Luxury holiday homes become the saviour of Italian architecture

Luxury holiday homes become the saviour of Italian architecture

by Louise Italy
  • Commercial real estate investment expected to rise by 20% in 2014 and again in 2015 (Cushman & Wakefield)
  • Foreign developers committed to restoring Italian architectural gems for use as luxury holiday homes (Appassionata)
  • Share of sympathetically restored hilltop home with original turret features from £65,000 (Casa Tre Archi)

From commercial property investment to the saviour of ancient Italian architecture, it seems that 2015 could be the year of the new Italian renaissance so far as real estate is concerned.

Just as the Renaissance was in part driven by the foreign influences of Greek scholars and classical texts, it is foreigners who are now driving forward Italy’s property market. Their interest in commercial real estate (led by retail buildings and followed by the office and hospitality sectors) soared in 2014, with Cushman & Wakefield reporting an expected commercial real estate investment volume during the year of around €5 billion – 20% higher than the previous year.

Foreign investors are the most active in the market and are expected to drive forward a further 20% increase during 2015, having tired of other European markets. As Deutsche Bank managing director Massimo Saletti, explains,

“There is a general feeling that other markets have already been explored from a valuation and opportunity standpoint, and Italy is an obvious choice for capital at competitive pricing levels.”

It is not just commercial real estate that is behind the new Italian property renaissance. Residential property is also playing its part. While commercial buildings are bringing in the money and stealing the limelight, a quite movement is underway that is seeing foreign investors becoming the saviours of Italian architecture.

While the Italian government is selling off castles and other ancient assets in a bid to raise some quick cash, factional ownership company Appassionata is taking a different approach by lovingly and sympathetically restoring old properties and turning them into luxury holiday homes.

Casa Tre Archi, Appassionata’s latest project, is a stunning property that is actually built into the town walls of the medieval hilltop settlement of Petritoli in Le Marche – one of the turrets is a feature wall in the property’s living room. Appassionata has breathed life back into the ancient dwelling, as founder Dawn Cavanagh-Hobbs, comments,

“Italy has so many fantastic old buildings that are gradually crumbling away to dust. It is heart-breaking to see so much history being lost and I am delighted that Appassionata can play a part in saving some of these architectural gems.”

Casa Tre Archi is the company’s third shared ownership project. They have previously resurrected a cluster of tumbledown farm buildings, transforming them into two luxury country houses, along with a working estate. Dawn and her team have also restored a local palazzo, which has become the family home.

“Restoring the palazzo was such an incredible experience,” recalls Dawn. “The roof was partially caved in and one more winter would probably have been the end of the property altogether. Since we began work there, several of the locals have popped in and thanked us for saving it, regaling us with tales from their youth of lively social gatherings that took place there.”

With work on the palazzo and Casa Tre Archi (shares of which are available from £65,000 for five weeks’ usage per year) now complete, Appassionata are looking for their next project and are determined to show that world that shared ownership holiday homes can be the saviour that neglected Italian architecture so badly needs.

For more information visit www.appassionata.com or contact the Appassionata team on +39 33154 13225.

Want to buy a second home? Ask for the kids’ permission first!

Want to buy a second home? Ask for the kids’ permission first!

by Louise Albania Italy Portugal Spain , , ,
  • 92% of people planned to travel with family in 2014 (TripAdvisor)
  • 40% feel their children influence vacation planning (Preferred Hotel Group)
  • Beaches and pools top the list of second home requirements (Taylor Wimpey España)

Whether we like it or not, it’s established fact that children shape their parents’ holiday choices. Each year the TripAdvisor family travel survey demonstrates the influence that kids have on their parents’ decisions. In 2014, some 92% of respondents planned to travel with family and relatives’ considerations were plain to see in the amenities wish list, with complimentary breakfast, close proximity to local attractions, free Wi-Fi, a swimming pool and room service making the top five.

The same survey found that beach trips were the most popular family holiday choice, with 66% of travellers planning a beach/ocean vacation. Meanwhile, the Preferred Hotel Group multi-generational travel survey found that 40% of grandparents and parents felt their children “actively participate in or influence vacation planning.”

What is perhaps less well known is the influence that children have on the purchase of second homes. Owning a home overseas is a wonderful way to enjoy family holidays and avoids the usual hassles associated with family getaways. The TripAdvisor survey found that lugging extra gear and not enough quiet time for parents were the top annoyances, both of which can be avoided through second home ownership.

Dawn Cavanagh-Hobbs, founder of Italian fractional ownership holiday home company Appassionata, comments,

“Children are definitely a key consideration for almost all of our owners. Most see their fractional ownership share not just as the perfect way to enjoy luxury family holidays, but also as an inheritance for their children in the future. They also like that their children can learn about Italian culture and pick up more of the language each time they visit.”

Marc Pritchard, Sales and Marketing Director of leading Spanish homebuilder Taylor Wimpey España, agrees,

“There’s no doubt that children play a huge role in their parents’ decision to purchase a second home. Our buyers are looking for large swimming pools, on-site parking and easy beach access, all of which are important for their children to enjoy time at the property.”

Spain is a welcoming country for families, as is neighbouring Portugal. With the lowest birth rate in Europe, children are cherished in Portugal and made a fuss of, even in busy restaurants. Chris White, founding director of boutique real estate agency Ideal Homes Portugal, observes,

“A friendly environment with plentiful attractions for children makes an ideal location for a second home. Sandy beaches, pools, water parks and other activities are really important, as is a short flight time – anything under three hours is really the optimum distance.”

The flexibility that a second home offers for children is also important, explains Peter Walshe, Marketing Director for Albania’s first high-end resort Lalzit Bay Resort and Spa,

“As children grow, their wishes in terms of holidays will change. Choosing a well-located second home is a great way to accommodate those shifts. For younger children, the space to store toys and a nearby pool are essential. For older kids, a lovely beach and plenty of activities in the local area are important. And, of course, moody teenagers can choose to bring their friends and spend the whole holiday sitting indoors and playing on their phones, should they so wish! A second home provides the perfect environment for all of these.”

It really does seem as though children have serious sway over their parents when it comes to second home ownership. Clearly parents aren’t buying for themselves at all, despite what they may think!

For more information please contact:

Appassionata: +39 073 465 8775 or www.appassionata.com

Taylor Wimpey España: +44 8000 121 020 or www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

Ideal Homes Portugal: +44 800 133 7644 or +351 289 513 434 or www.idealhomesportugal.com

Lalzit Bay Resort and Spa: +44 845 125 8600 or www.lalzitbay.com

Investors set to flock to Portugal during Chinese year of the sheep

Investors set to flock to Portugal during Chinese year of the sheep

by Louise Portugal
  • Chinese buyers account for 80% of Portuguese golden visa recipients (themovechannel)
  • Chinese tourist spending doubles to €33 million in 6 months (Lusa)
  • Luxury villas prove particularly popular (Ideal Homes Portugal)

The Chinese year of the sheep, which begins next month, is set to see investors flocking to Portugal in search of high end properties costing €500,000 or more, that qualify them for the country’s golden visa scheme.

The sheep is representative of people who combine creativity with considerate planning, which is typical of those with the imagination and organisational skills to move overseas and start a new life in a foreign land.

The Portuguese golden visa scheme was launched in 2012 in an attempt to bring more money into the country’s struggling economy from overseas. Since then, it has been a roaring success, with figures reported towards the end of 2014 showing some €950 million had been invested in the country as a result of the scheme.

Although they are available to all nationalities, Portugal’s golden visas have been a hit with the Chinese in particular. More than 80% of buyers who have been granted visas under the scheme have come from China, according to themovechannel.com.

Chris White, Founding Director of boutique real estate agency Ideal Homes Portugal, comments,

“We’ve definitely noticed an upturn in the number of Chinese buyers picking up high end properties since the inception of the golden visa programme in Portugal. Everything from luxury detached homes, like this six bedroom villa with pool in Carvoeiro, to traditional farmhouses, like this quirky quinta with pool near Luz de Tavira are up for grabs.”

Interestingly, Portugal has also seen an upturn in the number of Chinese tourists visiting the country. The first half of 2014 saw a 69% increase in Chinese tourist numbers compared with the same period the year before, with 55,000 visiting during the six months. Given the lack of direct air link between China and Portugal, clearly these tourists were determined to discover what the Iberian country has to offer. Between them, these 55,000 visitors are reported by the Lusa News Agency to have spent some €33 million, which is excellent news for the Portuguese economy.

Portugal is certainly pushing to tap into the Chinese tourism market. Secretary of State for Tourism, Adolfo Mesquita Nunes attended a major tourism fair in Shanghai during November 2014 and football star Cristiano Ronaldo is fronting a new marketing campaign aimed at presenting Portugal to increasing numbers of Chinese holidaymakers.

“One should also consider the impact of the golden visa scheme on tourism,” points out Ideal Homes Portugal’s Chris White. “Many of those considering a move to Portugal will visit the country several times, to introduce their families to Portugal, to get a feel for the culture and to look at what the property market has to offer. Thus before they commit their funds to a golden visa property investment, they are already bolstering the economy through one or more inspection trip visits.”

With a relaxed way of life, plentiful sunshine and a property market that offers luxury accommodation at bargain prices, Portugal’s temptations to Chinese buyers are plain to see. As 2015 applications for golden residency visas get underway, no doubt many more Chinese investors will be looking to celebrate the year of the sheep by discovering the many delights of Iberia.

For further details of properties currently available in Portugal, call Ideal Homes Portugal on 0800 133 7644 or +351 289 513 434, email enquiries@idealhomesportugal.com or visit www.idealhomesportugal.com.

Burn off those Christmas calories at your dream home in Spain

Burn off those Christmas calories at your dream home in Spain

by Louise Spain
  • 88% of New Year’s resolutions fail (University of Bristol)
  • 1 round of golf equates to a 3 to 6 mile walk (Live Healthy)
  • Get fit in the Costa del Sol sunshine, with apartment prices from €178,000 (Taylor Wimpey España)

Even those with the strongest willpower in the world tend to relax and indulge in a few extra calories over the festive season, as mince pies, boxes of chocolates and general feasting ruin all but the strictest of diets. Then comes January, with its usual dose of good intentions and resolutions to get fit.

Getting fit doesn’t have to be difficult and doesn’t have to mean crowding into a gym with dozens of other sweaty individuals. There are several fabulous alternatives and not all of them are restricted to the UK, as Marc Pritchard, Sales and Marketing Director for leading Spanish homebuilder Taylor Wimpey España, explains,

“Exercising and participating in sport should be an enjoyable experience. It’s something that we keep in mind with every development that we build. All of our sites have communal pools, for example, and with almost year-round sunshine in Spain, burning off calories with a few daily lengths during the winter months is definitely achievable.”

Taylor Wimpey España’s sites also benefit from access to a host of nautical sports, such as sailing, windsurfing and scuba diving, thanks to their carefully selected locations close to popular beaches and marinas. Many owners enjoy participating in such activities, which are a far cry from pounding away on a running machine in an over-crowded gym.

Golf is another great way to get fit. A round of 18 holes involves a walk of between three and six miles, according to Live Healthy. Owners at La Floresta Sur can benefit from access to El Soto Golf Club, which includes a gym and sauna as well as the course itself. Prices for two bedroom apartments there being at €178,000.

Also on the Costa del Sol, Avalon is a stunning new development at which prices are from €295,000 for a spacious, two bedroom apartment with high spec fixtures and fittings. Owners are treated to special prices at Los Arqueros Golf, including its gym, sauna and squash, tennis and paddle courts.

Taylor Wimpey España’s Miraval site, where apartments start at just €245,000, also enjoys special golf packages, being located by La Cala Golf Resort.

A University of Bristol study conducted back in 2007 examined in detail the success rates of New Year’s resolutions by working with some 3,000 participants and tracking their progress against their goals. It found that, despite the participants’ initial confidence, some 88% of those who set New Year’s resolutions failed to achieve their goals. Perhaps the additional motivation of Spanish sunshine streaming down on them while they attempted to get fit might have been enough to turn some of those failures into success stories.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

What does 2015 hold in store for property investors? Property Frontiers reveals all!

What does 2015 hold in store for property investors? Property Frontiers reveals all!

by Louise United Kingdom
  • 85% of UK property investors to expand portfolios over next 5 years (The Property Hub)
  • Manchester, Liverpool, Oxfordshire and Northern Ireland are the domestic markets to watch in 2015 (Property Frontiers)
  • Dublin, Barcelona and Africa set to tempt overseas investors (Property Frontiers)

What a year 2014 was for property investment! Then UK buy-to-let market flourished like never before and specialist property investment company Property Frontiers was right at the heart of the boom, offering clients a wide range of leading buy-to-let opportunities, from luxury apartments in Oxfordshire to perfect commuter homes in Harrow on the Hill.

Building on the success of 2014, 2015 already looks set to be another exciting year both for Property Frontiers and for the sector as a whole. According to a survey from The Property Hub, an impressive 85% of UK property investors are planning to expand their property portfolios in the next five years. With 2015 kicking off this substantial period of expansion for the UK property investment sector, the opportunities are boundless, as Property Frontiers’ Chief Executive Ray Withers explains,

“We’re seeing more and more property investors turning to the UK to make their money. UK buy-to-let property was one of the investment highlights of 2014 and it looks set to be even stronger in 2015. This asset class is perfect for investors with varying sums of capital, thanks to the range of properties and locations available. It means that buy-to-let investment properties have attracted everyone from investors with just that one property in their portfolio to large-scale buyers with an array of homes.”

Property Frontiers will be starting the year with the completion of construction work at its Trinity Court site in the heart of Oxford, where investment in the apartments begins at just £187,500. Then as the year progresses they plan to reveal a number of new buy-to-let opportunities, all with the Property Frontiers signature combination of excellent location and high spec finish. It’s a combo that the company has found works extremely well – it appeals to clients as an investment prospect and young professionals love to rent such homes, providing stable, long-term income for investors.

Every year, Property Frontiers publishes its predictions for the coming 12 months and 2015 is no exception. The focus in the predictions for 2015 remains on the UK market, as buy-to-let opportunities there are still far from reaching their peak.

The recent Platinum Property Partners survey found that some 23% of landlords plan to expand their portfolio by one more property in 2015 alone, while 14% will be looking to increase it by two more. The potential in this sector remains huge. In particular, Northern Ireland, Oxfordshire, Liverpool and Manchester will be the markets to watch in 2015. While other cities will also offer some excellent opportunities, these four are likely to be the investment hotspots of the year, according to the expert analysts at Property Frontiers.

Looking overseas, both Dublin and Barcelona present interesting prospects so far as property investment is concerned in 2015 while outside of Europe, Africa probably offers the best overseas opportunities. Property Frontiers has a structured agricultural investment opportunity in Senegal, for example, which offers expected returns of 239% over five years.

Property investment in Africa is also likely to be big news this year. Growth in middle class households, fuelled by the growth of Africa’s mining and agriculture industries, is leading to a shift in the housing market, while high end accommodation in cities such as Kampala and Luanda is experiencing unprecedented demand.

One thing is certain for 2015 – wherever the best property investment opportunities are, Property Frontiers will be there leading the field.

For further details, contact Property Frontiers, register to receive the 2015 predictions report or call the team on +44 1865 202 700.

 

Scanning the horizon – what does Spain hold in store for 2015?

Scanning the horizon – what does Spain hold in store for 2015?

by Louise Spain
  • Spain pulls in record tourist spending of €56,374 million (Ministry of Industry, Energy and Tourism)
  • Spanish economy to grow 2.4% in 2015 (Funcas)
  • Luxurious Costa Blanca properties from €142,000 (Taylor Wimpey España)

Tourism in Spain contributed 11.7% to the economy in 2013, according to the latest data from Market Research Reports, with total tourism output reaching €191.5 billion. And as 2014 draws to a close it looks certain that those figures will be pushed even higher thanks to a record-breaking year.

“It’s been a fantastic year for Spain,” comments Marc Pritchard, Sales and Marketing Director for leading Spanish homebuilder Taylor Wimpey España, the Iberian arm of the UK’s Taylor Wimpey, which has just re-entered the FTSE 100.

“We’ve seen resorts across the country receive record numbers of visitors, with the lure of Spanish sunshine tempting many to come here for their holidays. One of the great things about Spain is its mass appeal – whether for singletons, couples, families or retirees, Spain has something to offer everyone.”

One of the country’s most popular areas is the Costa Blanca, where Taylor Wimpey España’s La Vila Paradis offers luxurious apartments with a communal pool and stunning beachfront location from as little as €229,500. Excellent restaurants, beautiful beaches and glorious sunshine abound in the area, helping to drive up visitor numbers over the course of the year.

Those looking for even better value for money will be wowed by La Recoleta, where two bedroom apartments just a few metres from the beach can be picked up for an astonishing €142,000. Sea views, private gardens and a communal pool perfect the development.

Nationally, tourism had an excellent year. Overnight stays at Spanish hotels were up 5.1% in October compared with the year before, reaching a total of 26.2 million according to the latest figures from the National Institute of Statistics (INE). Meanwhile, the Ministry of Industry, Energy and Tourism reported record tourist spending of €56,374 million between January and October.

“There’s a feeling here that while 2014 has been good, 2015 is going to be great,” Pritchard continues. “Spain still has some way to go in sorting out its finances, but there is much more of a feeling of positivity about the economy than there was this time last year.”

Indeed, the latest projections from the Foundation of Savings Banks (Funcas) show the economy as growing by 2.4% in 2015, an increase on the previous estimate. The global reduction in the cost of oil is cited as one of the key reasons, as it lowers production costs and increases the money available to individual Spanish families.

Those overseas will be feeling the same effects and for many 2015 may well be the time to invest in that much-longed-for second home in the sunshine. Those looking outside of mainland Spain will find some wonderful property options on the sun-kissed island of Mallorca. One of the best is Taylor Wimpey España’s Cala Magrana III development, with two bedroom properties packed with designer fixtures and fittings available from €230,000. The site includes a lovely communal garden with swimming pool and is just 600 m from Cala Anguila beach, with golf courses and Porto Cristo marina also nearby.

As the New Year rolls in and the excesses of Christmas make way for planning and preparing for the new year ahead, many will be thinking wishfully of a week or two in the sunshine – and Spain will no doubt be top of many wish lists. With visitor numbers and spending already on an upward trend, it looks like the future of the tourism industry in Spain could be bright indeed.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

Buying a home in Spain is as easy as TWE with Taylor Wimpey España!

Buying a home in Spain is as easy as TWE with Taylor Wimpey España!

by Louise Spain
  • House prices in Spain down 35.2% since 2007 (Market Watch)
  • Prices up 1.15% in Q3 2014 (Property Registrars)
  • Stunning beachfront apartments available from €225,000 (Taylor Wimpey España)

It has been heartening to see Spanish home prices moving in the right direction this past quarter, with the Spanish Property Registrars latest index reporting an increase of 1.15% for Q3 2014 when compared with a year earlier.

With the market at turning point, many people will be looking seriously at Spain with a view to purchasing an investment property, second home or retirement property, wanting to buy while the market is at its lowest point and then enjoy capital growth once prices rise. According to Market Watch, house prices in Spain have fallen 35.2% on average since 2007, so the potential for capital gains is extensive.

Buying overseas can be a confusing business to the un-initiated, so Taylor Wimpey España, Spain’s market-leading homebuilder, has put together some top tips to help buyers understand what they need to do, with Sales and Marketing Director Marc Pritchard showing that buying a home in Spain is as easy as TWE with Taylor Wimpey España.

Taylor Wimpey España’s guide to buying a home in Spain

Trust – firstly, make sure you work with a company that has a proven track record that you can trust in. Grill them on their experience and do your homework online to be sure that you have complete confidence in the company you are working with. Whether you buy directly from a developer or through an agency, be sure you know who you are dealing with and trust them to handle your transaction smoothly.

Work patiently through the purchase process. You may be chomping at the bit to complete, but there are certain legal steps that need to be followed in the right order. If buying a property off plan, you will need to:

  1. Obtain a Spanish fiscal number.
  2. Sign a reservation contract and pay a fee.
  3. Sign a contract of sale (this can take up to 30 days to draw up).
  4. Make staged payments during the construction process.

For homes that have been previously owned, you still need to obtain a fiscal number, then pay a small deposit once your offer has been accepted, followed by legal investigations and the signing of the contract of sale.

Ensure you pay your fees after the purchase is complete. Several fees and taxes are payable following the completion of the sale and the property will need to be registered at the Spanish Land Registry. Once all this is done, you just need to relax and enjoy your new property!

Many buyers ready to take the Taylor Wimpey España approach and purchase their Spanish home are likely to look in one of three main areas: the Costa Blanca, the Costa del Sol or the Balearic Islands. All three are popular holiday destinations offering beautiful beaches, fantastic restaurants and sunshine aplenty.

On the Costa Blanca, Taylor Wimpey España’s La Vila Paradis is a gated development in an enviable beachfront location offering swimming pools, private parking and delightfully laid out communal gardens. Prices start at €225,000 for a two bedroom apartment.

On Mallorca, the Cala Magrana III development has key-ready two bedroom apartments available from just €230,000, with a 5% cash discount for any buyer who legally completes before the end of the year. Buyers can enjoy the nearby Porto Cristo marina and the pristine Cala Anguila beach, as well as access to excellent local golfing facilities.

Over on the Costa del Sol, Horizon Beach has the last few remaining penthouses available for buyers looking to enjoy spectacular sea views and easy beach access. Prices start at €500,000.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

Inner city life – demand for Italian urban living soars

Inner city life – demand for Italian urban living soars

by Louise Italy
  • Italian property market saw 3.6% increase in buying and selling in Q3 2014 (Italian Revenue Service)
  • City living is leading the market’s revival (Knight Frank)
  • Own a luxury urban holiday home for £65,000 (Appassionata)

“Holidaymakers don’t want to see only Italy’s touristy areas anymore. They want to experience real life – to immerse themselves in the country and its way of life, to eat where the locals eat, to feel part of the town they are staying in.”

For Dawn Cavanagh-Hobbs, founder of fractional ownership company Appassionata, this has been a learning experience. Appassionata’s first two fractional holiday homes, where owners buy a one tenth share of the property and use it for five weeks per year, were located in rural Le Marche. The properties offer the ultimate in luxury rural Italian living, including pools, a tennis court and a working estate producing its own wine and olive oil.

“I was surprised by just how much the owners wanted to embrace the true Italian lifestyle,” comments Dawn. “Of course they enjoyed sunning themselves on the beach and skiing in the mountains, but they seemed just as delighted – if not more so – with buying fresh fish from the local fishermen early in the morning and learning how to make pasta with a local chef. They wanted to embrace Italy in a totally different way.”

It was owners’ feedback that guided the location of Appassionata’s third property, the urban fractional holiday home Casa Tre Archi, in the medieval hilltop town of Petritoli. The three bedroom, three bathroom house with large roof terrace is perfectly located for owners who want to experience urban Italy, from sipping coffee in a piazza to the sound of church bells tolling, to heading to the fruit and veg market to pick out locally grown produce that’s bursting with flavour.

The trend is reflected in official figures, with the Italian Revenue Service reporting a sharp upturn in the country’s buying and selling rates in Q3 2014, an increase of 3.6%. The buying and selling of urban properties was the main driver of the upturn, in line with feedback from Rupert Fawcett (one of Knight Frank’s Italian team partners) in November, who commented that, “there has been increased interest this year in city living.”

Fawcett’s observation was that buyers from the UK and US were leading the charge. Certainly this has been the case with Appassionata’s properties, though they also have owners from South Africa, Switzerland, Scotland, Ireland, France and of course Italy itself.

A one tenth share of Casa Tre Archi can be purchased for just £65,000 and it is this low price point that adds to the property’s attractions, as Dawn explains,

“The beauty of factional ownership is that buyers can get so much more for their money than if they were buying a second home outright. Given that the average second home owner is unlikely to use it for more than a few weeks a year anyway, fractional ownership makes perfect sense. Our owners arrive to find their home ready for use and never have to worry about the upkeep of the garden or minor repairs – it is the ultimate in relaxing holiday experiences.”

For more information visit www.appassionata.com or contact the Appassionata team on +39 33154 13225.

Portuguese property market records 12 months of growth with outlook for 2015 equally positive

Portuguese property market records 12 months of growth with outlook for 2015 equally positive

by Louise Portugal
  • Portuguese market upturn began in Q1 2014 (INE)
  • Property sales now rising at fastest pace for 5 years (RICS/Ci)
  • Bargain properties from €69,000 for a detached house (Ideal Homes Portugal)

“If you’re looking to buy property in Portugal, now is the time.”

Bold words indeed from Chris White, Founding Director of boutique real estate agency Ideal Homes Portugal, but the figures certainly add weight to his claim.

The year began well for the Portuguese property market, with Statistics Portugal (INE) reporting a 1.22% (1.6% in real terms) increase in prices during Q1 2014. Now, the latest RICS/Ci Portuguese Housing Market Survey has revealed that sales volumes have reached their highest level since 2010, when the survey was originally launched. RICS Senior Economist, Josh Miller, comments,

“The on-going improvement in sales market activity appears to have gained added momentum recently, while prices have now remained more or less stable for the past few months.”

The figures are leading many to conclude, as Ideal Homes Portugal’s Chris White observes, that now is the time to buy, before prices begin to rise sharply. For buyers looking to pick up a second home, or even a main residence, Portugal is packed with bargains.

A one bedroom apartment in the up and coming town of Olhão in the eastern Algarve can be snapped up for just €72,000, while those looking for something a little quirkier can pick up a large plot of land complete with homely timber house for €69,000.

Even with more expensive properties, there are still plenty of bargains to be had. This incredible four bedroom detached villa with pool, tennis court and extensive outdoor terraces in the central Algarve has been reduced from €1.1 million to €850,000. Chris White comments,

“Buyers looking to get maximum value for their money in Portugal need to act fast. There are still bargains available, particularly in the Algarve, but demand is on the up and logically it follows that prices will continue to rise during 2015.”

It is a good time for those looking to buy an investment property in Portugal as well, with a government initiative meaning that 85% of rental income from a property is classed as expenses, so the owner is taxed only on the remaining 15%.

The upturn in the Portuguese market during 2014 is certainly reflected in the success of Ideal Homes Portugal. The company has trebled its workforce during the year and opened a new office to accommodate the larger team, with former Dragon’s Den star Duncan Bannatyne officiating at the opening. With nearly 100 homes sales completed over the past 12 months, Chris White and his team are looking forward to an even busier 2015. White concludes,

“From a professional perspective it’s really exciting to be involved in the Portuguese property market right now. There’s a sense of confidence and anticipation spreading across the sector. I can’t wait to see what’s in store in 2015.”

For further details of properties currently available in Portugal, call Ideal Homes Portugal on 0800 133 7644 or +351 289 513 434, email enquiries@idealhomesportugal.com or visit www.idealhomesportugal.com.

Spanish mortgage changes tempt foreign buyers to purchase Iberian dream homes

Spanish mortgage changes tempt foreign buyers to purchase Iberian dream homes

by Louise Spain
  • Lowest ever Euribor rate drives property market movement (Kyero)
  • Number of mortgages up 29.8% in September (National Statistics Institute)
  • Foreigners offered very similar mortgage rates to Spanish nationals (Mortgage Direct)

Spain’s mortgage rate is making headlines at present with Euribor (the rate usually used to set mortgage interest payments in Spain) falling to 0.335% in November with this record low leading many buyers to act fast in order to purchase the property of their dreams.

In fact Spanish mortgages have been on a positive trend for some months with data from the National Statistics Institute showing that the number of mortgages constituted in September was up 29.8% on the year before. This follows year-on-year increases in June, July and August 2014, of 19%, 28.8% and 24% respectively.

So what does this mean for those considering heading off to Spain for a new life?

Martin Dell, Director of Spain’s leading property portal, Kyero.com, which lists over 175,000 properties from 2,500 estate agents, explains,

“Quite simply, better access to finance means more sales to both domestic and overseas buyers. More than 90% of Spanish mortgages are based on Euribor which is at its lowest ever rate. This means huge savings for long term borrowers, tempting many to take out mortgages to buy their dream home.”

Getting a mortgage in Spain is in many ways similar to obtaining one in the UK, with a similar level of paperwork required, according to Kevin Monger of Mortgage Direct. Risk assessment tends to be carried out on a debt-to-income basis, a model that is beginning to be adopted by UK banks as well. Spanish mortgages can be taken out up to the age of 75. Monger comments,

“We have seen a dramatic reduction in mortgage interest rates this year, where foreigners are now being offered very similar rates to Spanish nationals. The banks here have a renewed appetite for lending to non-residents who wish to buy holiday homes or move to Spain.”

Bargain property prices are also tempting foreigners, with Kyero listing attractively priced homes in all areas of Spain. From a townhouse with pool in Almoradi (Alicante) for €79,500, to a country home with plunge pool and river views in Comares (Malaga) for €94,950, the site showcases the best of Spanish property in every price band.

At the top end of the market, those with around €48 million to spend can bag themselves a 237 room frontline beach hotel in Estepona with direct beach access. While getting finance for a property of this stature might prove tricky, certainly mortgages for more reasonable amounts are proving extremely appealing in Spain right now.

The Overseas Guides Company’s latest Quarterly Index has shown that enquiries from individuals wanting to by property abroad have increased 17% since last year. With around 24% of all enquiries relating to it, Spain remains the most popular destination covered by the Index. With the market picking up in 2014, all eyes will be on 2015 to see how fast the positive trends take hold.

For more information and to keep up to date with the latest in Spanish property trends, visit www.kyero.com.