Spanish Rentals News from TheSaraService.com

1 Billion International Tourists predicted in 2012

Wed, 11 Jan 2012 23:00:00 GMT

Marbella and the Costa del Sol rentals had a great year in 2011 with cheap Spanish holiday lets, and cheap flights enticing more and more visitors for a taste of some Spanish sun. Find out how Spain's tourist industry is thriving despite the climate and how 2012 is set to be even better!

The World Tourism Organisation (WTO), reported that there were 980 million International tourists in 2011, that’s 4% more than 2011, suggesting that figures will reach one billion this year if figures continue to increase at the same level.

In spite of the financial difficulties faced by all sectors in 2011, Efe Rifai – the secretary general of the WTO, reported in a recent interview with Spanish News Agency that 2011 was ‘a good year’ for tourism.

The big increase although predicted by the WTO, was slightly below their initial forecast of 5% but with the new predictions for 2012 Rifai hopes to amalgamate the figures for the previous two years, with a climb of 3%, which would be a 7% increase over 2010.

Europe topped the growth charts overall, with Greece at 14%, Ireland at 13% Portugal at 10% and Spain increasing an already successful tourism industry by a massive 8%.

Due to these increased numbers, effects on tourist destinations global ranking will not be effected substantially and Spain will remain in 4th place. Possible movements if any, will be in tourist areas such as Brazil, Russia and China,

Revenue in Spanish tourism is clearly very valuable in terms of economic growth and job creation and this surge has been massively important for the country.

Interesting Information on Paying Community Fees

Thu, 27 Oct 2011 22:00:00 GMT

I found this article quite interesting and decided to share it with everyone as I believe it affects many owners on communities here. This article is taken from the Key to Mijas Costa magazine written by their solicitor:-

The Horizontal Property Law does not give full preference to community fees in comparison to other charges on the property. As a result of this regulation, for example, the bank can execute the property for the non-payment of a mortgage, and consequently, the credit in favour of the community will be cleared. (The community will only be able to get the fees of the year in which the sale or the auction was made, and the fees for the year before).

Courts are very busy and they may take a long time to finish with the proceedings.

In this situation, many owners ask the president or administrator to take stronger measures against owners in arrears. For example, many people now propose to cut off the water to their flats that is paid by the community; to prohibit them using the pool; to deny them a new key to get into the garage; to cut off their TV signal etc.

We would advise you that all these measures are illegal and may be considered a criminal offence, so the debtor is perfectly entitled to take the president or administrator to court and they could be sentenced to prison. The tenant would have the same rights on a property in arrears.

All the above was taken from the magazine mentioned and in addition Sorrel and I are attending a seminar next month with a law firm here and will ask plenty of questions and ascertain the accuracy of this and many other questions that our owners/clients may have.

Discussion on our most searched for development – Las Terrazas de Calamijas

Wed, 19 Oct 2011 22:00:00 GMT

Today we are going to be having a look at Las Terrazas de Calamijas in La Cala de Mijas, the Mijas Costa province on the Costa del Sol in Spain. The Las Terrazas urbanisation page is one of the strongest of our web pages on thesaraservice.com and we get more enquiries for rentals in La Cala in this development than any other so today we are going to take a look why.

Situated in an elevated position, Las Terrazas de Calamijas is on a hilltop overlooking the gorgeous village of La Cala de Mijas. As well as La Cala town you have views over the popular La Cala golf course, across the mountains, out to the Mediterranean sea and beyond - a view to suit everyone! Las Terrazas’s enviable location offers easy access to the heart of La Cala de Mijas town offering a strong village-like life with one of the best beaches on the coast, plenty of amenities, good public schools, fine dining, and quaint village boutiques yet it is still just 10 minutes away in either direction of the big bustling towns of Fuengirola and Marbella.

Thesaraservice rent many Spanish properties from Fuengirola to Puerto Banus, but we are constantly analysing what rents/sells well and why so that we can provide our clients with the best possible listings at the best possible prices. Las Terrazas de Calamijas in La Cala is one of our most popular developments and we can see this by measuring the popularity of an area or urbanisation based on the number of enquiries and/or hits we get on a particular web page.

So here are our current properties for rent in Las Terrazas de La Calamijas in the most sought after development in La Cala – As sought by you!!

Long Lets in Las Terrazas de Calamijas:

· 550 Euros – 2 Bedroom, 2.5 bathroom, duplex apartment to let long term in Las Terrazas de Calamijas: http://www.thesaraservice.com/rentals/duplex-la-cala-de-mijas-975.html

· 1050 Euros - Part Furnished 3 bed duplex penthouse for rent in Las Terrazas de Calamijas: http://www.thesaraservice.com/rentals/penthouse-la-cala-de-mijas-973.html

· 1050 Euros - Stylishly furnished 3 bed duplex penthouse long let in Las Terrazas: http://www.thesaraservice.com/rentals/duplex-penthouse-la-cala-de-mijas-297.html

Winter let in Las Terrazas de Calamijas:

· 2 bedroom duplex for just 500 Euros per month on 6-8 month contract: http://www.thesaraservice.com/rentals/duplex-la-cala-de-mijas-929.html

For Sale in Las Terrazas de Calamijas:

· Distressed resale property – 2 bedroom Duplex penthouse for ale in Las Terrazas de Calamijas just 155k! http://www.thesaraservice.com/rentals/duplex-la-cala-de-mijas-975.html

Coming soon in Las Terrazas de Calamijas:

· A two bedroom duplex with private garage spot and storeroom. Two terraces and separate kitchen. – Just 595 per month from November the 15th 2011.

It is because Las Terrazas de Calamijas is our most searched for development that we have sourced these fantastic listings to choose from. Take a look and if you can’t find anything you like then email us at enquiries@thesaraservice.com with your requirements and we will endeavour to find you what you are looking for!

If you are an owner looking to rent out your Las Terrazas property then email us at listings@thesaraservice.com or call Sorrel on 695082710 for a no obligation consultation.

For more information on property for sale in Las Terrazas de Clamijas please visit out details urbanisation description: http://www.thesaraservice.com/urbanisations/apartments-to-rent-in-las-terrazas-de-calamijas.html.

They don’t call it ‘The Fall’ for nothing!

Mon, 17 Oct 2011 22:00:00 GMT

They don’t call it ‘The Fall’ for nothing!! - Prices slashed for holiday rentals and 6-8 month winter lets.

The sun may still be shining on the Costa del Sol, but the mornings and evenings are definitely becoming cooler and it’s getting about time to get those duvets out again!! In just two weeks time the dreaded clocks go back and we will be officially moving out of Summer into our ‘off peak’ season. This is good news for anyone flying over for some winter sun with discounted flights and tonnes of fab holiday apartments to chose from at bargain prices.

It’s not only visitors to Spain that can benefit from our off peak season – after a busy summer many owners of holiday apartments or villas would welcome a winter let to see them through to next summer, allowing residents to take advantage of luxury properties on a 6-8 month contract for the same price per month as you would pay for a one week summer let.

For example: We have a stunning 3 bedroom villa in La Cala that takes 2650 per WEEK in the summer. This is available from today for 1850 a month for 6 months!!! http://www.thesaraservice.com/rentals/holiday/villa-la-cala-de-mijas-834.html

Also, Villa Artola would take 2000 per month for a 6 month winter let and they fetch up to 3000 a WEEK in June and July. This property is absolute luxury with heated swimming pool, games room, 4 luxury bedrooms and elegance and style throughout: http://www.thesaraservice.com/rentals/holiday/villa-cabopino-320.html - An amazing opportunity to live in complete style for 6 months for an unbeatable price!

Next we have a two bedroom duplex for winter let in Las Terrazas de Calamijas, freshly painted with new sofas and furnishings – available to rent on a six-eight month basis for just 500 euros per month!! Long term properties for rent here fetch 600 euros per month, and so this is a chance to rent a property for a shorter term for a much lesser price than your neighbours! http://www.thesaraservice.com/rentals/duplex-la-cala-de-mijas-929.html

With pages of top quality long and short term listings, whether it’s a weekend break, a six month winter let or a long term Spanish property you are looking for, we will do our best to find you the best property for the best price – please contact us at enquiries@thesaraservice.com TODAY to start your rental search!

False inspections Warning to residents on the Costa del Sol, Spain

Fri, 07 Oct 2011 22:00:00 GMT

False inspections Warning to residents on the Costa del Sol, Spain

Beware of Bogus workmen posing as ''safety inspectors'' for Gas, electricity and water supplies. They may be in uniform and even carry documentation but they are not on official duty - utility companies DO NOT offer this service.

Please read information warning below provided by a lawyer associate of Thesaraservice.com clients.

Dear owners,

We would like to warn you, via this communication, of the possible presence of people in the area, even correctly uniformed, knocking on people’s door pretending to carry out inspections of facilities such as gas, water, electricity, etc. We assume that they are trying to find out how vulnerable the homes are in order to commit robberies or demand even paying an amount for an “official” safety check.

Please be alert to any suspicion and prevent these individuals from accessing your homes, since in general the companies supplying services do not perform this type of home inspections.

******************************************

Estimados propietarios,

Advertirles a través de este comunicado de la posible presencia de personas, incluso correctamente uniformadas, que están llamando a los domicilios de la zona fingiendo practicar inspecciones de instalaciones como el gas, agua, electricidad, etc. Suponemos que intentan averiguar hasta qué punto son vulnerables estas viviendas para posteriormente cometer robos en las mismas, o solicitar incluso el pago de alguna cantidad tras realizar una comprobación “oficial”.

Rogamos estén en alerta ante cualquier sospecha y eviten que estos individuos accedan a sus viviendas, ya que en general las compañías suministradoras de servicios no realizan este tipo de inspecciones a domicilio.

Saludos cordiales,

Apartments for Sale

Wed, 21 Sep 2011 22:00:00 GMT

We have several listings which have not yet been posted on the website, but we do have details in the office. For example, there are some one bed apartments for sale in Nueva Andalucia and within a short walk of Centro Plaza, and Puerto Banus itself so with great rental potential and reduced to 128000 Euros. Also we have access to other properties in certain very popular urbanisations at very reduced prices.

If any of the above is of interest to you please do not hesitate to contact us directly with your requirements and we will be happy to help!!

Independent Bedsits available

Fri, 02 Sep 2011 22:00:00 GMT

A beautiful villa within a short walk of Puerto Banus has had space converted into the independent bedrooms with bathroom ensuite. The owner would like to rent these rooms for long term (6-11 months) to people she has something in common with - namely Bridge!! If you do know of anyone who this may be of interest to please contact us for more information. The card game of bridge is very popular with British people and although the owner of the property is a French lady who has been living in spain for many years, she also speaks English. The accomodation would include bed + half board (breakfast and lunch or dinner) and use of all the communal areas of the villa - huge private garden and swimming pool. The main bus stop is just outside the gates of the villa and the property is very secure, obvioulsy the owner would prefer a mature person/people and someone who was interested in playing bridge 2 or 3 times a week. Please contact us for more information or photos of the property.

Commercial and Land

Fri, 02 Sep 2011 22:00:00 GMT

Please get in touch with us if you are looking for land purchase or commercial property purchase please do get in touch with us, as we have been out listing and have so many it would take a considerable amount of time to put all of them on to the website. We will be happy to help and search for anything in particular you are interested in. We have already listed several interesting propositions for clients, and also some great plots of land which have licenses in place for development.

Duquesa

Thu, 01 Sep 2011 22:00:00 GMT

Some friends of mine were over on holiday staying at Los Granados just past Duquesa Port and very kindly invited me down for dinner and to stay over. The beauty of this area is that you can either fly into Gibraltar airport or Malaga airport, pick up your car and you are on your way! Los Granados is a beautiful development with lovely modern apartments, this is a gated community with security and video entrances, and right on the beach. There is a lovely garden with central swimming pool where there is a life guard in summer months, and then a gate leading through on to the beach. I had never realised that within 10 minutes you are in Puerto de la Duquesa with the many bars and restaurants here - but a further 10 minutes away on foot you have Sabanillas which is a very spanish area with shops and even more bars and restaurants. This is a great location for holiday makers and I will certainly be visiting the area to try and list some properties on behalf of the Sara Service, so please if you own a property in this area do get in touch with us as we would be happy to meet and discuss. There are many lovley urbanisations and now facilities in the area and am sure this would be a very popular choice for our clients.

Marbella - The Future

Mon, 22 Aug 2011 22:00:00 GMT

The cosmopolitan city of Marbella remains one of the mostluxurious cities in Spain, a place where every year the rich and famous fromaround the world meet to spend their holidays and enjoy all the delightsoffered by this amazing city. Nearby is the well-known town of Puerto Banus,with its designer shops and opulence - where you can find spectacular yachtsand mansions. Now though, in the not too distant future there will be anotherport that will compete: Port Al Thani inMarbella.

The contract to enlarge Marbella’s La Bajadilla marina hasbeen awarded to Nasir Bin Abdullah & Sons. This temporary consortium (UTE)is headed by Sheikh Abdullah Al-Thani, a member of the Qatari royal family andowner of Malaga FC. With a cost of €84 million this will be the first harbourdevelopment in Andalucía that is funded with both public and private money andam sure with this in mind will be luxury far beyond anything seen before.

The company, specifically formed to bid for the tender,includes Marbella Council as well as Puerto Deportivo Marbella S.A. As well asenlarging the marina over the next four years, the UTE will run theinstallation for 40 years. Not only will the revamped marina provide moreberths for private boats and yachts, but it makes possible Marbella’slong-cherished ambitions of providing anchorage for cruise ships which willmake this destination even more accessible and popular. The plan is to build a 200-metre pier in theouter part of the marina, connecting directly with the inner harbour, willallow liners to dock and put passengers ashore to spend time visiting thesights and shops of Marbella.

Of course, the luxury trade has not been overlooked and anexclusive pier inside the marina is to be set aside for 26 boats. With afurther 541 berths for private craft, La Bajadilla’s capacity will increasefrom the present 262 to 803. The marina will also provide more moorings forpleasure crafts, the project includes underground parking for 450 vehicles inaddition to 683 parking spaces above ground. In addition, the second phase will include a large commercial zone,luxury apartments, 5* hotel and many retail outlets and restaurants and bars.

With the Marbella Town Hall holding a 3% stake in theproject, the marina is obliged to be ‘emblematic’ in order to attract eliteclientele and is being billed as the most important urban development inMarbella’s history. This new marina is agreat initiative and it’s a correct decision to create a fresh new landmark forMarbella rather than to simply remodel near-neighbour Puerto Banús. With the AVE high speed rail link destined tostretch to Marbella in the not too distant future – Port Al Thani willundoubtedly change the face of Marbella.”

Late booking availability!!

Fri, 22 Jul 2011 22:00:00 GMT

This 3 bedroom townhouse, has 2 double rooms and one single - the master bedroom has bathroom ensuite and there is also a family bathroom. With downstairs WC, private garden with terrace and fully equipped. Available for long weekends, or on a weekly basis at very reasonable rates so please contact jane@thesaraservice.com for more information and prices.

Update

Wed, 13 Jul 2011 22:00:00 GMT

Please check our website for holiday listings in Los Naranjos de Marbella and surrounding area. We also have availability for holiday rental in the fantastic apartment with 3 bedroom just accross from the famous Nikki Beach in Elviria - book now for the end of season Red Party and save on taxis - will do weekend lets too!! La Maestranza is also a popular choice for holidays as you can easily walk from here to the saturday Banus Market, into the port itself and there are many amenities very close by. There is still some availability and contact us directly for special offers.

Also two new villa listings in Sotogrande for long term rental - both beautiful properties!! one of them is right on the beach - still some availability for holiday rental but will be available for long term from September.

Many properties become available for the winter months at reasonable rates if tenants are willing to then free the property up for the summer. Many stunning villas along the coast and also a variety of apartments. Escape the winter blues and join us on the mild and sunny Costa del Sol!!

If you have a property available for rental either short or long term, please contact us as we have many fantastic clients waiting and ready - all with references and looking for their ideal property.

Just re available for long term rent

Wed, 29 Jun 2011 22:00:00 GMT

This simply stunning ground floor apartment has just become re available, set in fabulous grounds, with swimming pool, childrens pool and streams throughout. There is a communal indoor pool, gymnasium, sauna, steam and jacuzzi, underground parking, and 24 hour security.
These apartments are minutes from Mistral Beach, walking distance to Puerto Banus, and are second to none in design and features.
They have domotic systems controlling lights and shutters, the master ensuite has jacuzzi bath and jet shower cubicle, the second bedroom has its own bathroom. The apartment is fully equipped and beautifully furnished, also being a ground floor apartment it has a large terrace with access to garden and pool. This apartment is available at 2200 a month for long term for short term stays please contact us directly.

Holiday Rentals

Thu, 23 Jun 2011 22:00:00 GMT

The urbanisation of Los Naranjos de Marbella is approximately 20 minutes walk to Puerto Banus and on the main bus route, so there is easy access from here all along the coast. Marbella centre and San Pedro de Alcanatara are 10 minutes away by car - there are also several championship golf courses within a short drive of Los Naranjos.
There is a Mercadona supermarket within the urbanisation, and also a club house with tennis/paddle courts, swimming pool, restaurant and bar - a great place for families with various activities taking place during the summer months.
We now have several properties for holiday rental available, all have communal pools available, so please see the website for more information and prices vary according to season. There are 3 bed townhouses which all have private garden, a duplex 2 bedroom penthouse very near to the supermarket and a ground floor 3 bedroom apartment.
If you would be interested in a quote on any of these please contact us with required dates and we will be happy to help. Contact Jane on either jane@thesaraservice.com or 0034 661 801 627

Bargain Property of the Day

Tue, 14 Jun 2011 22:00:00 GMT

This property is in Nueva Andalucia and very near to local bus route and you can walk from here to Puerto Banus within 20 minutes. The property is one of 20 houses built round the communal swimming pool, this house is very light and airy and there is a terrace to the rear of the property. There are 2 bedrooms upstairs and a further bedroom on the basement floor, with shower room and storage space. This property will not be available for long so please do contact us on enquiries@thesaraservice.com for more information.

Brits join the new craze and invest in PIIGS!

Wed, 18 May 2011 22:00:00 GMT

Brits join the new craze and invest in PIIGS!

And no it wasn’t a typo!! PIIGS as in Portugal, Italy ,Ireland and Spain have recently been ‘penned’ together (pardon the pun) under this amusing new acronym. These are the countries that have been hit the hardest by the recession, are rolling in debt and in the case of Portugal,Ireland and Greece have had to be handed the truffle (so to speak) and bailed out to keep them from the slaughter house...(Too far??)

Studies show that a massive 82% Britain’s looking to purchase property abroad are interested in cashing in on these particular European countries because they have been hit the hardest.

Currencies.co.uk who compiled the data, based their studies on customers who are looking to buy property abroad in the next 12 months. They conclude that of the PIIGS nations they have seen notable growth in the number of enquiries particularly in Spain who have seen the biggest increase and with exception of Greece.

So evidence suggests that those investors who have been sitting on their cash and waiting for the right time to invest should be looking to the PIIGS and with Spanish property prices at an all time low investors in buying property in Spain will be grunting all the way to the bank...(sorry I couldn’t help myself!)

By Sorrel Lewis

Source: Buy Association

Now is the Time to Buy Property in Spain for Investors

Fri, 15 Apr 2011 22:00:00 GMT

The Spanish property sales market has definitely taken a beating over the last few years as let’s face it, has the majority of the rest of the world, but if you haven’t got to rely on the bank’s lending and you are cash ready – then this is undoubtedly one of the best times there ever has been for buying a property in Spain. All over Spain there are fantastic bargain property deals to be had, particularly property for sale on the Costa del Sol, where the tourist economy is slowly picking up again and even with the low GBP exchange rate there are still many cheap Spanish property bargains to be found in and around the popular Andalucía region.

Due to the recent climate struggle, many of the Estate Agents (both large and small) have been forced to face facts and shut up shop, which is great news if you are looking to take advantage of the market and buy a property in Spain today, because you know you are not dealing with the cowboys, but the long standing agents who know what they are talking about and have had the good business sense and know-how to see it through the harder times. There are plenty of us left and we can provide and source a fantastic selection of Spanish property deals as well as an excellent service for buying property in Spain, based on knowledge and experience.

A good Estate Agent will make sure all of the necessary due diligence has been done when purchasing a property in Spain, but it is always recommended to get a good registered and independent lawyer, that speaks your language for your piece of mind and financial security.

Do you want to sell your Spanish property? Are you looking to buy a property in Spain? Email info@thesaraservice.com for some free impartial advice on selling and buying your Spanish property with no obligation.

As well as many bargain re-sale properties in Spain, there are also a large number of new Spanish developments selling for rock bottom prices. Search our website for new development sales in Spain or email us with what you are looking for.

Spain has always been one of the top destinations for buying property abroad and despite the downturn in recent years today is no exception. The market has changed, but predictions that 2011 would be the start of the climb back up together with the array of bargain properties, makes now an ideal time to invest if you are cash ready, business savvy and can afford to sit on your investment that little bit longer.

Spanish Rental Rates Highest in Comparison to Price

Tue, 18 Jan 2011 23:00:00 GMT

The left hand graph (Published by The Economist - sorry now offline) presents Spanish, British and American house prices in comparison to rents. Initial analysis of the graph would indicate that Spanish property has the highest rent in comparison to Spanish property prices, suggesting that it is overvalued. Anyone with any real knowledge of the housing market in Spain however, will realise that these figures are somewhat misleading, when the reality of ''official'' house prices in Spain differ greatly from the ''actual'' prices of property bought in Spain. Should we be able to compile data from the real figures of Spanish property transactions, then we are confident that the property in Spain wouldn''t look quite so over-valued as this chart suggests...

Property Sales Increase

Fri, 14 Jan 2011 23:00:00 GMT

The ''word on the street'' is that property prices here on the Costa del Sol are at their lowest, and will not go down any further, so for those seeking to invest in a ''bargain'' now is the perfect time. Please contact us directly as there are new listings coming on to the market every day, we are dealing with several banks and lawyers and have access to many distressed properties. We will be happy to do a search for any particular requirements you may have and put together a portfolio of properties especialy for you.

Urgent appeal to Spanish property owners

Fri, 14 Jan 2011 23:00:00 GMT

Urgent appeal to Spanish property owners – We have clients waiting to rent your property!

Do you own a property on the Costa del Sol? No matter the size or the location from Fuengirola to Estepona, from two bedrooms to eight bedrooms – we have good qualified clients waiting to rent your Spanish property!

The Sara Service are making an urgent appeal to property owners on or with property on the Costa Del Sol to contact them if they want to rent out their property in Spain.

In particular they are looking for 3-4 bedroom townhouses or villas available for long term rental either furnished or unfurnished as they have pre-vetted clients ready and waiting with references in hand – They also have many more clients waiting for properties of all different prices and sizes.

Thesaraservice.com website is one of the leading long term property rental websites on the Costa del Sol hitting the top spot and top pages of Google for most of the popular long term rental search terms on both the dot CO.UK and dot.ES search engines. If you don’t believe us try for yourself!!

Spanish property owners who want to rent their property with The Sara Service can be assured that they vet all of their clients thoroughly BEFORE they take clients out on viewings. Lots of care is taken to record as much information as possible and first and foremost they will ensure a client has a previous landlord or agent reference AND a copy of the contract as added proof and/or a work reference and copy of contract. In certain cases where this information is not available clients will be asked to provide proof of earnings and/or a bank reference. Clients will also be asked if they have any pets or whether or not they are smokers amongst many more questions in the selection process.

So anyone thinking about renting out their property in Spain on a long or short term basis, don’t delay any further and email The Sara Service at listings@thesaraservice.com or contact us for a free consultation with no obligation today.

Spanish House Prices Comparable to 2005

Tue, 11 Jan 2011 23:00:00 GMT

Spanish house prices today are comparable to that of 2005 – New data proves that NOW is a good time to buy in Spain!

A comprehensive report into the price of Spanish real estate has been released today by the company IMIE (Indice De Mercados Inmobiliarios) a registered company of Tinsa Consultoria.

The bi-lingual report comes complete with a supplement outlining its analysis with a detailed view on its findings; a definitive tool for analysing the evolution of the Spanish property market.

As well as providing valuable for investment analysis the report also references Spanish rental property transactions, identifies market trends and compares the evolution of the Spanish housing industry to that of other business sectors.

To download the report and accompanying supplement please click on the links below:

· The IMIE index report into Spanish housing prices - http://www.tinsa.es/down/IMIE/2010/IMIE_12_2010.pdf

· IMIE press release by Tinsa - http://www.tinsa.es/down/notas_de_prensa/2010/ingles/12_Press_Release_January_IMIE_December_2010_Ingles.pdf

According to the report which looks at and analyses data from 2001 to the end of 2010 shows that prices of property in Spain have reduced by a massive 3.9% in this last year making the prices of Spanish property today on par with that of prices in September 2005. This will come as interesting news for those who have been waiting for the right time to again starting buying property in Spain.

China invests in the future of Spain

Mon, 10 Jan 2011 23:00:00 GMT

Spain is set to secure a massive $7.3 Billion in deals this Wednesday with Li Keqiang (The Vice Premier of China) signing the deals. Beijing made a pledge to help the European nation and support like this from China offers is a massive boost and optimistic future in terms of fundraising for Spain.

Mr Li Keqiang was quoted as saying “China is a long-term and responsible investor in the Spanish and European financial markets, and it has confidence and great interest in the Spanish market,”

This news comes from a Spanish official who has reported that Mr Li Keqiang made this announcement during a visit to Madrid with business officials during breakfast on the second day of his European Union tour which is set to last nine days. It is widely thought that Mr Li will be voted in as the next Premier of China two years from now and this news comes as a huge supports to China’s biggest market of export goods.

The deal is said to be spread over a number of different sectors, 16 in total covering amongst many, telecommunications, agriculture, banking and energy. The Ministry of Industry in Spain was quoted in saying that Spain and China will “strengthen their relationship” in the energy sector and collaborate on foreign investments.

By far the most lucrative deal to be struck this week is with Repsol, the Spanish Oil company and the acquisition of its Brazilian assets (7.1 billion dollars worth )by Sinopec the merged company of China Petroleum and Chemical Corp. A statement was made by Repsol last Tuesday reporting that both companies have pledged to analysing business opportunities on a worldwide basis.

Negotiations are also being made with regards to Spanish financial firms operating in China with Mr Li Keqiang inviting talks. A co-operation agreement has already been struck with Banco Bilboa Vizcaya Argentaria SA or BBVA (The second largest bank in Spain) with China Development bank in Latin America. According to BBVA, the co-operation contract was made in the agreement that the two companies can collaborate in Commercial services, Project finance, Corporate banking and derivatives. 15% of China Citic Bank Corp is owned by BBVA making them already the largest investor in China.

Reports from the official agency of Xinhua are that other contracts will be in Olive Oil (9 million dollars) Wine (6 million Dollars) Meat products (13.5 million dollars) and Spanish ham (260 million dollars)

It is very likely that China will buy more government bonds from Spain after Tuesday’s meeting with Elena Salgado, the Economy and Finance Minister of Spain and depending on market conditions. Approximately 10% of Spain’s overall sovereign debt is owned by China, making them one of the lion sharers.

China is continuing to create massive support for many EU countries such as Greece and Portugal, but has not yet confirmed the particulars of any bond purchases. Spain is the first stop on the second day of Mr. Li Keqiangs 9 day visit to European countries in distress, which will also include visits to the U.K and Germany.

Spanish Tourism on the Up

Thu, 28 Oct 2010 22:00:00 GMT

Tourism is one of Spain’s biggest sources of revenue, accounting for more than 10% of its economy, and after a drop of 2.3% in 2008 (the first ever reversal for over 10 years) and a further and massive 8.7% fall in 2009 – Spain lost its rightful place as the second most visited country in the World, to the United States of America.

Although Spain is a long way off regaining that title, Friday’s government data shows that things are definitely on the up, and this month for the fifth month in a row, and in comparison to last year’s figures; the number of tourists visiting Spain has seen double figure growth, thanks to our German friends.

The Spanish ministry of tourism announced that Spain has had a sizable 4.2% increase over the same period last year accounting to a substantial 5.2 million foreign visitors, nearly half of which were from Britain and Germany – A great sign that things are on the up.

Although almost half of the visitors to Spain, as suggested above, are from Britain and Germany, tourism from Britain has actually decreased by 0.3% (1.46 million) It is Germany who has seen an impressive economy turnaround from the recession and has seen figures increase to 11.4% (1.03 million).

Visitors to Spain this month also increased by a number of other countries including, Italy, France, the Netherlands and the Nordic Countries.

The global crisis has seen tourism down all over the world, but cheaper sunshine destinations such as Turkey, Egypt and the east Mediterranean have benefited.

So, figures are looking good for the first time in two years for Spanish property and rentals but we sure need a lot more of the same before we can start celebrating...

The Sara Service now providing long term rentals in Torrenueva

Tue, 08 Jun 2010 22:00:00 GMT

The Sara Service has expanded its area of rental operations on the Costa del Sol by adding long lets in Torrenueva to the ever-increasing list of locations where our valued clients can now look for long term rentals and holiday lets.

The area of Torrenueva, situated between Riviera and La Cala, is on the golden coastline of the Costa del Sol and with the proximity it has to the popular areas of La Cala, Riviera and Calahonda, it is an ideal candidate for people looking to rent long term while working in these areas.

The addition of Torrenueva to our list of areas covered for long lets also included a mini description of the area itself, which potential rental clients may find useful. Coming soon will also be maps, photos, useful phone numbers etc, allowing our valued clients to make a realistic and informed choice about where they would like to rent long term.

Go check out the guide of you would like a long term rental in Torrenueva, we will also be adding lots more information on Torrenueva and other areas in the coming weeks.

Spanish Rental Market Boosted by 17bn EUR Rail Investment

Mon, 12 Apr 2010 22:00:00 GMT

Seventeen billion Euros is to be invested by Spain in a massive road and rail project set to be executed during the next two years in an effort to create new jobs and boost a crushed economy from Spain’s recent and on-going recession.

According to Spain’s prime minister Jose Luis Rodriguez Zapatero, as much as 70% of the money will fund new passenger and freight rail projects, as well as a number of necessary improvements to the existing network, leaving 30% of the capital to be invested into highway construction and maintenance.

Zapatero is calling this THE most important collaboration between the private and public sector in Spanish history due to the fact that it will initially be financed via private banks and the state’s credit institutions.

The monies would be paid back after 2014 with the funds raised from a new tax on the users once the projects are up and running.

The Development Ministry have reported that the project has been planned in such a way so as not to interfere with the Spanish government’s promise to decrease its deficit from a massive 11.2% of GDP to just 3% by 2013 – A figure demanded by the EU.

Largely due to the fall of its construction sector coupled with the effects of a global financial crisis, Spain has seen unemployment figures as high as 18.8%, the highest in the European Union. This new project is a way for Spain to create new jobs and boost its economy without any adverse effect on any other crucial and political commitments.

The Sara Service joins the Social Media Revolution

Sat, 30 Jan 2010 23:00:00 GMT

The Sara Service starts up a Twitter account for social media blogging and keeping in contact with clients and business colleagues. In addition to this is a Rental Property Blog, designed to keep our customers and business associates updated on what is going on.

Twitter, a new revolution in social media, allows people to keep in touch really easily with what is going on via Tweets, small updates posted regularly (or not) that keep others informed of what, were, when, why and who of those they follow or those following them.

We encourage our clients to follow our Twitter account, or even get in touch with us through Twitter where we can better answer any questions you may have, and also leave the answers available for all to see.

UPDATE: We have also now launched The Sara Service Facebook page, where we will be posting news and information in the coming months, join us there!

Future is Bright for Spanish Rental Property Market

Mon, 18 Jan 2010 23:00:00 GMT

The future is looking good for the Spanish rental property market as figures in the UK showed an overall increase of 1.1% for the year of 2009. The report, from the Halifax, shows an increase of over 1% on the cost of property from the beginning of 2009. This increase leaves the average of a home in the UK at £169,042.

This latest report is immensely encouraging for the Spanish real estate market as it indicates an upwards trend that will eventually see house prices in Spain come back up from the lows enforced by the worldwide economic crisis. For those Spanish property owners who managed to hang on to their rental properties, this will see the value of their assets increase gradually throughout 2010 and will generally strengthen the Spanish property market.

The report calculated the increase by comparing the average cost of a property in the UK during the last 3 months of the year compared to the same period one year ago. Even more encouraging is the news that the last few months of 2009 saw the biggest ever increase in the average cost of a property, fuelling speculation that the worst is over and the real estate market is regaining health.

There is of course still a long way to go for Spanish homeowners, as Howard Archer from IHS Global Insight pointed out, "Despite the further significant rise in house prices reported by the Halifax in December, we remain sceptical that the house price rally seen since early-2009 can be sustained for much longer".

Preview to Guide to Renting Long Term Released

Fri, 08 Jan 2010 23:00:00 GMT

The Sara Service has released the first glimpse of a new guide to renting a property in Spain on the website, www.thesaraservice.com. The guide, in its complete format, will offer a comprehensive how-to on the ins and outs of letting a property both short and long term on the Costa del Sol in Spain.

Currently, the guide is under development, and only the first few chapters have been released to serve as a preview to the renting guide in its entirety. However already the guide is beginning to take shape with over 15 chapters currently in progress and another 20-odd chapters planned for the immediate future.

Speaking on behalf of TheSaraService.com, managing partner Sorrel Lewis said "We believe that one of the features that will set this guide apart from the many guides already out there is that it will be a living entity in that agents and customers will be able to add to the guide via comments and correction/suggestion submissions. This will allow the guide to grow over time and to reflect the real world by way of updates from real-world people involved in the real estate and lettings industry."

Ms Lewis went on to say that the company envisages the delivery of the guide in its entirety no later than the end of March 2010. "With the current economic climate beginning to improve, if only slightly, we feel that the surge of interest that is headed Spain's way through 2010 and beyond, will need a centralised and comprehensive resource for all customer and potential agents looking to rent long term in Spain."

Keep checking back for more news on TheSaraService.com's guide to renting long term in Spain.

Hundreds Evacuated on the Costa del Sol Due to Fire

Mon, 16 Nov 2009 23:00:00 GMT

An estimated two hundred and fifty people, many who were foreign residents, were evacuated from one hundred and ten homes over a period of two days in the Mijas and Benalmadena area on the Costa del Sol.

Thursday morning of last week saw smoke caused by the massive wildfire, engulf the hillside situated between the popular ‘Holiday World’, located on the coast road joining Fuengirola to Benalmadena, and the Buddhist Stupa in the Benalmadena hills.

Sources say that it is believed that the fire was caused due to a spark from a power line, which caused the fire to spread reportedly after 10am on a steep hillside area filled with scrubland accommodating several villas and other residential areas, in the Cerro del Piojo zone.

A local newspaper reported, “Graham and Angela Salt, who live in the zone, told Costa del Sol News that while they were not officially evacuated, at one point were so concerned they started pulling belongings out of their house and putting them in the car. They also called a friend of theirs in England who has a home close to where the fire was raging, to advise him of the situation. "I rang him up shortly before noon and by 3pm he was on a flight," said Mr Salt. In the end the fire stopped just short of the friend''s house.”

Over 100 fire-fighters end emergency responders from Benalmadena and its surrounding towns had the daunting task of gaining control over the fire despite the high winds and difficult terrains, which they succeeded with after several hours, allowing the local residents to return to their own homes.

Spanish Mortgage Providers Slammed for Mortgage Clauses

Wed, 11 Nov 2009 23:00:00 GMT

Consumer groups have been critical towards Spanish banks for months now for the minimum-interest clauses within their mortgage agreements, resulting in homeowners failing to see the benefit of the low rate of the Euribor. Minimum interest rates have been stuck for many at 3.5 or 4%, whilst the Euribor has seen lows of 1.243 percent.

Many have viewed this as daylight robbery and recently, the government has been addressed by the banking consumer group, Ausbanc, to take action. Considering the struggles so many people are currently facing, not forgetting the constantly increasing number of repossession orders being issued, it seems ludicrous that banks have allowed thousands of mortgage payers to fail to see the benefit of these dropping interest rates, which would make repayments so much easier for many who are financially struggling in these crippling times.

In a recent press release Ausbanc said, "On September 23 the senate unanimously approved a motion presented by the Partido Popular stating that the minimum-interest clauses abusive and demanding that the dropping Euribor rate be effectively translated to the mortgage loans," it continued, "now it is time for the government to take measures necessary to apply this motion in the real world."

Mortgage payers were shocked to realise that despite the dramatic drop in the Euribor, the most common interest rate index used for Spanish mortgages, their own rates were not being reflected as this, seeing only a slight reduction at most.

Ausbanc have posted on its website, www.ausbanc.com, a template in a letter form for mortgage consumers to address individually to their personal banks, demanding what has been labeled as ‘abusive clauses’, to be dropped from their mortgage agreement.

New Strategy to Clean up Image of Spanish Housing Market

Tue, 10 Nov 2009 23:00:00 GMT

After our recent, rather unflattering reports concerning corrupted mayors, unfair court rulings and the aftermath of the housing crash, it is refreshing to have a more positive picture painted with efforts being made to improve the housing market in Spain, nationwide.

A Spanish business school is behind the innovative new initiative attempting to turn the current slump into a far more constructive and lucrative scenario. Their plan is to build a network of developers and international agents to hopefully clear up the increasing numbers of unsold properties in Spain.

The ‘Instituto de Práctica Empresarial’ (IPE, Business Practice Institute) have set up ‘The Spanish Homes Network’ (SHN), based in Andalucia, to support this new business plan. It has been reported that, “it has so far signed agreements with ten developers and pre-agreements with 80 international agents and FX brokers from the UK, Europe and Russia.”

The SHN will act as the main platform for the properties, with developers being required to finance ‘Due Diligence Certificates’, ensuring that all of the required and necessary legal documentation is in order, being provided by highly reputable auditing firms.

José Manuel Luque, SHN’s managing director, said, “We’re trying to develop a new model of sales in the international market and address the main problems people have when buying in Spain, from lack of confidence to problems with finance.”

He added, “We have more relationships in Andalusia, and the regional government supports what we are doing but our ambition is national.”

Court Ruling Baffles British Investors

Mon, 09 Nov 2009 23:00:00 GMT

In a bizarre move, a court in Marbella has ordered four British investors to complete on their purchase of a property, despite the fact that the handover of the property has been delayed for almost 3 years. The delay has been due to the building licence being challenged and the property being seen as illegal by the Junta de Andalucia.

The court told the purchasers that they are not entitled to their deposit back, a sum in excess of 103,000 euros, and must continue with the completion of the purchase.

A local newspaper reports that the prospective owners of the property, located on the urbanisation ‘Santa María Green Hills in Elviria Sur, had signed the initial contracts with Marbella Vista Golf, SL in late 2004, with the handover being expected on or before January 1st, 2006.

The regional government in the meantime challenged the licence, considering it to be illegal, consequently leaving the property, its gardens and the planned golf course incomplete.

As a natural consequence, the group of four filed to the courts in an attempt to get their deposit back, with the Developer placing a counter-claim in conjunction with the same proceeding. It was then divulged that the court seeing over the claim, ruled the case in favour of the developer, stating that it was not the developer’s fault the completion date had seen unforeseeable delays. In addition to this, the court made mention of the fact it was also not the fault of the developer that irregularities were found in the licence that had been initially granted by the Town Hall.

To add insult to injury, the four purchasers are at a further financial loss as the court ruled they must now pay the full court costs for the proceeding, however, giving them the right to appeal to the provincial court.

The moral of the story is when making any sort of property investment, it is always wise to use an experienced, reputable and local lawyer to carry out a thorough due diligence check to avoid nasty surprises such as these along the way.

Recession to Blame for Increased Motor Accidents

Fri, 06 Nov 2009 23:00:00 GMT

The recession has been the cause of many undesirable aftereffects, however a new claim made by experts is that due the current financial crisis, we will see a noticeable increase in motor accidents in Spain.

According to data, despite the fact that 50% of motorists have become more careful on the roads, as drivers are acutely aware that they are in no financial position to be able to pay off any motoring offence fines, others are becoming more careless and aggressive on the roads due to depression and anxiety from the result of losing their jobs.

In addition to the latter, as financial prioritising hits most households, less urgent matters such as servicing cars, are left at the bottom of the pile.

The above are only some of the points addressed during the recent International Road Traffic Behaviour Risk Prevention Congress, which took place in Valencia.

Other facts to be thrown in to equation were that women drivers remain to be the more careful sex in motor vehicles, with men five times more likely to be involved in fatalities on the road, caused by their own driving. Men are said to be less nervous whilst driving and believe their motoring skills to be more superior, however women compensate for this by using a much greater deal of caution and awareness for other drivers on the road.

The age bracket for those most at risk was said to be 25 in 44, whilst the common road-rage including verbal insults and swearing at other drivers on the road has become increasingly seen in motorists of both men and women in their 30s.

Another interesting proven point raised at the conference was that using a mobile phone was in fact responsible for more fatalities than drink driving.

RBS Execs Suspected of Manipulating Mortgages for Spanish Properties

Thu, 05 Nov 2009 23:00:00 GMT

Underhanded real estate deals in Spain, at one time, was to be expected as much as the sun in the month of August. However before the crash its bad reputation had been improved upon dramatically and it continues to do so. It is therefore surprising to hear that two executives from an institutional British Bank are at the centre of an investigation for swindling funds through mortgages awarded for Spanish property.

The two individuals in question have naturally been suspended over the allegations of their questionable activities. Alan Dawson and Simon Clark were responsible for lending to clients for the purpose of purchasing property in Spain. Popular areas were Estepona and Marbella.

Using their positions of authority within the RBS, they would take advantage of their leads by passing them through to what were labeled as ‘trusted agents’, earning themselves thousands of euros in commissions.

Commissions would be in the region of a 25% share of the commissions paid for each real estate purchase made. The purchaser would be oblivious to the transactions taking place behind the scene, not surprisingly since they were dealing with a respectable high street branch.

To add insult to injury, the timing of the alleged dealings are suspected to have taken place not long after the RBS was saved from collapse in October of last year, receiving a life-line of 20 billion pounds from the treasury.

The downfall of the bank was partly blamed on the cavalier banking culture, which was accepting of the encouragement of bankers taking unnecessary risks.

Marbella Plant to Aid Survival of Costa del Sol Water Supplies

Wed, 04 Nov 2009 23:00:00 GMT

There isn’t a winter that goes by on the Costa del Sol when there isn’t some sort of debate and speculation regarding the water levels in the reservoirs in the surrounding areas, specifically due to the lack of rain during the autumn and winter seasons.

For this reason, there has been a significant expansion of the desalination plant in Marbella, which is said to become active towards the end of this year enabling six production lines to treat in excess of seven thousand cubic metres of sea-water daily.

The manager, José Bernal, of the main water-board, Acosol, informed a main newspaper that with the increased productivity that the extra six lines will provide, the desalination plant will be running at 75% capacity.

Increased production will enable the aforementioned water company to sustain water levels in the ‘La Concepción’ reservoir above its current level of 50%. This action will therefore protect the water table significantly.

Reports have noted that there has been a noticeable lack of rain in comparison to the previous autumn of last year, something that must always be taken into consideration at the beginning of the hydrological year (the basis of the measurement of a 12-month period for processing stream-flow and other hydrological data.).

Bernal was reported to say, “Given the lack of rain our guard cannot be lowered, and if the lack of rain continues into the winter we will expand the capacity of the desalination plant to bring all eight production lines into operation.”

The desalination plant in Marbella currently supplies in the region of 30% of the Costa del Sol’s drinking water, thus these production lines are vital to the continued water supply to the entire area.

Tax Increase to See Significant Rise in Costs

Tue, 03 Nov 2009 23:00:00 GMT

With consumers spending less in the recession it is inevitable that there will be job losses and it is factors such as these that are to blame for the pending tax increase that will affect every tax-payer in the province of Malaga, with an estimated cost of 500 euros per year to come out of their pockets. Put into context, that is over half of the average monthly salary for workers in the area.

The Spanish government addressed the matter by ‘asking’ the country’s tax-payers to “make an effort of solidarity” to enable them to “attend to its growing social costs.” It has been reported that this move will fund the state with an additional 115,000,000 euros.

As is usually the case, it will be the middle-of-the-road incomes that will see the most dramatic effects, as the increase will affect “everything from the purchase of a new car (which, according to the industry will cost an extra 420 euros on average) to signing a mortgage on a new house (which will cost an average of 2,000 euros more, according to the Association of Property Developers).”

Not only will it affect those costs mentioned above, the increase will also be felt through the increase of IVA, which will make even the smaller items purchased seem more expensive, seeing the price of everything from toothpaste, new clothes and electronic devices and appliances to a night out or a meal in a restaurant increase.

These increases will be implemented from 1st July 2010 with the normal IVA to increase by 2% from 16 to 18%. The reduced rate will be increased from 7% to 8%, this affecting foods, restaurants, property and transport.

A more detailed breakdown can be found at: http://www.surinenglish.com/20091101/news/costasol-malaga/governments-hikes-will-cost-200911011230.html

Spanish Health Minister Makes Claims Over Swine Flu

Mon, 02 Nov 2009 23:00:00 GMT

Swine flu has been a national worry as we have all seen reported in the global press for months now and though the number of deaths has risen, sources say that the Spanish health minister admitted the incidence of the clinically termed strain of the flu virus, AH1N1, “is much lower than anticipated and that the death rate from the infection is substantially lower than that from normal seasonal flu.”

The minister made it clear that this particular flu virus was admittedly more contagious than the usual ‘seasonal flu’, however she was quoted to say that there were “considerably fewer deaths” reportedly resulting from this particular strain of the virus.

She also spoke at an influential dinner in Valencia last week, saying, "Today, six months after the World Health''s Organisation''s original warning, we can confirm that there is considerably less concern and less danger than we originally thought."

Keeping in line with her speech, she has been said to assure people in announcing that the country can relax as medical reports from countries from the Southern hemisphere come in, stating that though there have been more reported infected people, there have in fact been fewer deaths than what would be the norm from yearly seasonal flu viruses.

Jiménez continued by concluding that she was more than happy to now allow the country’s public health authorities to take charge of the situation with a much calmer manner, as they were now charged with a much higher and improved knowledge of the illness itself.

Naturally, she reiterated, “Everything is in place to cope with whatever situation may arise, even a worst-case scenario".

Hard Rock Puerto Banus to Open its Doors Today

Fri, 30 Oct 2009 23:00:00 GMT

A new venue will open its doors to the public in Puerto Banus today, as Hard Rock International launched its fifth Hard Rock Café in Spain yesterday. The famous chain has situated its new establishment just opposite the main entrance of the superstore, El Corte Inglés.

The 1000sqm venue received a budget of 2.5 million euros for the installation and decoration of its new branch. The impressive project will seat approximately three hundred people and as standard, will include a bar along with ‘Rock Shop’ offering limited-edition merchandise and not forgetting to mention, an impressive open-air terrace.

The president and CEO, Hamish Dodds, of the franchise was quoted to say, “Marbella is one of Europe’s premiere and most exclusive Mediterranean destinations situated on the scenic Costa del Sol.”

He added, “With its rich Andalusian history and diverse cultural offerings, we are proud to call Marbella home to Spain’s newest Hard Rock Cafe.”

Despite the group’s usual ethos of only launching venues in cities with a population in its millions, the director of Hard Rock Spain told journalists, “Nevertheless, the case of Marbella is special and its attractiveness and potential have made it possible for us to bet on this new location.”

The news is good for locals, as the venue will create in the region of 70 permanent jobs, increasing to 100 during the summer season, along with giving Marbella a promotional boost.

Guardia Dismantle Costa del Sol Burglary Gang

Thu, 29 Oct 2009 23:00:00 GMT

Homeowners on the Costa del Sol will be relieved to hear that another organised criminal gang, responsible for at least 20 robberies, has been arrested. According to officials, the criminals were about to initiate another torrent of break-ins in the Guadalhorce valley.

During the arrest eight individuals were arrested with drugs and stolen property being seized, thought to having a value of over 2,000,000 euros.

Operation Tartavell was launched by the Guardia Civil in May of this year after their attention was brought to the presence of a group of Eastern Europeans living a questionably lavish lifestyle in a luxurious home in the area of Mijas Costa, without any legitimate form of income. A concerned member of the public made the initial report to the police.

The organised crime unit began investigating the group in question, quickly identifying one of the members as a well-known criminal with a history of previous convictions. A surveillance team was put in place to watch the gang, the gang including three Albanian men and two Romanian women. Their conspicuous lifestyle involved regular visits to high-class luxury clubs, shops and restaurants, perhaps not the smartest move.

The Guardia’s surveillance indicated that the criminals were about to set to work on a new wave of burglaries, with their eyes fixed on several luxury-homes in the Guadalhorce Valley, which is when the investigators closed in on the gang arresting the three Albanian men, two Romanian women and three Spanish who were also allegedly involved.

These types of burglaries are nothing new to the Costa del Sol, as where there is money, there will always be individuals readily available trying to scam and steal from them. This reality is obviously not exclusive to Spain, but a global problem. It is with this in mind that it is always wise to act with a certain element of caution and common sense.

The group in question were said to, “Scout out homes and then commit night-time break-ins, often while the owners were at home asleep. They disabled alarm systems and acted silently, taking cash, jewellery and other valuables.”

Officials said that they would often leave with homeowners’ cars and would sell them to the Spaniards previously mentioned, who would apparently use the vehicles for trafficking drugs.

It is of some comfort then to hear stories such as this, reinstating the fact that the Guardia continue to successfully dismantle these groups, making the Coast a safer place to live.

Deadline Looming for Non-Registered Pre-paid Mobiles

Wed, 28 Oct 2009 23:00:00 GMT

For those still unaware of the obligation to register their pay-as-you-go mobile numbers, there will be a nasty shock in store for them when on the 9th November their telephone companies by law, must deactivate their numbers.

Less than two weeks remain until all pre-paid mobile phone users will cease to have access to their numbers if they fail to comply with the new registration laws, by registering with their phone line operators.

The law, which came in to effect in 2007 post the Madrid train bombing, which shook Spain to its core on 11th March 2004, was passed in light of the bombs being set off by pre-paid mobile phones.

Since the aforementioned law came in to place, registration of pay-as-you-go mobile phones has been obligatory, however two years on, there remain to be in the region of twenty million of these phones in use, which were bought prior the 2007 legislation.

For this reason, the government feel it necessary to enforce the deactivation of the remaining unregistered mobile phone numbers.

A source reported, “To date, 12.5 million people have registered their details, but some 8 million have yet to do so and could find themselves automatically cut off if they fail to register on or before the deadline of 8th November. Operators are then legally obliged to deactivate any which remain unidentified.”

To avoid deactivation of any pre-paid mobile numbers, phones should be take to one of the phone operator’s points of sale and present a form of identification such as their DNI document, passport or residency papers, with businesses required to present their fiscal ID card.

Court Appeal Poised Against Marbella Urban Development Plan

Tue, 27 Oct 2009 23:00:00 GMT

A new urban development plan created by Marbella’s Town Hall is causing a stir between authorities and property owners.

These are one of the many controversies caused by the exposure of all of the illegal properties in area. In this case, 3,000 property owners have instructed a lawyer to act on their behalf, who is now in a poised position to appeal should the current plans be approved.

The definitive planning approval for the said development, namely the PGOU, is predicted to be in place towards the end of the year, however reports say, “that once that happens, a group of 3,000 local residents will be taking legal action against the plan’s content.”

Inmaculada Gálvez, the lawyer representing the angry owners, informed newspapers that she has been instructed to appeal to the courts to contest the decision should it be approved by the town hall in its current context.

As is required by law, the plan has been documented and displayed on two separate occasions, however during these periods there were more than 8,500 arguments made against the content.

The basis of the plan is to legalise more than 17,000 illegal properties in an attempt to avoid demolition, but this isn’t enough to appease the owners of the legal properties in the area who have been “detrimentally affected by the planning irregularities in Marbella.”

Gálvez was quoted to comment on the main argument presented by the town hall that it was “absurd to demolish a property which will be made legal under the new urban plan as a ‘serious fraud of the system’."

Iberia Strikes to Cause Disruption

Mon, 26 Oct 2009 23:00:00 GMT

Iberia finds itself in the news again as over four hundred flights are canceled today and tomorrow. The cancellations are due to a strike caused by the airline’s failure to sign a “collective agreement” with their cabin crew staff.

The agreement is to include the resolution of many pending issues, including pay rises for staff who according to reports, have had their salaries frozen for the past four years. The airline has also announced that there will be enforced early retirements, similar to what BA have enforced recently.

The strike has been actioned by the two unions SITCPLA and CTA and it was reported that, “Those routes particularly affected are the ones that link Madrid with Andalucía, the Comunidad Valenciana, the Basque Country, Barcelona, Asturias and Galicia.”

It is believed that scheduled flights from Madrid to the Canary Islands and the Balearic Islands will not be affected at this moment in time.

For those hoping to still catch their international flights from Madrid will be disappointed, as the routes to Lisbon, Paris, London, Amsterdam, Brussels and Frankfurt will not be running.

Sources stating current information say, “Anyone due on flights that start from the numbers IB5000, IB8000 or IB7000, operated by Air Nostrum – Iberia’s regional line - and Vueling, will still be able to fly, according to information presently available.”

Another strike has also been announced, which will take place on the 10th and 11th November, though the routes and services that will be affected have not yet been confirmed.

It is inevitable that more detailed information will be released by the company, but all passengers concerned about whether or not their flights will be affected should contact the airline or their booking company directly.

Corrupted Mayor Plans Kept at Bay

Fri, 23 Oct 2009 22:00:00 GMT

On the Costa del Sol, when ''Mayors'' and ''building permission'' is mentioned in the same sentence, the thought is usually accompanied by the word corruption.

The authorities have actively been working to weed out the undesirables, as we have reported in the past. But it may be of surprise to some that a handful of these in question, remain in their positions of power.

Such is the case with the Mayor of Alhaurin el Grande, Juan Martin Seron, who is awaiting trial for apparently accepting cash bribes in exchange for illegal licences.

The Mayor was exposed in ‘Operation Troya’ last year and was found to have not only bought a car for approximately 30,000 euros in cash, but also a home using another lump sum of 51,000 euros. His wife, who was also implicated, is said to have bought nine other homes over the last few years, all of them without a mortgage.

The Mayor isn’t stopping there with appearing controversial though. Despite the Guadalhorce Valley already being inundated by overbuilding, the Mayor’s administration is continuing to seek new ways to issue licenses for country homes.

His attempts to allow the build of a 1,500 home development on a popular nature reserve in the near area were shelved by the Junta, Seron has found a new way to construct more undesirable developments, by allowing the conversion of farm buildings into homes.

The action is unpopular as the Mayor’s plans have been quoted as having “a negative impact on the environment, as well as undue pressure on water resources in the area.”

Whilst the Mayor calls the opposing attitudes as contradictory to current laws, as the area was declared as ‘urbanisable’ quarter of a century ago, neighbouring town halls and local campaigners are pleased that the main authorities have managed to keep the Mayor’s plans at bay whilst local laws are in the process of being reviewed.

No Recession as Apartment in Spain on Sale at Over 7m Euros

Thu, 22 Oct 2009 22:00:00 GMT

There is a constant stream of stories reflecting the difficult economic times surrounding us, making it easy to forget that for some more fortunate individuals, the recession is nothing more than a minor annoyance or at most, a glitch; with some even looking at the situation as a blessing when it comes to real estate transactions.

To put this into context, the most expensive apartment in Spain has recently been placed on the market for a staggering 7,440,000 euros, with some interest already being shown in the luxurious apartment, as reported on ThinkSpain.com.

Clearly, this isn’t an every day sale, but in some sectors of the real estate market, properties such as this are still moving.

The apartment in question is said to be a duplex penthouse, split over two floors and covering in the region of 517 square metres. This was reported to be a “snip at 7,440,000 euros”.

Allowing a brief glimpse into ‘how the other side lives’ some details were released regarding the property. The duplex, which in a previous life had been two separate apartments, now contains 5 bedrooms and boasts 6 bathrooms. The lounge alone covers 100 square metres and the terrace on the lower level reaching 13 square metres with the terrace on the first floor being spread over 295 square metres housing a private pool.

Not surprisingly, the property enjoys a separate servants’ entrance and for the lowly price of 90,000 euros each, up to seven car parking spaces can be purchased with the property.

According to sources, over one thousand people have viewed the property on the promotional website, with some serious enquiries coming through, "There are very few people here in Spain who could buy it," explained the owner of the real estate company promoting the penthouse, "we think it will probably be sold to a foreigner."

To these ‘foreigners’ this may indeed be perceived to be a bargain in comparison to what was reported to be the world’s most expensive apartment, a property sold in Hong Kong last week for an incredible 56 million dollars.

In the meantime however, for those not yet in a position to purchase a property of their own just yet, The Sara Service has a fine selection of rental properties at far more reasonable prices.

Free-Falling Property Prices in Spain See a Decline

Wed, 21 Oct 2009 22:00:00 GMT

Newly published statistics, provided by INE (The National Institute of Statistics), have indicated that the free-falling value of resale property in Spain is showing a slow decline.

For the first time since the INE began publishing the index, resale real estate’s prices seem to have rebuked the downward spiral as prices fell less in the second quarter of this year in comparison with the first.

The data shows prices for new builds fell by approximately 3.9% in the second part of the year, having dropped by 7.7% over the past 12 months.

The hardest hit areas are places such as the Basque Country, Madrid and Catalonia, which have previously seen the biggest rises in property prices. Surprisingly, the index indicated that investment spots popular with international investors like the Costa del Sol and the Costa Blanca were not affected as badly as the areas previously mentioned in the North of the country.

According to some sources however, these figures should not be taken as gospel, “The official figures are hard to stomach. They would have us believe that new build property prices have only fallen by 6% since the crisis began. Even the developers say prices are down by 20% or more.” a Spanish property expert was quoted to say.

Though statistics are often helpful to paint a picture in an attempt to predict more accurately how the market is performing, they often lack comprehensive correlations taking in all aspects of the situation as a whole.

The Fast Train is Coming to the Costa del Sol

Tue, 20 Oct 2009 22:00:00 GMT

Work has finally begun for the AVE fast track railway near Ronda, as an engineering company was reported to have started working with the aim of digging down to 160m to allow them to undertake preliminary geological studies in the area.

It confirms recent speculation that the network south from Antequera to Algeciras is continuing as previously planned, despite the current economic problems the country is facing.

As is to be expected from such a large project and to prepare the lines for high-speed trains, there will be closed lines for a period of approximately six months from the end of October, however alternative bus services will be provided for towns including, Ronda, Gaucin and Cortes.

There were concerns last year that many Costa del Sol rental properties bordering the current line from Ronda into the Genal Valley were to lose part of their land and these concerns remain partly unanswered.

Sources are quoted to have said, “At the moment there seem to be two options, one to build a tunnel from above Setenil coming out south of Arriate and another going up through the Sierra de las Salinas.”

Though Spain was slower to embrace high-speed rail in comparison to other countries, it finally joined the ranks after inaugurating its first line in 1992, between Madrid and Seville.

The Spanish government were recently reported to have boasted that next year will see the country “become the world leader, measured in kilometres of high-speed line”, overtaking Japan and France with 1,835km of track in service.

The director of AVE Services for the national railway company, Renfe, was quoted to say,"We are currently transporting 40,000 passengers a day."

He added, "It''s been a huge success, both commercially and in terms of public opinion. And there are two keys: competitive journey times, and a level of service at least as good as the airlines."

It is believed that the line should be finished by 2014.

Spain Back in Favour With UK Investors

Mon, 19 Oct 2009 22:00:00 GMT

With recent reports giving poor reviews on the amount of foreigners now buying rental property in Spain, it would appear that after an exhibition held at the NEC in Birmingham, Brits are still favouring Spain as their favourite destination for property investment.

Thousands of people turned up for the overseas property exhibition, ‘A Place in the Sun’, in Birmingham a couple of weeks ago despite other recent international property shows suffering a severely low turn out, with some organisers even facing bankruptcy.

Despite the exhibition, backed by the TV programme ‘A Place in the Sun’, downsizing, they made an impressively strong comeback. The outcome of their wide publicity campaign was the influx of attendees at the event.

As previously mentioned, it was Spain that was indicated to be the most popular destination of potential investors, with approximately 60 percent of the attendees showing an interest in Spain. France came second and this was indicated by the lack of interest in previous years, by the organizers choosing not to create their ‘French village’ as per usual. It was reported that the main competitors for Spain was Australia, New Zealand and the USA, which were said to be offering immigration package deals.

Surveys taken on the day, indicated that many of the investors had been sitting tight, awaiting the ‘right’ moment to make their move, but were now of the thought that property prices in Spain were unlikely to fall any further.

The reasons behind many of the exhibition attendees favouring Spain to other destinations were not surprising, the reasons ranged between the warm climate, the Spanish people and the memory of enjoyable holidays in the past.

Iberia to Mirror Budget Airlines?

Thu, 15 Oct 2009 22:00:00 GMT

It’s usually the discounted airlines that are heckled for bumping up their prices with unreasonable extra costs, but this time it’s the Spanish national carrier who is being criticized for considering the feasibility of charging their passengers for check-in baggage.

The airline has publicly been going through turbulent times these past few months, including raised concerns by the European Commission’s competition authorities regarding the transatlantic plans of Iberia, British Airways and American Airlines.

The three are all members of ‘The Oneworld’ alliance whose plan it is to operate as a joint business on flights traveling between the EU and North America. The plans would allow them to coordinate on pricing and also schedules for transatlantic flights.

One of the benefits to customers would be the ability to contact one of the airlines on flights such as the ones previously mentioned, but be offered flights directly from all three.

A report quoted a statement made by BA saying that they were, "Looking forward to the opportunity to address and overcome the EU''s concerns."

They added, "Our joint business would benefit millions of customers with greater access to discounted fares, more convenient connections and better access to a global network of more than 500 destinations."

The plan if approved by the EU will also need approval from US regulators.

A Spanish newspaper were the ones to print the information leaked from an internal document from the Spanish airline, stating that they were considering adding charges for check-in baggage to passengers’ flight prices, at the additional fee of 15 EUR.

A spokeswoman from Iberia was reported to say, "It is being studied, but we don''t know if it will affect all passengers or when it will be implemented.”

She added, "A lot of travellers want to travel at very low cost, and one way to achieve that is to split up the product."

Passengers are still waiting to hear whether or not these charges will affect them and if so, when.

Spain Bids to Appeal to Upmarket Tourists

Wed, 14 Oct 2009 22:00:00 GMT

Mention Spain to potential holidaymakers and they may be forgiven for immediately picturing a budget holiday destination, offering nothing but sea, sun and sangria. This remains to be true to an extent, however with recorded figures indicating plummeting tourist numbers, Spain is in the process of giving itself a makeover in an attempt to attract a different type of tourist.

In their current plan to become a more up-market destination, tourist authorities are trying to dispense with the image of concrete high-rises, overcrowded beaches and cheap and nasty chips and pie, ‘just like home’.

Granted, this may seem like a steep order. But beneath this stereotypical imagery, it is not difficult to find more appealing attractions for the authorities to promote. Spain has a rich and vibrant history, with some extraordinary scenery to explore. There are several UNESCO world heritage sites to visit, in addition to impressive vineyards and unique architecture and museums to enjoy.

The head of Spain’s Hotel and Catering Federation (FEHR), Jose Maria Rubio, was reported to say, "It is time to look for customers with high purchasing power because there is plenty to offer them."

Another source stated, “The UN World Tourism Organisation says Spain lost its spot as the second-most visited country in the world to the United States last year -- while tourism still plays a crucial part in the struggling Spanish economy.”

The country has been noted to be the pioneers of the ‘holiday in the sun’ package deal for the last five decades, with this in mind, this new marketing incentive should not be an impossible task for them to accomplish.

Costa del Sol Crime Rates Fall for Second Year Running

Tue, 13 Oct 2009 22:00:00 GMT

Making the decision to move anywhere can be daunting and requires much needed research. There are many factors to consider, especially if the move is abroad and of course safety and a feeling of security will be at the forefront of these. It pleases many therefore that during last week’s celebrations, marking the day of their patron, the National Police announced positive crime statistics for the province of Malaga.

Several individuals from the police force received medals for merit and naturally there were tributes made to those officers who in the last year had lost their lives whilst on duty.

The government representative for the Malage province, Hilario López informed those present that the general crime rate had fallen for the second year running, showing clear signs of improvement in relation to the police’s efficiency, with the number of cases solved.

She explained further that crime in Marbella had decreased by approximately 11%, more so than the provincial average and Malaga City, though on a par with its figures of last year, continued to fall by 5.5%.

Sources say that the National Police force’s efficiency had risen by 6%, with arrests made within the province rising by approximately 887.

As many expats living in the province of Malaga already know, in comparison to many other holiday destinations throughout Europe, the Costa del Sol is relatively safe and these newly released stats are reassuring of that fact.

Expats Blamed For Stretched Resources

Mon, 12 Oct 2009 22:00:00 GMT

Expats are blamed for much of the undesirable behaviour that sometimes appears on the Costa del Sol, but this recent claim is seemingly becoming a controversial one.

The expats in question have been classed as “health scroungers”, with Britons shouldering the majority of the blame. It is believed they are greatly taking advantage of the health service offered here in Spain. Other expats also mentioned were from Germany and Scandinavia.

Dr Juan Benedito, of a doctors’ trade union was quoted to say, “Spain’s health service is quick, free and offers a wide range of services,” he added, “it is not surprising that people come here.”

Sources say that UK residents are flying out to Spain in the hope of avoiding long waiting lists on the NHS, with some individuals traveling to receive treatments or procedures not offered through the UK’s national health service. The procedures most sought after is said to be hip and cataract operations.

The claims come after it was revealed that the hospitals on the Coast are being stretched to capacity as they see extra demand from expats owning homes, giving them the benefit of free health care in the country. Allegedly many simply stay in their second homes to obtain the treatment and when recovered, return home as soon as possible.

Antonio Perez, the general manager for the Costa del Sol Hospital, said “We get an increasing number of cases of foreigners who, taking advantage of the fact that they own a home on the Costa del Sol and that their own country does not cover all that we offer in Andalucía, decide to come here.”

Mijas Marina to Compete with Internationally Acclaimed Ports

Fri, 09 Oct 2009 22:00:00 GMT

There is no doubt in anybody’s mind that tourism is the crux for the survival of the majority of the resorts on the Costa del Sol. Many therefore warmly welcome the solidifying proposed plans to build an internationally competitive port, in the already popular town of La Cala de Mijas.

The plans, earmarked for development to the east of the area, are filling landlords and many businesses with a great deal of enthusiasm. Rentals in the area will become highly sought after and the project will prove extremely lucrative for many businesses in the area.

Currently there are no plans for any residential development alongside the marina, however the team behind the project, Marina Mijas S.L, have high hopes to develop the area further by creating new hotels, bars, cafes, shops and nightclubs.

Ideas for the marina include facilities for the local fishing industry, with plans for 50 berths and a fish market.

Marina Mijas’s team is aiming to create a port worthy of worldwide recognition, joining the frontline of other internationally acclaimed ports, meanwhile helping to alleviate the problem of Andalucia’s docks currently nearing full capacity.

The aptly labeled ‘leisure port’, will have a unique design through the talents of Gilbert Barbany of Barnaby’s Architect Study of Madrid. The designer intends to create a fusion between the natural surroundings whilst encompassing the more practical and modern elements of a fully functioning marina.

The project will boast 800 to 1000 berths, sizes ranging from five to one hundred metres, two docking bays for cruise liners and not forgetting the much-needed helicopter-landing pad.

Spain Finally in Recovery Stage?

Thu, 08 Oct 2009 22:00:00 GMT

Though most are keeping their opinions low and noncommittal, Spain’s Central Bank has been reported to say that the shattered economy is beginning to show signs of a steady recovery.

A bulletin from Spain’s main bank, released last month, was quoted to say, "The most recent indicators show an overall slowdown in the pace of decline of activity in the summer months."

It continued, "Economic activity continued to contract in the second quarter of 2009, albeit at a less intense pace than the first."

As we have recently reported, Spain has been especially sluggish in comparison to other EU countries, such as France and Germany who both showed signs of recovery in the second quarter of this year.

The Spanish economy was hit exceptionally hard by the credit crunch as the country’s growth heavily relied on the increasing demand for credit and of course the property market, which required easy access mortgage loans.

Another victim to the events was naturally the construction sector creating a sharp rise in unemployment, though it was reported that unemployment grew less dramatically in August. This said, Spain currently has the highest unemployment rate in the EU and has been forecasted to rise by 10% going in to 2010.

More good news though, comes in the form of car sales beginning to improve slightly due to the Government’s interception earlier this year, offering subsidies for new purchases.

The Spanish government expects the overall economy, said to be Europe’s fifth biggest, will return to growth by the end of the second quarter 2010.

Stricter Smoking Bans Predicted for Spain

Wed, 07 Oct 2009 22:00:00 GMT

With the seat, comes power and Trinidad Jiménez, the Spanish health minister, intends to take full advantage of Spain’s position with their imminent presidency of the European Union, by modifying the nation’s current legislation and enforcing stricter smoking measures. Spain will take the presidential seat on 1st January 2010.

Where one can smoke has been somewhat of a grey area these past few years in Spain, with apparently four out of every five establishments at the moment, still allowing smoking on the premises. The minister has every intention of clearing this matter up.

Laws currently allow bars and restaurants, which have a space of less that 100 square metres, to make their own decision on whether or not they will permit smoking on the premises. As stated above, four out five bars allow their customers to do so.

Utilising statistics available to her, she was reported to have said that 75% of the population over the age of 16 do not smoke. With this in mind, Jiménez made a recent announcement that she intends to work towards extending the smoking ban to all public places.

In addition, the European Commission has already put forward a proposal to ban smoking in all bars and restaurants across each of the EU countries by 2012. Spain’s relaxed attitude therefore, will at that point no longer be acceptable.

According to sources, the health minister recently spoke at a health conference on “chronic obstructive pulmonary disease”, stating “80% of those who suffer the disease had been smokers during their lives. The fatality rate for COPD in Spain is given at more than 17,500 people every year.”

She interjected that by the year 2020, smoking will have become the 4th most common cause of death in the world. A sobering thought.

King Sturge to Retreat from Spain

Tue, 06 Oct 2009 22:00:00 GMT

Another company is to be added to Spain’s real estate market’s obituary this week. The Spanish branch of the global property consultant, King Sturge, has made the announcement that they will be filing for administration this week. The company currently employs over 100 members of staff across their six offices in Spain.

The consultancy takes great pride in that they believe to have “long-term leadership in the Industrial Agency and Development field”. The company specialises in all aspects of development, investment, and project management consultancy, both residential and industrial. This however being no match for the effect the collapse of the property market has had in Spain.

Management were quick to dismiss any speculation regarding the financial status of the group as an entirety. A report based on a statement made by a spokesman for the group said, "No, there aren''t [any group financing problems], contrary to what has been reported."

He went on to add, "There have been reports in the Spanish press of difficulties in other countries but that is completely unfounded ... the Spanish market has been worst affected and the first affected by the troubles the market is seeing."

The chairman of King Sturge LLP, stated, "This is an extremely unfortunate outcome." He added, "We have explored every possible avenue to keep the operation going but unfortunately Concurso de Acreedores was the only realistic option left to the directors."

The latter most likely offers little comfort for those who are now looking at redundancy and becoming another statistic within Spain’s climbing unemployment rate.

Landlords in Spain Get Covered

Mon, 05 Oct 2009 22:00:00 GMT

In recent months many ex-pats have had no other option but to walk away from their homes and investments, as they could no longer keep up the repayments to the banks. Sad, but nevertheless, a true reflection of the times we are currently experiencing.

There are however the lucky and perhaps more savvy individuals who have been in the fortunate position to be able to return to the UK or often other destinations, whilst renting their properties out until the waters calm, hoping to eventually return or sell the property on at a later date.

Of course there is always going to be a flip side to renting, one being the danger of obtaining ‘bad’ tenants, which can provoke eviction processes being enforced. Not forgetting that with the number of people losing their jobs, its not surprising that some tenants are simply ‘upping and leaving’, despite long-term contracts being in place.

In light of these current trends, companies have found a niche in the market to assist landlords with events such as those mentioned above. These companies are reported to offer protection in an attempt to stop landlords falling in to financial hardships due to circumstances beyond their control, such as defaulting tenants.

Many landlords are now seeking advice regarding the different mechanisms available to them and implementing these into their rental contracts in order to protect themselves, should their tenant default in any way.

There are a number of schemes currently available, specifically targeted at ex-pats, offering rent protection and legal expense warranties.

It may be fair to therefore say that protection such as this is perhaps a small, but worthwhile investment to make, even at a time when we are becoming prudent about ‘any’ sort of investments.

Innovative Plan to Combat Illegal Immigration in Spain

Fri, 02 Oct 2009 22:00:00 GMT

For many years, illegal immigrants have used Andalucia as the gateway to Europe, making the uncertain journey through the straits of Morocco. The majority of these immigrants originate from North Morocco, though unquantifiable numbers often travel from distant African countries.

In an innovative move, the Junta de Andalucia has already funded six children’s homes to benefit children from some of the most impoverished families in Morocco. These newly planned homes will double that number.

It was reported that José Antonio Griñán, the President of the Junta de Andalucía, met with Chakib Bemmoussa, the Moroccan Foreign Minister, in Rabat last week to discuss the funding for the other six homes in North Morocco.

The thinking behind the 2.5 million euro project is to help educate children in order to hopefully avoid them later taking the decision to make the illegal passageway to Spain.

The main objective is to stop the current trend of illegal immigration to the Spanish shores and have not been designed to act as institutions to return minors ‘from’ Spain. It has also been reported that the number of young Moroccans entering the country illegally has declined dramatically over the past 2 years, by a staggering 80%.

These homes will hopefully avoid situations that are presently occurring with reception areas in Andalucia currently housing some 900 immigrant children who have made the dangerous journey from Morocco.

According to demographical statistics, released after studies were made regarding migration within Europe, experts say that immigration is declining due to the economic downturn. Sadly for many though, even Europe in a recession is a better alternative to what is offered at home.

Development for Homosexual Seniors in Planning Stage

Thu, 01 Oct 2009 22:00:00 GMT

There are currently contrasting opinions relating to a new development aimed at LGBT (lesbian, gay, bisexual, and transgender) clients being built in Torremolinos, seen by many as the gay capital of Southern Spain.

What appears to be just another development block on the coastline of this popular holiday resort, is actually a purpose built complex for homosexuals over the age of 55, encompassing the role of a care centre. Arco Iris, translated into ‘Rainbow’, will be the first of its kind in Spain.

Torremolinos has been a holiday hotspot for homosexuals for many years now and as the veteran gay rights activist, Antonio Gutiërrez, wisely put it, “You would think that all homosexuals are young, beautiful and healthy, but we get old too.”

He added, “It will help find a solution for the human dramas suffered by older homosexuals who often have a limited family environment to fall back on as their parents have died and they have no children.”

Opposite opinions are those similar to that of David Sedeño, the provincial president of the gay and lesbian association, Colega. He said “There is also discrimination in classrooms but no one is proposing building secondary schools for homosexuals. All steps must be taken within society, rather than increasing exclusion; that’s why we don’t believe these projects are helping.”

Other comments included worries that for many homosexuals entering into a conventional home for the elderly would be “like going back to the closet.” However it is still believed by some, rather than solving the problems these elderly people may face in later life, it will hinder them.

The jury is still out.

Spanish GDP Falls Whilst Taxes Climb

Wed, 30 Sep 2009 22:00:00 GMT

Last week the Spanish Prime Minister was quoted in saying that although tax rises will be “limited in scope”, there will indeed be tax rises. He also insisted that income and business taxes would not see a rise. According to sources this was after a statement made by Elena Salgado, Economic Minister, saying that “all, absolutely all” taxes were set to see a rise.

The good news appears to be that according to figures released by the National Statistics Institute (INE), the fall in consumer prices slowed in the month of August. After prices free falling since March, this is a relief for many, avoiding a period of deflation.

However, before anyone starts celebrating, for the second quarter of this year the countries GDP (Gross Domestic Product) dropped further than expected.

In addition to this other INE data showed that the average mortgage loan granted was down by 17% (month on month) from the previous year.

Barcelona and Madrid was reported to have seen an even higher drop, with percentages reaching 19.3 and 24% respectively.

Unemployment was another hot topic with figures for August showing that the number of unemployed in Spain had increased by a significant 84,985.

The latter figure was in relation to it being the first rise in three months, however over the period of a year, 1,100,00 people have now lost their jobs.

The INE’s figures make it even more apparent that Spain’s steps to recovery are still painfully slow.

Brown to the Rescue for Spanish Property Investors?

Tue, 29 Sep 2009 22:00:00 GMT

There has been ample media coverage detailing cases involving foreign property investors being stung by dishonest sellers and falling prey to the unforgiving land laws across the regions of Spain.

Gordon Brown is to meet the Spanish Prime Minister this week carrying the hopes of expats with him, in the belief that Brown will fight their corner.

There is already an existing national federation, which has been registered in Madrid, whose aim it is to protect and defend the rights of property owners in Spain. Namely the ‘Spanish Federation of Associations in Defense of Human Rights and against Urban and Environmental Abuses’ (FAUN), translated from ‘Federación Española de Asociaciones en defensa de los Derechos Humanos y en contra de los Atropellos Urbanísticos y Medioambientales’ The latter are closely related to a similar association, AUN, who are based in the Costa Blanca. For almost ten years now, AUN have been fighting in the region of Valencia against development and land law abuses. The members however are also well aware that such scenarios are not exclusive to that region alone.

According to sources, the interim vice president for FAUN, Charles Svoboda, stated: "Each autonomous region has adopted laws similar to the Valencian land laws that encourage speculation and outrageous planning, with its attendant corruption, rising house prices, environmental degradation, while burying us in asphalt and cement. "‘Urbanismo'' has been seen as a rich source of instant wealth feeding the politicians'' and developers'' insatiable appetites." He added, "We must seize the opportunity provided by the current economic and financial crisis that has restrained land grab and construction activity to ensure that demands are being met."

"We believe that with more associations as members and wider geographic spread, the greater our strength and effectiveness will be."

In the meantime, expats are expectantly waiting for the outcome of Gordon Brown’s meeting with José Luis Rodríguez Zapatero this week.

Spanish Government Plans to Combat Binge Drinking

Mon, 28 Sep 2009 22:00:00 GMT

Spain has always been associated with sun, sea and of course not forgetting the much-enjoyed sangria, amongst all sorts of other pleasant alcoholic beverages to pass the time with.

But Spain is no different to the rest of Europe and is quickly facing up to its responsibilities in battling irresponsible alcohol consumption and its consequences, especially within its young population.

Binge drinking, especially in teenagers, has been a significantly highlighted problem over the last few years in Europe.

A recent European survey of 35 countries studied the drinking, smoking and drug habits amongst teenagers, this being the biggest study to date.

The survey revealed ''chronic'' drinking problems in 15 and 16-year-olds, leading to an assortment of issues ranging from unwanted pregnancies to serious health problems.

In a statement after a similar survey took place in 2006, Alcohol Concern’s chief executive in the UK said, "Far too many lives are lost to alcohol misuse, and yet the evidence suggests that many of these deaths could be prevented if governments, including our own, took a few simple steps."

An announcement made by Trinidad Jiménez, the Spanish Minister for Health, stating she is preparing serious measures against under age drinking, should therefore be warmly welcomed.

In addition to this and following in the footsteps of Sevilla, Cádiz, Valencia, Bilbao and Madrid, Malaga City has now decided to ban the ‘botellon’ weekend drinking parties in line with the new law passed recently banning alcohol consumption in the streets.

The ‘botellon’ was initially given a specific area near the port in Malaga, three years ago, in an attempt to contain drinking in outdoor public places. However, the street drinking parties have become cause for concern, as plans are currently underway to create measures intended to reduce the consumption of alcohol in the city.

EU Linguistic Reveal Spain Has a Lot to Learn

Sat, 26 Sep 2009 22:00:00 GMT

New statistics were released last week in relation to EU countries’ foreign language skills promoting the ‘European Day of Languages’ being today, Saturday 26th September.

The European Commission gave a statement saying that their aim was to "alert the public to the importance of language learning, to promote the rich linguistic and cultural diversity of Europe and to encourage lifelong language learning in and out of school."

Spain’s rankings were far from satisfactory, with statistics revealing only 53.4% of adults here speak a foreign language, ranking them third place from the top of the board for the number of adults in the country speaking NO language other than their own. Hungary held top position with a startling 74.8% only speaking their native tongue and Portugal being second place, where 51.3% only speak Portuguese.

The Commission’s statement also said "The EU recognised improving language learning in the EU as a key factor in the Lisbon strategy and the Barcelona European Council in 2002 set the objective of ensuring that all pupils study at least two foreign languages from an early age."

With this in mind it was shown that within the EU in 2007, 60% of students in Upper Secondary Schools studied a minimum of two foreign languages. In contrast, the figure was much lower for those having studied none, this being a mere 6%.

Other research showed that the countries achieving the highest proportions, with 100% of students studying two or more foreign languages at Upper Secondary level, were the Czech Republic, Luxembourg, the Netherlands and Finland.

They were followed by Slovenia and Slovakia who both achieved a percentage of 98% with students studying two or more foreign languages and Estonia with 97%.

Not too surprising is the fact that English was found to be the most common foreign language to be spoken in 14 out of the 21 EU member states. Data was apparently not available for the remaining six.

Hunt is On for Bargain Rental Property in Spain

Fri, 25 Sep 2009 22:00:00 GMT

Everyone loves a bargain and if there is one good thing to come out of the recent crash, it is that there are plenty to be had on the property market at this moment in time.

Prices of long term rental property in Spain have dropped dramatically and whilst home owners and investors alike, whose investments have been harpooned into negative equity, are finding it rather difficult to find the bright side in any of this, individuals with money left in their pockets are flocking to Spain to see what deals there are to be had.

You would be forgiven in thinking that these were hard-nosed, professional investors; the story is actually quite different. According to recent findings, UK buyers are traveling to Spain in droves to seek discounted properties for holiday or retirement homes.

These second home-buyers are currently able to take advantage of discounted prices of up to 40% and in some cases even more, according to Assetz Spain who are quoted to have had an 150% increase in enquiries for holiday and retirement investment opportunities in the last 3 months.

Stuart Law, chief executive at Assetz, has said, “They are not primarily buying for investment purposes, so are less concerned about the short term performance of the market and potential capital growth.”

He added, “Professional investors seeking solid returns, on the other hand, are concerned that the market could still have further to fall, and we certainly believe that holiday letting rental income could be severely held back for years to come by oversupply in the tourist hotspots.”

Uproar in Corridors of Marbella Town Hall

Thu, 24 Sep 2009 22:00:00 GMT

Anybody who has worked under contract or run a business in Spain, will no doubt be familiar with the laws regarding employees’ rights and how it seems to always sway in the latter’s favour.

This is of course excellent for the employees, however, it can be seen as a painful thorn in the side of proprietors, management and company administrators wishing to sever ties with unwanted and often troublesome members of their staff.

Laws put in place to protect employees from unfair dismissals and exploitation in the workplace have often been abused, with employers having to pay out high and at times unfair amounts of compensation to the aforementioned.

This is currently the case at Marbella’s Town Hall as the heads of the powers-that-be are reeling after suggestions have been made that Juan Antonio Roca, municipal real estate assessor thought to have masterminded the largest corruption scam in Spain’s history, may be entitled to compensation for being sacked from his post.

If he is found to be guilty at his pending trial he will have succeeded in defrauding the town hall and its municipality of hundreds of millions of euros. Roca has been in prison for more than 3 years and on the 24th August, Marbella’s administration was finally able to have him sacked from his post.

The seemingly unreasonable delay has been due to Spain’s previously mentioned employment law and because of this, the town hall was only prepared to act after receiving court clearance to do so.

The final grounds for his dismissal was for “repeatedly failing to present himself for work since March 31, 2006”, this reflecting the date when Roca was first jailed for his part in the Malaya scam.

Soon after the announcement was made regarding his dismissal, a matter of days in fact, Roca challenged the decision on the basis of being innocent until proven guilty and will seek to either regain his post or be compensated.

"We'll go to court" is the angry response from Marbella town hall.

Whose Town Is It Anyway?

Wed, 23 Sep 2009 22:00:00 GMT

Not much happens in the sleepy municipality of Ólvega, whose last population count according to the 2008 consensus was said to have 3,690 inhabitants.

However, there has recently been somewhat of a drama unfolding regarding a tiny abandoned village set in approximately 6,000 square metres of rustic land. The small hamlet is home to just three houses, some livestock enclosures and a church.

The Mayor for the municipality on which the small ‘village’, Conejares, depends, can be forgiven for being somewhat confused as he told reporters, “It's not even a village, it's just a hillock where there used to be some animal enclosures, and now there's nothing left."

Despite the Mayor’s comments, apparently hundreds of people rang the Town Hall after it was found that the land, situated northeast of Soria, was up for sale for the grand total of 48,080 euros.

To add to what some might see as a comically bizarre situation, the rustic land in fact has no running water or electricity with nobody having inhabited the hamlet for over 70 years. The said owner stated that there was however a high tension line just a kilometre away and there was ample water for a well.

It has been said that the online post initiated discussions varying from “creating an agrarian cooperative to getting together a group of 50 people to invest in Conejares and repopulate the village.”

Since the debate has heated up, an individual has come forward claiming that they are in fact the rightful owner of two of the buildings and others are coming forward claiming that they have always held the belief that they owned part of the village.

The saga continues.

Spanish Scandal for German Minister

Tue, 22 Sep 2009 22:00:00 GMT

Parliament in the UK has recently been slated in the press after the massive exposure of ministers abusing their powers and their misuse of the expenses system, rightfully infuriating the country’s taxpayers.

It seems that Germany is next in line after a shameful incident was recently exposed.

The scandal shocked Germany when it was revealed that a minister sent for her limousine to join her in the Spanish holiday vacation spot of Alicante.

The minister in question, Ulla Schmidt who is the country’s health minister, though paying for her own flights for the holiday vacation, still felt the need to waste taxpayer’s euros by sending for her official car and its driver. The distance covered being approximately 2,400 kilometres from Berlin to the popular holiday spot.

Reinel Holznagel, the head of the “Taxpayer’s Association” in Germany was quoted to have said, “Mrs Schmidt should have found out if the embassy could have provided her with a car or she could have simply rented one with a driver. It would have been far cheaper for the taxpayer

To add to the embarrassment of the minister and even more so, the government, the limousine was actually stolen during her trip. It is said that burglars broke in to the accommodation where the driver was staying managing to steal the keys.

The health minister justified her actions by stating that the car was only used for official meetings, which had been arranged in order to discuss healthcare and pensions with retired German ex-pats in Spain.

The incident comes at a rather inconvenient time, as it is currently the run up to Germany’s federal elections.

European Summer Slump

Mon, 21 Sep 2009 22:00:00 GMT

The downside of the global recession has shown many of its unattractive faces thus far. One of the most obvious has been the major reduction in consumer spending across the board and for this same reason, Europe’s most popular tourist hotspots have endured a summer with dramatic drops in bookings.

The French government had previously predicted that the number of international overnights stays would fall by almost 30% for July and August. This is a huge decrease, especially taking in to account that France is thought to be the most popular tourist destination in the world.

Matters more relating to home; Spain’s Trade, Industry and Tourism Ministry have released figures claiming that there was a decrease of foreign tourists by 10% (year-on-year) in June and 6.1% in July.

With the two largest tourist groups in Europe, namely the UK and Germany, significantly suffering some of the most dramatic aftereffects of the downturn, these figures should not be a shock to anyone.

It should therefore be of no surprise then that the amount of Brits flocking to their favourite holiday spots dipped by 16.2% for the first 7 months of the year; another clear indication that Britain itself is also crawling out of the recession.The Ministry also stated that 6.6 million visitors arrived in July, this historically being the second most popular month of the year.

However, not everyone was displeased with its tourist figures this year. Turkey’s Tourism Ministry was not surprisingly pleased to be able to announce an impressive rise in numbers of foreign tourists visiting their country. Their figures were up by 6.32% (year-on-year) in July this year, bringing their number of visitors to 4.34 million.

Protected Housing Schemes Will Aid Industry Recovery

Sat, 19 Sep 2009 22:00:00 GMT

It’s no news to anyone that the construction industry in Spain is at a continued standstill in light of the current market, which is creeping behind in comparison to other slowly recovering European countries.

In October last year, when the brunt of the crisis hit home owners, the Spanish Prime Minister Jose Luis Rodriguez Zapatero spoke directly to the banks asking them to “keep the financing tap” open to the Property and Construction companies as he believed they would continue to generate wealth and a high employment rate, thus helping the economy to recover at a swifter rate.

This did not completely go to plan and many are still looking to the Spanish government to bail this industry out.

In answer to this, last week Pedro Solbes, the Minister of Economics, addressed a conference in Vitoria explaining that it was not his belief that the Spanish government should come to its rescue. The conference was held at the Caja Vital savings bank.

The Minister did add that “sensible ideas” to help alleviate some of the pressure caused by the crisis would be welcome but added that he found it “very difficult to accept” that the government should substitute construction and real estate companies “when things go badly”.

Solbes was also heard to have said that he believed one way to help end the crisis was for construction companies to aid in the building of ‘protected housing’; schemes similar to the United Kingdom’s council housing and county housing associations. These schemes currently being in much higher demand than their more expensive counterparts.

A Nozar One Bites the Dust

Fri, 18 Sep 2009 22:00:00 GMT

Following suit from other major Spanish property players, such as Aifos, Martinsa Fadesa and Tremón, the Nozar group fall prey to the country’s fragile financial market.

A spokesman for the Spanish group explained that after 4 months of talks to resolve the matter, they were unsuccessful in reaching any agreement with the bank creditors.

This has prompted actions to be taken which may see the company facing bankruptcy or liquidation.

Despite markets in other countries in Europe, such as the UK, France and Germany which are seeing some improvement, Spain has been not been as quick to show signs of recovery.

Many experts believe that major players such as Nozar and indeed Martinsa-Fadesa, who went into administration more than a year ago now, need a much stronger market in order to stay afloat.

Due to the banks perhaps ceasing to bail out these and other high profile developers, it is thought that we have not yet seen the end of casualties such as these.

All is not lost however, with the Almanzora group recently announcing sales of properties worth almost 5 million Euros, it can be seen that some sectors in the market are proving to be successful again.

It has also been suggested that with prices being at their lowest for six years, they are bound to once again begin rising if sales in other sectors of the market are showing such signs of improvement.

This new property investment era may see other sectors being explored away from the low quality, mass built complexes, which have been in oversupply during these past few years.

The latter possibly being another catalyst for the demise of some of the big property developers such as Nozar.

Price of Rental Properties in Spain Still Falling

Wed, 16 Sep 2009 22:00:00 GMT

The prices of rental properties in Spain are still falling according to a survey carried out by real estate consultants Knight Frank in their Global House Price Index.

Of the 32 countries surveyed, Spain came in at position number 23, with countries such as Israel, Switzerland and Indonesia in at the top positions (these countries are among the few in the study to record price increases this year). Although the price of property in Spain is still falling, its' position could be worse with other countries such as Slovakia, Bulgaria, the US and the UK showing even bigger price declines.

The fall of property prices in Spain indicates that we are not yet out of trouble with the current recession. On the plus side, falling prices are attracting lots of bargain hunters to Spain with the intention of getting a good bargain on a Spanish property.

This in turn is good news again for the Spanish rental market, as lots of properties recently on the market can only add to the bargains being had right now by tenants all over Spain.An article by Spanish Property Insight analyses the meaning of the report and suggests that the government figures used for Spain in the report are almost definitely misleading as the price at which Spanish property is selling is "almost certainly down more than 8.3%".

Spanish Property Insight also go on to point out that the global figures from the report suggest good news as many property markets from around the world are beginning to show signs of bottoming out and many countries are already beginning to show an increase in property prices.

Possible Problems on the Horizon for Spanish Property

Mon, 14 Sep 2009 22:00:00 GMT

Further and prolonged economic difficulties have been predicted by Jose Luis Rodriguez Zapatero, (The prime Minister of Spain) long after the country pulls itself out of this dark recession.

On Wednesday of last week the prime minister was reported to warn that despite claims that the worst of the crisis is over, high unemployment rates and a slowdown in business are unlikely to see drastic improvements in the short term. Unemployment in Spain is the highest in the European Union, standing at nearly 18 percent, and there has been no improvement on Spanish property sales with figures down a third from 2008 – 2009.

Despite higher unemployment figures, claims for unemployment benefits in August were less than the previous year, probably due to stricter applications.

The prime minister Zapatero, also reported that Q2 saw the economy contract 1.1% which was the fourth quarterly fall in a row, although if you look at a glass half full rather than half empty, then the good news is that the drop wasn’t anywhere nears as bad as Q1. He also remarked on the fact that automobile sales were now stabilising after many months of strong decline - So it’s not all bad news!

Zapatero said that Spain still remains in a deep crisis that can and will only be overcome once the economy begins to start creating jobs once more, and in a stable fashion.

For instance, the rise in unemployment claims has clouded any progress achieved during the last quarter, when the government shelled out billions creating public-sector jobs.

Zapatero reported that there has been so much damage to the economy that “we are going to take a considerable amount of time to digest the consequences of the crisis,"

The Labor Ministry added that unemployment may reach as high as 20% during the next quarter, and even as the prime minister reported the above to the legislature, it was reported by the government that Spanish property sales are down 31% in the first half of the year in comparison to the same period in 2008.

Figures like these conclude how Spain, although once a European economic success story, still remains in a deep recession despite other European countries showing signs of recovery from this economic downturn. Although Spain is struggling to see the light at the end of the tunnel France and Germany have both reported growth for Q2, giving them unexpected hope and lifting them out of the danger zone and their worst recession in many years.

Zapatero has informed Parliament that his government will introduce an austerity program in 2010 and raise taxes to subsidise the deficit that is expanding and joblessness benefits.

Although it is not clear which taxes will be increased, he has made it known that he intends to bring in revenue equivalent to 1.5% of Spain’s gross domestic product.

The leader of the conservative party Mariano Rajoy has contested that it was a very large sum of money, an estimated fifteen billion Euros, and wanted to know exactly where he expected this money to come from.

Income tax hikes have been struck off the list, and it has been leaked that the government may be planning higher levels of tax on capital income, including windfall profits, stock dividends and interest earned on bank deposits.

The prime minister has been accused by Marino Rajoy of trying to mislead Spanish citizens regarding the full extent and gravity of their economic problems..

He added that "To confuse a deceleration of the pace of decline with an improvement is just plain wrong,"

Marbellas Secret Roman Ancestors

Fri, 11 Sep 2009 22:00:00 GMT

With so many ex-pats, and international influences, it would be no surprise for most people to believe that Marbella’s answer to culture was a two for one Big Mac or a cut price English breakfast. Well it’s time to think again! A secret Roman past has been discovered in depths of Marbella’s history.

A recent find would suggest that Marbella was once a thriving Roman settlement! A road plan, remains of a statue and stone arrangement were all amongst the recent findings in an archaeological dig; providing new evidence of such historic Roman culture.

Although Malaga province has seen much evidence of Roman remains, the findings are a first for the town of Marbella.

These historic findings have been discovered by a group called Ciliana, whom are leading this investigation and dedicated to the exploration of Marbella’s history.

The group have called for the roadwork’s in the area to be delayed so they are able to carry out further exploration. A spokesperson for Ciliana was reported to have said that “this town has more surprises”

Although it is unclear at the moment, what the outcome of this request will be, it is likely that further explorations will have to be put on hold until the pipe laying project for the area is completed.

AMLA Members to List Rental Property for Free

Tue, 08 Sep 2009 22:00:00 GMT

AMLA, The Association of Multiple Listing Agents, has recently announced that from 8th August 2009, members of the association will be able to avail of the facility to list their rental properties and properties for sale free.

The property association, which brands itself as the Spanish Property MLS, has made the announcement just prior to the launch of its UK property listings service, which, it is claimed, will contain over 300,000 UK properties at the time of launch.

The aim of this move, according to an AMLA spokesperson, is to aid owners and agents in the current tough econmic crisis to rent or sell their property. The move appears to be inspired by a certain amount of success in the domestic Spanish property market, where an SEO campaign seems to have provided good enough results to consider a similar move in the UK market.

In its' August 8th 2009 press release, the company seems pretty confident that the new free listing service will be a hit in the UK, based on their current rankings for major real estate keyphrases in the UK property market.

One in 5 Spanish mortgages deemed ‘high-risk’

Fri, 04 Sep 2009 22:00:00 GMT

20 Percent of mortgages in Spain are now considered to be a high risk and in danger of becoming “non performing” according to Expansion, a top Spanish tabloid.

Mortgages which were contracted after the year 2005 are of course at the greatest risk, where the loan to valuation was more than 80 percent of the total. In the years 2006 to 2007 17.7 percent of all mortgages granted were loans to value of more than 80 percent.

In the years before 2006, the majority of all the data was gathered by the Genworth Financial, whose study showed that mortgages with over 80 percent loan to valuation rose from 12.2 percent in 1996 to 26.4 percent in 2005.

Between the years of 2003 and 2006 this type of mortgage was more popular, however the ECB’s decision to raise interest rates saw a decline in its popularity as the possibility of a price correction became more likely.

Another key risk for the default on mortgages is naturally, the amount or percentage of your monthly income that one devotes to paying back the loan. According to the Bank of Spain, this has risen dramatically in Q2 of 2009 making the average a massive 38% of the average person’s disposable income.

The big downside to this is that now more than ever, Spanish households and families are incredibly vulnerable to a rise of any kind in the interest rates and although the cash flow may have increased slightly, the chances are they haven’t looked at the capital account side of their financial future.

Households with hefty mortgages and higher loans to valuations may be healthier in the pocket, by a few hundred Euros in the short term, but you can pretty much guarantee that the capital value of their investment is decreasing by the minute.

The long and short of it is that they are being given money in one hand and having more taken away from the other whilst they weren’t looking. Soon they will be in the position whereby they are paying the interest on a loan that is far higher than the worth of the property held.

The next problem is that Spain is now in deflation. Incomes are being reduced and the value of Spanish property is still falling. This coupled with the fact that the loan to value will rise regardless, means that the percentage of a person’s income that is needed to pay back the mortgage will keep on rising.

Also, recently there were new, more relaxed guidelines distributed throughout the central bank with regards to high risk mortgages. Before now, provision was made by banks for the full value of high risk mortgages after two years in arrears. (Those above 80 percent of the total property value)

As property values rarely fall to nothing, this was considerably demanding and regardless of this big ‘change’, which allows banks to only have to account for the difference between the value of the loan and 70 percent of the property value, it gives the distinct impression that rend results are being massaged.

A spokesperson and analyst for Iberian Equities has estimated that these new rules mean that banks will no longer need to make provisions of approximately 22 billion Euros in the months to come. (This is if non performing loans reach only 8 percent by the end of next year.)

In conclusion, the saving banks in Spain whom are heavily exposed to many developers, are looking to make an estimated 16 billion Euros profit before provisions this year.

Although “mañana, mañana” is an all too popular phrase in Spain, deferring these financial problems until tomorrow will not alter the inevitable difficulties facing the Spanish financial system.

Get up to date on renting long term in Spain with TheSaraService.com's Guide to Renting a Property in Spain

Long Term Rental Properties on the Rise

Thu, 20 Aug 2009 22:00:00 GMT

The number of long term properties for rent in Spain could be on the rise again. New figures suggest that the falling price of Spanish property could mean more rental property owners will be forced to rent long term in order to keep their homes.

The price of properties in Spain has been falling for well over a year now and new figures from the Spanish Housing Ministry show the annual rate of decline to be at around 8.3%. This is good news for everyone as more long term lets in Spain means more choice for renters.

A wider choice of long term rentals will inevitable encourage more people to rent property in Spain, creating a buoyant and healthy rentals market for everyone involved.

The fall in prices will also encourage more people to buy a property in Spain with the aim of renting the property on a long let. There are literally thousands of bargains to be had in Spain now where the fall in the rate of construction did not match the fall in sales.

This has led to a huge number of properties available for sale and for rent, attracting all the property bargain hunters from the UK, Ireland and mainland Europe.

With the end of the housing slump soon coming into view, these conditions look favourable to allow Spain to continue to hold its place at the head of the destinations table for overseas property buyers.

Costa del Sol Still the Most Fashionable Place to Reside

Sat, 08 Aug 2009 22:00:00 GMT

Although it won’t come as much of a surprise to most people, the Costa del Sol in Andalucía, Spain is one of the most desired areas to live in the whole of Europe; La Caixa banking groups recent study has revealed the previous five years demographic statistics, which clearly identify the actual areas of growth.

Figures show that during the five years between 2003 and 2008, Estepona, Mijas and Benalmadena have seen a growth of in excess of 30 percent, whilst going further west along the coast, Benhavis has seen twice as much growth with a figure of 60 percent and Manilva seeing even further population growth with a massive 82 percent increase. Areas further inland have seen areas of growth too, with the towns of La Viñuela and Cartama seeing sharp increases.

Whilst in the popular areas along the Costa del Sol, figures have soared, the lesser desired areas in the more remote areas of Spain have fallen, if only by a few percent. Places such as Cuevas Del Becerro, Teba, Cañete and Alfarnate has seen their local population figures drop by two and three percent.

The statistics given for the whole of Spain, during this same period, has seen its population rise by over eight percent, proving that even during this global economic crisis, Andalucía, and the famous Costa del Sol is still the most fashionable place to reside.

*Figures given represent the numbers that the authorities have officially registered

New Town Plan Approved by Marbella Town Council

Wed, 05 Aug 2009 22:00:00 GMT

The final draft for the new Marbella town plan was finally approved last week by the Marbella town council. The plans will finally put an end to over ten years of town planning nightmares that has played havoc with the Marbella property market. Seville’s regional government now have the plans for final approval.

The new town plan is to replace the current plan, which was approved way back in 1986, but abused systematically over a period of 15 years by a series of corrupt, unscrupulous mayors and which resulted in over 18,000 illegal properties in Marbella.

16,500 properties are set to be legalised by the new town plan, in return for the compensation of the town hall with payments and land, so that public spaces lost to private developments can be restored once again. The latest plan ensures that developers will be the only ones in the firing line, after Marbella’s current Mayor, Ángeles Muñoz fought hard to make sure innocent third party buyers will no longer be liable to pay out any compensation fees.

Although last week heard much brinkmanship and hardball talk from the mayor, her plans to save the most of the illegal properties from demolition have proved unsuccessful.

There was talk of extending the planning amnesty for some 500 occupied but illegal properties, but unfortunately, the final plan that was sent for approval to Marbella’s town council did not include any get out clauses for the unfortunate owners of properties in both the Rio Real and Banana Beach developments. In theory and according to the new plan, all of these developments plus many more properties that were built and never sold will be knocked down, because Marbella’s mayor did not include any alternative solution in the new plan.

Regardless of this, the plan will undoubtedly be a fresh start and good news for the Marbella property market.

The Rise and Fall of the Property Cycle

Tue, 04 Aug 2009 22:00:00 GMT

Thankfully, we can now see this particular cycle of rise and fall coming to an end. Many found the impact of the fall and the collateral damage that followed, damaging both at home and in the office, but this cycle is not by any means new and the chances are that there will be more cycles in the time to come.

Whilst business is good and we are in the middle of a “rise”, usually GDP would be going up and people have the money to spend and invest so as money chases the assets and during the time it takes for those assets to increase, prices go up.

This cycle of bubble and bust in housing is drawing to a close. For many the ferocity of the bust and the collateral damage that followed was a shock, but bubbles and busts are not new; chances are there will be more.

If the cost of the asset is less than the available amount of credit, people who get involved, are making money from nothing, making the people involved more interested in the “playing the window” rather than the actual buying. This in turn makes more money available to compete for a now limited amount of assets, and that is the start of the rise.

Every time there is a “rise” the people who get involved the earliest, are the ones who make their fortunes, but they are in the minority; the real driving force of the “rise” are the people who got involved later down the line, and that is where the pyramid schemes come in to it, because for every winner in this game there has to be losers. Greed is of course being the main incentive, because at the start the maxim is “those who snooze loose, and then inevitably the fear will follow.

Unrealistic valuations play a big part in the inevitable fall that is to follow a rise. Firstly they manage to get someone to fork out the money, and then because they convince banks (and many others), to keep on supplying them with credit, which is the essential ingredient of the whole cycle, because when banks and creditors start lending money without a proper understanding of the market and value, this drives the cycle forward.

Trying to pinpoint or judge when the “fall” will happen is a difficult thing to do, but usually when the rate of increase starts to decline, that’s the time.

This repeated cycle creates no long term economic value, because so many have been encouraged to borrow and instead of investing the cash into a future investment strategies that would afford them the opportunity to pay back a loan, they instead spend the money on luxuries they didn’t need. This “waste” is how the whole cycle can destroy economic value.

The level of foreclosures doesn’t have any link to the end of the cycle, prices have to come down to the place the market re-starts, how long it takes and the financial ruins caused in the meantime are irrelevant to the inevitable progression of this long cycle.

One benefit from this is that historically there is a strong negative correlation between equipment investment and the massive mispricing in the market (creating real jobs rather than jobs in the public sector where most jobs have been created in the past 5 years)

Inevitably, the extent of this mispriced housing makes it more expensive to operate, so new jobs are created elsewhere, another reason why allowing this cycle to happen is complete lunacy.

Price of Rental Property in Spain Continues to Fall

Thu, 30 Jul 2009 22:00:00 GMT

The average cost of property in Spain has fallen by over 10% from June 2008 – June 2009 according to the published Spanish property price index. The figures published by the Ministry of Housing however, indicates that property prices have fallen by just 8.6% over the same period, but this does not include Spanish social housing; making both reports a good indication of the property market value in Spain today.

Property prices on the Costa del Sol have seen figures drop the most, with a staggering 12.3 percent decline, although an average price drop for new build and resale properties throughout the whole of Spain is the lesser figure of 10.1%.

The price index for the second quarter has also been published by the Spanish Ministry of Housing, suggesting that prices fell by over 8 percent in the last 12 months to the end of June this year. Prices fell just below 2 percent on a quarterly basis; the average property in Spain now costs 1,920.90 Euros.

Prices are down the least in Extremadura (-1.1 percent), rising to Catalonia (-7.2 percent), Galicia (-7.5 percent), Andalucía (-7.6 percent), The Canaries (-7.8 percent), Murcia (-8.8 percent), The Balearics (-9 percent), The Valencian Community (-9 percent), Asturias (-9.3 percent), Madrid (-9.8 percent), and prices are down the most in Cantabria (-10.1percent).

Almost 2 Million Second Home Owners Catapulted into Spanish Rental Market

Tue, 28 Jul 2009 22:00:00 GMT

With vast amounts of Spanish property owners struggling to find buyers, many are looking at joining the 1.5 million second home owners who have been catapulted into the Spanish rental market.

A whopping 55 percent increase in the number of Spanish rental properties over the last two years has been recorded by Idealista, a property research firm based in Madrid. This takes the figure to over 3.3 million, the highest ever recorded by the Ministry of Housing since they started collecting data in 2004. The price of renting a property in Spain has fallen drastically for the first time in 7 years with declines reaching over 8 percent.

Government data shows that in the year before May 2009, property sales in Spain dropped by over a third, and with redundancy at an all time high and property owners facing a yearly tax that is the equivalent of between one and two percent of the property value; even people still with jobs are turning to renting to ease their worry, in the hope that the price of their property will creep back up if they sit on their investment.

Jane Frith, managing Partner at thesaraservice.com said that “owners who need to sell their properties but can not are being forced to rent them out.” Jane also added that the company have never seen this number of properties for rent since they began in the Spanish property market over 6 years ago.

An estimated 29 percent of new homes in the European Union were built in Spain alone from 2001 to 2007, despite the fact that it represents only 9 percent of the European population. Inevitably the construction and real estate boom that has seen us through the last ten years and represented 20 percent of the countries gross domestic product in 2007 has resulted in a glut of unsold apartments, villas and townhouses in the Costa del Sol and throughout Spain.

This housing slump, which has been predicted to see us past 2012, has undoubtedly been one of the main contributing factors to Spain’s worst recession in 60 years, with unemployment rates reaching the highest in the EU (19%).

The good news for clients of thesaraservice.com is that our tenants have a choice of far more luxurious properties for a fraction of the cost.

Biggest Climb in Spanish Rental Property Since 1950

Thu, 23 Jul 2009 22:00:00 GMT

A recent Bloomberg story, also featured on Kyero.com, has described the number of Spanish rental properties at its' highest number since the 1950s. The number of rental properties in Spain is now thought to have numbered 3.3 million, a 55% increase in the past 2 years.

This massive rise in the number of properties available to rent in Spain is a by-product of the difficulties property owners face in selling their properties in the current real estate market.

Although many Spanish property owners would like, or need, to sell their properties, a shortage of buyers and a shortage of available capital is forcing more and more Spanish property owners into the rental market.

The main cause of the glut of houses in Spain is the fact that around 29% of new homes built in the European Union between 2001 and 2007 were Spanish homes, this despite the fact that Spain accounts for only around 9% of the population of the EU.

Large jumps in rental prices over these years were caused by a rise in property values, however the current housing slump is now driving down the rental values of houses around the country, but particularly in coastal holiday rental regions such as the Costa del Sol. Property rental prices in Spain are expected to continue falling over the coming holiday seasons, good news for those thinking of renting an apartment or villa in Spain.

Spain – ‘One of the Easiest Countries to Relocate To’

Fri, 10 Jul 2009 22:00:00 GMT

Spain is one of the easiest countries in the world to relocate, according to a recent study conducted by the HSBC.

Among the top spots in the HSBC Expat Experience report were Spain, Canada and Germany, where expats reportedly found it easier to integrate into the local way of life.

According to HSBC’s Chief Executive Officer – Martin Spurling, this independent survey was commissioned “to take a look into the lives and experiences of our customers who live across the globe and the transitional challenges they encounter from country to country.”

Sorrel Lewis from www.thesaraservice.com said that: “This encouraging news will be of great relevance and comfort to anyone looking at relocating to Spain in the upcoming future” she also added that The Sara Service always recommends renting a property in Spain before deciding to buy, “because as with any investment – you need to do your research first, especially when your future depends on it”.

It was also concluded in the survey, that Spain is considered to be one of the best countries in the world to bring up children.

Many factors were taken into consideration such as the cost of living in Spain and the time children spend outdoors, but most outstanding of all was the whopping 92% of expat children have two or more languages.

The Alliance in Leicester has also reported recently that expats in Spain get an average of 8 visits a year from friends and Family, good news for those renting holiday homes in Spain.

Spanish Property Records Biggest Price Fall Since Records Began

Thu, 09 Jul 2009 22:00:00 GMT

The official property price index, published by the National Institute of Statistics or the INE, has revealed that Spanish property prices have fallen 7.6% in Q1 of this year, in comparison to the same period last year, the biggest fall since records began in 2007.

If we break these figures down into property types, resale properties dropped by some 12.5% whilst new builds dropped by a mere 2%, the first time on record, according to the index.

These figures however, will not hold much weight with most in the Spanish property business, who would not believe that new builds are down by just 2% in a year. Experience in the business would suggest a figure closer to 20% would be more accurate for both resale and new build Spanish property.

On the brighter side, prices fell on average just 2.7% a quarter which is a fair improvement on the previous years 3.1% decline. This would suggest that there has been a slow down in the rate of price decline, which peaked at the end of 2008.

Prices by region fell the least in the three regions with the lowest priced property - Galicia (-0.5%), Murcia (-1.6%), and Asturias (-1.8%) and fell the most in the regions with the highest priced properties - Catalonia (-13.7%), Madrid (-11.2%) and the Basque Country (-10.8%). With Andalucía maintaining a much lower 3.9% decline.

40,000 Spanish Properties To Be Legalised

Wed, 08 Jul 2009 22:00:00 GMT

It has been reported that some 40,000 Spanish properties are to be made legal by authorities throughout the Costa del Sol and the rest of Andalucía.

The said properties, mainly located along the more populated area of the coast, are to be approved by the town halls in Mijas and Marbella as well as the provincial government in Malaga, according to our source.

For many this will end months, even years, of uncertainty over large quantities of illegally built properties, sold by unscrupulous agents. Good news for those who bought on a buy-to-let basis.

Our source has revealed that the president of the diputacion - Salvador Pendon, has assured the public that demolitions would only take place in “certain concrete cases”.

Currently at the town hall and awaiting approval is a new and revised urban plan for Malaga. The plan, if passed, will be sure to end the torment of many and confirm the status of thousands of homes along the coast.

According to Paul Bradley from The Spanish Property Owners Guide, this would suggest that the Spanish property market will witness an increase over the coming months “as the market comes back in the UK”.

For more information on renting a property in Spain, please read TheSaraService.com's Guide to Renting a Property in Spain.