Residential Property Investment Rises To 4.5% Of Spain’s GDP

According to the Bank of Spain, residential property investment is set to top 4.5% of Spain’s GDP by the end of the year. “This is similar to the average in neighbouring countries, but far below the 12% registered in 2007,” writes the bank in a recently published report.

The report reveals that house prices, which experienced a drop of 45% in real terms from their peak in Q3 2007 to their low in Q1 2014, continue to grow. They increased by 16% up to September, although there are huge discrepancies in price growth rates depending on the area. In its latest quarterly report on Spain’s economic situation, the Bank specifically highlights Madrid, Catalonia and the Balearics as the regions with the highest price growth.

When the type of property is taken into account, growth in prices for new builds has been slightly higher than for resale properties since hitting all-time lows in 2014, although the difference has been less noticeable over the last few quarters.

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Landlords in Spain to get Better Protection from Squatters and Tenants who don’t Pay Rent

Proposals have been approved to tighten up on trespassing and the illegal occupation of property in Spain. Until now, home there have been mechanisms in place for owners and landlords to deal with squatters and those who have outstayed their welcome, but none of them have worked efficiently. However, the proposal, approved now in Congress looks set to make squatting and illegal occupation more difficult in Spain.

Under the proposed regulations now going through Parliament, the judicial process for dealing with squatters can be triggered faster and with increased penalties. It is expected that a clamp down on through the issuing of large fines will dissuade others from taking up residence in properties they are not paying rent on.

The proposal for the change in the law was made by the ruling PP party in conjunction with the centre-right party Ciudadanos. It was opposed by other parties in the house who have concerns about the potential abuse of this power and its …

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Why Brexit Shouldn’t Deter British Homebuyers in Spain

Although the Brexit process is shrouded in mystery for the most part, it doesn’t seem to have dampened British taste for Spanish property; in fact transaction volumes have increased almost 15% so far this year.

The issue seems to be that not many British buyers were aware that there is no problem buying property in Spain whether you’re from an EU country or not. The Swiss, Norwegians, Americans and citizens of many countries outside the EU, have all been buying property in Spain without problems of any kind for years. Most property professionals in Spain feel that it will be just the same for Brits post Brexit but probably easier.

Here we take a closer look at the Brexit issues causing particular concern among buyers at the moment:

Healthcare

At the moment British tourists are covered if on holiday in Europe or if you have retired. If healthcare arrangements change this could be a factor for anyone thinking of spending their retirement in Spain, particularly…

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Report reveals more than 1.36 Million Empty Properties Still for Sale in Spain

Home sales, mortgage approvals, and consumer confidence are all recovering but there’s still the problem of the glut concentrated in areas with low demand, says the real estate consultancy Acuña y Asociados in a new report. Including bank repossessions, the Spanish property market still has 1.36 million empty properties looking for a buyer, down from the 1.7 million in 2010.

The report estimates that Spanish banks have 973,000 properties for sale, plus land for 1.5 million new homes, although a large percentage of these plots will never be built on because of poor location or quality.

The supply of homes for sale piled up at the start of the Spanish property crisis, caused by over-building and falling demand. It reached its peak in 2010 with 1.7 million properties on the market, and since then, 348,000 properties – new-build and resale – have been sold. At the end of 2016, there were 1.36 million unsold homes thanks to the fall in the number of completed properti…

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What you should know about ‘New’ Municipal Added Value Tax

At the end of last July, the Spanish government approved a bill modifying the law on property transfers that annulled the payment of municipal surplus value on houses registering a loss at the time of transfer.

The cornerstone of the new law is how to determine whether or not there has been an increase in the value of the land, which is established when the property is sold.

There are three main points arising from the introduction of the new law:

Losses on Property Transactions no Longer Subject to Tax

The new tax will not be applied in cases where it is clearly proven that the value of the land has not increased compared with the price of the property at sale and its original purchase price. In these cases the taxpayer must make a declaration that the sale is not subject to Plusvalia while providing proof that there has been no increase in land value. However, it is not clear what proof of sale and acquisition values is required or what transmission and a…

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Crackdown on Unregistered Holiday Rentals Continues

New laws are being created to ensure that owners of holiday accommodation have civil liability insurance and guest registration in attempts to regulate Spain’s incredibly competitive short term rental market. This comes on the back of the 5th consecutive year of record-breaking tourism numbers in the country that is the most popular tourist destination in Europe.

The legal offensive against the growing supply of irregular tourist lets is designed to raise the quality of tourist rentals and stamp-out below standard accommodation. The new decree will regulate the characteristics, technical requirements, operating system, prices and booking procedures used in tourist accommodation by introducing mandatory registration with the Ministry of Tourism.

Airbnb Removes 1,000 Unregistered Tourist Properties in Barcelona

In response to the crackdown on illegal holiday properties, the well-known portal Airbnb has identified and removed more than 1,000 tourist rentals from its …

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Spain’s House Prices Close to 2007 Boom Levels in Madrid

The average price of housing in Spain continues to increase, according to all studies and reports from the national statistics office (INE) and the Association of Notaries. Madrid is one of the city’s recording the biggest increases and in some areas; the cost of apartments is already very close to the highest values recorded in the boom, according to an analysis of real estate research firm Urban Data Analytics, (UDA).

UDA found that the apartments in the centre of Madrid and its suburb of Salamanca already cost just 2.5% less than the historical highs recorded in 2007 and in the suburb of Justicia the gap is reduced even further to just 1%.

The Data from All of Spain’s Real Estate Authorities tell the Same Story

The National Housing Institute’s Index of House Prices (IPV) for the second quarter of the year has shown an increase of 5.6% (from 5.8% in resale housing and 4.4% in new); the August Tinsa index reported an average increase of 4.7% at the national…

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Court Receives More Than 1000 Floor Clause Claims in Just Three Months

The only court in the region of Murcia dealing with floor clause claims has reported that 1,074 lawsuits have been filed in the first three months, exceeding expectations considerably.

It had been forecast that around 250 lawsuits would be filed in the first three months, although that figure has more than quadrupled in reality. Despite August being traditionally a quiet month in Spain, particularly in the judicial system which ordinarily has a reduced workload in the summer, the activity created by floor clause claims increased the court’s workload by around 43%.

On June 1st this year, emergency measures were approved by the General Council of the Judiciary (CGPJ) and came into force immediately, after the European Court of Justice ruled that backdated claims should be included in the process. The floor clause issue has also raised other concerns about poor mortgage lending practices including early maturity, interest arrears and multi-currency mortgages, which …

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The Importance of Legalising Unregistered Property Extensions in Spain

Often when considering selling, property owners decide to make improvements or build extensions to their Spanish properties to add value and make them more attractive to prospective buyers. Adding an outbuilding in the garden next to the pool, a few additional guestrooms, building a cellar with home cinema or an indoor heated swimming pool all sound like a great idea on paper but unfortunately, you can find yourself in a bureaucratic nightmare.

The fact is that unless these kind of structural improvements have been approved by the relevant authorities, they may become a complete waste of money and even prevent you from selling your home.

What are the Legal consequences of Unregistered Property Improvements?

There are several risks associated with not following the statutory procedure as follows:

Should your town hall catch you undertaking non-sanctioned improvements on your home you can be heavily fined and forced to pull down the improvements at your ow…
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Resale Homes return to Pre-Crisis Levels to Meet Booming Demand in Spain

According to reports in the Spanish media, transaction levels for resale homes in the country have returned to peak levels of 2007, due to a shortfall of new homes in the construction pipeline.

In the second quarter of this year, 119,408 flats and buildings changed hands, of which 99,343 were resale or secondhand homes, the same level recorded before the property bubble burst. In contrast, the market for newly built homes remains flat with just 20,065 transactions, some way from the 110,000 new units sold in the first six months of 2007.

What has become evident is that the intensified activity in the resale property market reveals strong and rising demand for homes in Spain. In the absence of supply of new homes, buyers are being forced to find what they’re looking for on the resale market, now showing the strongest signs of price growth in the country.

Spain’s Resale Market Returns to Pre-Crash Buoyancy

The total number of property transactions so far in 20…

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