11/06/2007 by Martin Sargent.

NIE now mandatory for non-resident property purchases

Planning to buy or sell property on Lanzarote? Then make sure that you have a NIE number – a Numero Personal de Indentificacion de Extranjero – which is a tax identification number for non-residents.

Until fairly recently non-residents purchasing or selling property could provide their passport as identification. But reports have reached us that Notary Offices on the island are now tightening up their requirements and will refuse to process property transactions in the absence of this form of fiscal identification. A change which has, apparently, caught more than a few island lawyers and estate agents on the hop in recent weeks.

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11/06/2007 by Martin Sargent.

Property Prices up 16.5% in Tias District

Which part of the island has the highest house prices? According to Spanish market commentators Sociedad de Tasacion (one of Spain’s leading mortgage evaluation specialists) the priciest properties on Lanzarote are to be found in the municipality of Tias.

Where the price of a new home has reportedly risen by 16.5% over the last twelve months.

The ST report indicates that new property in Tias has easily outperformed other locations – at a rate that is more than double the island average. As official figures indicate that property prices have risen 8% across Lanzarote during 2006.

The Sociedad de Tasacion estimate that new property in Tias now costs, on average, €1,800 per square metre. Making it more expensive than San Bartolome (€1776 per square metre), Teguise (€1725) or Arrecife (€1650).

This price increase is being attributed to the fact that the district of Tias encompasses the popular resort of Puerto del Carmen – where there is currently a shortage of land available for development.

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09/05/2007 by Martin Sargent.

STERLING Pound-Euro Exchange Rate boosts Spanish property affordability British buyers of overseas property are enjoying the most favourable sterling-euro exchange rates in over a year and a half. So boosting the affordability of property in the Canary Islands as well as elsewhere in the Eurozone. The Euro began its current rise against the pound in late autumn – hitting heights against the pound which have not been recorded since 2005. This movement has been created by a number of factors, such as a drop in the UK retail sales figures in October 2006, on-going inflationary pressures and subsequentl fears of a further interest rate rise by the Bank of England. At the time of going to press the Euro was trading as high as 1.50 against the Pound. Representing a saving of up to 8,000 pounds on a €250,000 property versus this time last year.

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09/05/2007 by Martin Sargent.

MORE MARKET GROWTH Property prices rise by 8% in the Canary Islands The property market in the Canary Islands continues to grow – despite recent rises in interest rates and the cost of Spanish mortgage borrowing. Figures recently released by Spain’s Ministry of Housing indicate that prices across Spain rose by nearly 3% in the second quarter of 2006. With an annual rise of nearly 11% recorded across the country as a whole. Regional variations reveal that the most significant growth was recorded in the northern province of Galicia – where prices have traditionally been much lower than in the rest of Spain. Whilst the Canary Islands have recorded solid price growth of just under 8% year on year over this same period. Most leading authorities and industry observers predict continued positive growth over the coming twelve-month period.

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09/05/2007 by Martin Sargent.

The Spanish property market was incorrectly portrayed as melting down after the share price correction on the Spanish stock market. In reality, the overall market is not falling, though some regional markets are faring better than others. But the stock market jolt has help focus people’s attention on the serious imbalances affecting Spain’s housing market. The big risk to the market comes from over-provision, as Spanish developers build several hundred thousand more properties per year than the market needs. This oversupply is partly due to years of inappropriately low interest rates for Spain once in the EUM. With the Spanish economy now over-dependent upon the housing sector for economic growth and employment, there is a risk that a much-needed fall in housing starts will bring about a construction-lead recession in Spain. If this happens, demand for holiday homes will be hit hard, and house prices will fall in many areas. But even in this worst-case scenario, attractive properties in desirable locations with foreign appeal should hold their value, and recover quickly as economic conditions improve. With the Spanish economy growing at close to 4% - one of the highest rates in the developed world – and with forecast growth of 3.7% in 2007, and 3.4% in 2008, it is difficult to imagine a construction-lead recession at present. Without a recession, the Spanish housing market is more likely to stagnate over the next few years than fall.

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23/12/2006 by Martin Sargent.

Always build with a license because the threat of demolition hangs over 100,000 Spanish properties built without planning permission, or with an invalid building license, according to a recent article in the Spanish daily ‘El Mundo’. Calls for a tougher line to be taken with illegally built homes in Spain are increasing, and Antonio Vercher – the head official in charge of real estate and environmental investigations – is quoted as saying that, “we need to rethink this issue, and find effective new solutions.”

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23/12/2006 by Martin Sargent.

In parts of Spain, for example Murcia, foreign buyers are being mis-sold properties that have a special ‘tourist apartment’ classification. Tourist apartments cannot be used as residential properties, and should be cheaper than ordinary apartments. Some Spanish developers and agents are selling tourist apartments as ordinary apartments, taking advantage of the fact that English-speaking buyers are not well informed, and can be easily tricked into overpaying for properties that are use-restricted. To be on the safe side, buyers need to ask their lawyers to double-check this issue before proceeding.

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23/12/2006 by Martin Sargent.

Welcome to Natura Design Blog. This is our first post. In the next few weaks we will be posting general information on building and investing in the Canary Islands. Feel free to add your comments to these posts.

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