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PROPERTIES OF THE MONTHPage 2

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LegalServices

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2 Friday, May 10, 2013

SPANISH LIFE PROPERTIES is a busyestate agency in Quesada and has beensuccessfully selling properties in the CostaBlanca South area for the last three years.It was established to provide a much need-ed personal service for anyone who is wish-ing to buy or sell a property in Spain.

For clients wanting to find their dreamproperty, Spanish Life Properties listenscarefully to what the customer wants andoffers them personalised viewing trips, tai-lored to meet their specific needs so thatthey find their ideal home.

Wanting to sell your property? Then lookno further, as their dedicated ´ListingsSpecialist´ offers a free, no obligation, valu-ation service, and all the properties thatthey have are advertised via their shop,website, local media advertisements, prop-erty web portals and trade shows, as wellas distributed to their extensive list of col-laborative agents from all over Europe, soyour property will certainly be seen!

Spanish Life Properties primary aim is to

ensure that clients receive outstandingservice and receive the help and supportthat they need during the purchase andsale process. To assist customers even fur-ther, they have an extensive portfolio ofservice providers giving clients easy accessto the best solicitors, conveyors, banking ormoney exchange providers, in fact, anyarea of help that someone buying or sellinga property will need

A unique service offered by Spanish LifeProperties is the Part Exchange scheme.This can assist some clients who want tomove up the property ladder. PartExchange works best in this difficult time,as even though client´s property maybeworth less than a few years ago, the prop-erty they want to buy is also dramaticallycheaper.

For more information about buying orselling a property, or the Part Exchangescheme, give them a call today on +34966719689 or visit them at their Quesadaoffice, behind the SabadellSolbank.

Buy, Sell Or Part ExchangeWith Spanish Life Properties

Here are a few common faults which havebeen uncovered during a routine electricalsurvey:

1) Power Surges – Unfortunately theseare quite common in Spain and can not onlyseriously damage electrical equipment andappliances but also result in fire in the worstcases. They are often caused as a result offaulty or overloaded builders supply or badwiring, but can also be caused by surgesfrom sub-stations and lightning.

2) Dangerousupgrades – Again this iscommon practice inSpain, as constructorsor indeed homeownersattempt to cut cornersand lower their costs.However, if the supply is not upgraded prop-erly, and a circuit breaker with a potentialthat is higher than necessary is fitted, it canlead to badly burnt cables and melted insu-lation inside Consumer Units. This affectsthe function of the circuit breaker, preventingit from tripping out and causing damage tothe installation and a high risk of fire.

3) Residual Current Device (RCD) / TripSwitch not working – You can easily safe-guard yourself and your family from the riskof electric shock, by ensuring that all RCD’sare functioning correctly. The homeownershould ideally test these on a monthly basisand employ a qualified Electrician to carryout a full test every ten years.

4) Air conditioning units overloading cir-cuits – In summer it is extremely tempting tohammer your A/C units for instant refresh-ment. But if they are not wired into the mainssupply correctly, you will find that your powerkeeps tripping out.

5) Light fittings not wired correctly – It isscary how many light fittings are not earthed,or at times the earth cable has been deliber-ately cut off, causing a risk of electric shockwhen carrying out a simple task like chang-ing the bulb. This is due to the cables notbeing properly protected from the heat of thelight source, eventually causing the insula-tion to melt and exposing a dangerous barecopper live wire.

6) Water and damp leaking into an instal-lation – This is easilyavoided by using thecorrect materials tosecure the unit. Ensurethat they are weather-proof and durable toavoid a more expen-

sive problem further down the line. 7) Wrong size cable used when fitting

extra sockets – Cable must be strongenough to handle all of your appliances. Ifnot they will become burnt or damaged dueto the power overload.

8.) Reversed Polarity – It is essential tomake sure that the live and the neutral onthe main supply cable are connected thecorrect way round. If you are not sure ask anexpert!

9) Bad Earthing - When an installation isnot earthed sufficiently it greatly increasesthe risk of a serious electric shock.

10) Obsolete Socket Outlets – This is acommon problem in antiquated properties,where no earth connection is installed. Inthis instance, should the live cable acciden-tally come loose and come into contact withthe metal case of an appliance, the electrici-ty will travel through your body rather than toearth.

Top Tips For SecuringYour Power Supply

3Friday, May 10, 2013

Many properties located in Alicante Province are situ-ated within a residential urbanization, which has its ownset of observed rules and regulations. So it is importantto understand the benefits and obligations to homeown-ers.

Depending on the location and type of property whichyou chose to buy, you may be obliged to become part ofan officially recognised “Comunidad de Propietarios” orCommunity of Owners, which gives you a voice andequal say in the day to day running of the urbanization.If this is to be the case then your Solicitor or Estate Agentshould advise you of your obligations prior to signing atthe Notary to avoid any confusion later on. Essentially,the running costs, maintenance and eventual resalevalue of your property will be greatly affected by how wellthe Community of Owners cooperate as a team, and onthis basis it is beneficial to play an active part on thecommittee. As a general rule, newly constructed proper-ties will remain the responsibility of the developer untilthey have reached completion and approval by the relevantTown Hall, or are sold. At this stage, the new owners willusually be invited to a meeting when the developer will offi-cially “hand- over” the responsibility of the general care andmaintenance of the entire estate to the newly formedCommunity of Owners. If you are purchasing an older orresale property you will probably find that a Community ofOwners is already in place, although this does not exemptyou from becoming involved. One resident must be demo-cratically elected as President, with an opportunity for eachhomeowner to review the position and elect a new Presidenteach year at an Annual General Meeting. Other official rolesare allocated using the same process, including Vice-President, Treasurer and Secretary.

The primary purpose of the Comunidad de Propietarios isto guarantee that the houses or apartments of the urbaniza-tion are all well kept, and communal gardens or swimmingpools are also maintained. The system is meant to benefit allconcerned, ensuring that they continue to live in the pleas-ant environment in which they made their investment.Naturally there has to be a legal element involved; specifi-cally several laws and bylaws with regards to the creation,administration and statutes of the Community, to ensure thatall owners take their responsibilities seriously.

With the British being renowned for their good organiza-

tional skills and attention to detail, combined with the largenumber of Brits living in the region, it is common to find thatthey have a significant presence on the Committee- some-times more so than native Spanish speakers. The shift hasmeant that certain administrative changes have beenrequired in the running of the communities, mainly due to thefact that the English speakers cannot understand muchSpanish! In past years most meetings were conducted inSpanish and accompanied by minutes written in Spanish,although a translator would usually be present. However,this was widely contested as in many cases there were fewor no Spaniards present, but plenty of English speaking res-idents. Therefore, it was legally agreed that a vote may betaken by the community over which language the meetingsshould be held in, with the majority taking precedence.

For British residents who speak little Spanish, it may beeasier to settle in an area with a large English- speakingpopulation, where you should also find that much of theinformation required to get you started is available inEnglish. Many expats welcome the idea of becominginvolved in the local Spanish Community, and the opportuni-ty to meet their neighbours, of all nationalities, and get ataste of the various languages and cultures that are alive onthe Costas. However, generally speaking most of theSpanish tend to live outside of urbanizations where they will

have an established social network and often familyliving close by.

As a property owner you have the right to be keptinformed of any problems which have arisen on theurbanization, as well as any proposed improvementsthat affect you or your property. Some communitiesfind it beneficial to produce a monthly newsletter con-veying these details, particularly where there are manynon-resident owners. Whilst some members of thecommunity may be happy to help out with administra-tive tasks on a voluntary basis, there are usually cer-tain costs involved, such as printing and official trans-lations for legal purposes when required. This meansthat all owners are obliged to pay an annual communi-ty fee “Gastos de Comunidad”, which may be paid instages or in full and is meant to cover all of the day today running costs of the urbanization including :

• Lighting for public buildings and streets• Cleaning and sweeping of the streets, pavements

and stairwells• Maintenance and painting of Building exteriors and com-

munal areas• Lift maintenance• Community personnel such as security guard or caretak-

er• Security monitor and/or gates/doors• Maintenance of common areas such as roofs, gardens

etc…• Legal costs• Official translating costs• Printing• TV Aerials (If community responsibility)• Private water supply (If the Community does not have

Municipal Water)The payment of community fees is obligatory and anyone

failing to do so will be served an official notification from thecommunity before legal action will be taken. It is important tonote that the community fee only covers your obligationswithin the urbanization itself and you will still need to makea separate payment to the local authority which is similar toUK council tax.

In most cases the Comunidad de Propietarios is a veryeffective system, which will help to protect your investmentin the longer term.

Getting To Grips With The Community

4 Friday, May 10, 2013

Information abouCertificate Legilisa

In The UK when you buy or sell a property, you have asurveyor ! In Spain now you need a European EnergyCertificate from a qualified Architect or TechnicalEngineer specialised in Energy ratings. "Spain is twoyears behind the rest of Europe in introducing the resi-dential energy certification". It was introduced intoSpain by law on 1st January 2013 by RoyalDegree.235/2013

The Spanish Government drafted legislation that is goinginto effect in June 2013 and will force all the properties /houses / commercial properties that are for sale or rent, tohold a certificate of energy efficiency to be produced at theNotary as part of the sale / purchase of the property.

Professional Business Support putthe following Questions to our

Certified ArchitectPBS: What is the certification of energy efficiency?Architect: Energy certification is a measurement that is

made to assign properties with an appraisal by assessingthe energy efficiency of the property. In general the formulaof the certificate is Kg Co2 / m2 year. Exactly what it involvesis taking a series of data of the property, to calculate somevariables then study the data to get a result as an energy rat-ing. The Data taken includes photos, Building qualities,Insulation, orientation, plan, heating, appliances. This thenbecomes a rating, as currently incorporated with all newelectrical appliances, and that goes from A to G, with quali-fied properties obtaining an A rating being the most efficientand G the least efficient one. Most properties here on theCosta Blanca would achieve a E, F or G Rating.

PBS: What are the main aspects that make a propertyobtain a good energy efficiency rating?

Architect: First a measurement is made of the property(KgCO2/M2year) through the plans where aspects areobserved as to there orientation. It is not the same as ahouse is south facing against one that is facing north, or hav-ing many or few facades to the outside, even if other build-ings overshadow it. This does not mean a south facinghouse is better than a north; a South facing house may haveto use more electric to cool it down in summer. The architectalso measures the size of the windows and the type of glassthat have, the materials of construction of the housing, heat-ing, air conditioning available and an efficient water heater.

For example, energy efficiency is quite different with adiesel / oil or electrical installation, which are rather ineffi-cient, than an installation of gas or biomass, which are moreefficient. Also taken into consideration is the age of theseinstallations.

PBS: Who is responsible for obtaining a certificate for aproperty?

Architect: The Owner of a property is responsible for hav-ing a certificate made.

PBS: How long is a new energy rating certificate valid for?Architect: The Certificate is valid for 10 years, unless

major changes will be made to the property. PBS: What impact will good energy efficiency have?Architect: Having a good energy rating in principal cre-

ates lower power / energy consumption. Knowing the energyrating of a home you can tell if you the consumer more orless throughout the year in heating costs or air conditioning.In short, a better rating would mean that the property will bebetter valued as it is more energy efficient.

If the reforms are made that the architect suggests anannual saving of energy costs would be noticeable.

PBS: What difference in consumption would there bebetween a home with a better or worse energy efficiency rat-ing?

Architect: We have studied cases where a G-rated familyhome, the less efficient, had a monthly consumption of heat-ing of 600 euro a month in winter. After the survey and refur-bishment of the property, among which was the installationof a biomass boiler, the house rating changed to a B and amonthly consumption was significantly reduced per month.

The energy rating certificate is to inform prospective cus-tomers, buyers, on how efficient are these homes. Havingtransparency means for improved energy efficiency of build-ings.

PBS: What average cost may be incurred in restoring ahome to improve one level in the scale of energy efficiency?

Architect: The cost is relative, each case is totally differ-ent. But for example, you could make a change of windowsin a building with an average of five windows, and the costwould be between 3,000 and 5,000 euros, but also dependgreatly on the type of windows that you choose. In any case,this housing reform would have a great improvement inenergy efficiency. On the other end of the scale a few energyefficient light bulbs can help a lot.

PBS: What does it cost to qualify and certify a home?Architect: For an average property, the price is about 230

euro plus IVA. This price includes the site visit, measure-ment, plans, photographs, building specifications and valua-tion of housing and the delivery of the certificate and theenergy efficiency label, with a declaration of responsibilityfrom the architect. Also including recommendations to

5Friday, May 10, 2013

Do you own property in Spain and arelooking to achieve the best possible returnsfrom your investment with the least possibleeffort? Then let OP Group take control…

OP Group Spain is one of the CostaBlanca’s leading Property Sales, Rental andManagement Companies. A family-run busi-ness, it was launched over 7 years ago, andnow embraces offices in Algorfa, La Marinaand Gran Alacant, with hundreds of proper-ties spanning the coast from Alicante toCampoamor. Directors Steve Austen andStuart Markham explained that their corebusiness is looking after the client’s invest-ment, and helping them to get the best out ofit in accordance with their requirements, atthe most competitive prices. They are joinedby a friendly, bilingual team who are happyto help clients with all manner of tasks fromobtaining Residence Certificates to signingon the Padron. The team visit each propertyregularly to ensure that everything is safeand secure, and report this back to theowner for their peace of mind. This simplestep can save the homeowner money in thelong-term, for example, if there is a waterleak, electrics have been left on, or if theproperty has suffered a break-in.

The long term rentals market is currentlyextremely buoyant, as many who moved outof Spain when the crisis hit have began toreturn, while others are arriving in search ofa better life. All letting contracts arranged byOP Group are fully legal, and designed toprotect both parties, ensuring that the tenan-cy runs smoothly. The tenant can contact theoffice with any concerns, and a maintenanceman is on-hand for swift attention to anyproblems which should arise with the proper-ty. In the event of non-payment, they operatea Rental Guarantee Scheme, using an inde-

pendent arbitration company, for quick evic-tion and prompt legal action. OP Group alsoextends a comprehensive holiday lettingsservice, where they will market the property,arrange bookings and organize any cleaningand maintenance required so that everythingis in perfect condition when the guestsarrive. The team “meet and greet” theclients, either at the airport with a rental caror transport them to their accommodation; orthey may collect keys from the office and beshown to the property from there. Plus, tohelp them make the most of their vacation,OP Group will even book activities such asgolf, scuba diving, hot air balloon rides, boatrides and other excursions on their behalf!Meanwhile, for those who are looking to sell,OP Group is a great place to start. Withclever marketing initiatives and collaboratingAgents out in the field, they can offer maxi-mum exposure for your property, and thus aquick sale at the right price!

So to start getting more out of your prop-erty give them a call today on 966 729 653.Alternatively, you may email enquiries toinfo@opgroupspain.com.

Property ManagementWith OP Group

ut the New Energytion 2013 in Spain

increase the energy efficiency of you property and estimatedcosts to do so.

PBS: What do you an architect think about the rules thegovernment want to introduce to certify the energy efficiencyof all homes for sale or for rent?

Architect: The law seems very positive, in fact it isalready worked in virtually all countries of the EuropeanUnion, here in Spain we are two years behind the rest. Whatthis legislation will mean is that all prospective tenants orbuyers will have a graphic energy efficiency report of theproperty in which they are interested. Currently, when webuy a house and make a major investment in our life, wehave virtually no information about that property and yetwhen we buy any electronic gadget they come with aninstruction book and guarantee.

Any initiative involving greater information for buyers ortenants is very positive. The important thing now is that theinitiative is carried out.

PBS: What type of property is required to make the ener-gy certification under the new rules?

Architect: All property that is offered for sale or rent, pri-vate and commercial. But there are other private homes, ofmore than 500 square meters, while not entering the hous-ing market, whether they are publicly accessible spaces(such as offices, stores, hotels, financial institutions) will berequired to make the certification energy.

PBS: Can a property fail the Energy Certification?Architect: It is not a pass or fail situation. It is merely

and informative certificate for the purchaser or ten-ant of that property.

PBS: Do you think it is all right that the legislationordered by the Government of Spain make it

mandatory for the certification for anyone who wants to rentor sell their home or do you believe it should be the decisionof the owners?

Architect: Ultimately it is the owner who is providing infor-mation on their own property which is for sale or rent, to theadvantage of the buyer. What is being promoted is trans-parency in the real estate market, to attract and inform pos-sible buyers.

PBS: What do you think about the positives and negativesof the energy efficiency certification to an owner who wantsto rent or sell your home?

Architect: Obviously the owner is going to bear payingthe initial fee to certify their home. But what this is going todo is encourage some competition between energy efficien-cies of various buildings and therefore the rehabilitation ofhomes. Households with improved energy efficiency willhave a better argument to sell property quicker.

PBS: Can the energy rating of new homesales benefit the newer propertieswhich are supposedly be con-structed more efficient, com-pared to older homes?

A r c h i t e c t :N e w e rhomes

that are built under the current technical code since 2007,are also required to have this energy certification but withthe new work codes will have a better rating. Probably theoldest buildings have a worse efficiency, but it is also quitepossible that during the life of these buildings have had ren-ovations. The rating will be shown that these properties havebeen reformed in certain aspects to have better energy effi-ciency.

PBS: Do you think the Spanish homes have a better orworse energy efficiency over the European housing?

Architect: They are less efficient. In fact in England, wherethese rules came into force a few years ago, it was foundthat the properties had increased energy efficiency reformsand therefore have gained better energy ratings.

PBS: What are the most common deficiencies of Spanishhomes in terms of energy efficiency?

Architect: The issues that are deficient in Spanishproperties are heating; diesel, for example is very ineffi-cient. Also insulation issues in the construction of hous-ing and the type of windows are the worst offenders.

PBS: Will a Notary let a house sale go ahead withoutan energy certificate?

Architect: As from the 1st of June 2013 no propertycan be signed at the notary without Energy Certificationprovided by a qualified Certified Technical Engineer orArchitect.

PBS: Thank you for the Explanation, How do clientsget in contact with you?

Architect: All clients can contact yourselvesProfessional Business Support on 966 923 963 or visityour offices. They can leave their details with you, I willthen arrange to visit their property.

6 Friday, May 10, 2013

It is all too easy to get carried away with the thoughtsof endless sunny days and the colourful culture thatcomes with living in Spain. But when investing insomething as valuable as a future home you need togo in with a clear head.

If you are seriously considering investing in aSpanish property you may already have heard of the“Association of International Property professionals”(AIPP), a UK based association which works to protectthe interests of buyers of overseas property. They havea wealth of knowledge of the protocol that is involvedin overseas investment, and are also familiar withsome of the most common blunders that buyers contin-ue to make. AIPP argue that there are a plethora ofmagazines and websites which offer advice on what todo when buying property abroad, but there are veryfew which advise you of what not to do. Therefore, inthis week’s Property Plus we have included a list of thetop ten things to avoid when buying your next home.

1) Entrusting in a Solicitor who works for, or closelywith the developer or agent- Great big NO NO! It is vitalto use a Solicitor when purchasing property as theyknow the in’s and out’s of the Spanish system, butmake sure that they are entirely independent, so thatthere would never be a conflict of interests should youhave an legal problems with the developer furtherdown the line.

2) Confusing a Solicitor with a Notary- This is a com-mon mistake and easy to confuse, as Notaries do notform part of the conveyancing process in the UK. However,in most popular overseas destinations including Spain, it isthe Notary who must by law rubber-stamp all property trans-actions. If not they are not legally binding and will not standup in court.

3) Signing a contract without seeking independent legaladvice- It can be tempting to side step this process, espe-cially if you are in the hands of a very good salesman!However, it is vital to appoint a Solicitor no matter how cluedup the agent might appear. Remember that they want you tobuy, and may put pressure on you to sign something whichmay not be quite as it seems if you get a professional in toread the small print! It is very easy to find an English speak-

ing Solicitor in Spain, who will usually be available byemail/fax to check a contract for a small fee.

4) Counting on a verbal agreement- Even if you are buy-ing or renting off someone who you know, you must alwaysensure that every last detail that you have agreed is put inwriting, from the payment of utility bills to the fixtures and fit-tings. Ensure that your contract is watertight and that everypage is signed so that no unauthorized changes can bemade later on.

5) Overlooking additional buying costs- In some countries,including Spain, the addition of legal fees and property taxescan increase your purchase price by as much as 15%, whichcan come as real shock if you haven’t budgeted for it. Your

agent should be able to advise of the entire cost to you,and if you are not convinced then ask a FinancialAdvisor or Solicitor to give you a break down.

6) Dismissing the consequences of fluctuatingexchange rates- If you are making your investment insterling, remember that your buying power will varyaccording to the strength of the pound against the euroat the time of signing at the Notary. Naturally if thevalue of the pound sees a dip the amount of capitalwhich you propose to put down against the propertywill have to increase.

7) Overstretching your finances- It is very easy toconvince yourself that you can afford something whichyou really want, even though the reality is that you aregoing to struggle in the long term. Plus, if planning tolet the property, it is also very risky to rely entirely onrental income to cover your monthly mortgage repay-ments, as you cannot guarantee that you will alwayshave a tenant, or indeed, that they will pay!

8) Ignoring your taxation obligations- You should getadvice regarding your tax obligations prior to commit-ting to a purchase, as this will help you to budget forthe future. Most importantly, do not assume that thesystem in Spain is the same as in the UK, as it has itsown set of regulations, particularly when it comes toproperty and inheritance issues.

9) Under-declaring the purchase price on theEscritura- this was common practice several yearsago, and some companies will still encourage you to

do it as the cheapest option, but don’t be tempted. It is con-sidered as fraud under Spanish law and could leave youbehind bars rather than in your dream home.

10) Letting your heart rule your head- the perfect point tofinish on. The vast majority of property purchases in Spainrun smoothly, but the dream could soon turn into a night-mare if you dive in at the deep end without doing your home-work.

So to re-cap…. entrust a respectable Estate Agent,appoint an independent Solicitor, ensure that you have afully legal fool-proof contract and glean as much informationas you can about your property, rights and obligations beforeyou buy.

Top Ten Property Buying Blunders

7Friday, May 10, 2013

Here and now is still the ideal time toinvest in property in Spain, as housing pricescontinue to plummet.

The average value of a Spanish propertyhas dropped by an incredible 30% sinceprices hit their peak during the first quarter of2008. This was largely due to the drasticdecreases witnessed during 2010 (-6.6%)and 2011 (-10.5%), with the trend continuinginto last year when prices fell by over 13%.According to the 2012 statistical real estateregistry yearbook of the College of PropertyRegistrars, house purchases fell by an esti-mated 10.6% last year, with a drop of 10.5%in new houses and 10.7% in resales,amounting to a total 330,750 transactions.They believe that “the new tax changes – theend of tax deductions for home purchasesand the increase in VAT from January 2013– have not changed the fundamental trend ofpast years”, adding that property transac-tions were distributed almost equallybetween new housing (49.9%) and resales(50.08%).

MortgagesAccording to the latest figures released by

the National Statistics Institute, the numberof new mortgages on homes stood at 24,197in February this year, signifying a drop of7.5% when compared with the same monthduring 2012. During last year, the averagemortgage value measured 105,421euros, which equates to 9.7% less thanin 2011, and is on a par with values of2003- clearly as a result of the fall inhouse prices. However, the aver-age interest rate on residentialmortgage loans stood at4.08%, increasing over a twoyear period from 3.37% in2010 and 3.72% in 2011,in spite of a series ofmajor reductions inthe Euribor.Meanwhile theborrowed capitalreduced by9.2% year-on-year, to2 , 5 0 7 . 4m i l l i o neuros.

During January and February of thisyear, mortgages on homes witnessed adrop of 4.9%, compared with the drasticfall of 9.9% experienced in February2012. The statistics agency’s recordsstate that of mortgages borrowed duringFebruary, a totalof 37,656 wereconstituted onrural and urbanp r o p e r t i e s ,equating to adecrease of13.7% comparedto February2012. Mortgageswhich constituteda variable inter-est rate haveb e c o m efavourable to those with a fixed rate, rep-resenting 92.3% of the total amount; withthe Euribor being the reference interestrate most commonly used in constitutingmortgages with a variable interest rate,specifically in 87.1% of new contracts.

According to Spanish economy portal“El Economista”, the regions which haveregistered the greatest number of new

mortgages since the start of the year includeAndalusia (4,545), Madrid (3,900) andCatalonia (3,420). Further to this, theregions with the highest annual growth rateincluded La Rioja (+42.8%) and the CanaryIslands (+37.5%), while the most significantdownturns were witnessed in the BalearicIslands (-30.5%) and Castilla-La Mancha (-30.1%). Madrid was found to be the regionwhere buyers would provide the largest sumof capital towards their purchase, summing550.7 million euros, followed by Andalucia(404 million euros) and Catalonia (396.3 mil-lion euros). A spokesperson for the Collegeof Registrars stressed that “Consequentlywe are seeing a strong reduction in thehousing investment component of theSpanish real estate market”.

MovementOf the total number of properties sold dur-

ing 2012, 68.24% had belonged to the sameowner for more than five years, compared to64.74% in 2011 and 49.74% in 2009.Comparatively, the number of people whohad lived in the same property for less thantwo years and were already looking to sell upwas far less during 2012, measuring only13.64%, compared to 22.5% in 2007.

Foreign InvestmentEl Economista reports that foreigninvestors accounted for 8.12% of the

house purchases recorded in Spain in2012, which equates to 6% more

than in 2011 and a record highsince the property boom of 2007,

when the figure stood at 8.2%.Figures show that foreign buy-

ers still prefer to settle onthe coast, with the

Valencia Region in thirdposition in the popular-

ity stakes at 18.01%,trailing only the

Balearic Islands(24.95%) and

the CanaryI s l a n d s

(22.11%).O t h e r

popular

coastal regions include Murcia(11.24%), Catalonia (9.34%) andAndalucia (8.86%). In terms of national-ity, these purchases were dividedbetween British (16.6% of the total),French (9.9%), Russian (9.6%),

German (7.9%),Belgian (6.5%),N o r w e g i a n(5.7%), Italian(4.9%) andS w e d i s h(4.6%). Dutchpeople werethe largestinvestors innew property,with 58.6% oftheir total pur-

chases relatingto this type of property, with Russians(56.8%), Swedish (54.6%), Belgians(52.9%), Norwegian (52.8%) and Britishinvestors (52.1%) also opting for newdevelopments. This was in contrast toresale properties where Algerian buyersmade the greatest impact (70.4%), fol-lowed by Moroccans (64.8%) andChinese (64.5%).

Spain Sees a 30% Fallin the Cost of Housing

8 Friday, May 10, 2013