are currently running at 13.8 per cent, with British buyers being the largest group. Together, Brits account for 15 per cent of total sales at present. While British interest wavered in the immediate aftermath of the Brexit referendum, demand has grown again over the past year.” He added: “Of course nothing is certain in this day and age, but it seems that buyers may have already accounted for Brexit and moved on - in much the same way that the financial markets nowadays often price in expected mergers in advance, so when they actually happen their impact is limited. We anticipate this could be the same with the UK’s departure from the EU; essentially, the Costa del Sol won’t see much of a change from its current trajectory of increasing sales to British buyers.”
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RITONS have bought double the amount of homes on the Costa del Sol compared to last year, according to the leading housebuilding company, Taylor Wimpey. The stability of the GBP/EURO exchange rate is a key factor in the 100 per cent year-onyear purchase increase, Taylor Wimpey’s España’s marketing director, Marc Pritchard, said. The GBP/EUR exchange rate only changed by 0.32 per cent from a low of 1.12014 to a high of 1.15801 in the last three months, according to the online currency monitor, xe.com. And the result has reportedly been an increase in British buyer confidence. He also noted the general interest in the Costa del Sol is rising thanks to its ‘age-old attractions’ including pristine beaches and golf courses. And many buyers are looking to make a swift move into the housing market ahead of five per cent price rises for 2018, BBVA, one of Spain’s ‘big-four’ banks predicted. A portion of buyers seek the luxury of being able to use
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EYED-UP: A view of Fuengirola, a Costa del Sol municipality. their holiday homes whenever they want, while the remainder is in search of ‘fairly rapid’ capital growth, Pritchard said. The marketing manager also spoke of the 15 per cent rise in
property reservations across Spain as a whole, the highest influx in seven years. Taylor Whimpey is not alone in lauding Spain’s tourism and property outlook.
Jacobo Florido, the CEO of Costa del Sol Tourism, announced the region’s ‘most important summer’ in history is upon us. Both tourist numbers and in-
come are expected to grow by two per cent this year compared to 2017, which itself saw record numbers, with 12.5 million visitors and 6.4 per cent up on 2016.
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OSE BANUS and Prince Alfonso of Hohenlohe were the men behind modern-day luxury Marbella, according to a new volume by journalist and writer Jorge Lemos. Lemos’ Puerto Banus. History of an ambitious project narrates the ins and outs of the glitzy getaway’s creation. It features more than 90 images of famous characters who passed through the port, including Rainiero Prince of Monaco and superstar actress Bridget Bardot. Hohenlohe, who spent many of his early years in Hollywood and Monaco, built the Marbella Club as a secluded hideaway for fellow aristocrats in the wake of the Second World War. But developer and close friend of Europe’s last dictator Francisco Franco, Jose Banus harboured a contrary vision to Hohenlohe’s. Banus wanted to do away with Andalucia’s heritage and turn the ex-fishing port into a high-rise holiday resort. Hohenlohe countered the lofty plans, recommending
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BIG PLANS: Prince Alfonso of Hohenlohe (centre) with Bridget Bardot in 1960.
Marbella’s masterminds Banus follow a traditional design based on a Mediterranean mountain town, like his
Marbella Club did. The club - Marbella’s original luxury resort - was designed
by renowned Swiss-Russian architect Noldi Schreck after the Prince met him on holiday
in Mexico. Banus ditched his initial idea, the fledgling port took tradition’s shape and joined Monaco, Cannes, Saint Tropez and Puerto Cervo as one of the world’s highest-profile hubs of hedonism. In the book, Lemos emphasises how today’s luxury destination was born out of ‘traditional and poor’ architectural ancestry, which owes its prominence to Hohenlohe’s and Banus’ ‘complementary’ projects.
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ROMLEY ESTATES MARBELLA is excited to announce the imminent launch of Oak 47, a remarkable development in Fuengirola for which they are the exclusive promoter. Since its inception in 2009 the firm has been gaining ground, and is now considered one of the largest promoters of new developments on the Costa del Sol. Also well known as an established high quality real estate agency on the Costa del Sol with one of the largest teams of international property experts, Bromley Estates Marbella prides itself on understanding the needs and desires of their investors. The market on the Costa del Sol is once again thriving with a substantial amount of new products flooding the market. The firm’s team of experts is able to identify projects that present the best value in terms of facilities, quality, location and of course price and growth potential. Whether clients are searching for a holiday home, a permanent residence or an investment opportunity. Oak 47 combines all these and more offering elegant town homes in a prime location. Marbella real estate specialists, Bromley Estates Marbella, are officially launching this fabulous resort to the market in the coming weeks. Prices range from €255,000 to €460,000 and with just 47 properties available they expect a full sell out before the end of summer. Oak 47 is a development of three bed-
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Exclusive launch revealed LIVING THE DREAM: Oak 47.
room town homes set in a quiet area boasting a fabulous location within walking distance to several beaches, a shopping centre and the lively centre of Fuengirola. Backed by mountains and with glorious sea views living there provides all you could want from a first or second home. The close proximity to the stunning beaches and array of chiringuitos isn’t the only thing on offer, this secure complex offers a large pool, gymnasium and sauna
making it the perfect place to enjoy every aspect of luxury living by the sea. Malaga and the glamorous resorts of Marbella and Puerto Banus are under 20 minutes away. And the popular village of La Cala de Mijas, famous for its gastronomy, is just a five-minute drive. Managing Director of Bromley Estates Marbella, Hayley Bromley, explained: “It’s all about location and Oak 47 has it all with easy access to beaches, golf, shopping and nightlife.
“Through years of research we have discovered that most investors prefer to be close to conveniences and of course those white sandy beaches. “Townhouses of this calibre do not stay on the market for long as they offer a very tempting combination of luxury living within a contemporary and intimate development that always appeals to the discerning investor.” www.bromleyestatesmarbella.com +34 952 939 460
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By Gregory Kirby BRITISH c o u p l e who left London in 2009 have successfully built a totally-off-the grid carbon-neutral home within an Andalucia national park. Simon and Donna Beckmann were beginning to feel fed up with the comforts of city living, so they went in search of adventure, according to a report by architecture industry media. Three years of hard work later, the couple have created a unique home and artists residency in the middle of Sierra da Mara-Los Velez natural park. Simon is not the first in his family to undertake a self-build. His father remodeled the Victorian house he grew up in and his brother recently refurbished a lighthouse.
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Brits ‘off-the-grid’ in Andalucia PHOTO CREDITS FACEBOOK JOYA: AIR
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CITY DITCHED: Solar panels heat the property’s water supply. A can-do DIY attitude to the construction process reportedly carried Simon through the build. When a storm damaged the power-generating wind turbine, instead of contracting
professionals to fix it, the Brit learnt how to do it himself. A local builder fixed a metal cage to a crane which lifted Simon up to the turbine where he spent hours repairing the turbine
in ‘rattling winds.’ “I think I was using every muscle to hold onto the cage up in the wind. I was so sore the next day.” And fetching the water to mix the concrete to repair the roof with
was a challenge in itself. “I had to drive with the Land Rover and the trailer about 14 kilometres every other day to go and pump out a thousand litres of water to bring to
the house,” Simon said. “We’d mix concrete in a concrete mixer powered by a generator and then carry it in buckets up onto the roof to do the reparation. It was mad looking back at it, but we did it,” he added. The home is completely sustainable and they recycle absolutely everything. A wind turbine in the back garden provides power, the solar panels heat the water and a filtration system collects waste water from the basins, showers and the dishwasher. “We are 100 per cent carbon neutral,” Simon said. “It’s not like I’m expecting an apocalypse. It’s more about being less reliant on systems,” he added. And for those aspiring to create something similar, “just do it,” was Simon’s advice.
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Cut-price beach buys LEADING Spanish banks have slashed the prices of thousands of properties they have put on the market, with many located on Spain’s coasts. The majority of the roughly 18,600 homes are located in the Valencia and Andalucia regions, as well as in the Balearic and C’-
Cashing in AROUND a third of all homes sold in Spain are bought with cash, according to data from the country’s National Institute of Statistics. The total number of homes sold in Spain stood at 464,423 last year, with some 310,096 mortgages granted. That places those purchased without a mortgage at around 33.2 per cent. Data from the General Council of Notaries, a public legal body, placed the total figure higher at 43.6 per cent based on their own data. Jose Manuel Perez, from the FM Gestiona property company, said the typical profile of those buying in cash were usually in their 50’s or 60’s buying houses worth €100,000 or less as investments.
nary Islands. Discounts reportedly reach up to 60 per cent on market prices in some cases. Sareb have almost 4,500 properties up for grabs on the Costas and in Spain’s islands including some starting at €240,000. Santander has put more than 1,100 houses on the market with prices ranging from €100,000 to more than €1 million for the most expensive. BBVA’s offering numbers some 2,800 properties with some discounted by up to 60 per cent. Price reductions are set to be in place until the end of the year. Caixabank has some 4,200 up for sale through Servihabitat, its property sales arm. Discounts reach up to 40 per cent and some houses start at €74,000. Bankia has some 3,000 holiday homes available with 2,000 of those on the coast. There are properties in Murcia in their range starting from €59,000. Sabadell has some 4,000 homes to choose from, with new and second hand properties located in Valencia, Andalucia and Cataluña.
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First day back MARIANO RAJOY has started his first day back at his old job after leaving office as the head of Spain’s government. The former Prime Minister, ousted in a no confidence motion at the beginning of June, has left Madrid behind, for the Alicante Province, to work as a property registrar. Rajoy was met by reporters and photographers as he left his workplace in Santa Pola following his first day in the job. “I appreciate your presence. I know that you think this is news and that’s why you’re here.” “I don’t have much more to add to what I have already said. I have retired from politics and returned to where I was before,” he told journalists. The ex-prime minister took the high speed train from Madrid and arrived 50 minutes late for his first day in the post. He is currently staying in a hotel and is set to work from 9am to 5pm. Rajoy’s return to the post, his job before entering politics, comes as he resigned his seat in Spain’s parliament and as the president of the con-
NEW STARTER: Rajoy arrived in Santa Pola to take up his new post. servative Partido Popular (PP). He is set to stay on in a caretaker role at the PP until a new leader is chosen but he has otherwise left politics behind. Francisco Riquelme has kept Rajoy’s seat warm in the office for the last 28 years since he left it to pursue a political career. Riquelme said he would get used to the role ‘with ease’ because the former prime minister is an ‘intelligent person.’ The work of a property registrar was done on typewriters when Rajoy left the post. Everything is now computerised.
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Franco pile battle THE mayor of a northern Spanish town has called on Prime Minister Pedro Sanchez to help return a country home used by former dictator Francisco Franco’s family to public ownership. Benito Portela, the Mayor of Sada, said in a letter to Sanchez it was an ‘opportune’ moment to bring the Pazo de Meiras into state hands. The property, complete with a 16-acre estate, recently went on the market for €8 million. It comes as the prime minister has flouted moving Franco’s body from the controversial Valley of the Fallen mausoleum and converting it into a
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CONTROVERSIAL: The mansion is on the market for €8 million.
memorial to the fight against fascism. Franco’s descendants continue to use the property which was the dictator’s summer residence, in the A Coruña area, while he was in power. The then Franco regime claimed the house was donated by the people of Galicia for the dictator’s use following his victory in the Spanish Civil War. Historians have since claimed senior A Coruña officials and business leaders obliged locals to give up some of their money to buy and expand the property for Franco. Protestors stormed the country home last year in protest against its
ownership by the Franco family last year. One of them, Nestor Rego, said it was a ‘scandal’ that the house was still in the hands of the former dictator’s descendants. Galicia officials declared the mansion a building of cultural and heritage interest in 2008, meaning it must open its doors to the public for four months every year. Galician nationalist politicians criticised the Franco foundation’s taking over of the organising of the visits. The foundation, which supports and promotes the dictator’s legacy, was allegedly using the visits as a way to defend Franco.
GRANADA CITY has topped the list of those with the highest increases in the cost of newly-built homes in 2017, up from second place the previous year. The data, from Spain’s Development Ministry, showed prices in the city rose year on year by 17.8 per cent. Statistics stated the average price of new builds rose by 2.3 per cent last year when compared to 2016. The ministry estimated the average cost per square metre for new properties was €1,804 nationally. Granada was followed in the rankings by the cities of Bugos with a 16.8 per cent increase, Alicante with 15.5 per cent, Madrid, 9.5, Sevilla, 7 and Barcelona, 6.5. Cadiz registered a 6 per cent increase, followed by Murcia with 5.6 and Palma, 4.7.
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KEY TO IT: Speak to an independent lawyer before committing.
By Pellicer & Heredia
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ET us first give the basic warning when buying or renting a Spanish property. It goes like this: believe nothing, check everything! When the buyer might hear that everything is in order from the seller or estate agent, it is strongly advisable to seek independent legal advice for peace of mind. Even when there is not an outstanding mortgage, or when you are told that a property measures x square metres, check yourself or through your own surveyor. When you hear the terrace, pool, storage,
Keeping it legal What to watch out for when buying a Spanish property basement, bedroom is included in the deal, check the plans and double check with your solicitor. Any reputable seller will be perfectly happy to have his offers checked by an independent lawyer. Spoken words do not count when a property is for sale. We all are aware of the presence of illegal housing estates where unwary buyers end up having problems of unpaid taxes, unregistered title deeds,
and difficulty in obtaining municipal services or building permission. Some properties are sold after many corners have been cut to save costs both on the buyer’s side (by not using an independent solicitor, for example), and the constructor or seller’s side. You could encounter the following problems: 1. Lack of bank guarantee on stage payments (off-plan). 2. Title deed and cadastral
problems (non-registered deeds, measurements that do not match with the real metres on the house and land, etc). 3. Lack of project and licence for the house. 4. Lack of 10 years’ structural insurance certificate. 5. Lack of first occupation licence. 6. Undervalued title deeds. 7. Lack of bulletins (certifications for electricians and plumbers). 8. Infrastructure problems.
It is highly recommended to employ an independent solicitor who will be working only for you and look after your best interests. The right time to employ your lawyer is before you commit and pay any money out. The tax implications are very important and it is good for you to be aware prior to signing any document. Whether you buy an apartment or house, decide to rent a luxury villa, or agree to buy an off-plan property, do not forget to protect your money with the right independent advice from your lawyer. Let us take the worry away and start enjoying Spain while living here! Call us on 965 489 737.
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AIRBNB rentals continue to be a contentious topic in Barcelona, as the tourism minister, Agusti Colom, continues to pressure the holiday rental giant into concessions. Colom recently announced the website will collaborate with authorities through an antitourism fraud platform. It joins other sector heavyweights like Booking, TripAdvisor, Rentalia and Homeaway in the move. The rental hub has pledged to remove 2,577 unlicensed listings, share user data with the council and introduce a tool to prevent future illicit lets in the region. And the holiday rental giant launched a #LoveBarcelona video campaign which featured local hosts celebrating welcoming newcomers into their homes and to the city. It was a marketing plea to boost the firm’s image which has been severely tarnished for allegedly making city rentals inaccessible for locals. Strolling down some of
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BATTLE: Tourism minister Agusti Colom discussing social cohesion. Barcelona’s more touristy neighbourhoods like Gracia and Poblenou passers-by will see balconies branded with flags slating the rental firm. Residents claim Airbnb causes speculative property markets, with houses being bagged by investors using them to rake in expensive
tourist rates. But the firm disagrees on the extent of the impact. In fact, it takes credit for a €1 billion influx its clients allegedly bring to Cataluña’s capital. It also claimed some 80 per cent of the 18,531 Barcelona homes on offer are the owner’s sole property.
And it said more than half of lets are made by ‘home sharers’ renting out single rooms to help pay the bills. City council inspectors do not see it that way. Their job is to sniff out illegal holiday lets aided by a dedicated hotline through which locals can report sus-
pected law breakers. So far, the council has handed out 3,000 fines and 2,200 rental ending orders. It also fined the website €600,000 in 2016 for placing unlicenced properties online, but it has yet to pay up. “All we ask is that Airbnb obeys the law,” Janet Sanz, the housing councillor said. “Often when they say they want to negotiate, what they’re really asking is to break the law, but that’s not negotiable,” she added. Airbnb will not roll over lightly and is lobbying the European Union in Brussels to override local legislation. But according to Jaime Palomera of the Tenants’ Union, Barcelona households spend on average 45 per cent of their income on rents. It means “if they get into financial difficulties, they end up in the street,” he added. And with locals walking such a tightrope, it is unlikely citizen’s pressure on Airbnb is due to let up any time soon.
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