The Latest Spanish Property News from Kyero.com

YOUNG people in Spain are planning a mass sit-down to complain about property prices. Fixed for 5pm on Sunday, May 14, the demonstration will affect every town in the country.

As one young internet agitator put it: “All we want is a home fit to live in, where we can start a family, without having to hand over half our income for the privilege.” No particular interest group or political movement has initiated this protest. It appears to be a genuine groundswell of youthful opinion, galvanised through the modern electronic media.

And well might Spanish youngsters complain. The numbers make depressing reading. A study carried out by ‘Creditaria’, a major accountancy firm, has shown that the price of a tiny ‘starter flat’ is the equivalent of 9.3 years’ worth of salary for the average young couple.

story from euro weekly news.

A group of 26 associations of all types, including local businessmen, have said they will form their own private prosecution in the court cases which result from the ongoing ‘Operacion Malaya’ corruption case in the town.

Under the name ‘Plataforma por el Futuro’ they met for the first time on Monday afternoon, saying they would demand penal charges be brought and that the guilty are fully investigated and charged.

The campaign has the services of top lawyer Luis Bertelli, and part of their action will be to demand compensation payments for what has happened.

They cite a report from the Tribunal de Cuentas which they say shows the extent of the theft from the public funds, and the carrying out of literally hundreds of crimes.

Story from typically Spanish

Marbella’s 16 “caretakers” move in to Town Hall today
Hector Barbotta

As from today Marbella Town Hall is in the hands of the administrating committee who will run the council until next year’s municipal elections. On Wednesday the four parties represented on the Provincial Government (Diputacion) - the PSOE (Socialist party), the PP (Partido Popular), the IU (left wing Izquierda Unida) and the PA (Partido Andalucista) - announced the names of the members of the interim administration.

The final result is a group of 16, made up by lawyers, civil servants and other professionals and members of the local community. Lawyer Diego Martin Reyes, a member of the PSOE, has been named as President. At his 53 years of age, he is currently a legal advisor to Acosol, the water company for the Western Costa del Sol Mancomunidad de Municipios, a role he claims has given him a “profound knowledge of Marbella”. His naming has not pleased the PP, as he is a member of the PSOE and was not born in Marbella. He will be moving to the town shortly.

Local residents’ associations recently demanded to have their say in the future running of the local authority. Their wishes have been granted in the form of the naming of Ana Isabel Mas, currently President of the Federation of Marbella Residents’ Associations, as a committee member.

The committee will be formally set up at a meeting this morning. Meanwhile the acting mayor, Tomas Renones, held the last council meeting of the “GIL era” on Wednesday.

Full story from SUR in English

Questions on capital gains tax.

“I have heard that Spain is planning big changes in the capital gains tax for when people sell their property next year. If this is true, can you tell me what the changes will be?”

Yes, it is true. The good news is that non-resident capital gains tax will be slashed from 35 per cent to 18 per cent as of January 1, 2007. Remember this is the proposed budget which has not yet been enacted into law, but no observer expects this to change.

The bad news comes for long-term owners, both resident and non-resident, who think they are free of capital gains tax if they purchased before December 31, 1986. Until January 20 of this year, it was true. These long-term owners applied a series of reductions and had no capital gains tax.

The reductions have now been annulled and the owners must pay. This measure has already been put into force. Even worse is that the cut in the tax rate will not come until January 1, so a non-resident long-term owner who wants to sell before then still faces the tax of 35 per cent plus the loss of his reductions.

Resident property owners have also lost their reduction factor and the resident capital gains tax will rise to the same 18 per cent from its present 15 per cent.

These new regulations came about because of charges from the European Union that Spain discriminated between resident and non-resident property sellers. Now they will both pay at the same rate. Sellers can still apply an inflation correction factor that helps to reduce their profit, but this factor will never free them of tax.

I have read that Spain has introduced rules to crack down on the practice of paying for property in cash in order to evade tax. I have heard that the ruling could be retrospective and the government is seeking to claim back tax on the cash portion of purchases?

There seems to be some confusion here. Yes, Spain tightens up its fiscal controls with new measures every year, aimed at money laundering and payment in undeclared cash. And, yes, it has been a frequent practice to under declare the real value of property sales, with the seller receiving a portion of the payment in cash under the table.

This is dying back as more sophisticated buyers today realise an under-declaration of their purchase today exposes them to much higher capital gains tax when they sell tomorrow, thus working against them in the long run. There is no new regulation on the matter, but the Spanish tax agency can reject the valuation put on the contract by the seller and buyer if they consider it too low. They can then bill the parties for the tax due on the difference. Buyers have been dismayed to receive these tax bills perhaps six months later.

by David Searl - author of ‘You and the law in Spain’.

Agents Fadesa and Grupo Pinar, amongst others, implicated in Marbella

El confidencial.com reported that in the case of Marbella a number of the big national property agents are being denounced for promoting as many as 82 works for irregularities on as many as 30,000 dwellings within the municipality of Malaga.

Fadesa, Grupo Pinar, Inmobiliaria Osuna, Avila Rojas or Apex are among the tens of companies which have allegedly continued work in areas paralysed by the High Court of Justice in Andalusia (TSJA). In the case of Fadesa, the Galician property agent promoted 120 homes in the urbanisation, Guadalmina Baja, works that had been paralysed by the TSJA as far back as October 2003.

During 2005 Grupo Pinar developed more than 200 homes in Xarblanca, when works had been paralysed there by the TSJA back in November 2004. In many cases, promotions had appeared in green zones, within areas destined for urban use or land zoned for commercial use. However, the companies affected reject any responsibility. The property agents, Fuentes de Iberdola pointed out that Apex 2000 effectively had 4 plots at their disposal in Elviria (Marbella) however “nothing is paralysed there because nothing was ever started, once they had been warned about having their licenses suspended.” For its own part, Fadesa defended its promotion in Marbella, commenting that it had all the required permits in order and claimed that the TSJA had never ordered the paralisation of works and therefore the protest made by Ecologists in Action would never succeed.

Is it the right moment to buy or better to wait?

El Mundo ran the story that the winds of deceleration were blowing in the property sector, but not all the experts were convinced that things would lead to a slowing in home prices. Guillem Diaz, in charge of the housing section of the consultancy D’Aleph remarked that he wouldn’t dare to advise home buyers to wait because “it’s not clear that the anticipated drop in prices will happen” and instead “it seems that prices will continue to rise faster than salaries.” Similarly, he warned future buyers who had decided to focus on saving until there was a drop in prices that “there is a risk with this option that prices will continue to rise.” He concluded that “at the moment we just can’t recommend waiting to buy until prices possibly drop.”

Home owners in Malaga begin to lower prices rather than delay sales

Sur reported that the slowing down that is happening within the property sector in Malaga is returning the market to sensible levels after the exorbitant levels experienced. Many owners who previously had a sales board when prices were rising dramatically, are now finding they have to change their initial preconceptions to the latest market conditions.

The National Director of MC property agents, Juan Felipe Munoz, confirms that many owners feel forced to lower their asking price below valuations, simply to stand a chance of encountering a buyer. The experts confirm that one of the principal causes for this new situation is that most of the demand for property has been satisfied in this area, whilst another explanation is that prices are still out of kilter with the market due to the high levels reached during the last few years.

UKTV is producing a brand-new series called Fly to Buy. This summer they will film couples going through the process of finding and buying property abroad. As long as you have an idea of the area where you want to purchase, Fly to Buy will take you to that area, do the groundwork for you and show you 4 properties which fit your requirements. Interested? For more details, contact Emma at emma.blackmore@rdfmedia.com or call +44 207 751 7371.

A bill to catch foreigners avoiding tax went before the Spanish parliament early this month and even before new legislation comes in, the crackdown has begun.

A large number of Britons who let properties have not been telling the Spanish taxman and, after years of turning a blind eye, the authorities are now on the hunt for extra revenue from the half a million Brits with homes in Spain.

Britons who own Spanish homes but are non resident in the country should pay two sets of annual taxes. There is a wealth tax, based on a property’s value, and levied on a sliding scale, generally in tranches of €170 and starting at 0.2%. In addition, there is a notional annual income tax that should be paid even if a property is not rented out, which is based on a percentage of rateable value.

Frank Porral, a Madrid tax specialist for Rastrollo Porral Abogados, says most areas have set the level of this tax at 1.1% of the rateable value, with the taxpayer charged 25% of that figure.

If a property is rented out, a further tax of 25% on actual income should be paid, which can be offset against the notional tax, with income declared within 30 days of the rental period.

While this may sound like an impenetrable maze of confusion, Mr Porral says in fact there is one simple form that covers all the taxes, but unfortunately most Britons are unaware of its existence and it only comes in Spanish.

He said: “The problem is the majority of people rent out properties through third parties and don’t realise that their information about rental income can end up in the hands of the tax authorities.

“If the agent then doesn’t inform them, then they can expect a letter from the taxman telling them to pay up and imposing a penalty.

“The Spanish authorities should help people though and print the simple form in different languages. People could even file it on the internet, if only they could understand what they were filling in.”

As part of the tax drive the Spanish authorities have started targeting letting agents and firms that sell apartments off plan claiming guaranteed rental income.

British residents renting out properties in Spain should also be paying tax on income to the British taxman and with the Spanish crackdown starting, there is also the possibility dodgers may be reported to HM Revenue & Customs.

story from In2perspective

Spain has regained its crown as the top European summer sun destination for British tourists. The country has overtaken former hotspots like Turkey and Greece, according to online travel agency Holidays-Direct. “On assessing confirmed bookings we see Spain is the destination of choice, ahead of other countries,” said Paul Reeve of Holidays-Direct.

“The phrases that visitors to our site are searching for also point to Spain being the top country as it features in a huge number of searches.

“When people search for Spain it is usually alongside other phrases, such as “sun deal” or “bargain holiday”.

“Spain is definitely established in the consumers’ minds as a value for money destination for families where you’re guaranteed to get good weather.”

According to the travel company, Spanish destinations are popular because the country is supported by airports in all regions of the UK.

Paul Reeve, Holidays-Direct: “Spain is definitely established in the consumers’ minds as a value for money destination for families where you’re guaranteed to get good weather.”

“The fact that holidaymakers can get to Spain from over a dozen UK airports is another big factor, especially for people with young children as it helps keep travelling time to a minimum,” Mr Reeve said.

Another reason for the high number of bookings is the buoyant Spanish property market and the fact that many UK residents own homes in Spain.

“This naturally leads to more holidays being booked. People are flying to their holiday homes more frequently, instead of holidaying in different countries and they invite friends and family. It has a snowball effect,” Mr Reeve added.

“The Spanish authorities imposed regulations to prohibit over development in the Eighties and this has broadened the appeal for a wider market.”

The current international situation is thought to be the reason for Turkey’s relative slow down compared to Spain.

The Foreign office advises that Turkey is generally safe to visit, but as always recommends checking the latest updates before departure.

Story from 999 today travel news

It’s little wonder the FSA is concerned about the mis selling of equity release, and in particular home reversions.

Publicity put out by some of those involved in this market is clearly designed to appeal to elderly homeowners’ fantasies, if not greed.

Economic Lifestyle claims close to a million retired people ‘are currently considering escaping the humdrum of British life to live abroad’. It says around 328,000 retired people would look to release over £30,000 of equity from their homes if they were to move abroad.

Economic Lifestyle says the average value of a British owned property in Spain and France is £109,500, ‘and an elderly couple with a £500,000 house could raise as much as £220,000 through an equity release scheme’.

‘The development of the equity release market, which saw retired homeowners release £1.1 billion from their homes during 2005, will fuel the number of retired homeowners buying properties abroad,’ says Mark Neal, managing director of Economic Lifestyle.

It promotes a number of plans for the elderly including home reversions and equity release. ‘In addition to this, Economic Lifestyle offers retired homeowners a number of options for releasing some of the equity in their homes or to live in a property that they would not normally be able to afford.’ This sounds suspiciously like encouraging the elderly to live beyond their means.

The FSA is consulting on the regulation of home reversions and home purchase plans. Norwich Union, the largest provider of equity release products, has also been campaigning to get home reversion schemes regulated.

Story from citywire.co.uk

Immigrants are emerging as a powerful new force in the Spanish economy, boosting demand for new housing, which in turn is sustaining the country’s long construction boom, according to analyst reports.

“There is no risk of a property crash in Spain in the short or medium term thanks to new demand generated by immigrants,” says Angel Berges, a partner at Analistas Financieros Internacionales, a Madrid consultancy. Mr Berges estimates immigrants will buy some 170,000 homes in Spain this year, almost one quarter of the total demand for new houses.

Spain’s rising divorce rate is another factor sustaining the housing market, with more than one in five marriages now ending in separation or divorce. According to estate agents, the divorce rate is generating demand for about 140,000 new homes a year, because as a rule, judges award the family residence to the wife and children in divorce settlements.

“Property developers are now actively targeting divorcees by building more studios and one bedroom flats,” says Fernando Encinar, of Idealista.com, a Spanish real estate portal. But the biggest group sustaining the market, Mr Encinar says, are immigrants.

Spain has experienced a huge influx of immigrants in the past six years, as the country absorbed one out of every three new arrivals in the European Union. Since 2000, Spain’s immigrant community has increased four fold to more than 4m, or 9 per cent of the total population.

An amnesty last year awarded job permits and residence papers to almost 700,000 illegal migrants. According to Fincas Corral, an estate agent, only 16 per cent of immigrants are owner-occupiers, which means that the potential for home ownership among the immigrant population remains largely untapped.

“We expect an important increase in the demand for home ownership among immigrants over the next five years,” says Mr Berges.

The extended life of Spain’s property boom has encouraged analysts to predict strong economic growth for this year and the next. Economists at the Instituto Flores de Lemus of the Carlos III University in Madrid on Tuesday forecast economic growth at 3.1 per cent for 2006 and 3.2 per cent in 2007, well above the EU average. The institute also highlighted the role of immigrants in moderating wage inflation and sustaining domestic demand.

Yesterday, the Institute finally urged the government to adopt urgent measures to improve Spanish productivity, such as labour training programmes and more investment in research and development. It said collective bargaining practices should be dismantled. But the institute also warned that Spain’s lop sided labour market, with one third of the workforce on short term contracts, almost three times the EU average, was also a barrier to increasing labour productivity, as employers had few incentives to train temporary workers.

Full story from money central

House price growth has remained strong in Spain and investors continue to flock to the country with the intention of making considerable returns, both through rental income and capital gains.

As reported by the Spain Herald this week, average house prices are now higher than €6,000 (£4,146) per square metre in nine cities in the country, reflecting the rate of house price inflation nationwide.

Referring to figures from the Tecnitasa property valuation firm, the publication indicates that Sevilla, Oviedo and Zaragoza have now joined the elite list that already includes Madrid, Barcelona, San Sebastian, Bilbao, Marbella and Santander.

Given the number of exciting developments taking place in the area, it is encouraging to know that Murcia is one of the cheapest cities in the country , with properties available at €600 per square metre.

Many property investors are hugely enthusiastic about growth in Murcia, with nearby La Manga already drawing in huge interest from golfing groups and families. Property prices are high around La Manga and rentals are also impressive and many predict the same trends for Murcia.

According to Typically Spanish, there is also the Corvera International Airport to look forward to, which will be operational from 2009. It’s predicted that the airport will be used by one and a half million passengers during its first year of operation and that numbers will triple in the short to mid term.

New airports inevitably cause a domino effect in terms of investment, as visitors and business contacts invest in the surrounding areas. The likelihood is an increased number of tourists which in turn will boost rental demand and the overall value of properties in the area.

Set on the glorious Costa Calida and just two hours from Madrid, Murcia boasts stunning landscapes and is also particularly known for the quality of the local produce. The golf courses around Murcia remain fairly cheap, as are the properties that have been built around them.

With experts expecting the area to boom in the coming years, investors are already snapping up properties and the new routes and airport will only add to this high level of attention.

Search for property in Murcia

Story from Assetz news

The Association of British Travel Agents (ABTA) estimates a record 2.3 million British holidaymakers set to leave the country in a scramble for the sun.

Relentlessly cold temperatures here in the UK and a late Easter has fuelled demand for warmer destinations and also means that many of the Mediterranean resorts will be open, even though the summer season has not yet started.

Spain is the outright favourite country for this weekend, with the Canary Islands and Tenerife in particular, the most popular. The weather there promises to be sensational, with temperatures firmly remaining in the 20s. Mallorca is also very popular, followed by the Costas particularly del Sol and Blanca. Many people also head over to Spain to visit their holiday homes.

The Caribbean is also great in April and Barbados, Cuba and the Dominican Republic are also in demand this Easter. But before the European beach season really gets into full swing, now is also a peak time for city breaks and the top five this year will be Paris, Amsterdam, Barcelona, Rome and Venice.

Martin Wellings, ABTA President said: “Although Easter is always a busy time of year for the travel industry, there seems to be a real pent up demand this year, that we’ve been able to fulfil. It promises to be a very busy weekend.”

Last year over 2.2 million people flew abroad for Easter.

The scramble begins…

Over one million passengers alone were set to leave the country through BAA airports this Easter, while from the South East just under half a million leaving from Heathrow, approximately 262,000 leaving from Gatwick, 172,350 from Stansted and 60,000 departing from Luton. Manchester airport expected 220,000 passengers.

Other regional airports and ferry terminals were also set to be extremely busy over the weekend, with at least another 80,000 leaving by Eurostar.

Many more also make the most of the weekend by venturing closer to home with UK beach resorts and countryside being busy. ABTA Members selling UK holidays have reported that bookings have been up substantially over the last few weeks.

According to VisitBritain, 23% of the UK adult population plan a trip inclusive of Easter, representing a 2% increase on last year. More than twice as many (60%) plan an overnight trip in England during this period, compared to going abroad (27%).


Story from the move channel

Both the Socialist Party and the left wing coalition I.U. have suggested that the Attorney General in Spain be given new powers to chase town planning crimes, and they consider that what is needed in Spain is the creation of a new prosecutor to work specifically in the real estate field. The idea has already obtained the support of the Partido Popular and now looks as if it will be a reality in the near future.

Incredibly the 95,000 real estate agents operating in Spain are not controlled by any law, enforced to comply with any guidelines, or even have to have any specific qualification in order to set up shop and the government wants this to change.

Pressure has been applied on the government for some time from the 8,000 real estate agents who are registered and qualified They are demanding three things - firstly that a public register of agents be set up, secondly - that such agents also be forced to take out insurance for civil responsibility, and thirdly that estate agents have to show they have no previous criminal record.

This last year has seen a record number of complaints to consumers groups in the real estate sector, - The FUCI consumers organisation alone received more than 10,000 complaints last year, and housing minister, Maria Antonia Trujillo, is now reported to be working on measures to bring a far greater transparency to the real estate market place, and give greater guarantees to buyers. The minister promised action to the qualified estate agents as long as a year ago. Spain is the only country in Europe with no controls on estate agents operating here.

Meanwhile despite reports of a slow down in real estate sales across the country, other numbers show yet another record number of new homes being constructed. The latest data, for January this year, shows that 59,500 new homes were started - the highest ever number for a January.

We can expect the Housing Minister to act nationally soon, while in Cataluna the regional Generalitat has already established an official registry of agents, established it says to help in the fight against fraud and to give guarantees to those who buy a home.

Story from Typically Spanish News

Half of all mortages are for more than 100% of the property price El Periodico de Catalunya reported that nearly half of all property buyers in Spain who request a loan, need to finance more than 100% of the value of the property, according to the fifth annual study of National Property Agents, undertaken in 2005. In 2002, when the last study was undertaken, only 28% of all buyers needed to borrow more than 100% of the value of the property. On average, financing is calculated at about 92.9% of the property value, clearly higher than the figure cited in the last report, at 87.3%. The Bank of Spain recommends that lending institutions restrict their mortgages to only 80% of the property value, in order to avoid placing these families in a position of excessive debt if interest rates rise.

Spanish Housing Minister insists on Property Market regulation
According to El Pais, Maria Antonia Trujillo stated ‘In Spain it’s more difficult to sell a lettuce than a home.’ Hence her push to introduce stronger regulations for those buying and selling property, who currently are not subject to sufficient controls which would limit the abuse which takes place in the market (for example, charging excessive commission). Despite there now being in existence some 8,000 registered and qualified professionals, in 2000 the PP in power in Government then decided to deregulate the market. Subsequently, there has been no need for a qualification or title to enable someone to deal in property. Amongst the measures announced by the Minister, agents will be required to obtain an official title in order to practise in the industry and there will also be a policing of fraudulent charges to clients. So far there is no date in place for these changes and Trujillo commented that they will probably be introduced in the long term.

The ECB delays interest rate increases until June
Expansion.com reported that the European Central Bank(ECB) has delayed the next interest rate hikes until June. Likely to be 2.75%, the intention is to correct the market, which awaited the tightening of lending during April. Jean Claude Trichet, President of the ECB, reassured that anticipated interest rate movements in May ‘does not reflect the sentiment of the executive council of the ECB’, a statement that just about eliminates the chance of changes next month. Given the lack of haste that the BCE has expressed in changing the rate, it could mean that by the end of the year interest rates will stand at 3% instead of the 3.25% anticipated by the market. Nevertheless, Trichet insisted that interest rates will continue to rise now that there is a high risk of inflation and that for the first time in a number of years, economic growth here could be challenged.

Following a partner, being with family and having a better quality of life are the main factors that motivate Europeans to move to another country, new research shows. Of the 2% of European citizens who live in a country other than their own, only a quarter move because of employment. 1 in 2 has previously lived abroad, often with support from European programmes such as ERASMUS. The study noticed differences in motivating factors and profiles of those moving from one country to another.

Spain is a primary destination for the older generation seeking a better quality of life, whereas the UK was a target for younger people seeking non-manual work. The profile of the average migrant within the EU is middle class, skilled and well educated, who generally has non manual work in the country of destination, and has a positive attitude to the EU.

The PIONEUR project, funded with just under 1m Euros from the EU’s Research Framework Programme, studied the profile and attitudes of 5000 EU nationals resident in France, Germany, Italy, Spain and the UK.

About 2% of European citizens currently live in an EU country other than their own. The study shows that 30% move because of their partner or family, 24% because they are searching for a better quality of life, and 25% for employment. The main pull factor that brings people to France and Spain is quality of life. In Italy it is a partner or family and people tend to move to Germany and UK to work and study. 1 in 2 of these migrants has lived abroad before and for the younger amongst them, this was often through their participation in programmes such as ERASMUS.

Those who live in another EU country are more politically active than the general population and are more left leaning in their politics. They are interested in the politics of their host country, particularly long term residents, and are slightly more likely to participate in European elections. Spanish migrants are the most likely to vote, Italians are the most critical about the politics of their home country and the British the most likely to take part in a public demonstration or contact their political representatives.

The PIONEUR project was co-ordinated by the University of Florence, and included partners from Spain, Germany, France and the UK. Its findings support similar studies about the profile of the average European living in a country other than his own, and the reasons for moving.

Full story from finfacts.com

Barcelona is one of the world’s most dynamic cities, with a rich blend of cultural delights and 24 hour hedonism. It’s situated between the Costa Brava and the Costa Daurada, which is a rugged and beautiful region, located on Spain’s north eastern tip. The Catalan capital, Barcelona resides on a coastal plain that stretches away into the hills beyond, and blesses the city with breathtaking views.

Journey up the coast and you’ll discover long, sandy beaches and rugged clifftops, while inland there are mountains, plains, marshlands and forests. As well as offering boisterous beach resorts that cater to the bucket and spade brigade, the coastal area is also sought after for its secluded coves and villages. Most notably, of course, the region is home to the cosmopolitan city of Barcelona, famed for its cultural heritage, as well as its party atmosphere.

The city displays a mix of traditional and contemporary architecture, the modernistic Sagrada Familia, resting happily alongside Barcelona’s gothic cathedral. Down by Port Olympic, you’ll find an amazing city beach, La Barceloneta, while on the Rambla you can partake of some tasty tapas while sipping Cava and watching the rest of the world pass you by.

View properties for sale in Barcelona

Why Barcelona?

The Costa Brava may not offer the year round sunshine of the southern Costas, but life here is quieter, and the Catalonians would say it’s more refined. Should you choose, you can avoid the overcrowding and enjoy the space and solitude of the quieter coastal villages around Barcelona. There’s also plenty of property to be had in the city centre too. There are many reasons why Barcelona would make an exciting home, it’s packed with fabulous architecture and offers a great nightlife, while the cost of living is considerably lower than the UK. The people are friendly, the food and wine mouthwatering, and the mountains are only 30 minutes away. In fact, the Catalans are very proud of the region’s mar i muntanya (sea and mountains).


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The city is also regarded as a shopping capital, and there are numerous chic boutiques and shopping centres. Barcelona is also one of the few European cities that can rival the Italians in the culture stakes. It’s home to some of the finest galleries and museums in the world, with works from artists such as Gaudi, Miro, Dali and Tapies, to name but a few.

Other noteworthy attractions are Parc Guell, Gaudi’s surreal gardens; the Joan Miro Foundation; Montserrat monastery; the Barri Gotic (Gothic Quarter); Montjuic hill, which can be reached via cable car; the Museu Picasso and Gaudi’s Casa Mila, with its undulating facade and sculptured chimneys.

Ease of accessibility is another plus point, and Barcelona offers excellent access and infrastructure routes. A new high speed train link, which runs from the south of France through to Girona and Barcelona, is currently being built, and the city is accessible via three airports (Barcelona, Girona and Reus), which are serviced by numerous budget airlines.

The food and wine are also fabulous; eating out is a serious business. Choose from Michelin starred restaurants or indulge amongst the delightful tapas bars tucked away in one of the many cobbled side streets - either is sure to delight your taste buds. Freshly caught fish and seafood are central to the diet, and fresh vegetables, fruit, garlic and olive oils feature extensively. In terms of wines, Catalonia produces some superb tipples, most notably Cava, produced in Penedes, while the regions of Priorato and Alella export some rich reds.

Where to buy

Prices and properties vary dramatically throughout Barcelona, depending on where and what you buy. The most expensive areas are to the north and west of the city, where villas and townhouses can be found. In the city centre, you’ll generally only find apartments for sale, with loft conversions becoming increasingly popular.

Areas experiencing the most demand from foreign buyers are the Ciutat Vella (Old Town) and L’Eixample. Ciutat Vella dates back to medieval times, and takes in the areas of Barri Gotico, El Bourne and El Raval. Most apartments here are unique and the area enjoys a fabulous ambience, with bars and restaurants on every corner and easy access to the beach and Port Vell. It’s still possible to find a good renovation project in the Old Town that offers good rates of appreciation, but the starting price is considerably higher than it was a few years ago.

L’Eixample is one of Barcelona’s newest districts. Literally meaning ‘extension’ in Catalan, the city expanded into this district during the 19th century. A network of smart streets and squares, this lively area is an interesting mix of modernist and traditional. Consisting mostly of apartment blocks, the start of the district is marked by the Placa de Catalunya, making this a central and highly popular area. With an amazing choice of shops and restaurants, this is a great place to live, think Kensington or Knightsbridge.

Outside of Barcelona, the Maresme coast stretches north of Barcelona and consists mostly of villas. The Costa de Maresme is lined with long beaches and enjoys a mild, temperate climate. Extremely expensive, the average property starts at €123,000 and there are many properties on sale for upwards of €1,000,000.

The Property Market

Property prices in Barcelona are among the highest in Spain, and since the Olympics in 1992, they’ve increased by between 50 and 75 per cent. The last two years have seen price hikes of 25 to 30 per cent and, since 2005, resale properties have appreciated by 15 per cent. The fifth most popular city in the world with foreign buyers, there’s a huge variation in prices. However, you can buy a loft conversion for around €150,000, which is one of the most popular types of property here. Barcelona represents an excellent investment, the lack of space for development combined with the high demand means that properties will always sell, and at a good price.

The Lettings Market

The lettings market in Barcelona is excellent, and it’s the only location in the Costa Brava where you can make a year round return on your investment, especially if you can afford to buy close to the Rambla. The yield for short term lets is high, currently five per cent per annum and there’s no shortage of people seeking a holiday rental.

View Holiday lets in Barcelona

In terms of location, your buy-to-let property search should be focused around the Old Town, L’Eixample or the new developments at Diagonal Mar, where you can buy a newly built apartment with pool access for €500,000. A quality two bedroom apartment will generate €1,000 a week, but whatever you decide to buy, you need to ensure that you can compete with the local hotels.

As well as a healthy short term market, long term tenants are also easy to secure. With plenty of business executives and students looking for a six month let (although the yields aren’t as high as with short term lets), they still generate a good income and are more secure. You can expect to earn an average of €1,500 a month for a two bedroom apartment.

Living There

A large number of northern Europeans relocate to Barcelona every year, and being an international city, it offers excellent amenities for expats. The local residents speak good English, there are a number of English speaking doctors and dentists, and a wide choice of expat societies and English cinemas. Foreign produce is available from the bigger stores, as are English books and newspapers, and there’s no shortage of language and international schools. There are many hospitals and standards of care in the region are among the best in Spain.

The expat society here is healthy, with nine per cent of all visitors coming from Britain to the Costa Brava. However, there’s a very cosmopolitan mix: 36 per cent of visitors come from France, 18 per cent from Germany, and two million Catalans choose to stay in the region each summer. The city is also flooded with Irish, Dutch, Swedish and South Americans, with many choosing to buy here.

Regionally, the average buyer in the Costa Brava tends to be aged between 30 and 55, many have children, and they’re more likely to be looking for second homes than to relocate or retire. Few people are buying to invest unless they’re looking at Barcelona, or possibly Girona. The local language of Catalan is harder to pick up than the more widely-spoken Castellano, but many languages are spoken here. It’s not strictly necessary to be able to speak Catalan although it will be essential if you want to stand any chance of working or integrating with the locals.

The 1992 Olympic Games means sporting and leisure facilities are first rate, with enough to satisfy even the most fervent sports fanatic. Water sports are particularly popular in Barcelona, as is football. The city is home to Barca and the Neu Camp and there are two golf courses on the outskirts of the city.

Despite all the pros of the city, you should be aware that traffic congestion and noise pollution are a problem, and the cost of property and parking can be high. Petty crime is also rife, although crime rates are dropping. Barcelona is a terrific place to live. With many different quarters, there’s something to whet and satisfy every appetite.

Ideal for families and singletons alike

Louise Davies was tired of the London rat race. Having lived there for eight years, she felt she needed a change. For the last four years she had been regularly visiting her friend who had already moved to Barcelona, and she was becoming increasingly attached to the city. ‘Barcelona is really vibrant and has lots of culture and history and then, of course, there are the restaurants, nightlife, shopping and the weather!’ Louise says. ‘I remember the exact moment when I decided to make the move. I was sat in the sunshine on my friend’s terrace having breakfast, and I just thought If I don’t do it now, I never will.’

Having made her decision, Louise found the next steps easy. She sold her flat in London, handed in her notice at work and booked her flights.

In February this year, Louise found a one bedroom apartment in a new development on the Diagonal Mar, located on the beach and only ten minutes from the city centre. Louise likes the modern feel of the apartment, and although it isn’t huge, it’s excellently located, only two minutes from the beach and within walking distance of a shopping centre, transport links and the city centre. Louise adds: ‘I also like the fact the development comes with a big communal zone and swimming pool, it’s perfect for the summer!’

Although Louise misses her family and close friends, and has found learning the language hard, she has no regrets about relocating. ‘Living in Barcelona has transformed my life,’ she says. ‘It’s the little things I notice and appreciate, like being able to cycle to work, and waking up in the morning to see the sun shining. I just love living here!’

Special thanks to Alexander Vaughan of Lucas Fox for his help with this article.

After announcing a ten month high in house price inflation for March last week, Nationwide released its first quarter report yesterday crediting the housing market with a ‘spring bounce’ right across the UK.

The report says house price growth accelerated in all regions of the UK in the first quarter of this year and house prices in London outpaced the UK for the first time in four years.

Commenting on the figures Fionnuala Earley, Nationwide’s group economist, said: “House price growth in the UK accelerated into the first quarter of 2006. Prices increased by 2.3% since Q4 2005, the fastest quarterly increase since Q3 2004. Compared with the first quarter of 2005 prices are 4.9% higher, making the price of a typical house in the UK £160,319.”

“The annual rate of house price growth increased in all of the UK regions in the first quarter, but the fastest growth was in Northern Ireland where prices rose by 17.6%, more than three and a half times faster than the UK average. The slowest growth was in the Northern region where prices increased by 0.5% to £123,483, only about a tenth of the UK rate.”

House prices in Northern Ireland pull away

Over the last year house prices in Northern Ireland increased by a remarkable 17.6%,- more than three and a half times the average rate of growth in the UK. The price of a typical house in the Province has now jumped above those in Scotland and the Northern region, and at £129,321 is no longer the cheapest place to buy in the in the UK.

And London shows signs of recovery

The London market continued to show some signs of recovery in the first quarter with increases in the rate of growth of price on both an annual and quarterly basis. Prices in the capital increased by 2.2% in the quarter and 5% over the year.

This is the first time in four years that the annual rate of growth of house prices in London was above the UK average. House price growth in the Outer South East and Outer Metropolitan regions also picked up in the first quarter, although growth here still remains below the UK average.

Full story from themovechannel

The Brits’ love of property and of property investment is legendary and it appears to be a passion that is growing stronger.Partly thanks to the number of property investment programmes on television, more and more couples are deciding to retire abroad, while thousands of others decide to invest in foreign property to make money through a mixture of capital growth and rental income.

According to a new survey, almost a third of Britons say they are interested in buying property abroad or indeed moving abroad, with Spain continuing to lead the way in Europe.

Based on research from Banco Halifax Hispania, the Spanish arm of Halifax, America and Australia are the favourite choices for potential property buyers, however, which is perhaps tied to family issues. Nonetheless, in third place on the overall list, Spain is clearly still exceptionally popular with property seekers, helped by the enviable climate and a track record for strong house price inflation.

With cheap flights running regularly between the UK and a number of Spanish airports, transportation is also much easier for those buying a property in Spain, whereas lengthy and expensive flights to America and Australia make it an awkward choice for people who would like to make trips back to see family and friends.

Despite rapid growth in the Spanish property market for a number of years, British investors still find they can get hold of stunning villas for extremely competitive prices, while the quality of life in Spain attracts a huge number of holiday home purchasers every year.

Rental yields in the likes of Murcia are also generally high, meaning investors are often tempted to buy a property there with the exclusive aim of renting it out for a number of years before potentially moving down to live.

While buying a foreign property is becoming much easier thanks to the guidance of experienced experts, Banco Halifax Hispania has stressed there are certain things that everybody much consider before making the decision.

Arranging a bank account is one such consideration, while deciding what will be done with any property in the UK is clearly another. It is also worth considering any inheritance tax rules that could be different from the UK, while registering residency status with both the Inland Revenue in the UK and the authorities abroad is also important.

Opportunities for foreign investment are now greater than ever and as demonstrated in this new research, it is also clear that Spanish property is as popular as ever.

Story from Assetz news

Last year it was reported that the Government had plans to buy land on the Mediterranean coast and on the archipelago of the Balearic and Canary Islands so as to prevent deterioration of the coastline through excessive development.
This pioneering effort by the Spanish Government to protect the coastline, was announced by the Environment Minister Cristina Narbona, claiming the need to “recover or preserve these environmentally valuable spaces.” The aim was twofold: to make more beaches available to the public; and to defend these ecologically important areas.

The publication, Expansion, reported that by the end of February, the very same Minister announced that her Department had identified almost 50 plots along the Spanish coast. These would be “reserved” to avoid any further speculation and protect the environment. The objective of the Government is ”to buy land adjacent to the beach so as to remove it from the urbanisation process” reassured the minister. In this respect, the Ministry is offering autonomous communities a chance to collaborate in stopping the destruction of the coastline. This initiative is also set to work in tandem with the national hydrological plan which insists that all new urbanisations submit a report about water requirements.

Spanish beach clean-up to attract new buyers

The Spanish government is spending 20 million euros this year buying up blots on the coastal landscape such as derelict buildings and plots to improve the scenery for millions of holidaymakers and new home buyers. According to the Environment Ministry 63 plots have been purchased and demolished this year so far as part of a programme to return the seashore to its natural state. Spain has a 10,000 kilometre coastline, so there’s a long way to go yet.

The scheme is called Operation Eyesore and is using ‘Law of the Coasts’ to tear down Beach bars, homes, walls, jetties etc. The law allows illegal or abandoned structures within a certain distance of the seaside to be demolished. The law was passed in the 1980s after officials realised that unrestricted building during the tourism boom had turned much of the coast into an eyesore and was souring many foreign visitors on holidaying in Spain. Jose Fernandez, the chief of the Ministry’s Coastal Department, said that a dozen of the demolitions had taken place in Almeria province, followed by nine in Murcia, six in Coruna, and five in Girona. The rest occurred around the rest of Spain, including the Balearic and Canary Islands.

Story from the move channel

Higher interest rates have failed to dampen Spaniards’ desire to become property owners, new figures reveal.

Mortgage loans rose 37.7 percent in the first month of the year, compared with January 2005.

The European Central Bank raised its interest rate for the first time in December, with the second rate hike announced last month.

The ECB current rate stands at 2.5 percent. The Bank of Spain criticised the ECB policy calling it “expensive”.

But the Spanish government is worrying more about how much Spaniards are getting themselves into debt with mortgages. This concern comes as interest rates are going up and other inflationary concerns are increasing.

The National Institute of Statistics said 98.3 percent of home loans are bought with a variable rate mortgage.

But the government wants families to move to mixed mortgages to reduce the effects of a possible downturn in the property boom and a dip in the Spanish economy which would plunge many into negative equity.

The average mortgage in January was EUR 145,000, up 16.8 percent from a year earlier.

Story from Expatica

In a world where property prices are moving rapidly, it’s vital to have some means of accessing and digesting those movements. Kyero.com’s Price Guides have been analysing the Spanish property market for the past 12 months.

There are more than 400 agents advertising over 60,000 properties on the database, with properties located throughout Spain. What Kyero.com has done is to organise these by province and then by town to show how prices of 1,2,3,4, and 5 bedroom properties compare against the national average.

Not only are you able to look at prices within specific provinces as against the national average, but because of this valuable historical data, you can actually follow the trend of these price movements over time.

What Kyero.com discovered when analysing the past 12 months, for instance, was that average prices in Barcelona had shifted from 530,000 Euros in October 2005 to the latest figures of 600,000 Euros in April 2006. Compare these against the national average and you’ll see how property prices in this amazing city outstrip the rest of Spain by more than 140 percent!

Download the Kyero.com Price Guides for more insight into the areas of Spain that interest you most.


Catalonia needs 359,000 more flats to fill demand
abc reported this week that a study has been undertaken by strategic consultants on behalf of the Catalonian Government’s Department of the Environment and Housing. It has been estimated that some 308,000 existing flats and 51,000 newly constructed flats will be necessary this year in order to satisfy the potential demand calculated at 410,000 units.

The study confirms the progressive rise of properties in the area and the accompanying challenge for Catalonians to pay off their homes. Whilst in 2000 the average spend of Catalans on their homes represented some 23.5% of total income, in 2002 this grew to 30.6% and by 2005 the average spend had risen to approximately 33.5% of income.


The property market won’t follow the technological market
The Economist covered a story about how the rapid increase in prices in the Spanish property market has caused many to fear that another bubble has been created in the prices of these assets. Nevertheless, it suggests that we need to keep in mind that it’s unlikely that property prices will collapse as did the financial markets when the bottom fell out of the technological companies. The price of properties tends to stabilize or slow down gradually once a crucial point is reached, rather than dropping dramatically.

I’m not sure what you call a double U turn, but Gordon Brown appears to have just performed one on SIPPs. As you may recall, when SIPPs, or Self Invested Personal Pensions, to give them their full name, were first announced as part of this month’s “A Day revolution”, the Chancellor got a lot of people excited by giving the impression that they would be able to use them to buy residential properties (both at home and abroad).

Many investors started making preparations to do just that, in some case, even putting down deposits on off plan developments, only to learn last December that it would not, after all, be possible. But no sooner has everyone digested that U turn, than Brown has demonstrated that he is for turning, yet again.

According to a report in todays Financial Times, the small print published by the Treasury ahead of April 6 said that people can include residential property in their SIPP provided they club together with other people.

The newspaper says property investment clubs are already gearing up for revived interest from individuals lookng to join syndicates that will be eligible for pension investment. Quite how many people will make use of the new rules remains to be seen.

The FT says at least 10 SIPPs investors will have to join forces to form a syndicate, which would have to own at least three properties worth a total of 1m GBP. On past experience, if too many investors start to pile in, the Treasury is almost certain to find a way of reining them in.

Story from the Times Online.