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NEWS UPDATE |
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Who said
Spain was no longer the place
to buy your property ? |
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Foreign
demand for Spanish property
Inmueble
magazine reports that prices
in coastal areas where foreigners
tend to buy have continued
to rise by between 13% and
15%, and are forecasted to
rise by between 7% and 9%
in 2006.
97% of British living in Spain
are owner-occupiers
El Mundo reports that 97%
of retired Brits living on
the Valencian coast own the
property they live in, whilst
at least 19.25% of them also
own a property in the UK.
New report forecasts 2005
price increases of 11% in
Andalusia and Murcia
A new report by the appraisal
company Cohispania forecasts
property prices increases
of 11% this year in Andalusia
and Murcia, with forecast
increases of 10% and 9% respectively
in 2006.
Spanish property prices
up by 13.9% in 12 months to
the end of 2nd quarter
Quarterly figures for Spanish
property price changes released
by the government show that
Spanish property prices have
increased by 13.9% over 12
months to the end of June
2005.
BBVA revises property price
forecasts upwards
Having previously forecast
Spanish property price increases
of 10% this year and 5% next
year, BBVA - one of Spain's
leading banks - has revised
its property inflation forecasts
to 12% this year and 8% in
2006. The reasons given for
this more optimistic forecast
are better than expected Spanish
employment figures, interest
rates that now look to remain
low or even fall, increasing
demand and the lack of alternatives
in the rental market.
Meanwhile the European Central
Bank has revised downwards
its forecasts for economic
growth in the Euro Zone (to
1.4%), due to the weak performance
of the French and German economies.
This suggests that Euro Zone
interest rates could fall.
Spanish resale property prices
up by 6.3% in first quarter
of 2005
Spain's notaries have released
figures, based on 202,296
transactions in the first
quarter of 2005, showing that
average Spanish property prices
increased by 3.82% in the
period, with new build prices
up 1.7% and resale properties
up 6.3%.
Renting property in Spain
more expensive than buying
Inmueble magazine reveals
that the average Spanish family
spends 25% of gross household
income on mortgage payments,
whilst average rental payments
take up 30% of gross household
income. This would help explain
why so many Spaniards prefer
buying over renting.
On the other hand Spain's
Minister for Housing - María
Antonia Trujillo - has recently
claimed that "renting is cheaper
than buying" whilst making
clear that one of her primary
objectives is to ensure that
"renting is an option, because
at the moment it isn't".
Euribor touches historic lows
Euribor - the base rate used
for calculating Spanish mortgage
repayments - fell in June
to 2.103%, the lowest level
since June 2003 when it reached
2.014%. However provisional
figures from the Bank of Spain
indicate that Euribor has
risen in July to around 2.16%
(the definitive rate for July
will be published in August).
Despite the provisional increase,
the absolute rate still remains
near to historical lows, which
means that mortgage borrowing
is expected to continue increasing
by 20% per annum.
Source: Spanish Property
Insight Bulletin, July 2005
edition
Contact Amigo Properties now
to secure your future home
or investment !
info@amigoproperties.com |
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