Sales recovery continued in Spain in first few weeks of 2017

Sales recovery continued in Spain in first few weeks of 2017

The recovery in the Spanish housing market has continued into 2017 while a rise in sales in places like Malaga and Alicante signal a return of foreign buyers.

The latest figures from the Land Registry shows that sales increased by 19% in January year on year, the biggest number of monthly sales since January 2013.

According to Mark Stucklin of Spanish Property Insight it is the highest number of recorded sales since 2008. ‘Sales in 2013 and 2011 were inflated by Government tinkering in the market. So it’s the best start to the year for sales since the boom ended,’ he said.

A breakdown of the figures show that the biggest rise in sales was in the Balearics with an increase of 40%, followed by Cantabria up 40%, Barcelona up 36%, Tarragona/Costa Dorada up 35%, the Costa Brava up 28%, Asturias up 27% and Madrid up 22%.

Sales were also strong in southern locations popular with overseas buyers with the Costa del Sol up 20% and the Costa Blanca up 17%. Stucklin pointed out that sales in these regions may have been affected by a fall in British buyers last year after the UK voted to leave the European Union.

Some locations, however, are still struggling. Sales were up just 1% year on year in Costa de la Luz and the Canaries while they fell by 2% in Costa del Azahar which was driven by a 45% collapse in new home sales.

Overall, resales were up 21% and new home sales up 8%. Stucklin believes this is as sign that the new development collapse is slowly drawing to an end. ‘It’s a relief to see the Spanish home sales recovery continue in 2017 and the increase in Malaga and Alicante suggests to me that buyers from other nationalities are stepping in to make up for a decline in British demand brought on by Brexit,’ he added.

Agents Lucas Fox have found that foreign buyers are returning to the market although there have been indications that Brexit is affecting the number of British buyers and the election of Donald Trump as President of the United States is affecting American buying habits.

Enquiries from the UK for homes in all desirable second home destinations have decreased following the Brexit vote, most notably on the Costa del Sol, traditionally popular among British buyers. Lucas Fox data shows that Barcelona and Ibiza were the most searched for destinations among UK buyers during 2016.

‘Since the referendum, UK buyers have dropped off due to the weakening of the Pound. There is still movement at the lower end of the market and towards the latter half of the year there has been an increase in the numbers of sellers of re-sale properties discounting prices, particularly British sellers who can now afford to reduce the price without affecting what they will make in Sterling,’ said Lucas Fox Marbella partner Stephen Lahiri.

But despite the Brexit vote, British people continued to made up the biggest proportion of foreign buyers in 2016 at 11% although down from 18% in the previous year, followed by buyers from the Middle East at 8%, up from 5% in 2015.

The number of buyers from Scandinavia has also increased, up to 7% from 4% in 2015 while buyers from France have fallen from 9% to 6% and there has been a slight rise in American buyers from 4.5% in 2015 to 5% in 2016.

‘We’re seeing growing national and international demand for homes in leading cities and desirable second home destinations showing that Spain’s economic recovery is on course despite last year’s political paralysis,’ said Lucas Fox co-founder Alexander Vaughan.

‘With interest rates set to remain low, many are turning their backs on investing in traditional savings accounts, and choosing bricks and mortar instead, especially as banks are keen to lend,’ he explained.

‘We’re optimistic that the Spanish Property market will continue to improve through 2017 and for the coming years. Prices and transaction numbers are rising steadily in the major cities but in other areas it’s a very different story, with many property owners in secondary locations still having to drop their asking price to secure a sale,’ he added.

Germany overtakes UK as most active European commercial property market

Germany overtakes UK as most active European commercial property market

Germany overtook the UK as the most active commercial property market in Europe in 2016 with transactions totalling €59 billion, according to the latest research.

Although investment volumes declined 14% year on year, global real estate advisor Knight Frank reports that Germany was established last year as Europe’s safe haven due to its robust economy and relative political stability and the diversity of its property markets.

Approximately 55% of the total transaction volume was spread over seven key cities in 2016 of Berlin, Frankfurt, Hamburg, Munich, Cologne, Dusseldorf and Stuttgart with second tier cities such as Leipzig attracting unprecedented levels of investment.

Over 60% of investment transactions in 2016 involved German buyers, as competitive pricing started to price out overseas investors, the report points out, adding that occupier demand is characterised as strong, with Berlin and Munich recording rental growth and rents in Frankfurt remaining at a high level.

It is Berlin’s emergence as one of Europe’s pre-eminent creative hubs that has seen the city post record levels of office take up for the past three years, the report says, and as a result it is a compelling proposition for investors with transactions totalling €5.7 billion in 2016.

The report also points out that as mainland Europe’s leading financial centre, Frankfurt is host to more than 230 national and international banking institutions and in 2016 saw the highest level of leasing activity since the global financial crisis of 2007 with 530,000 square meters let.

Indeed, around €4.7 billion was invested into Frankfurt’s commercial property last year, and despite a restricted availability of office investment stock, the office sector attracted €3.3billion in capital.

Munich, meanwhile, is Germany’s second largest employment hub where around 30,000 jobs are created each year and this is underpinning strong demand for office space. A total of 780,000 square meters of office space was let in 2016, one of the highest totals ever recorded, and was the second most popular German destination among investors, with transactions totalling €5.5 billion.

‘Germany is one of the premier advanced economies in which to invest, and it emerged as the leading destination for real estate capital in Europe in 2016,’ said James Roberts, chief economist at Knight Frank.

‘The economic outlook remains strong, as it continues to lead the recovery in mainland Europe, although with a national election in September some investors may adopt a more cautious stance in the short term,’ he added.

According to Joachim von Radecke, head of the German Desk of European Capital Markets at Knight Frank, many property investors are attracted by the diversity in the German market. ‘With seven key cities all with distinct characteristics in terms of occupational demand this will continue to be a key differentiator for Germany versus other European markets,’ he said.

Investment in alternative property sectors set to take off in Europe

Investment in alternative property sectors set to take off in Europe

Alternative property investment sectors in Europe are likely to be boosted by urbanisation and demographics with the UK leading the way, followed by Germany and Sweden, new research suggests.

Long term trends will boost segments such as the Private Rented Sector (PRS), student accommodation, care homes and hospitality, according to international real estate investment manager Savills Investment Management (Savills IM).

Key attractions in these alternative sectors include long leases, indexed rental uplifts, better covenants and the potential to diversify portfolios. Prime yields are now at or below 6%, with scope for further compression as these markets develop and mature, says the Savills IM report.

Savills IM believes that the key sectors set to see strong activity this year include the PRS, automotive, hospitality and socio-infrastructure markets in the UK, Germany, France, the Netherlands, the Nordics and increasingly Spain.

The largest alternative real estate market is in the UK, with €9.9 billion in 2015, followed by Germany at €5.2 billion and Sweden at €3.5 billion.

‘Historically, the European real estate investment market has been focused around the main commercial property types of retail, office and industrial. However, rising competition for the best assets in these traditional markets is out-pricing some investors, who are interested in higher returns and are prepared to take more risk,’ said Kiran Patel, chief investment officer at Savills IM.

‘These investors are looking into niche market segments, and are partnering with strong local players to benefit from higher returns. We have no doubt that the alternative real estate sector will further increase its share of the real estate investment universe over the coming years in Europe,’ he added.

In the report Savills IM says alternative sectors are set to attract investors who have long term strategies and can benefit from stable, long term income. Despite this growth potential, however, the report says alternatives pose some challenges for investors, including transparency that is lower in certain segments than in the mainstream market.

Investors also need to consider the level of maturity in the market, stock selection, business models/ease of entry, occupiers’ ability to service rent, covenant strength and exit strategies.

The report concludes that market uncertainty must be counteracted with a long term view and understanding and robust underlying fundamentals will continue to drive investment into real estate but into new asset classes and tiers.

In a separate piece of research, German based PATRIZIA Immobilien says that a long term investment strategy is needed for commercial real estate overall. It says that this means keeping a long term focus on market fundamentals and the location of assets in order to achieve good returns and limit the risks associated with any potential instability.

‘A key lesson from 2016 for investors is that public opinion is not predictable, and that political risks should be closely monitored,’ said Marcus Cieleback, group head of research at PATRIZIA Immobilien.

The report says that from a long term perspective, real estate investments in Europe are growing relatively more attractive, offering a lower downside potential. ‘This is because in the future we are facing a lower growth environment, resulting in lower capital growth and ultimately lower total returns. From this perspective, Europe with its low volatility and low average capital growth will be the region in which future returns will be closer to past performance, especially when compared with North America and the UK,’ Cieleback explained.

‘Whilst we and any investor should remain mindful of the ongoing uncertainty in the wider market, we remain confident that combining a long term strategy with the specific nuanced details of an asset, sub-sector and local market can still lead to above average returns. On this basis, and considering demographics, growth perspectives, the equilibrium interest rate and the risk preferences of the investors, Europe is still an attractive investment opportunity on the global stage,’ he added.

Recovery continues in the Spanish property market, bubble fears ruled out

Recovery continues in the Spanish property market, bubble fears ruled out

The housing market in Spain is continuing to recover with data showing sales up and prices up in some locations but it is unlikely to overheat.

Three of the four indices published in March were positive and showed average house prices rising by between 1.8% and 4.5% but the data is not always a reflection of what is happening across the market.

According to Mark Stucklin of Spanish Property Insight some sets of data are more worthy than others. He believes that asking price data needs to be taken with a pinch of salt.

The latest asking price index published by Idealista showed a fall of 5.4% in March, a fraction better than the 5.6% fall in February but Stucklin believes that the asking price data published by portals is particularly flawed.

‘As any house hunter who has spent any time searching for property at the big portals will know, they are full of duplications with different prices, and lots of properties that are no longer for sale. To make matters worse, vendors don’t really know what their property is worth because it’s difficult to check and asking prices reflect this,’ hesaid.

He explained that the Tinsa index, which is based on professional valuations following a consistent methodology, is one of the more reliable sets of data and it showed that prices increased overall by 1.8% in February but there are regional variations with a fall of 0.3% on the coast and a rise of 4.4% in the Balearic and Canary Islands.

‘Having spent a bit of time looking at the market in the Balearics recently, I’m not surprised to see prices rising in the islands. The thing about islands, is land is scarce,’ said Stucklin.

But there are no signs of the market rushing out of control. According to Juan Antonio Gómez-Pintado, head of the Spanish Developers’ Association, there is currently no risk of another real estate bubble.

The Bank of Spain has agreed, saying that while the housing market is showing signs of growth with sales, house starts and prices all moving upward, there are no signs of overheating. It believes that the market is recovering normally form the crash in 2008.

When it comes to sales the data is more reliable and the latest figures from the land registry show that transactions were up 3% year on year in February, led by the Costa Dorada and Barcelona.

There were 31,808 home sales recorded in January, reflecting sales closed in the previous two or three months, up 3% on the same month last year, and the largest number of February sales since 2011.

But Stucklin pointed out that this was the smallest annualised increase in sales for any month since July last year, which might mean the recovery could be losing steam. ‘But it’s just one month, so maybe not. We’ll have to wait and see a few more months to identify a trend,’ he said.

He pointed out that it is important to remember that the figures are based on sales inscribed in the land register, not actual sales that took place in February and as such they lag the market by about two or three months. ‘Actual sales may have changed by more in February, but we’ll have to wait until the Notaries publish their data to find out,’ he added.

German cities seen as a good prospect by landlords and property investors

German cities seen as a good prospect by landlords and property investors

High demand and a low supply of property is making real estate markets in German cities more attractive to foreign investors, particularly among buyers from southern Europe, new research suggests.

A new report from Knight Frank points out that in Berlin, for example, the city’s population grew by 40,000 in 2015 and household numbers are forecast to increase by 74,000 between 2015 and 2020 but new home building is not keeping pace.

Indeed, estimates suggest the city needs to build 20,000 new homes each year to satisfy new and pent-up demand and although building rates almost doubled between 2012 and 2015, only 10,722 new homes were brought to the market in 2015.

The report also explains that German cities still have some of the lowest home ownership rates in the world and while numbers are rising, this is in part due to the European Central Bank’s historically low interest rates and with only 15% of homes classified as owner occupied, the market is encouraging to landlords.

Landlords in Berlin rarely struggle with lengthy void periods and the vibrant technology and start-up industries in the city which together are attracting a younger, entrepreneurial generation means demand for rental homes remains high.

The report also points out that numerous safeguards have been put in place, partly to avoid a repetition of the boom and bust scenario seen in the late 1990s and partly to ensure housing remains affordable for local residents.

‘Mortgage lending is now highly regulated. Capital gains tax is charged on all properties sold within two years of purchase, or in the case of buy to let homes, 10 years, to discourage speculation,’ said Kate Everett-Allen, head of international residential research at Knight Frank.

While Berlin has also gone one step further than other German cities by introducing a new rent cap which means that the rent specified in a new tenant contract cannot exceed the local average by more than 10%, this is not being seen as a deterrent by landlords or investors.

‘Landlords and investors instead see the measures as pillars of support which help bolster market confidence and minimise risk,’ Everett-Allen added.

The report also explains that introduction of a permit system for short term rentals via Airbnb and the designation of 33 neighbourhoods as urban conservation areas where owners are prevented from converting their rental properties to luxury condominiums to sell on, reinforces again the council’s commitment to the city’s rental sector but at the same time constrains the supply of homes available to purchase.

Data from Knight Frank partners in Berlin, Ziegert Immobilien, shows that whilst German buyers still account for a large segment of demand within the luxury sector, overseas interest not only increased but became more diverse.

European buyers continue to represent a key component of demand but buyers from China, the US and the Middle East together accounted for more than 42% of sales to overseas buyers in 2016, a trend Knight Frank expects to continue throughout 2017.

Beautiful double rooms to rent in Tulse Hill. ALL BILLS INCLUDED. FURNISHED

Date available: 18 Apr 2017, Property type: House, Number of bedrooms: 0

Beautiful double rooms to rent in Tulse Hill. ALL BILLS INCLUDED. FURNISHED

Moving Inn are proud to present these beautiful double rooms to rent on St Faith Road in Tulse Hill.

– Modern spacious rooms
– Neutral décor
– Sharing kitchen, living room, main bathroom and toilet with other tenants
– Biggest bedroom has got an en-suite bathroom
– Rooms on ground floor have got access to patio
– Bright and airy
– ALL BILLS INCLUDED
– Furnished
– Close to Tulse Hill BR station which serves Balham, Clapham Junction, London Victoria, London Bridge
– Available immediately
– Sorry, no Housing Benefit

Prices from £600 PCM

Please call Moving Inn on …… or …… to book a viewing.

Easy commute to Central London, SW1, SW2, SW4, SW8, WC1,WC2, WC3, EC1, EC2, EC3, Bayswater, Oxford Street, Trafalgar Square, Paddington, Marylebone Road, London Bridge, London Waterloo, Vauxhall, Queenstown Road, Clapham Junction, Putney, Barnes, North Sheen, Richmond, St Margarets, Twickenham, Kingston.

When you email please leave your name, email address and your contact number.

Letting fees information
The asking rent does not include letting fees. Depending on your circumstances and the property you select, the letting agent may also apply the following upfront fees: general administration fees; reference fees (including credit checks, bank, guarantor, previous landlord, etc); application fees; fees for drawing up tenancy agreements; inventory fees, including check-in and check-out fees; guarantor arrangement/application fees; additional occupant fees; pets disclaimer fees/additional pet deposit.
Fees may be charged on a per person, or per property, basis and will vary from agent to agent, so confirm before viewing.

Beautiful double rooms to rent in Tulse Hill. ALL BILLS INCLUDED. FURNISHED

Date available: 18 Apr 2017, Property type: House, Number of bedrooms: 0

Beautiful double rooms to rent in Tulse Hill. ALL BILLS INCLUDED. FURNISHED

Moving Inn are proud to present these beautiful double rooms to rent on St Faith Road in Tulse Hill.

– Modern spacious rooms
– Neutral décor
– Sharing kitchen, living room, main bathroom and toilet with other tenants
– Biggest bedroom has got an en-suite bathroom
– Rooms on ground floor have got access to patio
– Bright and airy
– ALL BILLS INCLUDED
– Furnished
– Close to Tulse Hill BR station which serves Balham, Clapham Junction, London Victoria, London Bridge
– Available immediately
– Sorry, no Housing Benefit

Prices from £600 PCM

Please call Moving Inn on …… or …… to book a viewing.

Easy commute to Central London, SW1, SW2, SW4, SW8, WC1,WC2, WC3, EC1, EC2, EC3, Bayswater, Oxford Street, Trafalgar Square, Paddington, Marylebone Road, London Bridge, London Waterloo, Vauxhall, Queenstown Road, Clapham Junction, Putney, Barnes, North Sheen, Richmond, St Margarets, Twickenham, Kingston.

When you email please leave your name, email address and your contact number.

Letting fees information
The asking rent does not include letting fees. Depending on your circumstances and the property you select, the letting agent may also apply the following upfront fees: general administration fees; reference fees (including credit checks, bank, guarantor, previous landlord, etc); application fees; fees for drawing up tenancy agreements; inventory fees, including check-in and check-out fees; guarantor arrangement/application fees; additional occupant fees; pets disclaimer fees/additional pet deposit.
Fees may be charged on a per person, or per property, basis and will vary from agent to agent, so confirm before viewing.

Charming 3 bed flat in Streatham. Furnished or part furnished. Available immediately.

Date available: 18 Apr 2017, Property type: Flat, Number of bedrooms: 3

Charming 3 bed flat in Streatham. Furnished or part furnished. Available immediately.

Moving Inn are proud to present this beautiful 3 bed flat located on Stanthorpe Road in Streatham.

– Beautiful separate kitchen
– Modern living area
– Beautiful modern separate bathroom
– 3 good sized bedrooms
– Furnished or part-furnished
– Close to local amenities and transport links
– 5 minutes walk to Streatham BR station which serves Clapham Junction, London Victoria, London Bridge and many others
– EPC rating: D
– NO DSS.

Please call Moving Inn on …… or …… to book a viewing.

Easy commute to Central London, SW1, SW2, SW4, SW8, WC1,WC2, WC3, EC1, EC2, EC3, Bayswater, Oxford Street, Trafalgar Square, Paddington, Marylebone Road, London Bridge, London Waterloo, Vauxhall, Queenstown Road, Clapham Junction, Putney, Barnes, North Sheen, Richmond, St Margarets, Twickenham, Kingston.

When you email please leave your name, email address and your contact number.

Letting fees information
The asking rent does not include letting fees. Depending on your circumstances and the property you select, the letting agent may also apply the following upfront fees: general administration fees; reference fees (including credit checks, bank, guarantor, previous landlord, etc); application fees; fees for drawing up tenancy agreements; inventory fees, including check-in and check-out fees; guarantor arrangement/application fees; additional occupant fees; pets disclaimer fees/additional pet deposit.
Fees may be charged on a per person, or per property, basis and will vary from agent to agent, so confirm before viewing.

Charming 3 bed flat in Streatham. Furnished or part furnished. Available immediately.

Date available: 18 Apr 2017, Property type: Flat, Number of bedrooms: 3

Charming 3 bed flat in Streatham. Furnished or part furnished. Available immediately.

Moving Inn are proud to present this beautiful 3 bed flat located on Stanthorpe Road in Streatham.

– Beautiful separate kitchen
– Modern living area
– Beautiful modern separate bathroom
– 3 good sized bedrooms
– Furnished or part-furnished
– Close to local amenities and transport links
– 5 minutes walk to Streatham BR station which serves Clapham Junction, London Victoria, London Bridge and many others
– EPC rating: D
– NO DSS.

Please call Moving Inn on …… or …… to book a viewing.

Easy commute to Central London, SW1, SW2, SW4, SW8, WC1,WC2, WC3, EC1, EC2, EC3, Bayswater, Oxford Street, Trafalgar Square, Paddington, Marylebone Road, London Bridge, London Waterloo, Vauxhall, Queenstown Road, Clapham Junction, Putney, Barnes, North Sheen, Richmond, St Margarets, Twickenham, Kingston.

When you email please leave your name, email address and your contact number.

Letting fees information
The asking rent does not include letting fees. Depending on your circumstances and the property you select, the letting agent may also apply the following upfront fees: general administration fees; reference fees (including credit checks, bank, guarantor, previous landlord, etc); application fees; fees for drawing up tenancy agreements; inventory fees, including check-in and check-out fees; guarantor arrangement/application fees; additional occupant fees; pets disclaimer fees/additional pet deposit.
Fees may be charged on a per person, or per property, basis and will vary from agent to agent, so confirm before viewing.

1 bedroom flat in 39 Hill Street Hill Street, Mayfair, W1J

Date available: 21 Mar 2017, Property type: Flat, Number of bedrooms: 1

Ref: RO2402
This beautiful eighth floor, one bedroom apartment comprises of a large double bedroom, bathroom, spacious reception room with rear facing views over Hayâs Mews and a unique kitchenette. The apartment is in one of Londonâs most prestigious locations, Mayfair neighbouring the famous Berkeley Square. This beautiful prupose built building benefits from spacious living accommodation, lift service, on-site building manager, and is nestled conveniently between two of London’s parks Hyde Park and Green Park. London underground stations, Green Park, Bond Street and Marble Arch are all within a short stroll away. Pay no agency fees. All of our tenants benefit from a dedicated on-site or building manager who is on hand to assist with any property related issues. We also employ a dedicated team of maintenance experts and provide a 24-hour emergency helpline.
No agency fees
On site building manager
Available furnished or unfurnished
Lift service
24 hour maintenance service
High quality finish
Agent: Remax Grand
Agent Ref: 65491283_2402