Instant Equity Spain

A Good Time to Sell in Spain?

02/08/2008 11:21:45 - 02/08/2008 11:21:45 :

Question: We purchased an off-plan property in 2006 intending to sell on completion in 2008. Considering the current market what would you advise?

Answer: In general, as you're probably aware, selling property in Spain AND being attached to a completion date is a little fraught at the moment.

There are a few things you might want to bear in mind. The vast majority of off-plan properties are purchased by Spaniards (93% according to the Ministry of Housing's 2006 figures) . They classify any property under two years old as 'off-plan'

My advice would be to also market to Spanish buyers - either via the two largest Spanish portals (Idealista.com and Fotocasa.es) if your Spanish is reasonably fluent, or via an estate agent who already advertises there.

Bear in mind that the current credit crunch has affected the willingness and ability of Spaniards to get a mortgage too, so I would imagine that there will be fewer Spanish buyers to go around in 2008 than in previous years.

Ensuring that your property can be found on Kyero.com via any of the estate agents who already advertise with us will ensure that you also get seen by the vast majority of foreign buyers too. We also have a significant volume of Spanish visitors but, in reality, not anywhere near that of the two Spanish portals already mentioned.

Plan B, if you can afford to delay the sale, is to make the property available for long term rental. Currently in Spain, there's a huge surge of interest in renting rather than buying (for all the obvious reasons). We've seen demand for long term lets triple compared to this time last year.

Perhaps a strategy of making the property available to sell and let at the same time might be worth a try? Again, advertising via an estate agent on Kyero.com will address both opportunities with foreign buyers - and with luck, the same agent will take care of the Spanish portals too.

Martin Dell, Kyero.com

'Wealth effects' boost sales to UK and Irish

02/08/2008 11:26:02 - 02/08/2008 11:26:02 :

44.4bn pounds spent on property in 2006 - sales driven by desire for 'rich life experiences'

UK and Irish consumers spend around 122m pounds a day on overseas property and 1 in 30 people in the UK and Ireland have invested in property abroad, according to research from Datamonitor for OPP knowledge.

Based on a survey of 4,000 plus consumers and over 850 agents from the UK and Ireland, the 250 page report found that the total amount of overseas homes owned by Brits, including those living overseas, is 3.81m (not including time-share or fractionally owned homes), with a total value of 44.4bn pounds in 2006. Domestic agents expect that figure to reach 93bn pounds by 2012, while consumers expect it to reach 85bn pounds in the same time period.

UK & Irish Wealth

Barclays Wealth Insights last year claimed the UK will have one million 'super millionaires' (those with assets over 3m dollars) for the first time in the next decade.

Meanwhile, the Bank of Ireland's annual Wealth of the Nation report recently showed Ireland's net wealth had risen 19% in 2006, to 805bn euros - the average wealth per head is now 196,000 euros. It's perhaps not surprising then that 48% of those surveyed for OPP Knowledge had bought using cash savings - with only 26% opting to remortgage their UK property.

Presenting the key findings at OPPLive, Datamonitor's director of consulting, for the EMEA consumer markets, Neil Hendry, said property investment is now on a par with holiday homes as the primary motivation for purchase. However, he added that "non-investment driven motivations are related to the desire for buyers to have a life rich in experiences".

Story from OPP Magazine

No 'hard landing' for global RE industry

02/08/2008 11:27:09 - 02/08/2008 11:27:09 :

The overall outlook for global real estate investment looks solid despite disruption in the European and North American credit markets, according to LaSalle Investment Management in its 14th Investment Strategy Annual.

The investment specialist believes a global 'hard landing' should be avoided as money continues to find its way into real estate and market fundamentals remain strong. It also noted that tighter lending requirements in Western markets would place leveraged investors in a strengthened position to secure deals at better prices.

"There is no doubt that the shutting down of cheap, easy credit will have an effect on real estate markets", said Robin Goodchild, report co-author and head of the firm's European research and strategy division. "However, the future offers a return to more leverage and margin levels that will enable those who truly understand the property markets to prosper."

LaSalle also suggested the construction slowdown, due to tightening credit conditions, will remove the chance of oversupply devaluing current strong property prices.

"We don't believe markets are heading for an early 90s-style hard landing as there is little risk of over supply, however, the recovery is not likely to be as compelling as 1993/94 either," added Goodchild. "So prices are not likely to fall significantly".

Story from www.opp.org.uk

Train in Spain sets out to beat the plane

02/08/2008 11:31:07 - 02/08/2008 11:31:07 :

Madrid-Barcelona link is part of 220mph network taking on the airlines.

Delays and disruption, disgruntled passengers left standing on platforms, accusations of political incompetence and financial mismanagement: the development of the Spanish railway system has a number of things in common with its British counterpart. But when the new high-speed link between Madrid and Barcelona sets off later this month, those complaints will be set aside as the super-slick Ave S103 service carves its way through the Spanish countryside at speeds of nearly 220mph.

The Ave S103 is the kind of train that British commuters can only dream of, and forms the centrepiece of plans to make Spain a model for the rest of Europe, and the world leader in high-speed trains by 2010. Its 200-metre aluminium chassis carries 404 passengers, whose reclining chairs - which can swivel to face the direction of travel - are fitted with video and music players.

"They are the future of travel in Spain and show that the train is anything but obsolete," said Aberlado Carrillo, the director general of the state rail operator Renfe's high-speed service. "Trains will again be the dominant mode of transport in this country."

In its first term in office, the socialist government of José Luis Rodríguez Zapatero has spent €21bn (£15.7bn) as part of a 15-year €108bn project to transform the rail network. Around 70% of this will be spent on the Ave (short for Alta Velocidad Española, or Spanish high speed).

The aim is to have 10,000km (6,200 miles) of high-speed track in Spain by 2020, meaning that 90% of the population will be no more than 30 miles from a station through which the train passes.

The Barcelona line is to be extended to Perpignan in France, making the Catalan capital just four-and-a-half hours from Paris. Work to join Madrid and Lisbon is under way.

December saw the opening of lines connecting Madrid to Valladolid and to Málaga, which have slashed journey times and proved hugely popular. Carrillo describes the success of these two lines as "unprecedented and well ahead of what we expected. Traffic has doubled on the Málaga line, and grown by 75% on the Valladolid line."

The distinction between the Spanish and British models of investment, says Christian Wolmar, the author of a history of Britain's railways, comes from conflicting philosophies of rail's worth.

"We ignore the social values of trains," he says. "Just as we don't expect motorways to pay their own way, we shouldn't expect trains to.

"All the recent legislation in the UK, with privatisation, franchising and the complex structures of investment, has meant that it is impossible to have a rational transport policy to maximise the use of trains for environmental and economic reasons."

But, says Carrillo: "The Ave has to be profitable. From 2010, it will not receive any public subsidies. Our experience of the Madrid-Seville line is that it will be profitable."

The success of the Madrid-Seville corridor - the first high-speed link, which opened in 1992 - is partly a result of its pricing policy, with affordable tickets that help to keep demand high and trains full. The 290-mile journey takes two-and-a-half hours, and costs between €28.90 (£21.60) and €72.20 (£53.95) - prices that might make British travellers green with envy.

It will be the Madrid-Barcelona connection, though, that will test the high-speed service. Business people in Spain's two largest cities, with a combined population of 10 million, have been crying out for the Ave for decades. But its development has not been without problems. The inauguration was delayed by landslides that brought chaos to Barcelona's commuter service, as contractors rushed to finish the line at the end of last year.

When it finally gets running, the S103 will cover the 410 miles to Barcelona in two hours and 35 minutes, taking two hours off the journey time. But it will face stiff competition from the highly successful air-shuttle, with a route that is one of the busiest in the world.

The "air bridge" operated by Iberia airlines allows passengers to turn up at the airport, buy a ticket, and board, within 20 minutes. Iberia alone has 60 flights a day, carrying 8,000 people.

Antonio Mayo, who is in charge of the service, is not worried by the train. "We have faced competition from other airlines before, and we welcome the fight with the Ave," he says.

"We can offer one thing they cannot - time. In normal circumstances, a businessman can get from his house in Madrid to a meeting in Barcelona in under two-and-a-half hours. The train cannot do this."

Mayo accepts that Iberia will take a hit in the first few months, but he believes that an executive who needs to be in a meeting at 9am will always choose to fly.

Carrillo argues that the comparison between train and plane is a false one. "Time spent in a train is time won, while in a plane it is wasted," he says. "In a train you can work, read, talk, use the internet, eat, or simply relax and enjoy the journey. With a plane, the only objective is to arrive.

"Personally, I am not bothered if the plane arrives 20 minutes earlier than the train. The question is how that time has been used."

The fact that more than 80% of travellers choose the Ave over the plane on the route between Madrid and Seville supports his argument.

There is also the environmental question: trains produce at least four times less carbon dioxide per mile than planes, and even less when compared with short-haul flights. Spain is preparing itself for a future in which there may be limits on the number of flights a person is allowed to take, particularly within the EU.

In the end, says Carrillo, it will come down to the quality of the service: "What we are offering is unavailable in the rest of Europe in terms of comfort, speed and punctuality."

Look away now if you are a British commuter used to mind-numbing delays: if an Ave train arrives more than five minutes late, passengers are reimbursed the full price of their ticket. And the only problem for those hoping to get their money back is that the trains are nearly 98% reliable.

Full story from www.guardian.co.uk

Record Numbers of Tourists In Spain

02/08/2008 11:31:44 - 02/08/2008 11:31:44 :

Spain is still a massive draw for holidaymakers, with statistics showing higher tourism levels than ever.

Spain’s tourist board are celebrating a successful year after figures have revealed record numbers of foreigners visiting the country’s holiday hotspots last year.

During 2007, 59.2 million overseas visitors descended on cities and coastal resorts, 1.7 per cent more than 2006, with the Industrial, Tourism and Trade Ministry reporting that Andalusia was among the most popular destinations, especially areas along the Costa de Sol.

The main market is still the UK, with Britain accounting for 27.5 per cent of all foreign visitors, though Spain is also becoming increasingly popular with North American visitors, with the number of arrivals from the United States rising from 22 per cent to 1.1 million.

Britain’s passion for Spain’s holiday and property market is partly due the abundance of low cost airlines linking the two countries, making trips to Spain easy and affordable. Low cost airlines are credited with carrying 24 million passengers to Spain over the past year, an increase of 34 per cent from 2006. Ryanair are the overall leaders with 5.4 million passengers, followed by Easyjet with 4.2 million.

Málaga was the principal entry point for the 3.6 million low cost travellers who arrived in Andalucia last year, with six out of every ten tourists reaching the Costa del Sol via low cost airlines.

Full story from homesworldwide.co.uk

The International invasion of Torrevieja

02/08/2008 11:15:45 - 02/08/2008 11:15:45 :

January 17th, 2008

Torrevieja town hall It is fair to say that the traditional fishing village that was once Torrevieja is very much an image of the past, as the town has given way to commerce, tourism, and indeed, the influence of foreign investment. Torrevieja welcomed in the new year with a total of 103,154 officially registered inhabitants. This is quite an alarming increase from that recorded in July, when figures reached the 100,000 mark. Current trends have now made Torrevieja the third most significant population in the Alicante Province, and the fifth in the entire Valencian Community, behind the three Provincial cities, Valencia, Alicante and Castellón, and Elche. As one might expect, the international community of Torrevieja is now a prominent factor in this phenomenon, and has encouraged the rapid growth of the area during the ten year property boom. However, the latest statistics have revealed the true extent to the international presence now felt within the locality, with alarming results. A staggering 53.6 per cent, or 55,284 people, living in Torrevieja are of foreign nationality, while comparatively, there are only 46.7 per cent, 47,870, Spaniards. This is not to say that the Spanish have evacuated the area, but have been joined by their neighbours from overseas, who have been responsible for the massive urban growth and densely populated urbanisations which surround the original municipality. British residents encompass the vast majority of the foreign population, with 12,675 residents now registered on the Municipal Padrón. There is a margin of 8,925 residents between them and the next largest population, those of German origin, who account for 3,750 people. Also registering a significant presence were Moroccan nationals, at 3,116, Russians at 2,985, Swedish at 2,720 and Colombian nationals with 2,563 inhabitants.

Of the 47,870 Spanish citizens included on the Padrón, every province of Spain was represented, with those born within the province of Alicante accounting for the largest proportion, at 19,861 inhabitants. Although a considerable number, this was still only 7,186 in excess of the British contingent, and a relatively slight margin in the scale of things. Following this, the largest Spanish community favouring Torrevieja as their new home are the Madrilènes, at 7,164, many of whom own a second property within the town, which is occupied mainly during the summer and main fiestas. Many natives of the Murcia Region were also found to have relocated to Torrevieja, accounting for 2,452 inhabitants, Vizcaya at 1,289 and Asturias at 1,232. When taken as a whole, in excess of 25,000 inhabitants were nationals of the European Union, with the majority hailing from the UK, Germany, France, Italy and Scandinavian countries. On consideration of the entire Municipal register for Torrevieja, over 120 countries worldwide were represented, including those as distant as Australia, and exotic as Mauritius. Incidentally, the Padrón also revealed that at the end of 2007, fourteen people had celebrated their 100th birthday, two males and twelve females. This might be regarded as a reflection of the relaxed lifestyle and healthy Mediterranean diet, which continue to lure foreign house buyers to Spanish shores. Also with reference to age, it is interesting to note that the majority of residents living in the town are between 30 and 34 years, with 8, 917 people registering in this age bracket. This is followed by those of 25 to 29 years at 8 139, 35 to 39 years at 8 087 and 40 to 44 years at 7 252. And who said that Torrevieja had an aging population? In essence, the Municipal Padrón of Torrevieja is evidence of the truly multicultural nature of the town, and a prime example of how people from very different backgrounds and cultures can live together in harmony.

Full story from roundtownnews.co.uk

Top 20 Buying Destinations

02/08/2008 11:19:19 - 02/08/2008 11:19:19 :

According to a recent survey by A Place in the Sun magazine, despite a raft of emerging markets and USA property prices down 30% on a year ago and a dollar weakened by 25%, it’s the traditional sun-seeker’s favourite Spain that takes the number one spot for the second year running.

The poll, conducted at the recent A Place in the Sun Live exhibition at the NEC Birmingham, the world’s largest overseas property event of its type, also saw France with its enviable lifestyle maintaining its 2006 second place and Turkey climbing into third position on the back of a wide range of developments marketing in the UK offering great value and year-round sunshine.

Other key trends highlighted include the USA’s leaping six places into fourth position as UK investors take advantage of a buyer’s market and two dollars to the pound, Italy moves up three spots into the top five (as Calabria becomes ever more prominent) and the meteoric rise of Canada – the biggest climber – up seven places to number nine.

Seven of the top ten destinations are European, with Cyprus (6) and Greece (7) performing consistently on the wish lists of UK residents looking for a home abroad, but Egypt is up three places and bubbling under (at 11) and threatening to break through alongside its North African counterpart Cape Verde (10).

Another interesting mover is Australia, which jumps from 20 to 15 as more UK residents than ever make a permanent move overseas (389,000 last year according to the Office of National Statistics) – as witnessed by the success of The Emigration Show at A Place in the Sun Live.

Says Richard Way, Editor of A Place in the Sun magazine: “What’s really interesting about our annual Top 20 survey is that it shows UK buyers as traditional in one respect – in favouring Spain and France – but also willing to seek out new hot spots and investment opportunities elsewhere: across Europe, North Africa, North America, Asia and the Middle East. When looking for a second home or a new life in the sun it seems that Spain’s mix of great weather, rich culture and beautiful coastline is keeping the country at the number one spot, but buyers aren’t afraid to consider Germany, Montenegro, Morocco, Las Vegas, Thailand or Dubai.”

Story from A Place in The Sun

AIPP Takes Action

02/08/2008 11:34:30 - 02/08/2008 11:34:30 :

Kyero.com was the first Spanish property portal to voluntarily join the AIPP in 2006. Since then, the AIPP has emerged as one of the leading trade associations dedicated to protecting the rights of consumers when buying property abroad.

The Association of International Property Professionals (AIPP) has expelled overseas property specialist Bulgarian Dreams due to a “breach of the voluntary professional code”. Although the AIPP has previously expelled members over unpaid membership fees, it said this is the first time the trade body has expelled a company for breaking its code of conduct.

In a statement, the AIPP explained that: “Member companies against whom complaints have been upheld will not be published, providing the company has followed the Disciplinary Procedure and accepted any sanction imposed by the Association”. It added that “in cases where the sanction imposed is expulsion from membership, the AIPP reserves the right to publish the details of the company and the complaint(s).”

A spokesperson for the AIPP said it reached the decision after its board meeting in late January. A statement from that meeting read:

“The Tribunal finds the essence of membership of AIPP is that members must agree to abide by the Code of Conduct of the organisation and by its constitution. The essence of the Code of Conduct is that they should behave professionally in their relationships with their potential buyers.

“The Tribunal finds that the conduct of Bulgarian Dreams in this regard fell way short of the ambits that should be expected. The Tribunal was also very concerned that Bulgarian Dreams had failed completely to respond to the orders of the Tribunal – not the requests – that it supplied further information to allow it to establish the truth or otherwise of the client’s remaining allegations.

“In these circumstances the Tribunal considers that it is inappropriate for Bulgarian Dreams to continue as a member of the organisation and recommends the Board to expel.”

Bulgarian Dreams had seven days to appeal the decision, which has since lapsed according to the Association, and added that it now has a maximum of 28 days to remove all mention of the AIPP from its marketing materials.

The AIPP also revealed that it has received a total of 79 formal complaints about its members since its inception. Of those, 12 cases were mediated between the complainant and the member company (without payment) and 12 cases were mediated with a financial settlement paid by the member to the complainant. This brings the total monies paid out in financially mediated settlements by AIPP members to £76,000. A further eight complaints have been taken before the AIPP’s disciplinary panel, resulting in five fines awarded to complainants totalling £25,500. Only one member, Bulgarian Dreams, has been expelled from the AIPP.

Murcia Growth

02/08/2008 11:38:43 - 02/08/2008 11:38:43 :

Unlike other areas of Spain the Murcia region experienced a seven per cent growth during the last quarter of 2007.

Those looking for a property on the costas, without paying premium prices, should head for the Costa Calida in Murcia.

Resorts such as Mazarrón are still fairly untouched by mass tourism, and property here can still be snapped up at reasonable prices.

Investors need to hurry though, as it is is quickly catching up with the other costas.

A lot of money has been put into attracting tourists to the area, and a new marina opened in Puerto de Mazarrón last year. There are also a wealth of new shops, restaurants and café bars opening in the resort, which are due to be ready for the summer season.

There are a range of properties in the area, from resales to off-plan homes on new developments. It is still possible to buy a two-bedroom apartment on a complex, with a sea view, for €200,000, and one-bedroom apartments at the Polaris World Golf development, which is home to three Jack Nicklaus-designed courses, and 20 minutes from the beach, start from €90,000.

Good deals and flexible payment plans from builders and developers, ensure the off-plan market Mazarrón is still strong.

As well as the new marina the Town Hall has introduced another incentive to attract foreign visitors – a translation system. British residents and visitors can now get linguistic assistance by use of a headset. The system uses a mobile phone and two sets of headphones and can provide a simultaneous translation in either English, French, German or Arabic.

This is a pilot scheme in the region and it should also be available in Puerto de Mazarrón in the near future.

Around 46 per cent of the population in Mazarrón are non-Spaniards, so the new service is geared towards residents who speak little or no Spanish.

Full story from homesworldwide.co.uk

Economy not Deterring Overseas Buyers

02/08/2008 11:40:32 - 02/08/2008 11:40:32 :

Turbulence in the global economy is not putting Britons off buying foreign properties, according to new research.

Figures from the Association of International Property Professionals (AIPP) found that the number of overseas transactions went up by 21 per cent to 240,000 last year.

Many of these purchases were said to have been in established European locations, including France, Portugal and Italy.

However, Spain was named as people's favourite location, as it attracted more than a quarter of those who bought a foreign property in 2007.

Paul Owen, chief executive of AIPP, told Country Life that this finding could prove to be a surprise to some industry analysts.

He commented: "There has been some negative media coverage about the Spanish property market."

Despite this, the country has been rated highly in recent polls including a survey by A Place in the Sun magazine.

Research by the magazine found that it was Britons' favourite foreign property market for the second consecutive year.

Full story from www.propertyshowrooms.com

Spanish Property Buying Set to Improve

02/08/2008 11:44:27 - 02/08/2008 11:44:27 :

Following the re-election of the Spanish Socialist Party, Partido Socialista Obrero Espanol (PSOE), led by Jose Luis Rodriguez Zapatero, on March 9th, investers planning to buy property in Spain can look forward to a simpler, more buyer-friendly process.

As part of the pre-election promises, the PSOE vowed to mke life easier for buy-to-let investors by allocating funding to better regulate the Spanish property market.

Zapatero intends to encourage the purchase of properties for rental through mortgages, while improving security and guarantees for landlords and simultaneously boosting protection for tenants.

The Association of International Property Professionals (AIPP) 2007 market report recently revealed that Spain was still the favourite destination among Brits looking to buy a second home in 2007. In order to sustain this popularity, Zapatero has promised to regulate the property market, a move that will include a shake up of both estate agents and property administrators.

Equally as important, the PSOE has promised to eliminate wealth tax. In addition, an increase in the tax-free allowance for Inheritance Tax of up to €60,000 will mean that approximately 80 per cent of beneficiaries will now pay nothing plus an exemption for main homes.

Commenting on the manifesto, Peter Esders, partner at The International Law Partnership says, “Although there has been no change in leadership, the proposals should prove very encouraging to potential investors and current owners of property. Regulation of the property market is long overdue and proceedings to action this will make trading in this market safer and thus improve confidence in the Spanish property market on a worldwide level.”

Esders continues, “Spain has long been a favourite among British people buying a second home, indeed, the favourable lifestyle together with the great food, beautiful scenery and stable political climate will always make this destination a winner. The positive aspects of the manifesto, as detailed above should strengthen the decision to buy amongst those who are still in consideration.”

Full story from www.homesworldwide.co.uk

Spain Gains From Wind Power

02/08/2008 11:45:34 - 02/08/2008 11:45:34 :

Windmills pay. On a breezy Saturday at the end of March, Aeolian Parks scattered across the hill-top ridges and off-shore sandbanks of Spain produced 40.8pc of the country's electricity needs - 9,862 megawatts to be precise.

The much-derided turbines produced enough wattage to power the great cities of Madrid, Barcelona, Seville, Valencia, Toledo, Cordoba, Granada, Santander, Bilbao, and Zaragoza combined. The workday record on a Tuesday, March 5, was 28pc.

Years of nurture by the Spanish government have paid off. Spain is a global superpower in the wind race, with 15,000 MW of capacity. The region of Navarra is 70pc green, shielded against gas-shocks, Russian politics and soaring oil prices.

Today's wind turbines are a far cry from the archaic mini-mills that scar the landscape for little return, and provoke such fury in the English shires. They are vast. Each mast can power a neighbourhood.

Here in the wet misty mountains of Asturias, the German power group E.On is erecting a battery of mills that tower 410ft into the sky. They are higher than the dome of St Paul's Cathedral or the US Congress on Capitol Hill. The rotors alone dwarf the wingspan of an Airbus A380 super jumbo.

"We are beyond the boutique phase," said Frank Mastiaux, the head of E.On's green operations. "When this began in the 1970s it was a niche play, a nice tax break for German dentists and doctors. Now it is turning into an industrial business. Productivity has grown by 150 times in 25 years."

Every mill costs €2.6m (£2m) to buy and erect, yet the Danish manufacturer Vestas is sold out until 2010.

Full story from www.telegraph.co.uk

UK Exodus Continues

02/08/2008 11:46:46 - 02/08/2008 11:46:46 :

Any idea that the exodus from Britain of those settling abroad might be waning appears wildly premature. The latest survey predicts 1.8 million Britons retiring abroad by 2025 and 3.3 million by 2050. The survey, on behalf of NatWest International, provides further evidence that the majority of those making the lifestyle change do not look back.

Nine in 10 expats said they enjoyed better quality of life and six in 10 said they did not intend to return to the UK.

Canada was rated the best country to emigrate to, followed by New Zealand and Portugal.

However, beneath the glitz lurked a less happy picture. Three quarters of those surveyed admitted to feeling homesick some or all the time, missing friends, the British culture and sense of humour.

What the survey might usefully have expanded on are health concerns, especially among older expatriates.

Many of those retiring to the sun are doing so at a time when body and brain begin to disintegrate at increasing speed. Local provision of healthcare may be either inadequate or inaccessible to the expatriate.

The language barrier can loom large. Hospital practices may disturb - the National Health Service in Britain has its critics but patients do not generally rely on relatives bringing in lunch, which is routine in some Mediterranean states.

Most expatriates can benefit from medical insurance. For others it is a must. Unless expats are guaranteed full access to healthcare in their adopted state, and standards there are acceptable, skipping cover is flirting with disaster.

Distress and financial hardship can strike when expats are denied care expected as a right. Since NHS access rules were tightened in 2004, the individual who seeks to return to the UK for "free" treatment may also be in for a disappointment.

Just like its continental neighbours, Britain has clamped down on "health tourists". France, the Netherlands, Spain and several Swiss cantons have taken similar steps.

However, these countries offer generally excellent medical services, with hospital-acquired infections much less common than on NHS wards. The gap is recognised by insurers.

David Pryor, senior executive director at MediCare International points to "consistently better" healthcare across much of Western Europe compared to Britain. He said: "The French are rightly proud of their healthcare system and it is still true that access to specialists is quicker, waiting times for operations are lower and certainly hospitals and clinics are cleaner."

Insurers have responded by offering schemes aimed at people who spend most of their lives in continental Europe but a proportion in their home state - in many cases the UK. Limiting the scope helps limit the premium.

As the name implies, Exeter Friendly Society's Spain Residents Plan is mainly restricted to treatment within the country, but limited benefits apply in UK. A 40-year-old would pay €60.67 a month and a 45-year-old would pay €70.76 a month.

Another plan aimed at Spain's burgeoning expat community is Bupa International's Health Plan Complete. It gives comprehensive acute cover in Spain and another, designated, European country.

Obviously, policyholders tend to select their home country as their designated state. But this is not essential. Unusually, the plan differentiates between genders. A man aged 40-45 would pay €76.90 a month and a woman 40-45 would pay €103.70 a month.

Beyond Europe, in the Middle East and the "White" Commonwealth expatriates are being asked to prove they will not burden overstretched national health services.

People who emigrate to Australasia and North America are unlikely to get a visa if they are seen as likely to take more from the economy than they put into it. Mandatory health cover is one solution. In Australia, medical insurance premiums attract substantial tax breaks.

Most top spots for emigration in the Natwest survey offer quality of care that makes medical repatriation benefit unnecessary. However, once you move beyond the developed world, repatriation and/or air carriage assumes vital importance.

Assistance companies, contracted to insurers, specialise in emergency medicine. Their job is to get the patient to a suitable hospital with minimal delay.

Their responsibilities may go further than the purely medical. For instance, during the recent inter-tribal strife in Kenya, an American policyholder whose wife's ethnicity put her at risk, faced the threat of extreme violence.

The insurer's assistance company organised an armed police team to escort the couple to the local airport and then on to a safe haven in Nairobi.

Full story from www.telegraph.co.uk

Norwich to Spain Takes Off

02/08/2008 11:53:48 - 02/08/2008 11:53:48 :

Owners of rental accommodation in Spain are set to benefit from the launch of new flights from the UK.

LTE International Airways will begin offering flights to Norwich International Airport from Alicante, Palma and Barcelona in July.

This is a significant development for consumers who live in the Norfolk region, as it means Spain is now far more accessible.

As a result, it is likely that the new destinations will attract an increased number of visitors this year, thereby boosting its rental market.

Commenting on the new flights, Richard Jenner of Norwich Airport said he is "delighted" to welcome LTE to the facility.

Speaking to the Norwich Evening News, he remarked: "Norwich is the only UK airport they are going to be flying from and they want to be the airline for Norwich when it comes to flying to Spain."

This comes after Reuters has cited official figures showing that during the first quarter of the year, Spain attracted 10.6 million holidaymakers.

Full story from propertyshowrooms.com

1 London Flat = 2 Spanish Villas

02/08/2008 11:57:54 - 02/08/2008 11:57:54 :

The average price of a flat in London is worth the same as two Spanish villas, according to new figures.

According to A Place in the Sun Live, a typical London apartment costs almost £304,000. This means Londoners may want to consider moving abroad top get more for their money.

For the same amount of money, a property could get two homes in Spain. For example, a three-bedroom, two-bathroom villa on the Costa Blanca, half way between Alicante and Murcia, costs an average of £146,000.

Meanwhile, a one-bedroom apartment in Almeria, to the eats of Marbella and Malaga, can be bought for £163,000. As well as being near the beach, it is also in close proximity to local golf courses.

In addition, both Spanish properties could feature a communal swimming pool.

According to Holiday-Rentals, almost a third of European properties owned by UK-based buyers are in located in Spain.

First Time Brit Buyers Buy Abroad

02/08/2008 11:59:53 - 02/08/2008 11:59:53 :

First-time buyers (FTBs) from the UK are increasingly considering investing abroad, an expert has revealed.

Nick Fullerton, managing director of FC Exchange, stated that the housing market in Britain is currently in a state of "turmoil".

This, he said, has led to people who are looking to get on the housing ladder for the first time looking elsewhere.

Mr Fullerton said FTBs do not wish to take a hit in the domestic market and believe that investing abroad offers better growth potential and value for money.

He added that other buyers in the UK are concerned about the plummeting house prices in Britain and would prefer to invest in expanding markets overseas.

As a result, FC Exchange has seen a surge in the amount of enquiries related to purchasing a house abroad.

Mr Fullerton said: "These record figures are encouraging and demonstrate the continuing appetite to invest in overseas property."

According to research by A Place in the Sun magazine, France and Spain are currently the two most popular markets with British property buyers.

More Foreign Homes - Despite Credit Crunch

02/08/2008 12:01:32 - 02/08/2008 12:01:32 :

A report published by Datamonitor has found that British and Irish investors currently own 3.81 million properties overseas and with recent figures showing that record numbers of Britons are fleeing the UK with nearly 2 million option to emigrate abroad in the last decade, the number of foreign owned homes looks set to continue rising.

The data anticipates that the overseas property market is expected to double in value between now and 2012, with estate agents predicting it will grow by 13% annually over the course of the next 5 years. The report stated that the overseas property sector was worth £44.4 billion in 2006, and suggested that potential property investors are increasingly happy to cast their eye further afield in the hope of bagging a bargain or as a first time buyer with the view of simply getting on the property ladder in some way. Although investment property in traditionally strong markets such as Spain, France and the USA were said to be the most popular, emerging markets were proving to be particularly attractive to younger investors.

Britons are choosing to emigrate overseas on the back of high numbers of foreign migrant workers entering the UK, a yob culture, greater opportunity to further their careers internationally and the desire of many to seek the good life overseas, so much so that UK citizens are heading abroad in record numbers. More than 200,000 British citizens left the country in 2006 as emigration hit record levels. Among 400,000 emigrants in 2006, the Office for National Statistics said 207,000 were British citizens. Nearly one in three went to live in Australia or New Zealand. A quarter went to Spain or France, and around one in 12 went to the United States. The rising rate of emigration meant that nearly 1.6 million Britons left the country to live abroad between 1997 and 2006, the greatest exodus since before the First World War and what can only be described as a “Brain Drain” epidemic.

With currently over 1 in 10 Britons living abroad and as more and more Britons not only plan to retire abroad but are moving away for good before even reaching retirement, the overseas property market is seeing a steady influx of new buyers, with an upward trend predicted over the next ten years.

Full story from Nubricks.com

Spain Scraps Wealth Tax

02/08/2008 12:02:43 - 02/08/2008 12:02:43 :

Spanish residents and property owners should have one less tax to worry about – wealth tax is being abolished.

It was on 18th April 2008 that the Council of Ministers approved a measure to get rid of wealth tax in Spain from 1st January 2008. The measure has to go through Parliament and be approved by the Congress of Deputies and the Senate before it becomes law in Spain.

Assuming the proposal is approved by Parliament, the last assessment date for wealth tax will be 31st December 2007, with the final wealth tax bill being paid around now in 2008.

This will come as good news to those thinking of moving to Spain as Spanish residents will have one less tax to pay. UK residents who own property in Spain will also feel the benefit of no more wealth tax payable on their property.

The abolition of wealth tax comes along with an €18 billion package of emergency tax cuts announced by the Spanish government with immediate effect. The tax cuts were introduced to support economic growth threatened by the global credit crunch and depressed housing market. As part of €10 billion in outlay during 2008, all workers and pensioners will receive a €400 tax rebate immediately. The residual €8 billion will be allocated for 2009.

The money is coming from a budget surplus to prop up a weakening economy. According to the International Monetary Fund the Spanish economy will slow by more than half this year to 1.8%. Finance Minister, Pedro Solbes, said at a press conference in Madrid that the measures will add 0.2% or 0.3% to economic growth this year.

The Spanish government now forecasts that Spain’s gross domestic product (GDP) will expand 2.3% in both 2008 and 2009, being lower than the figures predicted last December of 3.1% and 3%.It will pick up in 2010 to 2.8% and 3.1% in 2011. In 2007 GDP grew 3.8%. Deputy Prime Minister, María Teresa Fernández de la Vega, said: "The economic and budgetary policy of this government in the last four years has allowed us to accrue a surplus in the public accounts. This lets us take measures to stimulate the economy, to reinvigorate job creation and to help people and families in greatest difficulty."

The abolition of Spanish wealth tax fulfills an election promise made by the Socialist party four years ago, before they came to power. The wealth tax was introduced thirty years ago as a temporary tax.

Spanish wealth tax is collected by the Autonomous Communities which have been reported as receiving approximately €1.4 billion annually from this levy. Losing this revenue is likely to mean that the regional governments will be seeking other ways to make up the shortfall.

Spanish wealth tax is based on net assets held at 31st December and the tax rates range from 0.2% to 2.5% over eight progressive tax bands. Residents are liable for wealth tax on their worldwide assets but benefit from tax-free allowances, while non-residents are taxed on their Spanish assets only, with no allowances.

The wealth tax returns for 31st December 2007 are being submitted along with the tax due sometime between 2nd May and 1st July 2008.

If you purchased property after 1st January 2008 there will be no wealth tax due on the asset providing the abolition of wealth tax becomes law and is effective from 1st January 2008.

UK residents owning Spanish property in Spain and who have no other Spanish income will still be liable for Spanish tax on any rental income at the fixed rate of 24% and capital gains tax on sale or transfer of the property at 18%. There are also minimal local property taxes to pay. But there is a purely notional or theoretical income deemed to arise for periods when the property is not let. This is based (normally) on 2% of the official value (valor catastral), but it drops to 1.1% of the valor catastral if that has been revised since 1st January 1994.This amount is similarly taxed at 24% if non-resident.

Succession tax will be levied if the recipient of an inheritance or gift is a resident of Spain or the asset being inherited of gifted is located in Spain (e.g. property). The rates vary depending on whether the state rules or regional rules apply.

Full story from Blevinsfranks.com

Spain Still Top Overseas Property Destination

02/08/2008 12:03:31 - 02/08/2008 12:03:31 :

According to a new study Spain tops the list of the 101 most popular overseas property destinations searched for on the internet.

A new study published by Globaledge.co.uk reveals that Spain is the most searched-for overseas property destination by UK internet users.

The research looks at over 200,000 property-related searches over the last 100 days from the UK Wordtracker database and groups them by overseas property location.

Spain came out top of the list, accounting for over 10 per cent of total searches, with five of the top 10 most popular locations being Spanish. The obvious locations of the Costa Blanca and Costa del Sol were the most popular regions, but the Canary Islands also ranked highly.

The most searches for this archipelago were for Costa Teguise, in Lanzarote; Palm Mar, in Tenerife; and Caleta de Fuste, in Fuerteventura, which all appeared in the top 101 – perhaps indicating future property hotspots.

These results show Spain is still very popular with British buyers, despite the recent slowdown in the market.

Ashley Rigg, director of Globaledge.co.uk, said: "An amazing 11 out of the 20 most popular overseas searches in the last 90 days were for Spain or for Spanish towns and regions. Despite the media gloom surrounding the Spanish housing market, there is still considerable demand from Brits for property in Spain and the lifestyle that goes with it."

Following Spain came France, Bulgaria and Cyprus, with italy only appearing at number 21. Several emerging markets, such as Dubai, and the Czech Republic, were also in the top 20.

Ten Reasons for Moving to Spain

02/08/2008 12:12:19 - 02/08/2008 12:12:19 :

According to a recent study by Currencies Direct, Spain continues to top the list of retirement hotspots for Brits who actually want to enjoy some sun in their sunset years. And it’s not hard to see why.

But Spain’s allure is not limited to pensioners. Indeed, it consistently ranks as the second most popular destination for British émigrés of all stripes. Only Australia attracts more. And while a life Down Under may have its attractions, it’s also a lot further away if you fancy a visit home to catch up with friends and family.

So if you’re considering joining the hundreds of thousands of people that up-sticks each year for a life overseas, then Spain could be the ideal place. Here are 10 reasons why:

1) Sunshine

What can be more appealing for a Brit than the promise of a plentiful supply of year-round sunshine? And much of Spain is well-endowed with those golden rays that prove so elusive at home.

Do your research before you pick a location though. While the southern region of Andalucía has an enviable winter climate, it can be murderously hot in the summer. By contrast the north and northwest see a lot of rainfall, with a climate and landscape more akin to Cornwall than that of Mediterranean Spain. Meanwhile, Madrid and the central regions boil in summer, but can get icily cold in the winter.

2) Outdoor Activities

Sunshine and warmth – perfect ingredients for enjoying the Great Outdoors, whatever your interests happen to be: sailing, cycling, hiking, golf, painting, or simply splashing around at the beach. And in the winter there’s decent skiing in the Sierra Nevada mountains in the south, or the Pyrenees in the north.

3) Natural Beauty

Unfortunately, for many people Spain has become synonymous with overdevelopment and tawdry beach resorts. But that is by no means the whole story. Yes, parts are overdeveloped nightmares. But for those that want them there are still plenty of low-key towns and unspoilt stretches of coast to be discovered.

And once away from the main tourist areas of the Mediterranean there is a surprising diversity of landscapes: from the wild coastline of Galicia to the remote expanse of Extremadura, the lush forests of the Basque country, and the majestic Picos de Europa or Aigüestortes national parks.

4) Cost of living

Since the introduction of the euro in 2002 Spain has become noticeably more expensive, as businesses of all descriptions took the opportunity to round up their prices. Nevertheless, prices for food, alcohol, petrol and property – to name just a few items – still compare favourably to those in the UK.

5) Food and Drink

Spain may not be a gourmet hotspot like France or Italy, but there is more to be said for it than just paella and tortilla (although both are delicious). And as you would expect from a country of such size, there is a great variety of styles between the different regions, with the Basque country’s cuisine having a deservedly high reputation. Likewise, while a nice glass of cava or a Rioja red are not to be sneezed at, Spain’s wine industry has far more going for it.

6) Pace of Life

Spain is renowned for its siestas and mañana approach to life. And while the pace may be picking up in the cities in particular, generally the Spanish follow a more relaxed approach to the clock. Great if you have time to go with the flow!

7) Health Care

The Spanish state health care system is among the best in the world. Indeed, the World Health Organization ranked it seventh overall when it compared countries’ health services for its annual report in 2000 (World Health Report 2000 – Health Systems: Improving Performance). And in my experience (having had two children here, one with severe allergies) its reputation is deserved: staff are well-trained, the facilities are modern, well-equipped and clean, and treatment waiting lists are short.

8) Family Life

In general, Spanish families tend to be close knit, and children oriented. It is common to see families spanning three or four generations sitting down to lunch together each day. Children are common sights in restaurants in the evenings too, rather than being left at home with the babysitters while the adults go out. And wherever they go, the children are the centre of attention, for doting family members and strangers alike (which is great if you happen to have some yourself).

9) Fiestas

Fiestas are a central feature of Spanish life. Famous extravaganzas like the bull-running in Pamplona (San Fermín), Sevilla’s Semana Santa and Feria de Abril, or Valencia’s las Fallas are well worth a visit if you can get there. But each village, town and city has its own monthly schedule of saints’ days and feast days too, which can be just as entertaining and intoxicating. And because they have specific significance to the local community they are likely to be more meaningful and entertaining for you as well.

10) Cultural Riches

Spain’s glory days as a world-conquering empire may be long gone, but a wealth of history and culture remain. There are the magnificent art galleries of Madrid and Barcelona, and architectural jewels such as the Alhambra in Granada, the cathedral of Santiago de Compostela and Bilbão’s Guggenheim museum. Or you can simply soak up the atmosphere with a stroll around one of its many beautiful cities: Salamanca, Toledo, León, Girona, Sevilla …

Paul Allen is a freelance journalist and writer who has lived in northern Spain since 2003. He is the author of “Should I Stay Or Should I Go? The Truth About Moving Abroad And Whether It’s Right For You,” a comprehensive e-book guide for people seeking advice on whether or not to move abroad. For more details about the book, and free information and advice on moving and living overseas, visit his website at www.expatliving101.com

Full story from www.expatfocus.com

Do Brits Still Want Property in Spain?

02/08/2008 12:13:47 - 02/08/2008 12:13:47 :

British consumers are still keen to buy property in Spain, even if the current market conditions are forcing them to delay their purchase, an industry expert has said.

Mark Stucklin of Spanish Property Insight explained that there was still demand for property in Spain from people in the UK and some were even using the current market conditions to their advantage.

He explained that the recent reports about the failure of the investment market in some parts of Spain had put an end to the phenomenon of "speculative herd buying". Instead, people who genuinely wanted to own a holiday home in the country were "doing their research".

"There are still people with money who want to buy in Spain for their own reasons, and if they’re going to buy they’re going to use this market to get better quality and they can now buy at a better price than in the last few years, so in a way they are already getting better value," Mr Stucklin added.

In particular, the expert suggested that people were still considering "the posh part of the Costa Brava, the northern Costa Brava, [and] the Balearics in general" as places to buy in Spain.

Full story from www.moneyhighstreet.com

How Did My Friend Sell His House?

02/08/2008 12:14:46 - 02/08/2008 12:14:46 :

Recently, a friend of mine returned to the UK to sell his house after having rented it out for a number of years. To his dismay, he found his house in a sorry state of disrepair and the whole street bristling with ‘For Sale’ signs. A lost cause? Within three weeks, he had a full-price offer and, within two months, the purchase completed without a hitch.

Having visited the house a while ago, I know that it was nice – but no nicer than the other 20 identical houses for sale in the same street. Of course, I wrote to him and asked for details of his secret house-selling trick, and last week, I received his reply. I think it’s worth repeating here because it might help you to sell property in Spain – even at the moment. Are you ready to learn his secret?

“No tricks, I’m afraid – just a bit of old-fashioned marketing (the real kind: thinking about the market). The estate agent thought that our likely purchasers would be either a first-time-buyer / young couple, or a recently separated woman with young-ish kids. We guessed that either of these would be busy types (couple both working, a singleton with kids to get to school, and a job).”

“We also thought that we’d be selling to a woman so we: replaced the kitchen and all the appliances; repainted the inside and outside of the house; replaced all the carpets, reinstated the third bedroom and swept the chimneys. We figured that it would be essential that our buyer be able to complete on a Friday, move-in over the weekend and have the kids ready for school on Monday.”

“We left the garden ‘to do’ other than planting some border flowers – which came out on the same day that our recently separated mother with her two kids, aged 7 and 10, moved in.”

Technically, my friend didn’t stand a chance to sell his home quickly and at full price because there were so many other houses available (which weren’t selling) and the market was worsening by the day. However, by thinking like a buyer and thinking about the buyer, he was able to make his house the ‘one’ that got sold. If all his neighbours had taken the same approach, there’s every chance that he wouldn’t have made the sale – but they didn’t.

My guess is that his neighbours reasoned something like this: “It’s a bad market so I don’t want to invest any more in this property than absolutely necessary. If I get a buyer who’s serious, I’ll take care of the bits and pieces which need tidying-up then.”

If I’m right, their attitude of happy mediocrity made my friend’s house stand out like a beacon so that it was the only possibility. In fact, the others probably excluded themselves quite quickly for this particular buyer – under time pressure to complete and move in to a fully functional family home.

Now, your ideal buyer will probably behave differently because they’re probably buying a second home. If you’re currently trying to sell a property in Spain, have a serious chat with your estate agent. Ask him or her who ‘normally’ buys properties like yours in your area and for what reason. Get a handle on your pool of potential purchasers – where do they come from, what concerns them, what’s important to them?

If your estate agent can’t help you with this – find another estate agent and repeat the process until you’re confident you have a working profile of who might be in the market for your property. Now, that you know what’s important to potential buyers, look for the common themes in terms of what needs doing to distinguish your property from all the rest. It might be some basic decoration, or something to do with the outside space, or whatever. You’re looking for the handful of things that all of your potential purchasers will value.

At this point, resist the thinking, “Hmm, I don’t really want to throw more money into this property, especially now when the market’s so bad”. You certainly don’t want to be splashing home improvement money about with abandon but if you’ve done your buyer analysis correctly, these are the tweaks which will allow your property to rise to the top of the pile. Houses ARE being bought and sold – and yours could be one of them.

Once you’ve completed the home improvements, make sure that all of the marketing material is updated to reflect these new facts. Take new (and professional) photos, speak directly to the needs of the buyer you have identified.

Shouldn’t your estate agent be doing all this FOR you? In my opinion, they should be doing this WITH you – but I’m confident that if you initiate this conversation, you’ll quickly find out whether or not you’re with the right estate agent.

Either way, if you actually have a stab at thinking like a buyer, you can’t help but improve the odds that your property will be the one that’s purchased – because most sellers will do absolutely nothing at all – just like the neighbours of my friend – you know, the one who sold his house.

One last thing: Reading the comments at the bottom of this article entitled 25 tips to sell your home in a downturn, clearly, the price must be right too.

Martin Dell, Kyero.com

Spain Enjoys High Quality of Life

02/08/2008 12:15:36 - 02/08/2008 12:15:36 :

Spain has come top in a study assessing quality of life across Europe, making it prime for relocation.

Britain and Ireland have the highest average incomes in Europe, but come bottom in terms of quality of life, while Spain is at the top of the index, according to a study published by U-Switch, a British service comparison website.

As reported by Expatica, Brits pay sky-high prices for fuel, food and other essentials, while having among the shortest holidays, latest retirement age and lowest life expectancy, according to the European Quality of Life Index, presenting findings from ten European countries.

Ireland, which like Britain has seen a huge market-driven economic boom over the last decade, is even worse than Britain, coming in last in the Index by U-Switch.

"We may earn substantially more than our European neighbours but when it comes to quality of life we remain the sick man of Europe," said Ann Robinson, director of consumer policy at U-Switch.

"Soaring food prices and inflation, not to mention high property costs, are placing the biggest squeeze on disposable incomes in well over a decade," she added, noting also below-average investment in health and education services.

The study assessed 19 factors affecting quality of life, ranging from income and working conditions to healthcare, education and cost of living.

Brits have the highest average income in Europe, but pay between up to 18 per cent more for fuel and 49 per cent more for gas, while facing spectacularly high housing costs.

At work, Ireland comes worst in terms of retirement age, with an average of 64.1 years, followed by Britain on 63.2 years, compared to 62 year in Spain. Life expectancy is 78.1 years in Ireland and 78.9 years in Britain, the lowest barring Poland.

At the other end of the scale, Spaniards have the lowest average income, at an average £16,800, but low taxation and cheaper essential goods prices put them at the top of the overall quality of life indicator.

The high number of public holidays bring the average number of days holiday to 36 each year, making our average of 28 days including bank holidays look a bit meagre in comparison!

Furthermore, while England and Ireland experience the fewest hours of sunshine in Europe, Spain benefits from the most, giving them plenty of options for enjoying all that free time. They even have a longer life expectancy than us, making it to almost 80 years on average.

Clearly, when it comes to the good life, income is less important than free time, sunshine and cheap commodities, making it more appealing than ever to move to Spain.

Full story from www.homesworldwide.co.uk

Spanish market will pick up again

02/09/2008 10:10:39 - 02/09/2008 10:10:39 :

People considering investing in Spanish property should not be put off by the current troubles as the market will bounce back.

Spain has been one of the countries worst hit by the credit crunch and is experiencing a major economic downturn as a result.

However, according to reports in the Tenerife News, Santiago Baena, of the Spanish Real Estate Association, does not believe the current downturn will last long.

According to the website Ready 2 Invest he believes the country's property market will bounce back and enjoy growth once again, possibly as early as next year.

Commenting on current market conditions, Mr Baena said that Spain is currently experiencing a "severe adjustment".

For years Spanish property was in high demand from UK buyers which lead to a building boom and high prices.

Mr Baena said that while the upcoming rate of growth will be lower than during the boom years, normality will eventually return.

Despite the problems Spain is still attracting a lot of serious investors, and according to the Association of International Property Professionals (AIPP), the country accounted for more than a quarter of overseas purchases last year.

For anyone looking for a long-term investment in Spain, now could be the best time to buy, as resale prices are having to seriously be reduced in order for properties to sell and many developers are having to lower prices and introduce incentives in order to avoid hundreds of new-build properties standing empty.

Costa crisis hits Estata Agents

02/09/2008 10:12:32 - 02/09/2008 10:12:32 :

Estate agents used to be so pervasive in Spain that some authorities sought to stop them taking over tourist haunts. But according to figures published yesterday, in only six months the number of estate agents' offices has been reduced by more than half.

The 10 largest estate agents had 3,001 offices between them at the end of 2007, but now only 1,434 remain open. For sale or closed signs are a common sight outside former estate agents, particularly on the Costa del Sol or Costa Blanca, two regions popular with British buyers.

Two of Spain's major estate agents, Don Piso and Fincas Corral, have gone up for sale. Don Piso cut the number of offices from 400 last year, to 140. MC Inmobiliaria, another major agency, owned 218 offices last year, but now operates from 60 - a fall of 72.5%.

It is another symbol of the deepening crisis in Spain's construction sector after its decade-long building bubble burst. Spanish construction output fell 3.1% in June, according to figures from Eurostat, the EU statistics office.

The collapse has hit the Spanish economy. Gross domestic product grew 1.8% year on year in the second quarter, compared with 2.7% in the first quarter, according to the Bank of Spain.

With demand for homes falling, unemployment is rising, reaching a 10-year high in July of 2.43 million. Nearly two thirds of those out of work were building workers.

María Angeles Repilado, of Spain's General Workers' Union, predicted many unemployed building workers would pick grapes in France this summer, earning €8.71 (£6.95) an hour instead of €6 on building sites.

The mass closure of estate agents' offices may also be a symptom of the way the industry is changing. Gareth Milton, operations manager of propertyshowrooms.com, said: "Companies who had always focused on web-based activities without the massive overheads associated with a network of physical branch offices are the ones more likely to weather the storm."

Spain in court over Land Grab

02/09/2008 10:13:32 - 02/09/2008 10:13:32 :

Thousands of British expats who lost out to Spain's notorious "land grab" laws were yesterday given hope of getting their properties back after the European commission took Madrid to the European court of justice.

The commission is to take legal action against Spain over alleged infringements of European competition regulations governing public works contracts. It claims that in Valencia such contracts were awarded without fair competition.

The law, introduced in the 1990s at the start of a prolonged housing boom, allows developers to expropriate rural land from owners if they can persuade the authorities that it is suitable for "urban development". Adding insult to injury, they can then charge the owners for services such as electricity for the new development.

The homes of thousands of British and other owners have been demolished or left worthless by ruthless property developers taking advantage of the law.

Though the law was made by the Valencian authorities, Spain has to answer in court, as it is an EU member and must comply with the bloc's competition rules. If the action is successful it could mean large fines for Spain, and Madrid may put pressure on Valencia to change the law.

Charles Svoboda, vice-president of Abusos Urbanisticos No, a campaign group that has fought the law for the past four years, said: "The commission does not take these actions if it does not intend to penalise the country concerned. It could be the beginning of the end of these laws."

The case claims that public works contracts worth more than €5.5m were awarded to cronies of those who made the contract decisions.

The legal action gives some hope to Britons such as Danny Loveridge, who retired to a 130-year-old farmhouse near the Valencian town of Benissa several years ago. He lost more than £160,000 after developers moved in on his land.

"They took almost 75% of our land and gave us some other land that was worthless," he said. "There is now a bathroom fittings shop where our house was."

Loveridge was paid £8,000 in compensation, but was then forced to pay the developers £12,500 for the electricity, sewage, roads and other infrastructure for a proposed industrial estate.

He was forced to sell what remained of a £260,000 property for about £100,000.

In 2004, a report to the European parliament denounced "serious abuses" committed under the terms of a "surrealistic" land law in Valencia, in eastern Spain, and demanded compensation for thousands of people who had lost homes and money.

No one was available for comment at the Spanish government or Valencian regional government last night.