New Measures to Fight Draught

March 31, 2008
Last autumn and winter were the driest seasons on record in Spain, and mounting concern over civilian access to water has led the government to undertake new measures to ensure adequate water distribution throughout the country.

Spain is heavily dependent on water, not only for consumption but also to maintain its hydroelectric plants – especially that the government has put great emphasis on renewable energies.

Part of the plan to alleviate Spain’s driest areas (particularly the southeast) includes diverting water from the Tagus river, which flows from the north to the west of the country, to the Segura river basin in the southeast.

British Airways Considers Iberia Takeover

March 25, 2008
Britain’s premier carrier has had its eye on Iberia at least since last year, when the company negotiated a failed takeover with Spanish bank Caja Madrid (Iberia’s major shareholder).

Recently, BA has turned on the heat again, spending 52 million pounds last week to up its stakes in Iberia from 9.95% to 13% and re-initiating talks with Caja Madrid. Chief executive Willie Walsh emphasized the fact that a takeover would only take place in consensus.

One of the reasons for BA’s interest in Iberia (Europe’s fourth-largest carrier) is its position as a major air bridge between Europe and Latin America and, according to Walsh, the high quality of Iberia management.

Spain’s Future Las Vegas Stirs Up Opposition

March 19, 2008
Europe’s largest amusement park, to be built in Aragon’s desert, is in direct conflict with the awareness of sustainable water development raised by Expo Zaragoza 2008.

This massive complex, which was considered for construction in France and Dubai, will include over 30 casinos, 70 hotels and hundreds of restaurants and shopping venues, bringing nearly 20 billion euros in investment to the area.

There has been criticism of the project, however, especially related to issues of energy sustainability. The area known as Los Monegros where the project will be built is characterized for its desert landscape and also suffers from high migration.

Many of the opposers to the project are locals concerned with corruption and the fact that a Las Vegas-like environment could attract organized crime to the area.

400 Euro Tax Cut First Act of PSOE

March 12, 2008
The 400 euro tax cut promised to taxpayers in Spain during José Luis Rodriguez Zapatero's electoral campaign will be the first measure of the socialist's second term, the Spanish Secretariat of Economy, Pedro Solbes, announced today.

Solbes said the decision will be made during the first cabinet meeting and applied retroactively back to February 1st 2008.

The tax cut was one of the most popular promises made by Zapatero, who won Spain's general elections last Sunday.

New “European Las Vegas” in Spain

February 27, 2008
Aragon’s regional government recently approved a 16 billion euro project for a massive Las Vegas style resort to be built over the next decade. Currently referred to as Gran Escala (large scale), the resort will be built on 5,000 acres of land in the desert of northeastern Spain and will include five theme parks and 32 hotels.

A bullring, stadium, conference center and even wedding chapels are all part of this ambitious plan backed by a group of international entrepreneurs. According to rumor, the casino city will make Disneyland Paris seem like a backyard playground.

Spokespeople for the project are in the process of approaching the owners of the 007 movies to bring in James Bond as part of one of the theme parks, which will be entitled Spyland. Other theme parks and casinos will feature themes ranging the entire span of human history, including appearances by cavemen, Roman centurions, French courtiers to Louis XIV and KGB agents.

Up to 40% of existing estate agencies closed throughout 2007

February 6, 2008
More than thirty thousand estate agencies closed their doors last year as a result of the property slowdown Spain has been experiencing since last summer. According to COAPI (Spain’s official property agents association), closures were most noticeable in coastal areas targeted by overseas property buyers.

A spokesman for COAPI expressed the opinion that these closures represent a return to normalcy: “What wasn’t normal was the lack of people ready to sell and the lines of people waiting to buy.” This booming market was responsible for the proliferation of estate agencies without coherent business plans, out simply for profits – the disappearance of these upstart profit ventures actually represents a healthy filtering of undesirable businesses from the market.

COAPI also found that homebuyers today pay fewer physical visits to agency offices and increasingly use the Internet to look for a home; up to 60% of completed property transactions were initiated with an online search.

Less Mortgages Given Due To Real Estate Slowdown

January 30, 2008
The slowdown in Spain’s real estate market is making its mark on the mortgage market with decreases in its main indexes. According to recent figures for November 2007 from the INE (National Statistics Institute), the capital lent to purchase a home in Spain has decreased by 13.3% compared to the same period in 2006.

The total number of mortgaged homes during this period also fell, with a decrease of 15%. These numbers provide further confirmation that Spain’s property market is moving at a slower pace and has completed the strong real estate boom it experienced since 1997.

Official 2007 Property Prices Released

January 25, 2008
The Spanish government’s Ministerio de Vivienda (housing department) released this week the official figures for property prices over 2007. While prices increased overall by 4.8%, this increase constituted the smallest one since 1997.

More surprisingly was the fact that prices actually fell in 11 of Spain’s 50 provinces, although this occurred in areas not typically frequented by overseas property buyers.

Murcia was the region where prices rose the most, with an increase of 8.1%. Other coastal regions also rose above the national average, making investment from foreign property buyers an important factor in the health of Spain’s property market throughout 2007.

Spanish Real Estate Companies Look Abroad

January 14, 2008
Only four years ago, few Spanish real estate companies were venturing abroad to explore foreign markets; the local residential property market was strong enough to fulfil any expectations. But much has changed in little time.

Diversification is now the best way to combat the current hardships of the market. Spanish companies are moving into foreign markets as a way of softening the transition to a slower-moving market.

Developing countries such as those of the old Soviet Union will continue to constitute the area of greatest interest for Spanish real estate companies. On the other side of the Atlantic, México and Brasil stand out with powerful real estate markets ripe with opportunities – these countries are also becoming interesting to Spanish companies from an investment point of view.

Spaniards Promised Money to Make their Homes Greener

December 11th, 2007
The Spanish government is planning to bring in a policy to give home owners the opportunity to make their homes environmentally-friendly by giving out grants.

The prime minister, Jose Luis Rodriguez Zapatero is eager to push the green issue through before the general elections in March. Zapatero has insisted the government would give 1 billion Euros in direct subsidies to renovate old homes from 2008 – 2012, which is 200 euros more than his first suggestion.

There is also another 2 billion euros in credit annually to assist Spanish residents in making there home between 25 and 60 percent more energy efficient. It will also boost the value of homes as energy bills would be cut.

Zapatero insists the money will be sufficient to renovate 500,000 homes. And it is not only homes, public buildings such as schools have also been told they will receive 200 million euros to improve there energy efficiency.

Spanish Government Smartens Up the Property Sector

December 3rd, 2007
The Spanish Government has launched more than 100 investigations on the issue of corruption in real estate. The civil guard has arrested 57 people and charged 126 others. These investigations seem to circle public officials and developers only six months after special police units were erected to challenge this corruption in the property market. These officials who accepted bribes from construction companies, in order to break building permits and zoning laws allowed companies to build on protected areas such as beaches.

The investigations are challenging an enormous volume of corruption that starting when Spain was experiencing a 10 year property boom, which occurred predominantly in Andalusia, where foreign buyers were victims of many building scams.

The Spanish government has started clearing the costs of illegal buildings and the Ministry of the Environment has demolished around 660 homes and hotels that were built too close to the shoreline.

The aim is to stop government officials accepting bribes in the future and making Spain a safer place in which to invest.

A Work of Art for Madrid’s Civil Courts

November 26th, 2007
“Transparency” and “democracy” are the values meant to be transmitted by the new courthouse of Madrid’s Civil Justice Campus.

The building, designed by the Iraqi architectural firm Zaha Hadid, will hold 118 courtrooms and will be the largest judicial complex in the world. The design of the courthouse will also include projects by renowned architects such as Norman Foster.

“By my heel I care not” – Spain holds its chin up in the face of the Eurostar

November 20th, 2007
Eurostar has done it again; impressed us even more with a faster train. It now only takes an astonishing 20 minutes to get from central London to the city of Lille in northern France. It is likely to mean an improvement to France’s tourist industry and perhaps an increase in people wanting to buy a property there. However the question has been raised whether this high speed train will have a bad effect on the Spanish property market?

Experts believe that despite all the hype, Spain’s property market still remains one of the most affluent in Europe. Property companies such as Propertyabroad.com believe Spain attracts a “very different market” than France, making the Eurostar a very minor variable in the percentage of future foreigners purchasing Property in Spain.

Spain’s 2010 World Expo Pavilion a Giant Basket

November 14th, 2007
Spain was the fourth country – after the UK, Switzerland and Luxembourg – to unveil the design for its pavilion at the 2010 World Expo in Shanghai as it signed a contract with event organizers earlier this week. The design will emulate a giant wicker basket.

Various patterns made out of wicker will be hand-weaved and applied to a steel frame, then protected with a waterproof seal. 8,500 square meters of floor space will allow for exhibition areas, cafeteria space and areas devoted to live cultural performances, and will include both open and covered areas.

The design was selected to highlight Spain and China’s shared tradition in wicker-weaving. A total of 1.8 million euros will be invested in the construction of the pavilion.

Spain’s Property Slowdown Will Increase Quality

November 5th, 2007
The slowdown in Spain’s residential property market will have a positive impact on the relationship between quality and price for homes in Spain, according to a market study by CB Richard Ellis and Barcelona Meeting Point.

The ratio between quality and price of residential properties in Spain at this point is one of the lowest in Europe, and with current market conditions is expected to rise to normal levels.

Richard Ellis says this doesn’t indicate a “sector catastrophe.” Rather, property prices will be adjusted in manageable steps as long as appropriate measures are taken to “transmit confidence to the final buyer.”

Spain Attracts ‘Elite Tourism’ From India

October 29th, 2007
Spain has engaged in an intense campaign to promote itself as an elite tourist destination in India. According to the director of Spain’s tourism office, this Asian country represents a new and rapidly growing market whose economy has grown by 20 percent between 2004 and 2007.

Among other initiatives, including press releases, live cultural events and seminars, there will be a November supplemental issue about Spain in the travel magazine “Travel and Leisure South Asia.”

Enrique Ruiz, the director of Turespaña, affirms that so far the reaction in India has been “fantastic.”

Spain Still Wants Gibraltar Back

October 22nd, 2007
In a book published by the Spanish Foreign Ministry, La Cuestión de Gibraltar, Spain has officially reiterated its claim to sovereignty over Gibraltar.

On another front, the Spanish ambassador to the UN presented his case to the global organism’s Special Committee on Decolonization for Spanish re-possession of Gibraltar, which has been occupied by the UK since 1704.

While Spain has made progress towards gaining added control of Gibraltar – as evidenced by the Cordoba agreement, which resulted in shared access to the disputed territory’s airport – Gibraltar itself sees self-determination as the only solution to the colonization issue.

How Retirement Dreams Can Turn Into Nightmares

October 18th, 2007
There is a growing concern in the number of British people retiring to Spain who are encountering financial strain. More and more people are retiring to the sun-nourished country, due to a heavy load of advertisements and television programmes.

However, as easy as it may look, there is an increasing problem with people enduring financial suffering. Experts say these problems are simply a cause of bad financial planning.

The human life-span has increased and in these critical years several people have not made any provisions for their future healthcare and the majority of these people end up struggling.

The common problems are bad judgements which include property investments and inexact budgeting of pensions. Though living in Spain is till cheaper than the UK, prices have gone up dramatically and the economic difference between the UK and Spain is tightening. People are being advised to prepare for old age and calculate their finances and future options professionally before making the big move.

The Pause in the Spanish Property Boom Might Affect Portugal!

October 10th, 2007
During the 10 year property boom in Spain, Portugal has also been taken a long for the ride. The ride however has halted and once you get on, you cannot just get off!

A large proportion of the Portuguese property market is economically dependent on its bigger neighbour, Spain. The economists analyzed the boom as a growth, fuelled only by an excessive expansion of the Spanish property market. This was always seen as unrealistic and rickety. The doubling of prices has left Spanish consumer dept at 100 per cent of a disposable income, while Portugal is at a staggering 112 per cent.

Now that the increase rates have slowed down in Spain and shares have fallen, Portugal could also suffer, due to one third of its export growth rate (the main driving engine to recuperation) relying on Spain.

The Town of Muro de Alcoy is top of the charts for foreign investors

October 1st, 2007
Based in the Alicante region, the town of Muro de Alcoy is 30km from Benidorm on Spain's south-eastern coast. It was voted as the most popular area in Spain to buy a house in an online research by property experts Kyero.com.

There are many factors contributing to this, primarily, the fine weather of the region and the fact that it is close to Alicante International Airport are crucial to its success.

House prices in this town have increased to 22 per cent in the past 12 months and these days prices are close to the national average of €247,000.

The costal town of Adra, in Almeria, came in at second most popular. It has warm weather all year-round and low property prices at a stunning 43 per cent lower than the national average. Also the town is less than one hour’s car ride to the airport.

Evidently the vital variable on whether an area was popular seemed not to be so much the weather but keeping the distance to the airport at less than an hour.

Now the Buyers Have the Upper Hand in the Spanish Market

September 24th, 2007
The slow down in Spanish real estate has twisted the markets authority from a sellers market to a buyers market, this can prove positive for those whishing to buy a Spanish property in the near future.

A buyers market is defined by a situation where there is an oversupply of all properties (both new and second-hand homes) in the market. There have been more than 600,000 new properties constructed per year during the last decade. The interest rates have risen and there have been less professional investors buying property and therefore the demand has decreased. This is why the buyers now have the dominance over the market, because there is too much supply and not enough demand. Property prices will fall and buyers can invest at a cheaper price and the sellers will make less money from their properties.

There are other positive factors for the long-term buyer: There are more properties to choose from, the promoters will focus more on quality and bonuses to ensure a sale and the buyer is in a better position to negotiate the price and the conditions of the sale, i.e. the contract. Also experts agree that there will not be a crash in the Spanish real estate market, at most just an adjustment in prices and mainly in areas with a clear oversupply of new properties. In the long run the prices will increase, which could mean that buyers who purchase now could make a substantial profit, if they were to sell in the distant future.

This great situation will not last for long as property developers have already started to slow down their production and building licenses have decrease this year. All in all this is a great time to purchase a property.

Sitting on a gold mine

September 10th, 2007
September 10th 2007. Continually there are on goings stories about Spanish property prices going down, however, there is one village that seems to have struck it rich. Irish mining firm Ormonde Mining PLC have discovered high-grade gold deposites in the village of Pino del Oro, which justly means "Golden Pine". The village Mayor, Jesús Ángel Antón, heard the news, but while thrilled about the job prospects for the villagers, he remained composed.

"We've also known there could be gold here," he said, "the name of the village" – Golden Pine in English – "points to that. I've even witnessed some of the finds, but they've always been in very small quantities."

Set in the region of Castilla y Leon, near the Portuguese boarder, this region attracts few international property buyers. It appeals to people who wish to immerse themselves within the Spanish community, or who prefer a rural place off the beaten track rather than the bustling touristy southern coasts full of international buyers. Buying a rural property in Pino del Orno could have cost less then 50,000 Euros. This, conversely, could all change dramatically and prices in the near future may sore sky high as the locals realise that their houses are infested with gold.

Alicante Gets a Ryanair Base, New Routes

August 13th, 2007
Low-cost airline company Ryaniar will make Alicante its 21st base, adding 11 new routes to the six already serviced from the city. The new routes will be available beginning in November.

The company will invest 100 million euros in the project and create employment for 1,500 workers in Alicante. Ryanair also expects the new base to triple the number of passengers traveling to and from Alicante to 1.5 million per year.

Some of the new routes will include Brussels, Milan and Paris; cities like Dublin, Dusseldorf, Liverpool and London are already serviced by Ryanair. By the time the project is completed there will be a total of 17 routes serviced from Alicante.

Walls Made from Water

July 30th, 2007
Next year’s World Expo in Zaragoza (June 14th – September 14th, 2008) will host a particularly interesting attraction: a building with walls made from water.

Millions of fairgoers will be entertained by this unique sight, achieved through thousands of computer-controlled water jets that can be manipulated to create doors or windows at any point along the building’s walls.

The building will also have the capacity to disappear in minutes by lowering its roof all the way to the floor, essentially becoming an ordinary fountain.

Digitally projected text and images will be displayed along the water-walls of this 5,400 square-foot building, which was thought up by architects at the Massachusetts Institute of Technology and will cost around 3 million dollars to build.

Still No Crash in Sight for Spain’s Settling Property Market

July 23rd, 2007
Last year, property prices rose by nearly 6%, the lowest rise since 1998 and a definite sign that the market is settling and the second massive real estate boom in Spain’s recent history is coming to an end.

Settling yes, crashing – no, is the prediction of industry specialists who claim price increases will slow until reaching a similar level as the country’s inflation rate.

Prices have been rising the most in the Balearic Islands, Murcia and Ceuta y Melilla, as well as around the Costa Verde, and least in Navarra.

Spain and France Top Tourist Destinations in the World

July 17th, 2007
The UN World Tourism Organization has pronounced France and Spain the top tourist destinations in the world, according to data gathered from its 2006 study. France holds the top spot, with nearly 80 million visits per year; while Spain hosts almost 60 million happy tourists each year.

Spain took its place as the second-most visited location on the planet in 2004, overtaking the United States, which nowadays still occupies the third spot. After that goes China, Italy, the United Kingdom, Germany, Mexico, Austria and Russia.

The increase in tourism (which grew by 6% worldwide) will bring more jobs and exports, said the World Tourism Organization, a growth they hoped would handled responsibly by the highest ranking countries. In particular the UN organization believes there should be a reduction of gas emission in the tourist industry.

Spain Gets Green to Fight Gases

July 9th, 2007
Spain is beginning to react to its growing problem of greenhouse gas emission. Madrid and several other regional governments within the country will plant millions of trees to offset pollution.

Since 1990, when the Kyoto agreement was signed by most developed nations to regulate global warming, Spain’s emissions have grown by almost 50%.

In Castilla-La Mancha, the local government claims to have increased its forested area by around 7 million acres, and plans to plant an additional 20 million trees in the next four years.

Madrid has combated its mad traffic by creating numerous parks and green spaces (it claims to be one of the cities in the world with the most parks), and plans to create even more green spaces via vertical gardens that will hang from the sides of buildings.

Expat TV

July 2nd, 2007
The Costa del Sol may soon have its very own TV Channel transmitting 16 hours per day. The new channel will be aired on the Sky Digital network to the UK and Ireland. According to property expert Iain Maitand, Living in Spain TV is a local community channel depicting life in Spain as it really is with real life stories of expats who have relocated in Spain.

“It will provide a voice for the expat community and will make essential viewing for anyone planning to move there.” Expats have a big presence in the Costas and there are many web forums with great practical advice for those planning a move.

Watchdog Warns Buyers: Check, then Check Again

June 28th, 2007
A European estate agents' watchdog is warning home buyers in Spain to check that their property has planning permission before they buy.

The warning follows an investigation by the European Estate Agents Union (EEAU) into several companies working in the Albox region of Spain. The EEAU has expressed concerns that many buyers are rushing into property purchases without checking that the building is legal.

The EEAU has been contacted by a number of home-owners who have bought properties in areas like Almeria and Almanzora, only to find out they do not have planning permission. Andy Marchant, co-founder of the EEAU, said: "Spanish property law is complex and you need a good independent solicitor working for you."

Banco Santander to Enact Biggest Property Transaction in Spain’s History

June 18th, 2007
Banco Santander Central Hispano announced last week its plan to sell off all of its real estate assets in Spain, excluding their headquarters in Santander. A total of 44 buildings and 1,200 branch offices will be sold in what will be the largest property transaction in Spain’s history; the Spanish bank expects to profit from it by around 1.5 billion euros. After the sale, Santander will lease back its holdings.

The money raised from the sale will help finance the planned joint purchase of Dutch bank ABM Amro, which the bank is currently bidding for together with Royal Bank of Scotland. However spokesmen of Santander have claimed that their holdings will be sold whether or not the Dutch bank is successfully purchased.

This large property transaction comes at a time when many professionals are expecting a change in Spain’s real estate industry. Consensus has it that the property market is at its peak, and the most positive scenario at this point is one of a moderate downturn in prices.

The sale also points to a wider trend in the business world of large companies selling off their real estate, such as was the case in 2000 when UK mortgage lender Abbey (which was later purchased by Santander in 2004) sold its holdings.

More recently, Barclays Bank sold its Spanish headquarters and Argentinian-Spanish oil company Repsol is in the process of doing the same with its central offices in Madrid.

Spain Top for First Time Brits

June 11th, 2007
A quarter of young people in the UK are considering buying property abroad in an attempt to get on to the UK property ladder, new research has revealed. A National Savings & Investments (NS&I) survey found that 27 per cent of prospective first-time buyers would seriously consider buying overseas to help themselves on to the first rung of the property ladder. First time buyers are being priced out of the market in the UK where property prices are notoriously high. Out of all the potential destinations in which to buy property, Spain proved to be the most popular, with 43 per cent of prospective buyers considering the country to be the most attractive option. Australia and New Zealand were the next most popular, with the USA in third place.

Healthy Returns from Spanish Homes

June 4th, 2007
Spain's property market is second only to that of Florida in terms of performance according to property experts Inside Track. Spokesperson Pierre Williams said that the Mediterranean country averages a 48.74 per cent investment return, which is ten per cent more than the UK property market. He said: "Spain's naturally an attractive market, and has been because it's been a holiday destination for the British for so long."

Spain has seen a boost in young buyers, priced out of the UK housing market, while the country continues to be a popular choice with retirees. Mr Williams said that despite softening in property markets in much of western Europe, Spain was still performing well. Experts have predicted that the trend for growth in inland markets will continue in the future, taking over from the popular coastal destinations like the Costa Del Sol.

Spanish Property Market Matured Nicely

May 30th, 2007
The Spanish property market has matured and is now more stable than in previous years, one industry expert has claimed. Overseas property director of BuyAssociation Paul Collins said that although the rampant speculation that went on in Spain a couple of years ago had calmed, it had left a mature market that is more stable than in previous years.

The Spanish property market has been compare to that of France, where prices are still rising but the market is stable. “People buying in France are those who want to own or live in France rather than those out to make a fast buck", said Mr Collins. Recent research from self-catering-breaks.com found that Spain was a popular destination for Brits considering investing in property as part of their pension. Mr Collins said that overseas property could be a "great part of a retirement plan" but, he added that it would be risky to rely entirely on overseas property to fund retirement.

The 2007 SpainREi.com Property Awards Commend Outstanding Spanish Property Sites

May 22nd, 2007
For the first year ever, SpainREi.com, the impartial Spanish property portal, has prized a select number of sites devoted to buying property in Spain with its newly created e-award.

Based on the submissions left by visitors to the SpainREi.com award section and further independent research, a team of industry professionals selected sites based on the following criteria: exceptional web content, quality design, intuitive navigation features, competitive offers and quality, personalized customer support.

In particular, investigators tried to determine whether each site evaluated met the standards listed below:

Quality Content
Providing site visitors with unique web content in the form of informative guides, industry news and other useful features that are accurate, clearly written and relevant to the topic at hand.

Professional Design
Presenting a professional design that enhances the user’s experience on the site without detracting from functionality and ease of navigation.

Intuitive Navigation
Making it easy for visitors to find information of interest, search for properties, contact site owners and navigate through the site in general.

Competitive Offers
Offering competitively priced properties and related services that surpass the industry standard.

Personalized Customer Care
Providing users with quality after-sales services in a professional and timely manner.

Other factors were also taken into consideration, such as availability of information in multiple languages, FAQ sections, live online help and regularly updated information.

After much evaluation, the sites selected to receive the 2007 e-award can finally be found in the 2007 awards section of SpainREi.com.

The winners will be listed under their respective categories, providing SpainREi.com visitors with an excellent resource for gathering information on the Spanish real estate sector. Some of the categories include: best customer service, best content, best design, most innovative site, best site for information on mortgages and best site for legal advice.

By launching its property e-award, SpainREi.com also hopes to both reward quality property websites and to create an incentive for market-related sites to achieve a high standard of professionalism.

No Need to Borrow for Brit Retirees

May 10th, 2007
Many people who plan to purchase a retirement property abroad may be able to do so without needing a mortgage, according to a new report. The new data, published by online mortgage company mform.co.uk showed nearly half of those aged over 50 looking to buy abroad, say they will not need a mortgage to buy their new home. "Rising property prices [have] meant that many people have become well-off and a number are cashing in on this by purchasing cheaper properties and releasing equity," said Eamonn Rice, chief executive of mform.

"Anyone who bought a house in the 1980s is certain to have seen massive growth in the value of their home and may now be in a position to cash in and move to a smaller house or relocate to a cheaper area." Bargain property prices in popular retirement locations like Spain allow Brit retirees to sell up and invest abroad, often with cash left over.

MyAir Announces Increase in Flights

May 3rd, 2007
MyAir, one of the leading domestic low-cost airlines expects to see the number of passengers double this year as a result of the increase in the number of flights to Italy and the introduction of flights from Bucharest to Spain and France, according to MyAir representative Antonio Iervolino. Increased budget flight routes bring more holiday makers and are good news for buy-to-let investors.

The introduction of the new routes has tightened competition between the airlines operating domestically, as they are offering several low price alternatives to the same destinations.

The number of low-cost airline operators is rising domestically. Aswell as the already present companies, Germanwings is to enter the market on March 25, by introducing a Bucharest-Kohl route, whilst Spanish airline company Click Air will launch flights to and from Romania starting in May.

Spain Beats Bulgaria in Property Battle

April 25th, 2007
In the wake of a huge media fenzy over the rising Bulgarian property market, Spain and France still top the charts in property popularity. Bulgaria is the third-biggest overseas property market for UK buyers, the Association of International Property Professionals (AIPP) has revealed.

The first annual report on British overseas property investment from the AIPP has placed Spain and France in the top two spots, taking 50.5 per cent of the market share in 2006 (31.6 per cent and 18.9 per cent respectively). However, the figures show that Bulgaria has slipped into third place, attracting 7.7 per cent of British overseas property purchases. The popularity of the top two is attributed to the steady markets and sound returns on investments that property sales attract.

Brits warned: “Get Your NIE before you Buy”

April 19th, 2007
Brits planning to buy property in Spain have been warned about the importance of applying for their Numero de Identificacion de Extranjero (NIE) well in advance of making the move. The Spanish lending arm of Halifax, Banco Halifax Hispania has said that changes to Spanish law now mean that all foreigners buying property in Spain must now obtain their NIE number, before completing a purchase.

The number is required not only to buy a property but for a range of other things, including setting up utility connections, applying for a Spanish driving licence or to apply for a business permit, the bank said. It can take between 2 and 6 weeks for an NIE to be processed, so it is essential to apply well in advance, the bank advised. Ian Smith, head of European operations at Halifax, said: "it is important to plan well in advance for your purchase. You need to get your NIE as soon as possible, as any hold-ups later down the line may mean that you miss out on your dream home."

House Price Hike for Spain

March 31st, 2007
Spain’s national average property price increased by 3,000 euros between February and March, moving up from 241,000 euros to 244,000 euros, the property website Kyero has reported. The average property price in Lugo province, located in north western Spain, part of the autonomous community of Galicia, was 261,000 euro, 7 per cent above the national average. Average price in Valencia province was reported to have fallen by 2,000 euros to 210,000, 14 per cent below the national average. Lanzarote retained its position as the most expensive of the Canary Islands with an average price of 265,000 euro, 9 per cent above the national average.

Spain Outstrips States in Property Popularity

March 20th, 2007
Spain has remained at the top of the table for property investment despite ever increasing foreign interest in Australian and American hotspots. For Brits, proximity is the pulling power in countries like Spain and France, and statistics have shown that far-flung locations are still lagging in the foreign property stakes. While the US or New Zealand appeal to Brits because of the shared language, a recent HiFX survey, has revealed that while France takes poll position with Brit buyers, Spain is close at its heels.

Chris Howard, managing director of 4:Property explains; "France tends to attract more well heeled investors looking for rural locations, while Spain usually appeals to baby-boomers looking for an apartment on the coast. However, demand will continue in these areas because they are close to the UK and are well-known to buyers." One obvious advantage of investing in property in Spain and France is that those who rent from buy-to-let investors may do so while splitting time between the continent and the UK without having a long-haul flight to get home.

New Year New Rules

March 13th, 2007
From 1st January 2007, foreigners buying in Spain are required to have an NIE (the financial identification number you need if you are a foreigner) in place within 30 days of completion, or face a fine of 5 per cent of the sum due. For example, on a EUR500,000 purchase, tax of EUR35,000 is due. If this is not paid, there will be an automatic fine of EUR1,750. As it can sometimes take longer than 40 days to sort out an NIE number, the best advice is to get on to this well before you get to the stage of needing it.

Another change to buying property in Spain that came in on 1st January is that the notary will require a copy of a bank draft or other document showing where the money comes from to make the purchase of a property. The change has been made to bring the Spanish Property market into line with EU money laundering and tax evasion rulings. For Brit buyers, copies of these documents may go back to HMRC in the United Kingdom.

Spain Susceptible To Possible Real Estate Crash

February 27th, 2007
Spain is one of only two countries of the European Union, along with Ireland, that could suffer from a real estate crash. This, at least, is the conclusion of a study made by the U.S. company American Express Fund.

According to the study, the real estate booms that have taken place in Spain and Ireland are similar to the one experienced by the U.S. from 2003 to 2005, which resulted in an economic recession throughout last year.

The fact that the Spanish and Irish real estate markets are the two strongest in Europe is the very factor that makes both of these economies susceptible to changes in home loan interest rates, which could potentially destabilize their markets.

Although a potential shadow looms over the economies of Spain and Ireland, these countries represent only a small part of the European Union, and other factors exist that would limit the vulnerability of other member states against a possible real estate crash. In particular, the study points out the case of the emerging German economy as one of the most important compensating factors of this post-boom process.

Foreigners Soften Decrease in Spanish Property Investment

February 19th, 2007
According to figures from Banco de España, investment in Spanish real estate reached 4.4 billion euros up until November of 2006; a figure that supposes a 13 percent decrease from the 5 billion euros that were invested within the same period last year. On the other hand, Spanish investment in foreign real estate has doubled with respect to last year, rising from 1.1 billion in 2005 to 2 billion in 2006.

In November, non-residents invested 375 million euros in Spanish real estate. This number has fallen by 16 percent monthly, and by 24 percent with respect to last year's figures. In comparison, the investment of Spanish companies in foreign real estate in November reached 217 million euros; an increase of 106 percent when compared to figures collected in November of 2005.

One of the reasons for the decreased investment in Spanish real estate by foreigners is the rising cost of properties, especially in the country's coveted coasts (where prices rose by 9 percent in 2006). However, the APCE (Spain's association of promoters and constructors) expects the market to recover slowly but surely throughout 2007, a year in which 4.8 billion euros are expected to be invested. This would decelerate the decrease with respect to 2006 to 12 percent.

Tax Breaks for Foreign Homeowners

January 4th, 2007
A new law effective January 1st will equalize the capital gains tax for all homeowners in Spain, from native citizens to foreigners who live part-time or own holiday homes in Spain. The 18 percent tax that was previously applied only to Spanish residents is now the universal rate; previously, foreigners were forced to pay a significantly elevated 35 percent capital gains tax.

The change comes after a European court ruling that the double taxing system is unfair to non-residents who own homes in Spain.

Another piece of good news for foreigners in the Spanish real estate market is the probable reduction of a 5 percent retention on the price of a home when a non-resident sells to a resident. A new retention of 3 percent has been proposed, and is designed to help a purchaser pay for costs in the event that it becomes difficult to collect taxes from a seller who's already left the country. The retention would be compensated by subtracting it from the capital gains tax.

Confidence Boost for Home Buyers

December 13th 2006
New government rulings to tackle real estate corruption are set to offer home buyers a new found confidence in the Spanish property market, with the potential of driving renewed investment in 2007. New details have emerged from the government’s plans which include requirements for all real estate projects to be passed by a full council sitting at a public meeting.

In light of the arrests of a number of government officials linked to real estate crimes earlier this year, the government will rule that mayors and councillors will not be able to join private companies for two years after leaving office, if those companies are in any way related to their previous policy areas. The measures, which are set to become law in the next few months, will pave the way to eradicating the immoral practices of back-handing and bribery that have led to millions of home buyers facing the prospect of losing their homes after unwittingly purchasing illegal properties.

Manhattan Plan Approved in Valencia

November 6th 2006
The Manhattan Plan, a property development consisting of 33 buildings of up to 25 stories that will be built on 610,000 square meters of land, was approved recently by the local government in Valencia. Despite political opposition from the PSOE, the plan was voted in thanks to the influence of the Partido Popular and the Union Valenciana.

The plan has been criticized as unrealistic and many still think it shouldn't be built unless issues of adequate water sources and parking space are solved. A number of government studies suggest that such a large community might not be able to be sustained given the dry spell that the country has been experiencing the last few years. 5,000 homes and a 40-story hotel are among the developments planned for the Valencian municipality of Cullera.

Home from Home for Expat Shoppers

November 1st 2006
Murcia has been constantly tipped as a hotspot over recent months, and recent large scale investment confirms that the region is on the up. The UK's second-biggest real estate investment trust, British Land will announce the purchase of Nueva Condomina this week. The €350m (£237m) shopping centre in Murcia, Spain is one of the biggest out-of-town shopping centres in Spain, roughly the size of the Lakeside centre in the UK. Chief Excutive of British Land Steven Hester said explained that one of the anchors of the new centre is Primark; “retailing is going across borders so, to some extent, we are following our clients."

Spain in Pole Position

October 26th 2006
Foreign property investment used to be something most Poles could only dream of, but since Poland's ascension to the EU and a period of economic prosperity, buying abroad is becoming a reality for new home buyers. Spain is a favourite destination for Poles, who now look on foreign properties, both as holiday homes and investment vehicles. In the early 90s only the country's wealthiest citizens could afford a far-flung home or real-estate investment and most of those transactions were kept secret. But now, Spanish apartments are undercutting Warsaw prices according to Piotr Cicharski, of Polish estate agecncy Carisma.

"The increase in market demand can be seen, as the price level on the Spanish real-estate market does not shock Polish customers anymore," says Maria Hahn, research and marketing co-ordinator of the residential department at CB Richard Ellis Polska. "Now, even Poland's middle-class citizens can consider investing in a Spanish apartment."

Hahn explains that the main advantage of the Spanish market is its predictability and stability. "The investment is safe and will grow evenly," she says. "Prices grow from one year to another, which is unlike in Poland where prices jump from month to month."

Barcelona: TopTourist Hotspot

October 25th 2006
More tourists rented a holiday home in Barcelona during the past summer than in any other location, according to new research. The city proved to be a favourite among those visiting Holiday-Rentals.co.uk this year, according to the website, with Dubai, Italy and the Canary Islands following close behind, highlighting a trend towards "cultural tourism".

Rather than flocking to the beach, tourists seemed to prefer taking in foreign culture, explains Ross McGowan, sales director for Holiday-rentals.co.uk. "The fact that Barcelona, Venice and Rome have continued to be popular with renters throughout the summer reinforces the fact that today's travellers are looking for a more holistic holiday experience and more than just sun, sea and sand," he comments. "The appearance of the Canaries in our top five illustrates that traditional destinations continue to perform strongly too, both in terms of traveller demand and investment," he continued. (Source: just the flight.co.uk)

Window Shoppers Dream On

October 23rd 2006
British holidaymakers have spent almost 22 million hours over the past two summers gazing into foreign estate agent windows in search of the perfect property, according to new research released today. The 'Holiday Habits' study, commissioned by property investment specialists, The Inside Track Group revealed that 45% of UK holidaymakers spend an average of one hour and 25 minutes each browsing local listings for houses and apartments for sale. According to the survey, the top five holiday destinations for Britsh tourists are: Spain (30%) France (18%) Greece (7%) USA (5%) and Italy (5%).

End of the Road for Rise in Spanish Property Prices?

October 21st 2006
High property prices and the increasing rate of construction in the coastal areas of Alicante, Almeria and Malaga have produced an excess in supply that acts as a braking mechanism to price increases and sales of new homes in these regions. In Spain's major cities, second-hand property prices also show signs of slowing down. From July to September, growth was registered at less than 1% in Madrid and Barcelona (0.7% and 0.6%, respectively), while in Valencia there was a decrease of 0.1%. After ten years of nonstop growth, Spain's property boom seems to have reached its peak with 820,107 homes built in one year. Spain has never before seen such a period of construction, according to the Spanish newspaper El Pais. Now the property sector faces the challenge of selling a large number of homes, something that will be made more difficult by the fact that buyers who can afford taking on mortgages have already purchased their own homes. The most relevant source of demand now is that of young adults, and if market conditions remain unaltered both parties will be affected negatively: promoters won't be able to sell their properties and young people won't be able to purchase a home. Fortunately, young British buyers may provide the necessary support to the property market in Spain. A large and growing number of Brits under 30 are deciding to make their first property investment in Spain due to the prohibitive cost of doing so in the UK. This trend seems to be catching on with enough force to help cushion the leveling out of property prices in Spain.

Zero Tolerance On Real Estate Corruption

October 20th 2006
The Deputy Prime Minister, María Teresa Fernández de la Vega announced on Friday that the Government has a policy of zero tolerance against real estate corruption, calling for the cooperation of autonomous regions and local town halls in the matter. Central government has taken measures to crack down on corruption in recent months, creating a force of real estate prosecutors and teams of civil hard agents. But what still needs to be made clear is what happens to the homes already built irregularly, where in many cases they now also represent the life savings of their occupiers, who generally have purchased in good faith. Website Typically Spanish pointed to the Chiclana housing amnesty as a possible solution for town halls across the country.

Housing Amnesty for Chiclana

October 20th 2006
After years of conflict over illegally built properties in Chiclana de la Frontera (Cadiz province) the local PSOE Town Hall has taken the step of offering an amnesty to all the homes, across the municipality. The amnesty will be certified in the new PGOU urban plan for the town, and the town hall has reached an agreement with the Unicaja bank to offer low interest loans so owners can face the cost of getting their papers and plans ratified, and with the Endesa power company so that legal connections can be assured. Town halls across the country are considering what to do with the revelation that many homes in their area have been built illegally, and the Chiclana case may set a precedent for other high profile cases such as Catral and Marbella.

Valencia Criticized for Unfair Play

October 17th 2006
The European Commission has given Spain a final notice to change controversial urban laws in Valencia that infringe on community rights. The local government in Valencia has two months to adapt the law as specified by Brussels before the case is taken on by the European Court of Justice. The law in question – approved in December of 2006 – is criticized for allowing city planners to contract public projects out to hand-picked private companies. This process of internal bidding has been attacked, and demands made to publicly announce bids as well as to change the criteria for the awarding of contracts. The Generalitat (Valencia's local government) has responded to the EC by defending the law as fair, a stance it's willing to maintain before the Court of Justice.

Civil Guard Combats Corruption

October 15th 2006
The Civil Guard has announced plans to set up a new task force to combat real estate corruption, town planning crimes and illegal building in Spain. The new force of 200 agents will start its work in Madrid, Málaga and Murcia. General Director of the Civil Guard and National Police, Joan Mesquida, told El Pais newspaper that society has demanded that serious measures be taken following the controversial 'Malaya case' where the local council of Marbella was disbanded in connection with real estate corruption. A circular was sent to all Civil Guard barracks across the country last July ordering them to report any irregular building seen in their local areas, with the idea being to first draw up a complete list of all illegal buildings constructed in Spain over the past three years.

Murcia Cleans Up its Act

October 14th 2006
The Murcia government has estimated that wind and solar power will produce a third of the region's electricity supply in six years' time. The Director General of the department of industry, expects the level of wind power currently generated in the Region to increase significantly by 2012. The solar panel installations which are awaiting approval would produce a total of 300 megawatts: enough to supply a city the size of Murcia for one year.

The U.N. climate treaty's Kyoto Protocol, negotiated in Japan in 1997 and effective as of last year, calls for an average 5 percent drop in greenhouse emissions by 2012 from the base year 1990. Many countries are struggling to meet these targets. In Europe, Spain was rated as the worst performer, releasing 19.7 million tons of greenhouse gases more in 2004 than the year before. Part of the increase was attributed to a switch to fossil fuels to make up for a shortfall in hydro power caused by drought.

Jet2 Scoops Shorthaul Award

October 13th 2006
British based airline carrier Jet2 has bagged the award for "Best European Short-Haul Airline’, at the Travel Awards 2006 held in South Africa this week. The low cost airline based in Yorkshire was praised for its exemplary service and low cost fares by its passengers. The airline, which flies to 38 destinations across Europe fought off fierce competition from the likes of BA, Lufthansa, Air France/KLM and other low cost carriers, to scoop the prestigious prize.

The annual awards, sponsored by the Guardian and Observer newspapers singled out Jet2 as the pick of the bunch following extensive research into customer satisfaction. Philip Meeson, boss of Jet2 was thrilled at the news. “In winning, we have fought off every European flag carrier and so called ‘low cost’ airline across the continent – an accolade indeed and confirmation Jet2.com can deliver the lowest fares and highest level of service" he said.

Brit Buyers Set Sights on Spain

October 12th 2006
Nearly one sixth of the UK population intends to relocate abroad due to dissatisfaction with life at home. A survey by Natwest International revealed that a staggering 72% of "baby boomers" now aged 30 to 50 years plan to move overseas in search of better quality of life and financial gain. Work stress and exorbitant house prices were the most popular motivational factors for leaving the UK. Half of the buyers questioned continue to set their sights on Spain, attracted by its historically solid returns on investment, as well as the Mediterranean climate, rich culture and holiday lifestyle. For many investors, property purchase abroad is now not only representing an opportunity for a changed lifestyle, but a better investment for the future.

House Prices Rise in Valencia

October 11th 2006
New homes in Valencia this year are selling at a faster pace than in cities like Madrid or Barcelona, according to a study published by property consultants Aguirre Newmann. The average price of apartments has risen by 10 to 12 percent and in Valencia capital the threshold of 3,000 euros per square meter has been surpassed for the first time.

According to the study, a new home in Valencia takes around 15 months to be sold. In Madrid and Barcelona that period rises to 23 and 19 months, accordingly. The rhythm of sales in the center of Valencia capital is even faster, with average sale periods of one year. 86% of the properties on sale are concentrated in the western end of the city and in the area around the Ademuz highway.

Eurozone Interest Rates Rise Again

October 6th 2006
The euro weakened on Thursday after the European Central Bank raised interest rates in the Eurozone by 25 basis points to 3.25 per cent. The president of the ECB also made comments after the Bank’s meeting that indicated another rate hike is coming before the end of the year. The rise is the fifth this year and the latest quarter of a percentage point rise means an extra €15 a month for home owners for every €1,000 borrowed. The Spanish Property market has experienced a slowdown in recent months, but growth rate is still sitting at an impressive 10.8 per cent. This compares to an approximate 6.5 per cent in the UK and, according to Eye On Spain, probably explains why so many UK property investors are buying abroad. Latest figures from the Economist reveal that Spain is just behind Denmark, Belgium and Ireland in terms of property price growth.

End of Boom but Still No Crash

October 5th 2006
The Spanish real estate market may have reached the end of a ten year boom, but property prices will not crash, say experts. Although Spanish property price growth is in decline, it is growth nonetheless. Rising interest rates on mortgages and over construction are some of the factors that have halted growth in recent months, while hotspotters have been lured into bargain basement property investment in unstable markets such as Bulgaria and Poland. Spain remains, however a top retirement destination and is still number one with Brit buyers. Germany and France remain popular markets for Spanish property and an increase in investment from Ireland has occurred in recent years. A number of big players in the low cost airline industry have announced new routes to Spain from Ireland, following the lead of Ryanair, who expanded its service earlier this year – a clear indication that the Irish market will continue to expand.

Long Term Investors Look to Spain

October 4th 2006
Despite a bout of property slump scare stories, experts are still touting Spain as a hotspot for long term investment. Fears of a major price crash have not been realised and analysts are now predicting that the slowdown will be minimal and will not lead to any long term decline.

Property growth rates are down - partly due to the rise in mortgage interest rates - but are still sitting comfortably above economic growth rate. "I think Spain offers great long-term prospects" explains property expert Iain Maitland from Eye on Spain. "Underpinned by the growth of first time buyers, the rising number of immigrants and the growth in single person homes, it should remain numero uno with Brits".

Bargain Bolt Holes in Jaén

October 1st 2006
For those who fancy a bolt hole or a jet-to-let in Spain without the heavy price tag, the little-known Andalucian town of Jaén could prove a good place to buy. Stats from Kyero reveal that property prices in the province are the cheapest in Spain, with the average home here costing €77,000 less than a third of the average in Spain. Since the region featured on popular Brit TV show A Place In The Sun, some properties in the region have experienced price appreciation of up to 60 per cent, and demand has intensified.

Jaén boasts a Moorish castle, an 11th-century Arab baths and a 16th-century cathedral and palace. On the downside, there are no beaches and the nearest international airport is located an hour's drive away in Granada. The survey found that the most expensive places to buy in Spain were, unsurprisingly Barcelona, Ibiza and Majorca, where average prices are more than €500,000.

Malaga Budget to Improve Infrastructure

September 30th 2006
One third of the 2007 state budget for the Malaga province will be spent on improving the airport, including construction of a second runway, the government announced yesterday. The size of the investment (30 million euros) reflects the importance of the airport for the development of Malaga’s economy over the coming years. The biggest amount (77.5 million euros) is going into the initial phase of the building of a second runway; 51.6 million euros goes to the building of new car parks in the airport and 106 million euros into the final phase of the new runway, scheduled to be ready for service in 2008.

Other costs relating to the new terminal building amount to 8.6 million euros. The government is also ploughing funds into the railways and roads in the province as part of an ongoing effort to reduce traffic in and around Malaga city. Improvements to infrastructure, particularly airports signal market growth and increased demand, a clear sign that real estate investment in the province is still a lucrative option for property developers.

Easyjet Doubles Routes from Madrid

September 25th 2006
Europe's second-largest no-frills airline, has announced plans to launch six new routes from its new base at Madrid's Barajas airport. The airline has will now provide domestic flights to Oviedo and La Coruna and four international routes to Lyon and Toulouse in France, Rome in Italy and Casablanca in Morocco. The new services will start February next year and EasyJet will initially base three aircraft at Barajas.

Police Crack-down on Costa Del Crime

September 23rd 2006
Another gang of foreign criminals has been broken up by the police in Málaga this week. In the latest case, 11 Algerians, specialists in villa robberies, car thefts and credit card fraud, have been arrested in Benalmádena, Torremolinos and Málaga. The ECO specialist police group against organised crime believe that the latest criminal cartel is responsible for some 200 crimes carried out on the Costa del Sol so far this year. The clean up operation is going well in the region making the streets safer for tourists and locals alike. Police say that the operation is proving particularly successful in the city of Málaga.

Owners will Fork Out for Property Checks

September 20th 2006
From today new regulations in Málaga City mean that all blocks of flats and buildings that are more than 20 years old need to have regular obligatory inspections, paid for by the proprietors. The new law will be passed in the City Hall today and is intended to stop the deterioration seen in many buildings in the city, especially those used for rental accommodation. The controls will take some time to establish however, because before they can be enforced the City Hall has to create a new census of all the buildings over 20 years old in the city. Once the inspections do get underway they will start first with buildings over 100 years old. (source: Typically Spanish)

Home Buyers Brush Shoulders with Sporting Heroes

September 19th 2006
As social stereotypes go, the Brits are probably best known for their passion for beer, sun and football. Canny property developers have caught onto the obsession for the latter and have built a sporting village in Spain, giving home owners the chance to buy a place in the sun alongside football legends such as Tottenham's Paul Robinson and Arsenal Player José Antonio Reyes. Buyers will brush shoulders with their favourite players while enjoying the many facilities available at the village. The site on the Costa Del Sol, near Estepona boasts six championship golf courses as well as swimming pools, tennis courts and gyms. Several UK football clubs have given endoresements to the village and Paul Robinson plans to set up his own football academy on site.

Second-Annual Real Estate Fair in Leon

September 18th 2006
Leon, located in Castilla-Leon and bordering Galicia, will host its second annual real estate fair. FEINLE (Feria Inmobiliaria de Leon) will take place between September 21 and 24, 2006 at the Leon Arena, the city's main bullfighting ring. It will begin the morning of September 21st and end the afternoon of the 24th.

Potential homebuyers will have access to 2,000 square meters of exhibition space and 70 stands presenting the widest range of real estate services and opportunities available in the region. Organizers of the fair, with the help of local and regional governments, have done their best to create an environment where buyers and investors can meet equitably with professionals of the real estate market.

For more information about the fair, contact ALEOP (Asociación Leonesa de Edificación y Obra Pública) at 987-218-250.

Marbella's Most Wanted Caught in Ibiza

September 18th 2006
Yet another criminal mastermind has been arrested in connection with Marbella property scams this weekend. Walter "Wattie" Douglas, Scotlands's most wanted crime boss was arrested after 12 years on the run, accused of driving a massive money-laundering operation in southern Spain involving "millionaire property and financial investments". He was caught trying to fly into Ibiza on a false passport on Friday and was instantly taken back to Spain where he will face trial. This arrest comes as part of a huge clean up operation on the coastal resort where a multitude of government officials and high profile businessmen have been tried and jailed over similar property scams.

British Government Crackdown on Foreign Assets

September 18th 2006
HM Revenue & Customs is cracking down on families who own overseas property over concerns that they could be avoiding inheritance tax responsibilities. With around 250,000 British residents owning property overseas, the clampdown could result in heavy penalties for families who believe they no longer have to pay IHT to the taxman. In the latest newsletter HMRC warn that they will be paying particularly close attention to foreign assets for the remainder of 2006. "In appropriate cases we will open an enquiry and ask you for further information to satisfy ourselves that all of the foreign assets have been included and that they have been valued on the statutory basis." IHT, which is levied at 40% on assets above £285,000, is extremely difficult to avoid even if a former UK resident attempts to acquire a new domicile. For more information see the full report.

One in Four School Kids Foreign

September 16th 2006
One in four of the new pupils starting school for the first time this year in the Málaga province is a foreigner. Out of 271,000 pupils returning to school tomorrow an estimated 21,500 of them are not native to Spain. The main countries of origin of these pupils are Britain, Argentina, Morocco and Ecuador. In line with government policy all of these children will receive extra Spanish language classes outside normal school hours. Studies have shown that children who attend school abroad and learn a second language grow up to be better adjusted, more open minded and more intelligent adults than those who do not. Pupils on the Costa del Sol are used to the cosmopolitan nature of the schools and parents who have relocated to the Malaga province have found that their children adapt quickly and are accepted and well regarded by their peers.

Cursed Blessing for Spanish Youth

September 15th 2006
According to a study by OBJOVI (part of the Spanish youth advocacy group CJE), only 11% of the nearly 4 million young people in Spain between 18 and 24 years of age managed to leave their parent's homes and purchase their own homes in 2005. The prolonged dependence of young people toward their families has become a norm accepted by everyone (young people included), a social factor that could prevent young people from achieving financial independence even in the absence of obstacles such as high housing prices.

On the other hand, young people who are able to beat the odds and purchase a home might be sacrificing too much by designating 40% of their income to loan repayments that could easily drag on for the rest of their lives. This kind of commitment could become a serious obstacle to the investment of Spanish youth in other, more life-enriching activities, such as traveling or raising children.

Spanish sociologist Carlos Iles points to a mistaken association between home ownership and security that might have been valid decades ago but can no longer be applied to a modern Spain where changes in family, occupation and residence are much more common. Following the idea imparted by their parents, young people base their decision to buy a home not on an informed analysis of the benefits of buying vs. renting, but on the collective notion that a root possession will give them security and that renting a home to achieve independence is a waste of money.

Real Estate Companies Cash In

September 15th 2006
The publicly traded Spanish real estate companies generated over 1 billion euros in the first quarter of the year; an increase of 53.12% as compared to the first quarter of 2005. Spain's six largest real estate companies – Metrovacesa, Urbis, Fadesa, Astroc, Colonial and Riofisa – together produced just over 975 million euros of the total industry profits.

Metrovacesa was the company that contributed the most to these numbers with 622 million euros in net profits. This total represents a 180% growth from last year and was stimulated largely by increases in rental rates and sales of residential homes as well as favorable asset re-evaluations. Following Metrovacesa were Urbis, with profits of 118 million euros (38% growth); Fadesa with 78 million euros (16% growth); Astroc with 62 million euros (513% growth); Colonial with 53 million euros (77% reduction); and Riofisa, which had its debut on July 19th as a publicly traded company, with 43 million euros (450% growth).

Judging by these figures, 2006 promises to be a good year for the real estate sector in Spain. Revenues continue to increase and the number of homes built each month surpasses that of 2005 by a consistent 10%.

Real Estate Goes Green

September 14th 2006
With the aim of promoting environmental awareness within the real estate industry, the Spanish real estate firm Iberdrola (a branch of the renewable energy company by the same name) recently created a specialized department to make possible the construction of eco-efficient, sustainable homes. This move, according to Iberdrola, is part of an effort to create a culture of respect towards the environment, uphold biodiversity and encourage the efficient use of energy.

The new department will focus on integrating various forms of renewable energies with energy-storage technologies. Among its earliest achievements is a development of 25 eco-friendly homes in Granada and the planning of a sustainable-energy research facility in Castilla La Mancha.

A branch of the second-largest electric company in Spain, Iberdrola Inmobiliaria shows strong signs of playing a major part in the Spanish real estate industry for years to come. It reached a net profit of 58.6 million euros in the first quarter of 2006, increasing its profits from the same period in 2005 by nearly 40%. It also increased its holdings of developable land by 12.6% within the same period.

Congestion Charge in Spain?

September 13th 2006
The Spanish government is considering introducing London Style congestion charges for cars entering the major Spanish cities. The idea will be debated in PSOE's annual political conference due to take place between September15-17. Property prices inside the congestion zone increased in London after the change was implemented and the same is expected to happen if the plans go ahead in Spain. PSOE has already been working towards reducing car tolls on motorways in Galicia and Andalucía due to their unpopularity, and it seems unlikely that the plans for congestion charges will be approved.

Mallorca's Best Address

September 13th 2006
The exclusive suburban district of Bendinat in Mallorca has been rated as the most expensive place to live on the Spanish coast. With each square metre of property costing upwards of 4000 Euros, the area has become a luxury resort for wealthy investors. Nestled between popular night spot Magaluf and Palma, only 17 km from the airport, Bendinat is a small residential suburb of the resort town of Portals Nous, which in turn is part of the municipal district of Calvia, on the south west coast of Mallorca. Home to the family of top model Claudia Schiffer and the Monserrat family, Bendinat also boasts the Royal Golf course, whose honorary president is His Majesty King Juan Carlos of Spain.

Spain is "Buyers Market" figures reveal

September 12th 2006
Official figures reveal that house prices will increase by less than 10% in Spain over the next period, the lowest rise in the last six years. With a stagnant market created by over development and decreased demand, houses are selling slowly putting buyers in a good position to negotiate with asking prices and snap up bargains. Now is a good time to buy for retirees and those looking to buy private holiday homes. The figures give an overview of the current market but a breakdown shows that property prices are increasing in growing markets and prices will continue to rise on premium golf and beach properties.

Red Face for Ryanair

September 7th 2006
In a disastrous effort to boost its profile in Spain, Irish air carrier Ryanair caused pandemonium in Barcelona last week, offering free flights to anyone who turned up in the main square holding a sign complaining about rival Iberia. After handing out only 500 free tickets, Ryanair sent several hundred hopefuls away empty handed inciting wrath on the company rep. The airline worker had to be rescued by police from the angry mob who chased her around the Plaça Catalunya demanding free flights.

Ryanair is one of several companies vying to knock Iberia off the top spot in Spain and a low cost airline price war is expected as big players like Easyjet, Vueling and Air Europa begin to muscle their way into the domestic market. Internal flights within Spain are notoriously expensive while those coming in and out of the country often cost next to nothing. The competition for the internal market should push prices down allowing cheap, no frills travel between major Spanish cities.

Chiclana Owners Get Good News

September 6th 2006
Owners of properties that have been built in Chiclana without building licences may be in for some good news according to Costa Del Sol News Online. The town hall says it can begin to make properties legal after the summer, although the town planning department does not expect to be inundated with applications during this voluntary period. The aim is to legalise 20,000 properties and to achieve this, the town hall has signed agreements with the College of Architects and the College of Building Overseers and Technical Architects, who will help owners with the technical aspect of the process, and with Unicaja bank who will offer loans to help people pay the costs.

The properties must have been built before 1998, and must be in one of the nine ‘areas de gestión básica’ defined in the local development plan (PGOU). To initiate the legalisation process, owners must produce the certificate to show they are on the ‘padrón’ (municipal population register), proof of ownership of the property, proof that they are registered for IBI tax, and documents which show how old the house is, as well as the contracts for electricity and water.

Tarifa Tipped for Second Boom

September 6th 2006
The thriving town of Tarifa on the Costa de la Luz appears to be offering a substantial boost to the Spanish property market according to Assetz. The trendy region is a watersports mecca thanks to its location in the Atlantic and strong coastal winds. Tourists have consistently shown interest in the region, leading the travel industry to create a strong base for housing in the area, which has seen prices steadily rise in the past before stabilising recently.

Tipped as a hotspot by leading British broadsheet newspapers, the town has proved popular among overseas property investors owing to its natural features. The area boasts ten kilometres of white sand beaches as well as ranges of open countryside. It also offers a view of the Rif mountains of Morocco from its location on Spain's south coast. Tarifa town has become a fashionable resort for those in the know, attracting young, upwardly mobile surf types and new families.

The area has already provided substantial returns for overseas property investors in recent years through high levels of house price inflation. A recent deal to improve Gibraltar airport will make Costa de la Luz more accessible, potentially driving a second boom in the area. It is not too late to make a lucrative investment in this area.

Clickair Takes to the Skies

September 5th 2006
Clickair, the low-cost airline backed by Iberia, will start selling tickets this week, the company announced today (Sept 5). The new airline based at Barcelona's El Prat airport, will offer flights to Amsterdam, Geneva, Zurich, Prague, Dublín, Lisbon, Oporto and Moscow from the beginning of October. Domestic flights will also run to Málaga, Valencia, Seville and Bilbao. The airline, which has three planes, is working round the clock to try to make sure they are ready to begin selling tickets from September 7th, a spokesman said.

Meanwhile, no frills airline Ryanair has taken a record 4 million passengers during the month of August. The company has announced new routes to the Canary Islands and will double its flight frequency from Dublin to Malaga from February next year.

Hole in One for Costa Del Golf

September 4th 2006
Golf is now estimated to be generating more than 900 million euros in the Málaga province every year according to website Typically Spanish. The province streches from Nerja in the east to Gibraltar in the west and is home to many excellent golf courses including those on Marbella´s golden golf mile. With an average round costing upwards of 50 euros per person and a multitude of courses to suit all levels, golfing holidays mean big bucks for property investors in the area. "Buying near a golf course will significantly boost the rental potential of your property" says property expert Daniel Rodriguez from oppSpain.com. New courses indicate investment in a region and it is worth looking at plans for new golf resorts to see where those in the know are putting their money.

Polaris World has announced plans to open a brand new course and resort in Murcia later this year. Managing Director of AGS Properties (UK) Tony Sparkes says, “Condado de Alhama is a unique resort that will offer superb amenities with beautiful surroundings. Boasting 3 Jack Nicklaus ‘signature’ golf courses which form part of the 8 course ‘Nicklaus Golf Trail,’ which will provide golf players of all standards an opportunity to play golf on quality golf courses unequalled outside of the United States."

Stingy Tourists Not Spending in Spain

September 1st 2006
It came as no surprise to analysts that the Spanish government rejected an EU proposal, in June last year, aimed at eradicating extreme poverty in the world because of the impact it would have on Spanish tourism. The proposal to levy special taxes on fuel and airline tickets to raise funds to finance a global anti-poverty initiative would have added between ten to 30 euros to the cost of an airline ticket, reported Spanish newspaper SUR. Economy Minister Pedro Solbes said that the measures were a “sensitive issue given the importance tourism has for Spain.”

Tourism currently accounts for approximately 12 per cent of Spain's Gross Domestic Product (GDP) and provides work for approximately 2.3 million workers or 12.2 per cent of the total workforce. The sector is also an important earner of foreign money, which helps the country reduce its bulging trade deficit. The Ministry is forecasting a four per cent increase in tourism compared to last year. “Spain retains a leading position in the tourist industry; we are the second tourist destination in the world and the second country that earns the most income from tourism,” said Industry Tourism and Commerce Minister Sr Montilla.

The number of visitors from the UK and Germany continues to increase and according to SUR there has also been an extraordinary rise in tourists from France. However, the rise in the number of tourists visiting Spain has not translated into an increase in net income from tourism, in fact income receipts are falling because visitors are not staying for as long and not spending as much. The government will respond with a campaign to propmote Spain to wealthier markets who are likely to spend more during their holidays.

Bulgaria Property Plummets

September 1st 2006
Investment Advisor Assetz has revealed that in the third quarter of 2006, Bulgaria has suffered a dramatic change of fortunes. With total returns on cash invested falling from 104% in June this year to 44% currently, Bulgaria has plummeted from the top of the table where it has been since March, to sixth place and is likely to drop further still.

Stuart Law, Managing Director of Assetz comments: "Bulgaria is facing a period of readjustment after a huge initial foreign investment. While longer-term investors are still set to benefit over the next 5 – 10 years, as low cost property continues to attract holiday home buyers, there are no longer instant returns to be made in the short term. An oversupply of rental properties is being aggravated by stories of dishonest local management agencies, some of which are reported to be letting properties and keeping the cash."

Irish Buyers Take the Plunge Abroad

August 29th 2006
Three quarters of first-time buyers in Northern Ireland would consider buying their first property abroad if they continue to be priced out, further research from Moneycorp has revealed. Soaring house prices have pushed 79% of first-time buyers to look at Spain or Italy in a bid to get onto the property ladder, according to the survey by the foreign exchange specialist.

Spain is the first choice for cash-strapped first-timers, with Italy coming in at second place and France also high on buyers' wish lists. The survey showed that most potential buyers would happily commute to work with only one in five citing distance as a key factor in choosing a location. The shared currency and low interest rates on European mortgages are tempting Irish buyers to either move wholesale or to buy overseas solely for investment purposes. "The fact that so many first-timers are prepared to get their first taste of home ownership in a foreign land speaks volumes for the state of today's domestic market-buying conditions," said Moneycorp spokesman Nick Bull. Source: Firstrung.com

Happy Hotels

August 29th 2006
The average occupancy of hotels in Tarifa, Algeciras, La Línea and Zahara de los Atunes, reached 91.5% in the first two weeks of August according to The Association of Hoteliers. Tarifa achieved the highest ratings with 98.01 per cent, followed by Zahara, La Línea and Algeciras. The second fortnight is expected to see a drop to around 86.68 per cent giving an average of 89 per cent for the month, which is five per cent lower than in 2005 but similar to 2003 and 2004. Source Costa Del Sol News Online.