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Accommodation Makes Money in Andalusia

April 5, 2018 Accommodation Makes Money in Andalusia

Demand for Accommodation in Andalusia

Both Residents and non-residents alike enjoy coming to Andalusia with its rich diversity and sunny weather. Be it hotels or privately owned properties in Coastal or Rural areas, statistics from the Spanish Statistics Institute, (INE), show Andalusia is popular all year round.

As you can see from the infographics for February 2018, visits to Andalusia from abroad were up on the same time last year, at 11.08 days. 582,686 tourists spent an average 1,140 euros over their stay.

Profitability of the Hotel Sector

Andalusia has an annual growth rate for the hotel sector of 3.99% compared to 5.44% annually, according to data released in Feb 2018 by the INE. The average daily rack rate is calculated at 65.83 euros, with revenue per room availability at 35.07 euros. This is up by 1.64%. Of this, the highest growth has been in one-star Hotels, (10.74%) and one-star Guesthouses (12.17%). It seems people want to stay longer and for less money. This indicates good returns in under exploited markets such as rural properties inland.

Profitability of the Tourist Apartment Sector

As the infographic illustrates, there were 17,078 apartments, which is up compared year on year to the same month of 2017. As you’d expect the estimated figure for bed places was also up on last year at 65,941. The number of guests was down at 127,913 but the number of nights they were staying showed an increase at 4.2 days on average. Nationally, the largest number of non-resident visitors was the UK, followed by Germany.

Rural Tourism Indicators in Andalusia

Rural Tourism figures were a little down on last year, with 16,377 guests staying on average 2.24 days. Estimated bed places and apartment availability was up. Average cost was 139.63 euros, or approx 33.25 euros per night. This offers very good returns in relation to the buying price of these properties.

It is a legal requirement for establishments to be registered with the Junta de Andalucia Tourism Department. This can be either as a full time business registered with Social Security payments and complying with disabled access requirements – Casa Rurales – or the more flexible category of rural accommodation – Viviendas Rurales –

Registration as Casa Rural means the person registered as owner or manager can offer touristic pursuits – guided tours, cookery classes, etc, whilst the Vivienda Rural can only offer accommodation, not activities as well. And only for a finite number of days, not all year round, unlike the Casa Rurales. Even so, this equates to being able to rent it out almost every weekend. Also, if you get a holiday-maker who wants to stay for longer, you can put them on a different letting contract and this lease does not count as part of the weeks per year.

There are some great rural properties out there, at prices below what they should be. There are also commercial outlets with accommodation that can be turned into very attractive propositions for the holiday maker market. Get in touch with us now and we can organise a no obligation tour of some of the rural areas and visits to various properties that are on the market at terrific value.

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Supreme Court Decision Person Taking Out Mortgage Pays AJD

March 2, 2018 Mortgage Borrowers Pay AJD Property News

Supreme Court Ruling Mortgage Borrower Pays AJD

The average set-up costs for a mortgage is around 3,000€ to 4,000€ depending on the amount borrowed. This is roughly broken down into a tax on notarised documents (AJD), notary fees, administration fees, land registry fees, stamp duty and copies of the notarised document. Back in December 2015 a leading case paved the way for people with mortgages to claim back the costs that they had been forced to pay. The Court decreed that mortgage lenders do not have the right to decide these should be paid for by the other party. It stated such costs should be shared but did not go on to stipulate percentages. The implication was that it should be an even split at least.

This led to claims against mortgage lenders and the flood gates opened. The Law Courts are always busy, and the last thing needed was additional workloads. Having said which, many judges in Autonomous Communities seemed to champion the little man, striking out clauses they deemed Unfair Terms and forcing the mortgage lenders to pay back what they had charged plus legal expenses of the claimants.

All has now changed again. On February 28^th 2018, the Plenary of the First Chamber of the Supreme Court deliberated and decided two appeals in favour of the mortgage lenders. The Obiter Dictum, or wider generalisation to be taken from this, is that the Transmissions Tax on Documented Legal Acts (AJD) must normally be paid by the client, while the stamp duty on the notarial documents will be paid by both parties. Costs of copies of the mortgage will be borne by the party who requests them. In Andalusia the AJD is 1.5%. this leaves notary fees, administration fees and land registry fees up for grabs.

The Court’s judgment is based on a Statutory Regulation that says the loanee is the one who pays the tax and as a result the party mortgaging their home, the mortgagor, is liable. The full court decision has yet to be published, but as it stands, without the in-depth analysis of the Court’s findings, the court has used a Regulation to serve as a magic wand to restore order and quell rebellion. But a Regulation has less legislative force than a Statute conferred by Act of Parliament and is not of universal application. It wields the equivalent force of a statutory instrument.

A Supreme Court decision ‘trumps’ that of a lower Court. But, provincial courts in Autonomous Regions have consistently ruled in favour of the mortgagor since the leading case in December 2015. Until there is legal certainty, this political duel looks likely to continue. Let’s see what the Judgment proclaims when it is published in the next few days.

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Spanish Property Sales and Transfers Increase in 2017

February 26, 2018 Property News Property Purchases on Rise Spanish Property Sales and Transfers Increase in 2017

Spanish Property Sales and Transfers 2017

Up once more compared to 2016 according to figures published by the Institute for National Statistics in Spain (INE).

December saw 125,263 properties registered at Land Registry, almost 2% more nationwide than in the same month of 2016. This includes all transmissions of property, for example inheritances, easements, resale and new first time sales etc.
December Sales showed a 9.2% increase on same month for 2016.
64,135 sales were recorded for December 2017, of which 85% were urban properties and 15% rustic dwellings.
Over the twelve months of 2017, property sales increased by a significant 14.6%

Registered housing sales, including government owned accommodation.

In December, 89.7% of dwellings sold were those on the free-market and 10.3% were protected housing.
In annual terms, the sales of free-market homes increased by 8.4% and protected properties by 16.5%.

17.8% of dwellings transferred by sale in December were new, and 82.2% were Resales.
The number of transactions on new properties increased by 11.0%, while that of Resales increased by 8.8% compared to December 2016.

What does this mean for Andalusia? Making sense of it all.

December 2017

December 2017 alone saw 20,812 registered property transfers for Andalusia.

This equates to 95 transfers for every 100,000 inhabitants. Third highest in Spain after Valencia and The Balearics.

Of this figure, 6,287 were property conveyances – selling of properties in the open market –

This marks a 10.7% annual increase. Compare this to the Catalan region, down by 5.7% and it is tempting to emphasise how markets need stability. Andalusia with its infrastructure, sunshine and stable political environment is a great place to invest. Make up for dips in your portfolio for Spanish property from 2007 onwards; property purchase always has highs and lows, but now is the time to get those bargains once again.

Property Conveyances Andalusia 2017

Andalusia realised 293,538 conveyances for 2017.
An annual variation of 5.6% in change of property ownership for the year including inheritances etc.
This is an annual variation of 12.6% as a result of home sales on the open market (89,337).
It equates to 1,356 per 100,000 inhabitants.
51,878 properties were classified as rustic.
149,995 were urban properties.
14,601 were plots.
All other transactions amounted to 77,064.
16,397 conveyances were new builds. The off plan market has started up again.

We are in the early stages of a new market with properties reduced to lower than their real values by owners who just want to shift them. For those of you who lost money in the downturn of the market, act now to recoup losses. For those of you thinking about investing for the first time, now is the time to commit.

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Housing Sales Rise in Andalusia amidst Buoyant GDP figures for Europe.

January 31, 2018 Property News Property Purchases on Rise

Housing Sales Rise in Andalusia.

Andalusia came second in sales increases for November according to the Spanish Institute for National Statistics. INE. This is because house prices are extremely inviting and it is a lovely place to live or come to for holidays. Property prices are still lower than what they should be. Take advantage now.

Winners and Losers

The Autonomous Communities that registered the greatest annual increases in the number of housing sales in November were Aragón (24.7%), Andalusia (24.3%) and Castilla–La Mancha (23.7%). In comparison, Extremadura (–9.7%), País Vasco (–1.3%) and Asturias (3.5%) registered the lowest annual rates in November.

GDP grew by 2.5% across Europe

In Europe the fourth quarter of 2017 shows GDP up by 0.6% in both the euro area and the EU28 up +2.7% and +2.6% respectively compared with the fourth quarter of 2016.

Seasonally adjusted GDP rose by 0.6% in both the euro area (EA19) and in the EU28 during the fourth quarter of 2017, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.

In the third quarter of 2017, GDP had grown by 0.7% in both zones. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.7% in the euro area and by 2.6% in the EU28 in the fourth quarter of 2017, after +2.8% in both zones in the previous quarter.

Over the whole year 2017, GDP grew by 2.5% in both zones.

GDP and Property Prices Rise

Residential property price indices (RPPIs) directly and indirectly influence economic policy.

From an individual household’s perspective, real estate often represents the single largest investment in their portfolio. It also accounts for the largest share of wealth in most nations’ balance sheets. We do not need to be told how changes in house prices can have far-reaching implications for individuals.

House prices influence home improvement and renovations expenditures and there are property bargains out there to buy and reform. Even some minor reforms can significantly increase the value of the property.

Understanding Supply and Demand

House prices also influence the decision to build new houses (the supply side) as well as the decision to become a homeowner (the demand side). Investors turn to house price indices to measure wealth and to help assess current and future rates of return.

From a broader perspective, analysts, policymakers, and financial institutions follow trends in house prices to expand their understanding of real estate and credit market conditions as well as to monitor the impact on economic activity, and financial stability and soundness. For instance, mortgage lenders will use information on house price inflation to gauge default risk. Central banks often rely on movements in house price indices to monitor households’ borrowing capacity and debt burden and their effects on aggregate consumption.

It is still a buyer’s market in property in Andalusia, but, to quote Bob Dylan, times they are a changing . . . which is great news for those owners trying to sell their properties.

For those looking to buy, invest now or spend more later.

For those looking to sell, it could be that your property is on the market at a price which undervalues it.

Get in touch with us to arrange a tour of properties or to get a valuation of your property with a view to selling it.

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Number of Foreclosures Fall by a Third

December 11, 2017 Property News

Mortgage Payments Easier.

Repossessions have fallen year on year and quarter on quarter. The table below shows the third quarter for 2017 down about a third on number of foreclosures. The same quarter four years ago showed more than 23,600. In the third quarter of 2017 this had fallen to just over 9,000.

	1st quarter	2nd quarter	3rd quarter	4th quarter
2017	17.000	13.605	9.025	. . .
2016	19.337	20.998	14.662	18.107
2015	31.182	28.954	19.625	22.716
2014	32.645	33.069	23.608	31.217

Foreclosure statistics down down down.

These clearly show number of foreclosures falling. These figures relate to all rural and urban properties. The information is broken down based on variables such as the type of building, system, status and owner of the properties being repossessed. The Association of Land and Mercantile Registrars of Spain (CORPME) provides centralised information to the INE – the centre for National Statistics in Spain.

This is, of course, great news and a strong indicator of a recovering economy. The other side of this analysis is there are fewer repossessions coming onto the market.

Are you looking to enter the housing market? Do you have a good income, but not much money saved for a deposit?

You could take advantage of a 100% mortgage offered by a bank that has properties on its books. We recommend that you take a look at the housing market now.

If you prefer to absorb the information with graphs, please see below:

Home buyers

We have repossession properties available with various banks – some of which offer residents up to 100% mortgage and non residents around 85%. The normal requirement is that you have money to cover taxes or approximately 10% of the total amount borrowed.

Investors

For those of you looking to make a cash purchase or with up to 30% down payment the range is greater as it includes motivated sellers and private distressed sales. There has never been a better time since the crisis to buy a property. For the first time this decade property sourcers and investors are seriously considering buying to reform and sell on within a relatively short term.

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Property Prices Slowly Rise in Spain

September 11, 2017 Property News Property Purchases on Rise

Andalusia once more posting strong results as property prices continue to rise in Spain.

Good news from the Institute of National Statistics for Spain (INE) – the property market continues to bounce back. House prices continue to rise albeit slowly. Andalusia strong in new builds and climbing steadily in Resales. The first quarter of 2016 is still the highest average figure for sales, notwithstanding, the Real estate Market is moving again. If you are considering buying a property, now is the time to commit, before prices rise even higher. Those of you thinking about selling, the average time for sale of a property is approximately 9 months – beat the trends and list with us!

HPI – SECOND QUARTER 2017

Housing prices are up two points over the previous quarter.

Annual evolution of housing prices

The annual variation of the Housing Price Index (IPV) in the second quarter of 2017 increased by three tenths and stands at 5.6%.
By type of housing, the annual rate of new housing prices is 4.4%, more than one point lower than the previous quarter, with consistent growth in property sales for Andalusia.
Meanwhile, the annual variation of Resale housing rose by half a point, to 5.8%.

Quarterly evolution of housing prices

The quarterly variation of the general HPI in the second quarter of 2017 is 2.0%.
By type of housing, new housing prices rose 2.6% between the first and second quarters of 2017. Whilst, ‘second hand’ or ‘resale’ home prices rose 1.9%.

Results by Autonomous Community. Annual variation rates

A total of eight autonomous communities increased their annual rate in the second quarter of 2017. The highest increases are recorded in the Balearic Islands, the Basque Country and Cantabria, with increases of 1.9, 1.2 and 1.1 points, respectively.
Andalusia is up 0.3 points over the last quarter.
In contrast, the greatest decreases of the annual variation occur in Aragon, Principality of Asturias and Castile and Leon, with declines of 2.1, 1.7 and 1.0 points, respectively.

Annual HPI Rates Second Quarter 2017

Results by Autonomous Community. Quarterly variation rates

Most of the Autonomous Communities have positive quarterly rates in the second quarter of 2017.
Community of Madrid, Cantabria, Basque Country and Catalonia recorded the highest increases (of 3.4%, 3.2%, 2.9% and 2.9%, respectively).
Andalusia once more posted a strong quarterly variation rate of 1.6%
For their part, Principado de Asturias (-1.0%) and Extremadura (-0.2%) are the only communities with negative quarterly variations.

These statistics are taken direct from INE’s Press Release dated 8 Sept 2017.

If you are thinking of re-entering the property market in Andalusia as either a Buyer or Seller and are in the provinces of Cadiz or Malaga, get in touch to see how we can help.

Get in Touch!

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