Spanish Property Market Could be ‘Over the Worst’

A growing number of experts believe that the Spanish property market is showing tentative signs of recovery following one of the most spectacular housing crashes of all time.

Spanish property sales and prices have plummeted across the country in the past five years, on the back of the global credit crisis, a string of corruption scandals, a chronic oversupply of housing, a string of illegally constructed homes, a weak economy, high unemployment and a record level of foreclosures.

It is estimated that property prices have fallen by up to 70% in some parts of the country since the market peak of late 2006 leaving many people in negative equity and others facing repossession.

Although property prices are unlikely to bounce back anytime soon, some property commentators and professionals feel as though the market is reaching the bottom of the downturn.

Mark Stucklin of Spanish Property Insight commented: “I am of the opinion that this is about as low as the [Spanish property] market will go in volume terms. Q4 may well be another record low, but after that I expect the market to bottom out in the course of 2012. This is not to say there will be a strong recovery after that – far from it. But at least the market will have stopped shrinking.”

The latest report Global House Price report from Knight Frank suggests that market in Spain, along with some other struggling European nations, could be “over the worst”.

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Luxury Townhouses in Manilva with upto 100% FINANCE

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Fantastic townhouses in a wonderful development situated on the border to Sotogrande, on the Eastern Costa del Sol. All in a private and gated urbanization on top of a small hill offering breathtaking sea views!

This new development offers top-level townhouses ready to deliver, it was designed by the renowned Spanish architect Melvin Villarroel and enjoying one of the most elegant architecture of the coast. Each level has a terrace, with the main terraces being accessed from the main living room and on the roof terrace/solarium

  • 2 bedroom 2 bathroom
  • Approx 220m2 built
  • 85m2 terraces
  • Sun roof / solarium
  • Fully fitted modern kitchen
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  • Separate laundry room
  • Massive basement
  • 3 swimming pools
  • Gated community
  • Private driveway and parking
  • Established and well-maintained gardens
  • Designed by leading architect Melvin Villaroel
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Los Flamingos Fully Funded Apartments 110% Mortgage

Frontline Golf Apartments Marbella Bank Repossessions
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Los Flamingos Apartments Bank Repossessions MarbellaHoyo 19 is set within the prestigious Los Flamingos Golf Course directly overlooking the renowned  5 star Villa Padierna Hotel. Finished in a contemporary style, the apartments are all oriented towards the south and south-west providing fantastic views of los Flamingos Golf Course and the Mediterranean coastline.

We have negotiated ‘exclusive’ conditions for our clients for the sale of these bank repossessed properties which are now being sold for 50% less than the developer’s price of 3 years ago.Marbella Los Flamingos Apartments Fully funded

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One, two & three bedroom apartments with stunning sea views directly overlooking Los Flamingos Golf Course!

Los Flamingos Apartments Marbella

Los Flamingos Apartments Marbella

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Spanish luxury market rallies as Russians buy in

Spain’s luxury residential market is showing some resilience as Eastern European and non-mortgage buyers surge into the market, according to new research.

New reports from Lucas Fox International Properties show that the average prices in the luxury sector in Spain remain way above the national average.

And as finance becomes less scarce the luxury market has shown more strength than others.

Russian buyers are particularly active in Barcelona according to marketing director Anthony Leaton.

“Most interestingly we have recorded a rise of 300% with Russian clients in the two last quarters,” he said. As an agency, we have seen a 230% in qualified enquiries from Russian property investors and buyers.”

“With a high level of enquiries and interest from other emerging markets and our traditional client base the first half of 2011 has been anything but bleak.”

The Lucas Fox Barcelona report also notes a strong growth in the demand for property By Swiss and Dutch nationals, closely correlating with the rise in tourism numbers from the countries.

In Costa Blanca “the main international groups of clients interested in…property are from the UK, northern Europe, Russia and the USA,” the report says. It also adds that the large number of Russian households with a high level of cash assets and minimal borrowings saw a 30% surge in demand for overseas properties, with particular interest in Costa Blanca.

“Demand for luxury properties continues apace, mainly driven by international clients from the Eurozone and a high level of demand for sea-front villas from buyers from Russia and former Soviet states,” said director of Lucas Fox Costa Brava Tom Maidment.

Ibiza has noticed an increase in cash-buyers from overseas, with key markets for luxury property being  “the UK, Netherlands, France, Italy, Switzerland and the Middle East, with many of these clients buying without financing,” according to Lucas Fox’s Ibiza report.

“So far 2011 has seen high net worth international clients for luxury Ibiza villas for sale. The decreasing popularity of destinations such as Sant Tropez has definitely been a positive in the Ibiza market,” said Alex Vaughan, director of Lucas Fox.

 As reported in the OPP 26th August 2011
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Malaga Attracting Big Spending Tourists

MALAGA city is attracting tourists with more spending power than the rest of the Costa del Sol, according to the local Tourism Observatory.

Fifty per cent of the tourists who visited the city last year spend more than €90 per day, while a further 30 per cent claimed to have spent more than €120 per day. This puts the average expenditure of visitors to the city up to €74.6 per day, well above the average of €50.4 per day for the rest of the province.

Hudson International Properties Marbella Malaga city Spanish visitors tend to spend more on average than foreigners, with a daily expenditure of €196, mostly spend on cultural trips (61.6 per cent) and shopping (56.6 per cent), compared to the €75.65 spent by foreign tourists per day. Of the 3.4 million visitors to the city last year spent €578 million, which is €15 million more than in 2009, Malaga Tourism Councillor said.

Fifty-two per cent of tourists visiting the city are foreigners, most of whom chose Malaga for its cultural offer. Approximately half of the city’s visitors planned their trip more than two months in advance, and 49 per cent used the internet to do so. The study also shows that the number of people visiting the city is distributed almost equally throughout the year.

Tourists who choose to visit the city are younger than the average visitors to the Costa del Sol, at 47.5, compared to 52 years old.

On a scale of one to 10, visitors to Malaga give the city an average of 7.95. Eighty-one per cent claims to have been ‘highly satisfied’, the same percentage claims they would want to return soon, and almost 100 per cent says they would recommend the city to family and friends. Just over 24 per cent claimed they were visiting the city based on the recommendation of friends or relatives.

Almost 68 per cent of foreign tourists visiting Malaga last year were coming for the first time, while 11.5 per cent said it was their second time. Most of the visitors (24.5 per cent) were from the UK, followed by the French (17.4 per cent), Germans (16.2 per cent) and Italians (8.5 per cent).

Foreign visitors tend to stay longer in the city, with an average of 4.9 days, compared to the 3.25 days on average for residents in Spain. Most (70 per cent) prefer to stay in hotels, and only 18.3 per cent of them are travelling alone. A higher percentage (90 per cent) of Spanish tourists prefers to stay in hotels.

Meanwhile, other tourist destinations along the coast, such as Benalmadena and Marbella, have reported that the British and German markets are recovering, while Spanish tourists are also deciding to remain on the peninsula for their holidays.

Article by: Euro Weekly News

Hudson International Properties for all your property needs on the Costa del Sol. Find properties that offer value – Marbella Bank Repossessions.

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Tourism on the Costa del Sol

Tourism on the Costa del Sol Tourism created the Costa del Sol, helped shape and make it what it is today. Has tourism here had its finest day or is the industry alive and well? We spoke to industry specialist Lynn Mitchell of the Patronato de Turismo de Málaga, to find out about the prospects of this vital sector.

Tourism was long vital to the local economy, not only as the main source of wealth and employment, but also as the force that lifted this once forgotten and impoverished region out of its isolation and into the modern age. It wasn’t that long ago that tourism replaced subsistence farming and fishing in places such as Marbella, Torremolinos and Sabinillas, and, drawing a parallel with Southern Italy, had it not been for tourism, large numbers of Andalusians may well have had to leave the region and seek employment in the factories of Northern Spain and Northern Europe. Fortunately, this was not necessary, and the tourism boom of the 1960s and 1970s helped create wealth and development to such an extent that it has now been superseded by other sectors, most notably residential development, as the driving force of the local economy. Have we travelled full circle to the point where tourism is in decline on the Costa del Sol, the very place it helped to create, or will tourism continue to play an important role in the years to come?

Marbella Holiday Rentals

Costa del Sol Marbella Holidays

One thing is certain, tourism has come a long way on the Costa del Sol. Today, we know such places as Torremolinos and Fuengirola as high-volume, low-cost destinations that to some extent have become synonymous with the lesser aspects of tourism, but there was a time when Marbella was little more than a small fishing village and the palm-lined boulevards of Torremolinos was the place to be. Famous hotels, such as Pez Espada, played host to the likes of Jean Cocteau and Salvador Dali, while Deborah Kerr, Sean Connery and James Hunt owned properties overlooking this untamed corner of the Mediterranean. There is even an anecdote of Frank Sinatra being kicked out of the Pez Espada because he was drunk…

Those were the halcyon days, you might say, which came under threat as soon as high-rise apart hotels, tourist shops and snack bars offering English breakfast started mushrooming along the boulevards. As the mass scene hit Torremolinos and Fuengirola, the jet-set simply moved to Marbella, which became a true glam resort in its own right. Since then, the Costa del Sol and the tourist industry have been through quite a few cycles, including up and down swings, but by the early 1990s Andalucía appeared to have reinvented itself as an attractive tourist package. “We didn’t re-brand ourselves as such,” says Lynn Mitchell, International Marketing Director of the Patronato de Turismo de Málaga. “We continued to refer to such powerful iconic attributes as sun, sea and Spanish culture, but presented them in a new, fresh way, emphasising the increasing diversity and sophistication of Andalucía, and the Costa del Sol in particular, as a first-class destination.”

Gone were references to the old-style package holidays that filled the beaches. High-quality, luxury resort hotels, glamorous Puerto Banús and the fantastic climate and facilities for golf were the main drawing cards for the new boom that followed, and in addition to such classic establishments as the Marbella Club Hotel and Hotel Los Monteros, the past few years have seen the construction of many luxurious four and five-star resort hotels. With a large number of fine hotels featuring everything from suites and business centres to spas and top-class restaurants, visitors to the Costa del Sol are spoiled for choice. The offer of first-class hotels is certainly there, all with excellent facilities and fine golf courses, shopping and entertainment nearby, yet circumstances both local and international have taken the steam out of the rapid growth that the industry experienced for almost a decade. The effects of international political instability are well-documented, as is the economic slowdown experienced in much of the industrialized world, but for the Costa del Sol the reality has been one in which occupancy rates and profitability have come under pressure.

“We cannot be complacent” says Lynn “in the face of increasing competition from newly emerging destinations such as Croatia, Bulgaria, Dubai and others. The Costa del Sol is endowed with great natural and climatic advantages, including quick and easy access to the main centres in Europe, but we realise that this is not the only sunny, beautiful place within reach. Likewise, we enjoy a leading position in terms of infrastructure, facilities and services offered, but there can never be complacency in an industry that is developing as rapidly as this one.” With this, Lynn refers not only to new resort destinations, but also to the rapidly-evolving nature of the industry itself, a situation which is driven by the increasingly complex consumption patterns of travellers. “It used to be rather straightforward and predictable, with people booking en masse and well in advance through travel agents. That made planning so much easier, but now average stays are dropping, destinations are becoming more diversified, people are travelling more often and for shorter periods, and they are making last-minute bookings via the Internet.” Indeed, low-cost carriers and surfing for deals on the Internet have changed the face of the industry.

“It makes it so much harder to predict and plan, but on the other hand the new technologies provide us with excellent information as to what our visitors like, want and demand. From this we can deduce the things we need to work on to keep our pole position in international tourism and we also pick up on unsatisfied niche markets and new products that can be developed to satisfy them.” Golf has added a highly valuable winter market to the familiar formula of sun, sea, luxury resorts and water sports activities, which focus on the summer months, effectively helping to create more of a balanced, year-round season. “This is a very important factor for the tourist industry, as is the development of complimentary market segments such as winter sports in the Sierra Nevada, cultural tourism in cities such as Granada and Córdoba, and rural tourism in the villages and countryside of the interior. Even though many of those destinations are not in the province of Málaga, we work together to promote Andalucía as one destination that offers a world of variety and diversity within a relatively small area.”

With increased competition from other areas and price pressure coming from the drive to cost parity within the euro zone, it is important that the region continues to focus on the quality of its offer. “That’s true. The Costa del Sol is no longer a place you go to because it’s so cheap. Other destinations have taken over that role, but with our uniquely convenient geographical location, coupled with a very high standard of service and facilities, we have to continue to move upwards to maintain a high quality/price ratio.” Vital in this is continued investment in the infrastructure, a factor which facilitated the development of tourism here and continues to be of great importance. “Self-evaluation and being critical of our standards of service puts the emphasis not only on providing a high level of vocational training through our hotel schools, but also includes exchange initiatives in which local students go abroad for work experience and to develop their language skills in situ.”

“After almost a decade of rapid development, the international tourist trade is going through a period of transition and adaptation out of which I believe it will emerge stronger and better equipped to meet the requirements of its customers. As for the Costa del Sol, we are working hard to continue to develop the standards of facilities and service offered, as well as developing important sub-markets such as golf, incentive and conference visits, rural tourism, ecotourism, winter sports and city breaks. The latter is especially important at the moment, as we are building on the culture, setting and Picasso heritage of Málaga to realise its potential as an exciting city destination. If we succeed in building on our already strong position in these fields, the Costa del Sol can continue to enjoy growth from three sources: the international market, the domestic Spanish market and the growing resident community itself.”

As reported by Panorama

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New City to Malaga route to start next summer

London City  to Malaga Flights High fliers in London’s Docklands will find getting from their offices to the beach a lot easier this summer. British Airways is growing its route network at London City Airport (LCY) with two new routes to southern Europe on June 7 and is beefing up its schedule at the airport.

The airline is launching services from the Docklands airport to Málaga’s Pablo Ruiz Picasso Airport (AGP) in Spain and to Faro Airport (FAO) in Portugal.

Flights to Málaga will operate four times a week and flights to Faro three times a week.

All the new flights will be operated by BA CityFlyer, a wholly owned subsidiary of British Airways. BA CityFlyer will resume summer services to Palma and Ibiza at the end of March. Altogether, the airline will be offering 40 per cent more seats from London City Airport next summer than it did in the same period this year and will be operating 400 flights a week from the airport.

“We recently announced that we had taken up options on two additional aircraft for our brand new Embraer fleet and this is giving us more opportunity to add destinations, frequency and capacity to our network,” says Luke Hayhoe, commercial manager for BA CityFlyer. “We have responded to customer demand, adding additional frequency and improving departure times to our existing Amsterdam, Edinburgh and Glasgow routes.”

Adds Hayhoe: “In addition to this, the Palma and Ibiza routes launched this year have proved so popular that we decided to venture further into the summer sun market. There is clearly a large demand for leisure travel from London City and it’s a growing market.”

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Waiting for Sale? Then Rent it out to Ease the Pressure

Selling a holiday home can be a lengthy process, especially when the sun’s not shining.

But you can make it work for you and bring in extra cash, too. Situated on the exclusive El Madronal estate, near Puerto Banus, Villa Tranquilo, which has a bar and cinema, attracts a top crowd.

Marbella Villa Rent

Its owner Paul Rossiter, has let it to the Tottenham Hotspur footballer Jermaine Jenas

It’s now on the market for £2.5 million through Carrington Estates, but it’s bringing in money while Rossiter waits for a buyer.

He charges £6,800 a week in high season and £4,000 in low and has made £54,000 this year.

Renting out your property for a fashion shoot is more lucrative, bringing in £1,000 a day.

Jane Rossi, of Hudson International Properties, which specialises in short lets and has Paul’s villa on its books, says: ‘It must be tastefully decorated and needs to have the “wow” factor. People will pay big money for something special.’

One owner always puts perfume in the bathrooms. Personal belongings should be locked away and anything precious removed.

Villa for Rent in Nueva Andalucia

Villa for Rent in Nueva Andalucia - 5000 Euros

‘If there are small children, things can get damaged accidentally,’ says Rossi.

Nick Austin, of UniQue Properties, which rents out villas and apartments on the Algarve, has a few properties on his books which are up for sale. One couple have a four-bedroom villa in Quinta do Lago on the market and available for rent.

‘We get approached by businesses who want to hire somewhere for local advertising.

The rate ranges from £180 to £3,625 a day,’ says Austin.

On Vigia’s Parque da Floresta Golf Resort on the Algarve, some owners let to celebrities.

And if you’ve bought on a new development, you could rent to other prospective buyers

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Rush for Homes in Spain as Prices Plunge!

BRITONS are dashing to snap up Spanish properties following the country’s economic crisis.

Stunning Villa for Sale in Estepona Southern Spain NOW 350,000 Euros

Stunning Villa for Sale in Estepona Southern Spain NOW 350,000 Euros

Second homes in Portugal are also being targeted as Britons take advantage of its fragile financial position. Inquiries about homes in Australia and New Zealand fell away the furthest last month. Overall, searches for overseas property increased by 1.2 per cent last month, in comparison to February. A survey by property company Rightmove Overseas and foreign exchange firm Moneycorp found that the Spanish province of Valencia saw the biggest increase in searches for homes – up more than 166 per cent.

Inquiries about property in Costa del Azahar rose by 39.91 per cent, while Costa de Almeria saw a surge of 8.83 per cent. Tom Whale, account manager at Rightmove, said the Costa del Sol, Andalucia and Southern Spain regions remain a firm favourite for British buyers, especially as some properties are now 30 per cent cheaper than in 2007. One seven-bedroom villa with a gym and swimming pool in popular Lliria, Valencia, was on the market for £302,440 three years ago before slumping to £130,619.

A stunning four-bedroom villa with a large pool, hot tub and tennis court in Andalusia fell by £100,000 to £521,599, as did a fivebedroom finca, also in Andalusia, which is now on sale for £349,778. Mr Whale said: “No doubt the surge is spurred by the recent sunny weather, future holiday bookings and programmes like The Only Way is Essex, which mentions Marbella a fair bit. “But searches are also increasing now because buyers are cotoning on to the fact there is a huge surplus of properties available at greatly discounted prices.

“Some agents are offering properties 30 per cent cheaper than in 2007, so there are plenty of bargains to be had. “The biggest increase last month was in the Valencia region, when one of the biggest fiestas in Spain took place.” Yet the Canary Islands suffered a dip in interest, as 6.25 per cent fewer searches were carried out into properties in the area in March, compared to February. Interest in Portuguese property rose 14.36 per cent last month, while interest in Greece, which has also suffered financial woes, was up more than six per cent.

As reported by

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