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Country Life
Tuesday January 19th
The value of British-owned overseas property increased by over £2.6 billion between July 2008 and December 2009 to £42 billion, according to new analysis
The FX team at Close Treasury believes that the value of overseas property owned by British in the most popular locations rose by over £2.6 billion to £42 billion in the 18 months between July 2008 and December 2009. This is because the value of the Euro and the US Dollar against Sterling increased by 13.22% and 16% respectively during this period.

Between 2008 and 2009, property prices in France declined by around 6.63%, but because of the rise in the value of the Euro, if a Briton owning property there had sold-up and converted the money back into Sterling, they would have actually made money. Close Treasury estimates that there are around 98,000 properties in France owned by British citizens, and between 2008 and 2009, the combined Sterling value of these would have increased by just over £1 billion, or £10,373 per property.

In Spain, where Close Treasury estimates 144,500 properties are owned by British citizens, property prices fell by around 8.35% between 2008 and 2009, but again because of the rise in value of the Euro against Sterling, they would have made a collective gain of £1.1 billion, or £7,668 per property.

Even in America where property prices fell by 14.95% between 2008 and 2009, the rise in the value of the Dollar against Sterling meant that a British Citizen who owns a property there saw its Sterling value increase on average by £1,752.

The biggest winners were British citizens who own property in Italy, where a combination of rising property prices and a strong Euro meant that on average they saw the value of their properties there increase by £25,597 each.

Mark Taylor of Close Treasury explains: 'There has been a lot of volatility in the currency markets recently and many expect this to continue. This is having a huge impact on the value of property owned by British people abroad and in many cases it is more influential than price changes in the local property markets.

'With the currency markets being so volatile, around 40% of our FX clients are taking out forward contracts as opposed to paying spot prices.’

Idealista Reports Drop In Rental Prices

A recent report by Spanish property portal Idealista has noted a significant drop in average rental prices in Spain during the first six months of 2009.

Of the 34 provincial capitals analysed, only 3 have managed to maintain the average monthly income of rental properties; Salamanca (1,4%), Leon (1,0%) and Las Palmas, Gran Canaria (1,0%) are the only three bucking the downward trend.

In Alicante, the average rental price fell by 3.6% in the first half of 2009 while rental prices in Valencia fell by 9.9% in the same period.

Commenting on the figures, Nicki Whittaker of Alegria Costa Blanca remains positive about the rental market in and around the Alicante area:

“The current uncertainty in the property market and stricter lending criteria applied by the banks has led to a rise in demand for rental properties in this area of the Costa Blanca: the fall in monthly rentals prices is simply an indication of the current economic climate where tenants are demanding more realistic rental prices”, she said. “In our experience, demand for rental property is currently very high and landlords who are realistic about the price they ask for their properties will have little problems finding tenants.”

Tinsa the Spanish real estate analyst and Quantity Surveyor, reports that price reductions are now stabilising at -10% average (-9% in this Region) to the year ending in June 2009. This has raised speculation that price reductions may now be at a low, so a good time to capitalise on a bargain. The report from Tinsa can be downloaded here;

http://www.tinsa.es/down/IMIE/IMIE_06_2009.pdf

THERE'S NEVER BEEN A BETTER TIME TO BUY SPANISH PROPERTY
Birmingham Post

According to Taylor Woodrow de España, potential buyers are now showing an increased interest in investing in Spanish property.

The mood is summed up by Victor Sague, Marketing Director of Taylor Woodrow de España:

“For many months consumer confidence in the property market has been dented and, quite frankly, who can blame house hunters becoming subdued when it comes to making possibly the biggest investment of their lifetime,” he said.

“However, at this moment in time we are seeing a number of people returning to the market, anxious not to miss out on some of the excellent deals that are currently available. Indeed over the last couple of months there are continuing indications that the market may well have bottomed-out as financial institutions, estate agents and builders begin to report an increase in activity. All of which go a long way to further fuel the ‘green shoots’ of recovery both in the property sector and in the economy as a whole.”

Victor continued: “With the market looking brighter, this will of course add inflationary pressure to house prices the moment confidence returns. Indeed, house hunters that are not able to move quickly will no doubt miss out on the chance to buy at the bottom of the market.”

“For many people; however, buying at the correct time is not about maximising the money they will make but about taking the opportunity to buy something now before the changing property market renders the property of their dreams unobtainable.”

Victor concluded: “History will show that people who buy in the present climate have bought just at the right time. Not taking advantage of the most affordable moment of the decade in the property market could turn out to be a very expensive missed opportunity.”

The 2009 International Survey conducted by primelocation.com shows that 70% of visitors to primelocation.com/international are actively looking to buy an overseas property, despite the current economic uncertainty.
Of all respondents, 28% said that they are unaffected by the current economic situation, and the 22% who had delayed their plans because of the economic climate are now back in the market and hope to find a bargain, while 10% said that they are checking out the market but will not proceed just yet.
Ann Wright, International Business Development Manager for primelocation.com, says: ‘This is very clear indication that people have not let go of their dreams of owning a property abroad. Indeed, it is encouraging that people are coming back to the market, possibly because of recent press reports of falling property prices across Europe.’
The primelocation.com 2009 International Survey also monitored the countries the portal’s visitors are most interested in buying in: France took top spot with 25%, Spain came second (16%) and was followed by Italy and Portugal which tied in fourth place with 11% each. The United States, Cyprus, Greece, Switzerland, Turkey, Canada and the UAE took the rest of the top 10 spots.

The president of the National Confederation of Constructors (CNC), Juan Lazcano in an attempt to kickstart activity in the residential property and state sector, the CNC president proposed a series of tax and investment policies.

Lazcano called for more 'direct and incisive aid to reduce stocks' for example, government acquisition of property currently being held by financial institutions so that it can be offered for rent.

Consumer price inflation in the Eurozone fell 0.1% in June.

Kyero.com reports that buyers are heading for Alicante province when looking for property bargains nearly double its nearest rival, Malaga. Of the increased numbers of enquiries, most were in the sub 150,000 eu price bracket.

Whats New at Alegria?

At Alegria we are currently making a number of changes which will help us deliver a better service to our customers.

Neil Turnbull will be running the Alegria Costa Blanca’ office in the UK and will concentrate on marketing our properties and services to UK buyers. Nicki Whittaker will be handling the business in Spain and should you require any of our services; from baby equipment hire or insurance through to property management or even to revise the price of your property all you have to do is call Nicki and she will bring the office to you.

Another change you will notice is the closure of our office in Busot: from now on, instead of sitting in an office waiting for clients to come to us we will be taking Alegria Costa Blanca out to a wider audience, both here on the Costa Blanca and in the UK.

The Alegria logo has also undergone a subtle change and Alegria Consultancy now becomes Alegria Costa Blanca: this change signifies our ongoing commitment and investment in the business.

Very soon you will start to see high quality advertising literature and posters in bars, restaurants, shops and other key locations. This literature will advertise our properties and services to potential customers and give your property the exposure it needs and afford you the very best chance of finding a buyer or tenant. We will also be distributing this literature in the UK.

Research shows that over 90% of buyers looking to buy overseas property start their search online and for this reason we have created a brand new website www.alegriacostablanca.com where potential purchasers and tenants can view your property online, wherever they are in the world.

We hope that the changes we have outlined above demonstrate our ongoing commitment to the business and our determination to market your property pro-actively. If you have any questions please do not hesitate to contact us on the numbers given below.