Kyero news blog now found at live.kyero.com

After a positive response from this unofficial blog, Kyero have now launched a new domain to host all it's daily news from Spain.

Officially launching in the New Year, the daily news from Spain content can already be found at:

http://live.kyero.com

Comments are welcomed, while guest articles and stories are always gladly received.

We'll see you in 2010! Happy New Year!

Real Signs of Recovery from Recession in Spain

Prices rose a half point in November and confirm the emergence of signs of recovery after eight consecutive months of decline that has placed Spain in a period of recession. This finding was confirmed by the National Statistics Institute (INE) and gives the cumulative inflation from January at 0.8% and the year at 0.3%.

Benefitting most from this result are the countries 8 million pensioners who at the start of the year received a 2% increase in payments and, although prices have risen0.8% through November, will not to be forced repay the difference. They would have benefited from increases in purchasing power between 1.6% and 6% on average (plus, the Government increased the pension base rate). This situation was first seen in 1998 and the PP government decided to keep rising payments despite strong criticism about the financial stability of public pension system.

The second target market are the almost three million civil servants, who received an increase on wages of 3.4%. The November CPI data has not only ruled out the fear of continual deflation put forward by those who argued that in the short term “the worse the better,” but they have also identified new inflation risks that may accompany the recovery process.

Spain's Costa del Sol - Where would you Rather Live?

Looking back at the archived article below, from 2004, it was difficult not to get tied up in thoughts of the world's property slump and financial problems. The Costa del Sol was home to a great deal of growth and it certainly has taken a hit now that a readjustment is taking place. However, it also struck me that, even in these times, Spain is still a very desirable location to live. The property crash is hitting most of the world, but people still need to live somewhere ...

Looking at it from this angle, the Costa del Sol offers more than 300 sunny days a year, average temperatures of 20 degrees and a wealth of diversions and entertainment for all the family. More than capital gain, these features and the lifestyle it provides, are why the Costa del Sol (and arguably Spain as a whole) will continue to attract those looking to set up a new life or purchase a second home.

While property developers are always looking to make a profit, the vast majority of people put priority on a happy and enjoyable life - something that Spain, especially here on the Costa del Sol, can provide in spades whatever the economic climate.


From 2004 - "Property sales in Costa del Sol are still be as strong as ever, with continued development everywhere and some 50,000 new houses being built every year. Divided into two distinct parts, East and West, the Eastern Costa del Sol covers the 50 or so km east of Malaga and includes towns such as Nerja, Torrox Costa and Torre del Mar. Although less developed than the Western Costa del Sol, this is still a popular area with the British and other Europeans, counting a significant number of property sales in Costa del Sol, the pace of sales and construction having grown rapidly over the past few years. The Western Costa del Sol covers the 100 or so km from Malaga down to Cadiz and includes towns such as Benalmadena, Fuengirola, Mijas and Marbella. Far more developed than the eastern Costa, this area could be said to count for the majority of property sales in Costa del Sol.

Property on Costa del Sol, whichever way you look at it, has always been considered a good investment and many buyers have doubled or tripled the value of their property in the past 10 years. Malaga airport provides daily flights to the main European cities, ensuring excellent access and cheap flights for those who have bought property on Costa del Sol with a view to holidaying regularly in the area and, of course, encouraging a healthy property rental market. The Costa del Sol is one of the most popular all-year-round destinations of Europe with an average temperature of 18 degrees and a wide range of attractions in the area including excellent beaches, attraction parks, and world-renowned golf courses, one can see why this area attracts visitors, young and old. Not only for tourists, the Costa del Sol has become a popular place for retirement and a change of life-style for many northern Europeans. Keen to move away from the cold winters and high prices, more and more Brits (and other Europeans) are opting for a life in the sun and making a permanent move to their property on Costa del Sol."

An Improving Spanish Property Market

Spanish home sales totaled 106,273 in the third quarter of 2009, while this is 13.6% less than the same period last year, it does represent the smallest decline in a quarter since sales began plummeting in mid 2007.

Meanwhile, second-hand property has recovered by 11.5% as 52,299 homes were sold between July and September compared with only 46,901 during the same period in 2008, this is according to official data released by the Ministry of Housing.

The main cause of the overall decline is new housing, as its sales fell 29% in the third quarter. Comparing the cumulative sales so far this year, the drop equals 24.6% between January and September, with 330,914 sales compared to 439,045 in the same period in 2008. Looking at the same period for sales of second-hand homes, there was an effective fall of 15.2% between January and September (153,068).

Also of note was that 55.9% of all sales were concentrated on just four regions, Andalucia, Valencia, Cataluña and Madrid. Further confirming recent reports that the Spanish market cannot be simply taken as a whole and there are wide differences between Spain's autonomous regions.

The final quarter of 2009 will make interesting reading, and it is expected that further improvements will be demonstrated within the Spanish property market.

How Valid is One Bank's Opinion on the Property Market in Spain?

In an interesting report, the British bank HSBC has stated that the adjustment of the housing market in Spain will continue in coming quarters even though there have been signs that the "free fall" of the property sector is nearing the end.

The report compares the current status of the housing market in the U.S. and UK with that of Spain, and in it, HSBC said that these countries have taken dips in housing prices that were far larger than the statistics reflect in Spain, therefore pointing out that in the Spanish market there is still room for further drops, but they did note that there are clear differences in price falls depending on the geographic area.

In this respect, the British bank said that the forecasts suggest that economic weakness will persist into 2010 and the Spanish property market recovery could take longer than that of the U.S. and the United Kingdom.

Similarly, HSBC suggests that these poor economic prospects may hinder the attraction of Spain as a destination for immigration, while the image portrayed of a country with high unemployment along with the strong euro reduces foreign interest in buying property in Spain.

Moreover, the institution hopes that the activity of housing construction between 1997 and 2007, spurred by expectations of price hikes have resulted in a "massive" over-supply, you may need two to three years to be assimilated by the market.

While nobody is crying foul of this story, it is very important to point out here that HSBC only provides corporate and investment services in Spain, with a paltry 4 offices, whereas it has a far higher presence in the UK with 1581 offices and 571 in the USA .. is it any surprise they would be talking up their primary operations over potential competition for investors money?

Increase in Spain's Rental Market to Solve Property Surplus

In further economic debate primarily related to the Spanish property industry, the adoption of a draft Sustainable Economy Act has been discussed. And perhaps the most repeated comment heard was "things are heading in the right direction", although most with the caveat of "it is not sufficient." The adjustment in the housing sector has also been taken into account in developing some of the measures proposed under the new legislation. Improving the tax allowance for landlords from rental income and allowing the purchase of property to be taken into consideration with regards to income tax are applauded by most experts, who foresee the possibility of renting out much of the current stock of unsold property.

"Given the history of our country, perhaps we will never achieve the rental rates of countries like France or Germany, but we should aim to have a 15% rate and remain at that level," he said Caixa Catalunya’s Eduard Mendiluce. These new incentives will also make lease purchasing more attractive. Furthermore, the creation of a new tax deduction for renovation work to promote energy efficiency and accessibility for the disabled has also been welcomed by the construction sector. The National Construction Confederation (CNC), which comprises of the main industry associations, have been asking for months for action to promote this tax deduction to counteract the residential building slowdown and welcomed the adoption of reduced rate of VAT (7%) for these projects.

Despite the reduction in building, and although all the statistics show a great deal of price cuts, the study says that, even today, 40% of families that would potentially buy a house could not cope with current average prices, they are effectively excluded from the market. So what is the future outlook? Demographics will be crucial for two reasons; the first is that the need for a first home by those born in the baby boom and the second is that an influx of immigrants is not expected. Therefore, the study does not expect a demand for new properties of more than 220,000 annually. With an estimated current surplus of between 640,000 and 1 million homes that would mean at least 3 years before a complete recovery is made in Spain.

Recovery in Some Areas of the Spanish Property Market

One of Spain’s leading banks, Caixa Catalunya, has said that its stock of housing, taken on due to the recent financial circumstances, has almost completely been absorbed in some regions. The bank states that "we are very near the end, if not already finished". This has led to an increase between 3% and 5% on the price of some of its developments.

During a presentation giving an update on the housing market, they said that this recovery is also seen in the land market, in which the bank is also beginning to close operations in some regions through "an upturn in demand”.

In addition, Eduard Mendiluce (Director of Caixa’s Property Division) was convinced that Caixa Catalunya is not the only agent that has begun to raise prices. "There are increasing rates of sale and we are convinced that others are doing the same." It was not long ago that the financial institution offered discounts of between 15% and 20% in some of its developments, but he said "now housing prices have bottomed out.”

The study by the director of research at the institution, Josep Oliver, indicated that the adjustment has been "very fast", and in the case of employment in the sector, he considers that "a readjustment is nearly complete”, this is after the loss of around a million jobs.

However, the financial institution believes that there still are some assets to digest. First, although the property stock has almost been depleted in some regions, in others there still remain many that are unsold. In such areas, "the existence of a significant volume of potential demand and oversupply means we cannot anticipate an instant recovery of the housing market".

240 Euro per Month Saving on an Average Spanish Mortgage

In more mortgage related news, the Euribor has closed the month of November with its ninth straight record low at 1.23%, meaning an average saving of 240 euros per month or 2880 per year compared to one year ago, this data is based on an average mortgage of € 150,000 with a repayment term of 25 years. This data will be confirmed in the next few days by the Bank of Spain, and equates to more than three percent below the 4.35% that was in place in November 2008.

The index reached its highest level between the summer and autumn of 2008 and the differential rates between then and this year have reached more than four percent. In it's 10 year history, the Euribor peaked in July 2008 with a monthly high of 5.39%. Analysts believe that interest rates in the euro area will not rise until 2011.

Up until just a couple of months ago, experts expected the European Central Bank (ECB) to raise interest rates from mid 2010, but uncertainty about the extent of economic recovery and the credit crunch has delayed the change in monetary policy from the European regulator.

In fact, 10 days ago, the president of the European Central Bank (ECB), Jean-Claude Trichet said in Madrid that is too soon to declare that the crisis is over and that much of the apparent recovery is due to the support measures made by governments and central banks.

Therefore, investors do not expect any surprises on Thursday's ECB's Governing Council meeting and assume that Trichet will send a reassuring message on the permanence of the aid and its stimulus on the economy.

Banks Relucatant to Refinance Mortgages with Public Money

While not specifically Spanish related, many feel that this story is reflected worldwide and that banks are just looking to protect themselves and their shareholders and not helping normal mortgage payers as promised, even after seeking huge financial injections from world governments.

The story stems from new evidence to suggest that the USA government's plan of injecting 50,000 million Euros to refinance mortgages is breaking down. A large number of the applications that would benefit from this plan are being stalled because banks are reluctant to modify mortgages they have already issued.

"Banks are not doing a good enough job," said a report. In particular, it said that the government should make public the names of those firms that are moving slowly to reduce fees on mortgages.

"Many firms should be ashamed, and I will name them," said Michael Barr, an adviser to the secretary for financial affairs department of the U.S. Treasury.

There certainly seems to be a need for much greater transparency here and it will be interesting to watch developments unfold to ensure that public funds really do reach their intended recipients.

Massive Tax Evasion on Rental Properties in Spain

The Ministry of Finance has estimated that more than half of all residential leases in Spain not declared to the relevant tax authorities. This has been stated just over a month since income tax rent relief for landlords was raised from 50 to 60%. Specifically, they estimate that there are over one million undeclared rentals in Spain, some 54% of the total of all rented property and representing annual tax losses of 2,450 million to the government.

The figure of 2,450 million is calculated with the reductions, but excluded from this calculation are garages related rentals, shops, land and offices and commercial property. The report says that non declarations were slightly reduced by three percent in the last year, going down from 57.1% to 54%.

The report complains that three years after new laws on fraud prevention were put in place, the Tax Office has not yet adopted the controls that would enable effective implementation of its main weapon, which required energy and utility companies to pass on information that would permit the identification of buildings that, while seemingly unused were actually being used to rent.

Geographically, the report notes that over two thirds of rented accommodation whose leases are not declared (68% of the total) were concentrated in Catalonia, Andalucia and Madrid, while the regions of La Rioja, Cantabria and Aragon were least problematic. The study said, property owners who fail to declare the most were located mainly in Andalucia, where over 74% of rented housing is not officially declared.

Around 1 Year to Sell a Spanish Property

The average home in Spain is currently on the market for 344 days, taking more than 11 months to find a buyer, according to a study recently published, which indicates that many prices are still out of reach of many buyers.

The length of time is reduced in some areas of the country. Barcelona drops to 304 days, and it's 320 in Madrid. A year ago it took 217 and 242 days respectively.

The time required to sell a home has skyrocketed in the last five years, by more 300% in Barcelona and 272% in the capital of Spain, Madrid.

Spanish Property Buyers just need Finance

A survey, conducted in June this year among more than 6,000 people reveals that currently the major obstacle in buying a property in Spain was in obtaining financing.

In fact, 87% said it is difficult or very difficult to get a loan today, well above the European average 60%.

However, it also highlighted the fact that almost half of people polled said they have problems in meeting the payments on their loans and mortgages, compared with 24% of the EU average.

The poll also shows that only in England is there a greater desire to invest in property, with 63% of respondents saying they are interested in buying a property.

And more than a quarter of respondents, 28%, believe that buying a property will still give high returns on investment.

Costa de la Luz, Spain's Atlantic Coastline

Looking back at this feature on the Costa de la Luz we can see that is was one of the more unfamiliar parts of the Spanish coastline, at least to foreign visitors. In the past 5 years not too much has changed, while there has been a growth in tourism and a number of new developments have appeared, this Costa still remains one of the most natural and unspoilt coastal areas to visit or live in Spain.

It is an incredible part of the coastline, the only southern area of Spain that faces the Atlantic Ocean rather than the Mediterranean Sea. The beaches stretch for miles with stunning white sand dunes and crystal clear waters. It's not quite a tropical paradise though, it's exposure to the Atlantic means the water can feel a little on the cool side and there is often a very strong wind. When the original feature said of Tarifa that it's "the windiest town", it was not wrong. On a recent visit there it was easy to see why windsurfers flock to the area, and flock they do, as I approached a popular spot I was taken aback by the sheer number of parasails that could be seen from a distance, the sky seemingly alive with colour!

I also thoroughly enjoyed a visit to the Doñana National Park, with well over one thousand square kilometres of protected natural reserve. The reserve is home to a number of endangered species and while I wasn't lucky enough to catch sight of the Spanish imperial eagle or Iberian Lynx, it was a great pleasure to spend some time there and a wonderful change of pace from beaches and windsurfing. The whole area is incredibly well kept and organised with plenty of planned walking and cycling routes.

The budget flights that had only just began in 2004 had become daily until recently, the flights are still regular though and this reduced number of flights is replicated on most budget routes with flights now every other day. The flight from Stansted to Jerez is a comfortable 2½-hours and normally arrives mid-evening, the coast is then just 40 minutes drive away.

Property prices here are very much on the high side, over half the Costa de la Luz properties - http://www.kyero.com/property_guide/55617-costa-de-la-luz-cadiz-property-guide - on Kyero are villas and this means the average price is weighted towards higher value properties and are currently some 91% above the national average. Being popular with the wealthy Spanish and those seeking a more relaxed holiday home away from the bustle of the package holiday costas means that bargains are hard to find, but apartments can be easily found for around 150,000 euros, even in desirable locations.

A quick glance at the latest Costa de la Luz holiday rentals - http://www.kyero.com/browse/cadiz-property-holiday-rental-loc11pag1ppp20slt2srt4 - shows a number of very well priced apartments to rent, from as low as 150 euros per week. Ideal for a windsurfing break or just to enjoy a part of Spain that's quite a bit different to the norm!

And on to the original feature, it's one of the earliest I've found and sometimes little changes, even after nearly 6 years - The Costa de la Luz, unlike on most of the other costas in Spain, has only fairly recently been discovered by the many northern Europeans looking to buy property in Spain. In the southern-most corner of Spain, the Costa de la Luz stretches from Huelva and the Portuguese border down to the port of Algeciras, the gateway to Africa and Tarifa the southernmost tip of Spain, also known as the windiest town and windsurfing capital of Europe. Best known for its unspoilt coastline and stunning stretches of beaches, the Costa de la Luz remains on the whole undeveloped and undiscovered, though is about to take another leap in popularity, given the recent arrival of Ryanair flights from London Stanstead to Jerez, the home of sherry and Spanish brandy.

Inland from the coast, the area is beautiful and tranquil and inland Costa de la Luz property is being bought up by many Brits looking for homes in the delightfully Spanish "pueblos blancos" such as Arcos de la Frontera or Vejer de la Frontera. The area is divided into two provinces: Huelva, still relatively undeveloped and offering the scenic hills of the Sierra Morena, the national parkland of the Coto Doñana and its unforgettable coastline, and Cadiz - see below. Property prices in the area are most definitely rising as more and more people are investing in Costa de la Luz property.

Buying a house in Spain? Where's your NIE?

Earlier I spoke about the need to register with your local town hall to ensure you and they receive the benefits and services that are entitled. Part of this advice was due to the belief that simply having a residency card was sufficient, today I'd like to run through the process of applying for a residency card.

Since 1997, it has been a requirement for those wishing to remain in Spain for more than 3 months to register at the 'Oficina de Extranjeros' (Foreigners Office), this must be the office within the province you are staying. More often than not, there will be a nominated police station in the local vicinity that carries out the registration too. there is in fact no longer a residency card as such, instead a residency certificate is issued that will include your identity number (Numero de identidad de Extranjero), commonly known as an N.I.E number, and name and address.

The process is quite simple and quick, an EX16 form (download a copy here - http://www.mir.es/SGACAVT/modelos/extranjeria/modelos_extranje/ex_16.pdf should be filled out and then taken along with your passport to your nearest office (find a list of office here -
http://www.mir.es/MIR/Directorio/Servicios_Perifericos/Cuerpo_Nacional_de_Policia/Oficinas_de_extranjeros/index.html . When handed over they will give you a payment form that can be taken to the nearest bank and paid, when you return with receipt of payment the certificate is handed over on the spot.

I recently had to renew my residency and was quite surprised that the photographic identification is no longer issued and, somewhat strangely, at the bottom of the certificate it states in Spanish that "This document is not valid to accredit the identity nor the nationality of the carrier'. effectively this means that another form of identity needs to be carried, this could a passport (not really the sort of thing you want to be carrying around all the time), a national identity card from your country of origin 8if it exists) or most easily a photographic driving license (and that's if you drive!). One other option would be to take up Spanish citizenship, although this may feel a little extreme for some and does require you to already have been resident from 2 to 10 years, but it would enable you to obtain a full DNI (national identity card).

The certificate itself, and specifically the N.I.E number) is very important when living in Spain, without it you will not be able to buy a Spanish property, purchase a car and open bank accounts. Quite why it is now a piece of paper that has to be backed up by other identification I do not know. A simple trip to the shops to pay by credit card will require this extra identification, whereas once upon a time the residency card would have sufficed.

One Million Spanish Properties and Counting

In Kyero's news yesterday it was revealed that the one millionth property landmark had been passed, a great accomplishment to the all those who have made Kyero the leading Spanish property portal for the foreign market. I thought it would be good to look back at some of the history of Kyero from when it started back in 2003.

Kyero.com originally began after its owner's frustration at the difficulty in finding property in Spain for their friends. An opportunity and a need was quickly recognised and a four-month marketing trial was initiated on a very tight budget. With internet use already on the rise, the marketing trial evolved into Kyero.com.

The first recorded property appeared on the 3rd of October 2003 and soon after the first enquiry was made on the 7th October 2003. By November that year, there were over 1000 properties and soon Kyero began to grow exponentially with more than 20,000 properties by May 2004, with more than 50,000 active properties just one year later. Today, Kyero regularly displays more than 100,000 properties from more than 1,500 estate agents throughout Spain.

Kyero has evolved not only in the quantity of its content but also in the quality of its delivery. At the forefront of many technological advances, Kyero is now written purely in Ruby on Rails, one of the most modern programming languages. It is backed up by a fully redundant cluster of high performance servers and is visited by millions of Spanish property hunters every year. Many agents load their properties automatically via an xml feed every day, and the Kyero xml template is considered standard by many other sites and portals throughout Spain. While through user testing and monitoring, Kyero has evolved it's design constantly to meet the demands of it's ever increasing user base, to ensure incredibly effective navigation and ease of use.

When the property market was at its peak around 2007, Kyero won acclaim as Best International Property Portal, beating off competition from the high profile and publicly funded companies such as Rightmove, while winning best Spanish portal two years running at the CNBC property awards.

Originally an English language site, Kyero now supports 9 languages and caters for visitors from all corners of the world. As well as the more common European languages, Kyero was one the first sites to translate entirely to Russian and offer its agents the opportunity to reach an ever increasing global marketplace. By focusing on providing accurate statistical analysis of the property market in Spain, the Kyero.com house price index has become a respected and reliable source of independent data. And with its latest venture, the Kyero technology and functionality is planned to be released in more than 50 other countries around the world to serve the foreign buyer wherever they may choose.

It has been an exciting few years and a very successful journey. The landscape of the internet has changed immeasurably in that time and Kyero has proven itself more than capable of keeping up with the demands of today's modern lifestyle. One million is a magic number and a great tribute to those involved, the owners, the staff, the estate agents and of course the visitors themselves.

One of Kyero's original tag lines is one that fits well today ... "Kyero - Spanish property you'll love!"

Moving to Spain - your rights and responsibilities ... the first step

This week I'm taking a look at some of the often overlooked aspects of living in Spain. Some recent personal experience with a very ill member of my family has highlighted a number of issues that have caused unnecessary work and problems. These were mostly due to the correct paperwork not being completed when first arriving in Spain, and when speaking with friends and acquaintances there is a surprising lack of knowledge about your rights and also your responsibilities when living permanently in Spain.

When considering to live in Spain permanently, your ability to receive care from social services is of the utmost importance and there is a key task that everyone should complete to ensure you do not encounter problems further down the line - registering with the local town hall. In fact, anyone living in Spain permanently has a legal obligation to register. The equivalent in the UK, for example, is the electoral role.

In Spanish, this registration is known as 'Empadronamiento' (The 'Padrón' is essentially a list of all the people who live in a certain town) and although it is not compulsory, it is of great benefit to both the local municipality and to yourself. The municipalities general funding is based on the number of registrants and therefore local services, such as the police and medical facilities, can be funded and staffed sufficiently to cope with the number of permanent residents in the area.

For the registrant, you are then able to take advantage of the social care services, vote, and generally have a much easier time when registering with local healthcare, schools and other administrative tasks related to the local municipality such as buying a property or car. From a property owning perspective, when buying property in Spain you will be able to claim up to 50% off of property taxes, as well as receive reductions in certain community charges and inheritance tax - this could lead to considerable savings on an ongoing basis, and would in itself make registration something that should not be missed out on.

Registering is very straightforward, requiring primarily that you have a permanent address, regardless of owning or renting. In the local town hall you can request a simple form to complete which is handed in along with some official identification, a recent utility bill and the deeds to your house or a copy of your rental contract - these are photocopied and returned immediately. At this point you are registered and nothing more needs to be done. A copy of the certificate is available after a couple of days but is not required to complete registration, and the certificate can be requested at any time in the future as required. When moving within Spain, you can simply register at the new town hall and the previous municipality will be automatically notified.

One thing to point out is that having a residency card is not the same, having 'residencia' does not entitle you or the local municipality to the support you or they deserve. Failing to register with the Padrón literally means that the local municipality misses out on deserved funds, and that if ever the worst happens, such as illness requiring social support or unemployment, the process of receiving help will be much smoother. My recent experiences are testament to this, not having registration has been an unnecessary stress and burden at a time when things are already difficult.

It's really a win, win situation, Empadronmiento is good for you, good for where you live, financially beneficial and can really help if things take a turn for the worst. If you or your family are coming to live in Spain, make sure it is one of the first things completed and, if you are already here, you really should register as soon as possible.

Costa Calida and it's lagoon paradise ... wonderful

Continuing the theme of costas, today I'm spotlighting the Costa Calida .... the warm coast. It's not too difficult to work out that it gets its name from the very mild climate, while also enjoying a low average rainfall. One of the key features of the area is concentrated on by Kyero in their original article, the Mar Menor.

The Mar Menor, literally meaning 'little sea', is a coastal saltwater lagoon and has been called he largest swimming pool in the world. Through it's entire surface area of 170m2, the water depth never drops below 7 metres and this feature means that is warm, clear and salty. Kyero quite rightly spoke about its exploitation for water sports which are some of the most used and revered in the whole of Europe.

With such a fantastic natural facility, it's not surprising that the area has been developed where possible, although with stringent building regulations it retains most of it's natural beauty. The most desirable area is on the land which separates the lagoon from the Mediterranean sea, the strip ranges from just 100 metres to just over a kilometre and is a real paradise. While over on the mainland, La Manga Club is world famous, not only for the top quality facilities but perhaps more so for it's golf courses. while the Costa del sol may boast more courses, the environment and standard in this area is arguably unsurpassed in Spain as a whole.

Prices of property in Costa Calida - have been consistently lower than the national average and in the last few months has become the cheapest area of coast in the whole of Spain, with prices now some 24 percent below the national average. Kyero has hundreds of properties for sale and some real bargains can be found, while at the other end of the scale the more exclusive areas have some sensational multi-million euro villas on offer, take a look at this stunning property for example - http://www.kyero.com/property/979032-villa-for-sale-la-manga-del-mar-menor . There are also some very cheap Costa Calida holiday rentals, perfect for a quick golfing trip or holiday visit.

The Costa Calida is so diverse it really deserves a closer look, the Mar Menor should be the first stop and it's a golfer's dream but I think I'll take another look at a later date to find some of it's more undiscovered towns and features.

From 4 years ago - Luxury property Costa Calida is attracting not only the rich and famous, but also those looking to purchase up market property, away from the somewhat overcrowded Costa del Sol. La Manga, a narrow strip of land, approximately 24km long, forms the outer part of the Mar Menor, Europe's largest salt water lagoon and separates it from the Mediterranean. The water in the lagoon is calm, warm and safe, protected as it is from the Mediterranean. It is a paradise for water sports enthusiasts and there numerous sailing schools and scuba diving clubs along the coast. The area is a natural choice for those looking to purchase luxury property Costa Calida, given the proximity of the exclusive La Manga Club, one of Europe's top tourist complexes, with its three world-class golf courses and one of the finest tennis centres in Europe. The area around the marina is the most sought after part of La Manga and with 2 golf courses being built nearby and the famous La Manga club a short drive away, the discerning buyer will find a good choice of luxury property Costa Calida.

Why visit the Costa Brava?

Although I've been in Spain for quite a few years now, being based on the southern coast has meant that my full appreciation of the country as a whole is not a extensive as I'd have hoped, especially the more northern areas. Although, when living on the south coast in the UK, I can't say I had a complete picture of many parts of England either, let alone Wales and Scotland.

Looking back at Kyero's articles about locations in Spain has already been a lesson in the diversity of the country, and how many places I've yet to discover. Today's spotlight is on the Costa Brava, and a quick bit of research has me eager to visit. Similar to yesterday's look at the Costa Blanca, this area was made famous in the 1950's as a package tour destination and substantial developments were made to attract as many visitors as possible. However, these developments were made in just a few areas of the Costa Blanca leaving many parts refreshingly untouched and retaining their natural beauty. Many areas have not succumbed to any kind of developments due to the region's natural habitats and environmentally protected zones, including Spain's first maritime nature reserve.

As mentioned, prices here are indeed high, currently some of the highest in Spain. It's easy to see why, a quick look through the current properties for sale on the Costa Brava - http://www.kyero.com/property_guide/55621-costa-brava-property-guide - shows a large number of luxury villas for sale. Any thoughts of sun, sea and sangria are a long time gone and in its place are exclusive properties for the rich and famous for their weekend retreats in private mansions. That doesn't mean bargains can't be found and apartments can be found from around 100,000€ and villas from 300,000€. As always, location has a direct effect on price and although a villa on a "pine-covered cliff" may be difficult to acquire the area as a whole has immense charm and heritage. For those investigating the area, it is highly advisable to do your research, perhaps renting in a few areas to get your bearings and there are many Costa Brava holiday rentals available - http://www.kyero.com/browse/costa-brava-property-holiday-rental-loc55621pag1ppp20slt2srt4

Another location to add to a growing list of 'need to visit here soon'!

The initial article: Villas in the Costa Brava tend to be more expensive than villas in many other parts of Spain. However, the property market here is strong and prices continue to rise, so investing in property here is a wise choice, particularly given the increased popularity of the Costa Brava amongst foreign buyers and holiday-makers.

The Costa Brava is also very popular amongst the Spanish, particularly the wealthy Spanish in Barcelona, many of whom own villas Costa Brava which they retire to for the summer and for weekend breaks. Some areas of the Costa Brava are quite exclusive and towns such as Llafranc, Calella and Tamariu attract the rich and famous - Frank Sinatra, Elizabeth Taylor and Humphrey Bogart, to name but a few. Villas in these towns can be difficult to get hold of, particularly the delightful seafront properties, but there are some wonderful villas to buy here, perched on the pine-covered cliffs, over-looking the azure-blue sea. If you are looking for a peaceful property, on a stunning coastline, take a look on Kyero for villas Costa Brava.

Costa Blanca ... 50 years of tourism

The Costa Blanca has been a destination for holiday makers and buyers of second homes since the late 1950's, in fact it's name was fabricated by the tourism industry to promote the industries, then new, package holidays to Spain. This included the, at the time, relatively unknown towns of Benidorm (see our article from last week) and Alicante. The area is still heavily reliant on the tourist industry and extends to some 200 kilometres of coastline, providing a traditional sunshine holiday to millions of people each year.

In this article from 2006, Kyero highlighted the area's strong recent prices rises in the coastal areas, a key aspect was the huge growth in buyers of second homes that had sensibly targeted front line property with sea views. Not only were these properties desirable for themselves but also ideal for renting or letting when unoccupied by their owners. This was obviously not a sales trend specific to the Costa Blanca , Spain's entire coastline was extremely desirable with all areas benefiting from improved road networks and the abundance of cheap flights to all areas.

It's quite interesting looking back at historical prices in the area as Kyero was right on the money with their information on prices, as a whole the average property price went from a few percentage under the national average in 2006 to a few percentage over in 2007. Looking closer at the statistics, there was strong growth in larger, more expensive properties which were in much higher demand - as was pointed out, strong regulations in many areas meant that it was villas rather than apartment blocks being built as the government pushed for the more attractive low rise developments (a key point here was the difference in regulations between the northern and southern areas). This marked difference in the market remains today but definitely peaked in the heady days of 2007.

It's certainly a large area and with such variety there is much to enjoy and explore, it's not all tourism and some delightful inland locations can be found. As always Kyero stocks a vast number of Costa Blanca property sales and there are also a high number of rentals, I'd recommend seeking out one of the many villas for rent to be found here and at very reasonable prices.

The original article from 2006 - Costa Blanca property for sale is no longer available at bargain prices, particularly if you are looking for a property with a sea view. The popularity of the area has meant that prices have risen steadily over the past few years, although it is still possible to find great value depending on whereabouts in the Costa Blanca you are looking.

The area can be divided very neatly into two halves - north and south. In the northern part of the Costa Blanca property for sale is generally more expensive than the south but the spectacular scenery, beautiful climate and wonderful beaches mean that this area has much to offer the property hunter. Development in the area has also been well-regulated particularly in areas such as Javea where development is low-rise and most of the properties available are villas.

South of Alicante and down towards Torrevieja, you will find that prices tend to be lower if you look in this area for Costa Blanca property for sale.

A visit to Competa ...

One of the very first places I visited when arriving in Spain 6 years ago was Competa. It had all the classic features of a Spanish 'pueblo' (village), with it's numerous whitewashed townhouses, narrow streets and a very warm and friendly welcome from the locals.

This traditional white Spanish 'pueblo' is typical of the many pueblos located throughout Spain, the intricate arrangement of properties built up over hundreds of years surround a main plaza and the town church. Townhouses often go under and over, behind and in front of one another providing a charming glimpse of Spanish heritage.

Although, as the article points out, Competa has long been discovered by tourists and some would argue has lost a little bit of it's appeal through modernisation and renovation, it holds up today as a good mix of old and new. The welcoming atmosphere remains and is highlighted best during the many fiestas taking place throughout the year, Competa still has a lasting effect on all who visit.

Property prices here are relatively low for Malaga, some 20% below the province average but slightly above the national average. Here you can find the latest information on Competa property http://www.kyero.com/property_guide/31351-competa-property-guide . With regards to rentals, there aren't too many in the village itself, most of these are taken by the more than 4000 permanent residents, however you will find villas and country houses for rent in Competa surrounding areas - http://www.kyero.com/browse/inland-competa-property-long-let-loc31351pag1ppp20slt1srt4

It really is worth a visit for the day, and with the town of Velez-Malaga just 15 minutes drive away you will also have access to shopping centres, beaches, waterparks and more ... you may well end staying much, much longer!

The original spotlight article - Houses for sale in Competa tend to be traditional, white-washed village houses often with much charm and sometimes

in need of modernisation. The town of Competa is set around the main square, the Plaza Almijara, and the houses spread out over the hill and into the surrounding countryside. Competa itself still has a very Spanish feel, though it has already been 'discovered' by the northern Europeans and many houses for sale Competa have already been tastefully renovated and modernised ready to sell on. Situated just 50kms from Malaga airport, Competa is a popular spot for holiday-makers, ensuring a good rental income for those looking to invest in a holiday house in Competa. For a wide range of properties for sale and for rent in the village, from independent agents specialising in the area, why not browse the kyero database to see a wide selection of houses for sale Competa.

Bars for sale in Spain

For many the dream of moving to Spain also includes opening a business and in many cases that business is a bar. In this article from 2004, Kyero looked at what are still the primary considerations when buying a bar (or any business for that matter).

In the service industry, your key to success are clients ... and lots of them. Location is therefore a major consideration, especially in the case of a bar. Passing trade can mean the difference between success and failure, and while it is possible to achieve a steady income with some committed regulars in a side street or quiet suburb, making healthy profits is unlikely and more times than not the dream is short lived. there is a reason why front line bars are more expensive and while the initial outlay is higher you only need to take a look around to see the benefits of regular passing trade. I can give countless examples of a cheap bar coming onto the market in an out of the way spot, only to see them last a year or less and still being tied into a lease agreement.

Another topic touched upon is that most passing trade is seasonal, many Spanish tourist destinations have a very short season of a few months. And, while no-one would accuse the Spanish of being xenophobic, certainly in the area I'm living in, the Spanish tourists are quite traditional and furthermore faithful to the bars that they have visited year after year, meaning new bars can often be overlooked in place of their regular long established premises. while this may not be so much of a consideration in Marbella or Torrevieja, where international tourists dominate, it is worthwhile doing your research into your anticipated client base.

The short season is a real concern, is there going to be enough trade in the high season to cater for the low, or are there enough residents to provide an all year round income. Location and research into the location is vital, with some of the islands for example benefitting from all year round tourism, while many well known summer hotspots can turn into ghost towns in the winter.

The knowledge to take with you when buying a business in Spain can be summed up in the well known phrase ... fools rush in where angles fear to tread. Sometimes taking a risk can pay off, but make sure that risk is a considered one by doing your homework and thinking 12 months ahead rather than 12 weeks.

Kyero has hundreds of businesses for sale in Spain and a great number of bars for sale - the latest can be found by searching for 'commercial property' or by visiting here - http://www.kyero.com/browse/spain-commercial-property-for-sale-pag1pgr8ppp20slt0srt4

The original article - Bars for sale in Spain can be found by searching Kyero for commercial properties. As with any property purchase, it pays to take your time and do your research before buying and Kyero makes this easy by giving you access to thousands of commercial properties in Spain, all advertised by hundreds of different agents. Of course, location is paramount and whether you are looking for bars for sale in Spain on the coast or would prefer to set yourself up in a small Spanish village or major city inland, you will find a wide choice here on Kyero.

Although location must be very high on your list of considerations, don't forget that there are many business opportunities available in Spain and thinking beyond running a typical bar or disco could just give you the business edge that you are looking for. Remember that many businesses in Spain can be very seasonal, particularly in the coastal resorts. Whatever you decide, the Kyero database is a great place to start your search and has a wide selection of restaurants and bars for sale in Spain.

Benidorm, a long way from 1962!

In another article back in 2004, Kyero's spotlight was on Benidorm. And, like my own personal preconceptions, it highlights one of the most common thoughts whenever Benidorm is mentioned ... package holiday hell. This reputation stems from the area being one of the main package holiday destinations in the 60's and 70's, where sun, sea, sangria , sangria and more sangria appeared to be the primary motive for visiting. In truth, bar changing it's name, Benidorm has done an incredible amount of work since that time to clean up it's image and although the high rise buildings do dominate the horizon, these are mostly clean and modern, a far cry from the cheap, concrete blocks of yesteryear's.

Benidorm is now a modern town with a surprising amount of green zone thanks to stringent construction laws. It has excellent travel connections and public transport facilities, a vibrant nightlife, 27 four star hotels and 4 theme parks ... and due to it's excellent climate (a low of around 16 degrees being the norm in winter) it is a location, not just for holidays but also as permanent home to more than 75,000 residents, with around a third being expatriates.

On a recent visit during late September, my personal experience was a pleasant surprise at the diverse entertainment on offer, the superb sandy beaches and at the overall cleanliness of what I imagined to be a cheap, nasty, tourist trap. The name still conjures up those memories but the experience, I'm glad to say, is far removed.

Kyero has a diverse range of properties for sale and prices are around the national average, the latest selection can be found here - http://www.kyero.com/browse/coastal-benidorm-property-for-sale-loc999pag1ppp20slt0srt4 . With all year demand, rentals both long and short term aren't cheap but there is a steady flow of availability, we'd recommend visiting the Benidorm guide page regularly to check or even setting up a property alert to ensure you don't miss out on anything - http://www.kyero.com/property_guide/999-benidorm-property-guide

Benidorm is a still a favourite Mediterranean destination and, despite its reputation as a chips 'n lager resort, the town has changed considerably over the past few years. Benidorm has received a very bad press since the 60s and 70s when British holiday-makers came over in their droves for cheap package holidays.

The original article - Nowadays, you are just as likely to spend your days shopping in designer arcades, dining in fine restaurants and enjoying the golden, sandy beaches, or enjoying some of the great facilities and activities that Benidorm offers such as golf, theme parks, paragliding and many different water sports, including scuba diving. The night life in Benidorm is not for the faint hearted but there is also a superb choice of family entertainment and just outside of Benidorm, you will find the many delights of the Costa Blanca including safari parks, nature reserves and delightful Spanish villages. Benidorm is quite rightly a thriving, resort year-round and it is no surprise that over half of the visitors to this city return year after year to Benidorm.

Renting and buying property in Barcelona

Spain's second largest city is home to over 1.5 million residents and, as mentioned in this article from early 2006, is a modern, cosmopolitan city. Like many European cities, Barcelona is a stunning place to live or visit and has both the advantages of sunshine and beaches as well as its history, architecture and art.

It is still one of the more expensive places to buy with current property prices in Barcelona well above the national average. You can find all the latest Barcelona sales information is available at http://www.kyero.com/property_guide/8-barcelona-property-guide

A world away from the package holiday resorts of the Costas, Barcelona is a major economic centre within Europe and has one of the Mediterranean's major ports. It's airport is the second largest in Spain, but be careful booking with the well known budget airlines (I'm sure you know the ones) who often use the Girona-Costa Brava Airport or Reus airport, situated about 90 km north and 77 km south respectively.

One of the original articles key points was Barcelona's strong rental market and so buying a second home here is still just as desirable. The latest rental property can be found here http://www.kyero.com/browse/barcelona-property-long-let-loc8pag1ppp20slt1srt4

From 2006 - Real estate Spain Barcelona is a popular choice for those searching for a city-based, second property. Barcelona and its surrounding towns are considered by many to be the perfect location to own a second home, although many people buying property here are also looking to leave the UK and set up a a new life in Spain. Technology and the internet make it possible nowadays to work almost anywhere in the world and, for many, Barcelona offers an ideal combination of a life in Spain (sun, beach, tapas) as well as the advantages of a modern, cosmopolitan city. Barcelona is a vibrant city, where many Europeans choose to live either full or part time. Real estate here can be more expensive than other parts of Spain, but the rental market is strong, with demand not only from holiday-makers and tourists but also from people looking to work in the city. With thousands of properties listed, Kyero is an excellent resource if you are looking to invest in real estate Spain Barcelona.

Asturias Property Sale

Northern Spain is often ignored by visitors to Spain who generally have flocked to the typical tourist destinations of the Costa del Sol or Costa Blanca. In this article from 2005, Kyero highlighted many of the benefits of the area that still hold true today.

While sun, sea and sangria are an attractive proposition for many, Asturias in northern Spain also has many positive aspects. Summers are warm with plenty of sunshine and average temperatures in the 20's - many people heading to the southern coast are often caught out by the extreme heat. I live on the coast of Granada and have many friends and family who will not visit us during the summer months, it is simply too hot during the day and night - remember, northern Spain has a similar climate to southern France, and also a greener, more luscious landscape than the dry and arid south.

Over two hundred sandy beaches adorn the coastline and there are also many quiet coves and natural sea caves. An all year round destination, in the winter the mountainous areas offer excellent skiing opportunities.

Still mostly unspoilt by mass tourism, things really haven't changed to much over the intervening years. Good transport links are still in place and flights relatively inexpensive. This also still applies to property prices, with prices being lower than the national average. A quick glance on Kyero's current Asturias property for sale pages, found here http://www.kyero.com/property_guide/33-asturias-property-guide demonstrate a number of well priced properties and some eye catching holiday rentals.

The phrase that sums up Asturias appears in the articles first sentence .. discerning. For those that are looking for more than just sunshine, it is a welcoming and alluring part of the Spanish mainland with intense natural beauty ... just don't let everyone know!

The original article:

Asturias property for sale is finally beginning to catch the eye of the discerning property buyer and with property for sale here at lower prices than in other better-known parts of Spain, it is no wonder. Transport links to the area are improving rapidly and with Ryanair flying to Santander, Easyjet flying to Bilbao and Iberia flying to Oviedo, Asturias property sales are likely to attract even more interest from UK buyers. If you are looking to buy property in a part of Spain that remains hardly touched by mass tourism and if guaranteed sunshine is not your only reason for buying property abroad, then Asturias property is for you. With elegant seaside towns and stunning, natural coastline, Asturias has long been popular with French and Spanish holiday-makers. Whether you are looking for property in one of the delightful little fishing ports or prefer a rustic villa looking out onto rolling meadows, why not search the kyero database for a selection of Asturias property sale.

Long term apartment rental in Spain

Renting in Spain hasn't changed much over the past few years, the advice held in this article from 2004 is mostly just the same in 2009, with some positive differences when taking into consideration the current market.

Apartments are the predominant property in Spain, with few detached homes especially in towns and cities. Demand from the Spanish is quite low compared to other countries - just 13% of Spanish households live in rented accommodation, compared to more than 40% in Germany and France, and around 30% in the UK.

But with the recent housing boom, there is a deluge of unsold property and more owners are turning to the security of long term lets to realise their investments. The benefit here is that it has become a 'buyer's market' due to the basic law of supply and demand.

The other benefits still apply, with renting in an area a wise choice before making the plunge to purchase. While two weeks in a location gives some knowledge of the area, only by staying longer term can you be certain that the area suites your requirements and has the lifestyle that will ensure a permanent stay as enjoyable as possible - purchasing immediately does not allow for any such consideration.

One feature mentioned in the article was that Kyero published average long term rental prices, this is no longer the case. Kyero, being mainly sales orientated, dropped price comparisons for rentals to concentrate on more substantial work on its independent house price index. This information should still be able to be extracted from Kyero's archives so I'll take a look at publishing some data on the subject soon, at least a current snapshot of the market today, if not a full historical breakdown.

With around 10,000 rental properties available on Kyero, it is still one of the largest sources available today on the internet - the latest long term properties to rent in Spain can always be found here - http://www.kyero.com/browse/spain-property-long-let-pag1ppp20slt1srt4

The original article stated:

An apartment in Spain can be an excellent investment, particularly if you are thinking of renting it out. Demand for long-term rentals in Spain is increasing daily as more people consider relocating to a sunny country. Many prefer to rent first to get a feel for an area and for life in Spain in general, but it is not always easy to find an apartment in Spain that is available for long-term rental. Many property owners in Spain, prefer to only rent out their property during the peak summer months, when they can charge a premium. However, as the number of properties available for holiday lets increases, it can make better financial sense to rent your apartment out long term. Although the monthly rent you can charge will be cheaper, you do have the assurance of a longer term rental period. To ensure that you are making an informed decision, use the Kyero price guide to find out how much apartments are selling for at the moment and also to see the average long-term rental price of an apartment in Spain.

Property to Renovate in Andalusia Spain

This small article dates back to 2004, a time when there were literally thousands of ruins and properties in need of renovation. This was a great time to buy cheap property, spend some time renovating and then sell on for a healthy profit.

We pointed out a key part of their desirability, the ease of getting a building permit compared to building a new property was vast. New build permits on rural land require many conditions to be met and even with a good architect and lawyer, the process could take up to two years before a licence was granted, if at all.

Television, especially in the UK was awash with home improvement programmes and moving abroad series' such as 'A Place in the Sun' (a programme I personally appeared while working as an estate agent, much to the delight of friends and family at home). And so, demand reached fever pitch and the bargain ruins soon disappeared. These days ruins in Andalucia are much harder to come by but can still be found here:

http://www.kyero.com/property_guide/55531-andalucia-property-guide - you'll need to search under the property type of "land".

On to the article itself:

Property to renovate in Andalusia Spain may be so run down that you actually need to re-build it, or it may simply need a lick of paint and some tidying up. Whatever the amount of work you are prepared to do, you will find a wide selection of property to renovate advertised here on kyero.com. With the recent crack down from the Andalusia Junta on building permits, particularly on rural land, it can often be easier to buy a ruined property to renovate in Andalusia Spain than just buy a plot of land to build on, and usually a lot quicker to obtain planning permission. Many of the ruined properties in Andalusia offer great potential and for those who are willing to consider properties for renovation, you will find a fantastic choice of property to renovate in Andalusia Spain.

Almeria Villas

Further unpublished information from our archives, there have been great changes in the popularity of locations in Spain and here we see that Almeria was considered relatively unknown ... at least compared to the more typical destination of Malaga. At the time prices were around 30% less than those of the national average, at it's peak this difference reduced to around 17%. According to the latest price guide data and due in no small part to the current economin climate and demand no longer outweighing supply, property is in fact sunstantially cheaper now than it was in mid 2005. An avergae apartment can now be bought for approximately 160,000 euros compared to 177,000 euros in June 2005!

A key part of the overall improvement to the area has been access, international flights are easy to find and the road and communication networks are now to the same standard as the rest of Spain. Accessibility still has a direct correlation with popularity and property prices - a topic we'll pick up on again when discussing the Costa tropical, still the only area of coastline without full motorway access.

The latest Almeria property information can be found here - http://www.kyero.com/property_guide/4-almeria-property-guide

This piece is from 2004 - "Almeria Villas have, until recently, been somewhat overlooked and overshadowed by property in the more well-known provinces of Granada and Malaga. Almeria, less expensive, less developed and with a stunning Spanish beauty all its own offers a wide range of properties and villas for sale. On this page we feature the best properties in Almeria and villas Spain

Almeria province is now very much on the list of destinations for the discerning holiday maker as Europe's warmest and sunniest region, with over 300 hours of sunshine a year. Until recently Almeria was less accessible than some other Spanish destinations, a fact which has undoubtedly helped to shield it from the excesses of tourism and allowed it to become the unspoiled, peaceful place it is today. The whole area, with its unspoiled coastline, national parks, mountains and valleys provides an overwhelming sense of space, and offers an excellent and affordable choice of Almeria villas in Spain."

Houses in Torrevieja

Kyero has evolved a lot of the years and in tandemn with our look back at news articles from the past, we've also unearthed some no longer published content, mostly giving visitors some extra information about locations in Spain :

"Torrevieja, the town that started as a small fishing village and has grown into a popular tourist resort, holds great attraction for the property investor, both Spanish and foreign alike. Situated just 47kms from Alicante (the provincial capital) with a well-served, international airport and 35kms from the airport in Murcia and with daily flights getting travellers over from London in just 2 1/2 hours, Torrevieja is popular not with holiday-makers but also with those looking to buy property in Spain. Easy access to the town, together with an excellent range of facilities and attractions such as Las Ramblas golf course, one of Spain's best yacht clubs, a variety of water sports and its own bull ring, all make Torrevieja a well-loved, year-round destination. Other attractions include the town's 5 beaches, 300 days of sun and a temperate climate. No surprise, then, that many foreign investors are looking to buy property in Torrevieja."

Spanish house price rises highest in Europe

The market was certainly bouyant in 2004, proving to be a goldmine for investors and home buyers.

I persoanlly arrived in Spain in September 2003, when a 3 bedroom front line apartment could be bought for less than 100,000 euros ... with prices rising so fast we didn't jump in and buy. looking back, it was just a year later when this type of property was reaching 200,000 euros!

From November 2004 - "Last month, Spain was singled out in the European Central Bank’s monthly bulletin as having the biggest residential property inflation in the euro area, with the country’s housing prices increasing at a rate nearly two-and-a-half times the euro-wide average in 2003.

The ECB estimates the average increase in residential property prices across the euro area in 2003 was 7.2 per cent, saying that this is the fourth consecutive year with increases of around 6-7 per cent and that growth rates “are currently close to their highest point since the early 1990s.”

Between 1999 and 2003, housing prices increased at arate 4 to 5 percentage points higher than the Harmonised Index of Consumer Prices, says the report.

In the case of Spain, housing prices jumped 17.3 per cent in 2003, the largest increase in the euro area and some 2.4 times the euro-wide average. The country also tops the list for the rate of increase over the five-year period from 1999 to 2003.

“Spain, Ireland, Luxembourg, the Netherlands and Greece experienced substantial and above euro area average increases” during that period, according to the ECB. The data for 2003 indicates price increases slowed down in the Netherlands, Greece and Ireland. “However, in Spain, residential property prices accelerated further in 2003:’ says the report, which goes on to state that “the latest available quarterly data for 2004 confirm the strong increases” in Spain."

Hindsight is a great thing

In this post, taken from Spanish property portal Kyero's first news article from September 7th 2004, we gain a valuable piece of information for any would be property buyer in Spain ... looking back though, many unfortunately fell into this exact trap.

"Almeria select advise that there have been some major changes in the planning laws in Andalucia which have a dramatic effect on new house building in the area. They also affect any house that has been built over the last few years.

The new laws concern ‘rustic’ versus ‘urban’ land and state that no new construction can take place on rustic land unless it is for commercial agricultural use. One exception to this is where there is an existing building which the town hall has classified as a ‘habitation’ which can be reformed into a new house.

Like all laws, there are some loopholes and caveats but, especially now, when buying a plot of land, a new house or a recently built house in Andalucia - ensure you use an independent solicitor who is not connected with either the builder or owner of the property. They can easily check if all planning consents and building licenses have been or can be issued.

Land scams are common enough in some parts of Spain that local councils have erected road signs, in English, warning buyers to check the paperwork before handing over any money. Let common sense prevail and seek legal advice."

A real demonstration of the importance of knowing the current property laws in Spain

6 years of Spanish Property

In the first of a series of posts, we've trawled the archives to find old stories and articles about Spain since the inception of Kyero 6 years ago - Kyero was born on 25th September 2003 and has grown to be the leading Spanish property portal, while winning a number of high profile international awards for it's technology and functionality.

We hope there will be some useful posts, we'll do our best to cast our opinion on any historical data and how things have changed since those early days. With any luck we can persuade some of the founding members to provide their own personal insight into the evolution of the property market in Spain and look forward to the next 6 years!

We're eager to receive any feedback from readers and will gladly offer help or advice to anyone seeking it.

Un saludo!

Bargain Spanish Property

Nowhere in Europe has more bargain-basement holiday homes. Yet in spite of falls of between 30% and 50% in some areas, many Britons appear to be waiting to see if prices fall further before the pain in Spain ends.

Though some estate agents and desperate developers claim the recession is over and prices are rising, most market watchers say the reverse is true.

Sales volumes in popular holiday home areas – are half 2006 highs, yet there is an estimated backlog of one million unsold (and many unfinished) houses – some 46,000 in the Alicante province of the Costa Blanca, 30,000 in Valencia, 27,000 in Murcia and 22,000 in Málaga on the Costa del Sol.

Official figures say 32,000 estate agents – or 40% – closed down in 2007, and 15,000 in 2008. Unemployment in Spain has topped 15%, a third of which is blamed on the housing crisis.

House price indices are derided as slow to appear and inaccurate. In addition, they combine sales of mainstream homes to Spaniards (where price falls are large) with sales of second homes to foreigners (where price falls are larger still). A more accurate indication comes from special offers at individual developers and estate agents.

Taylor Woodrow, a UK developer constructing holiday homes for foreign buyers in Spain for more than 50 years, is one of many slashing prices. Officially there are 20 schemes with 35% discounts but buyers can haggle further.

Equally startling deals can be found for secondhand homes. The property agent Roan ran a bazaar on the streets of Madrid in June, with some homes discounted by 60% – before prospective buyers even began negotiating.

"There’s still a lot of overpriced Spanish property. Distasteful as it may be, the best bargains come from vendors in distress. Get friendly with bank managers in your target area; they know who is having trouble paying the mortgage," advises Mark Stucklin.

Professional buying agents say discerning purchasers wanting the biggest bargains in the volume market should look for completed coastal developments, where the infrastructure exists.

"Refine the search to established developments that are mature and run well. Buying from individuals may be a better option than from developers. Prices may be 30% to 40% lower than last year, and further negotiation is possible," says Rhona Hutchinson of Integrated Relocation Spain.

But Stucklin’s website carries an interactive map with some 40 trouble hotspots in the housing market. There are four persistent problems.

First, some Spanish banks are refusing to honour bank guarantees taken out by buyers as an insurance in case their chosen homes are not built in the downturn.

Second, uncertainty hangs over the legal status of many new homes. Some developers did not secure building permits, so 40,000 homes in Málaga are "illegal". In theory, these may have to be demolished, though local politicians are considering an amnesty.

Third, some Valencian region "land grab" problems remain. In the spring, a third European parliament report condemned planning laws that allow developers to build flats on land previously owned by individual householders.

Finally, some problems are caused by bankrupt developers. A recent ITV documentary showed Briton Wally Tynan, who bought a place on the Costa Blanca, dodging exposed high-voltage cables and sweeping sewage that bubbled up outside his home in a part-completed housing estate.

Yet some insist it is unfair to brand the coastal strip a disaster area and every estate agent a crook. Mark Wilkins, a lawyer opening an estate agency business on the Costa del Sol, says: "We’ve all but seen the back of the worst excesses of the greed that dogged a property purchase here, particularly on off-plan purchases."

Perhaps. There are clearly plenty of bargains to be had across the country and in all sectors. But one uncertainty remains: have prices stopped falling?

Costa del Sol property

There are bargains everywhere. A long-standing Marbella estate agency, Panorama, says most homes in that one-time wealthy enclave are down 30% since 2006, with few or no off-plan sales. Michael Moon, an estate agent operating across the whole Costa del Sol, says 40% price falls are the norm and what he calls "cynical projects" (such as flats built near a motorway or overlooking other flats) are not selling at all. Homes are high quality in the Sotogrande enclave but take an eternity to sell, in spite of discounts.

Barcelona property

The party city is not recession-proof. "It isn’t solely reliant on construction and tourism and, because of this, the market hasn’t suffered as badly as in other areas. Also, there are few large developments. Depending on quality, prices have dropped between 10% and 30%," says Alex Vaughan of estate agency Lucas Fox. "Smaller, two-bedroom apartments are selling better than four-bed ones, say. These take longer to sell, so the prices are more affected."

Mallorca property

There is no vast oversupply of new-build apartments, and some hitherto cheap areas have been opened up by new roads, so you have to hunt out bargains. But they exist, mainly because sellers, rather than agents, often set asking prices (and will try different prices with different agents).