• Madrid property prices down 18.35% in a single year (Kyero.com)
• Rents up by 6.3% (Fotocasa)
• Madrid is most liquid market of Spain’s big cities (Tinsa)

Leading Spanish property portal Kyero.com, which lists more than 200,000 homes from 3,000 estate agents, has highlighted Madrid as one of Spain’s most exciting property markets for overseas property buyers.

Martin Dell, Kyero.com’s Director, explains,

“We’re seeing a really unique situation in Madrid right now, with a range of factors combining to make the city a particularly exciting prospect for those looking to purchase a holiday home that’s also an investment. Not only can they benefit from owning a second home for their own use in this vibrant and exciting city, but the prospects for renting it out are excellent.”

Madrid’s property market has been on its own particular rollercoaster ride of late. In 2015, Knight Frank’s Prime Global Cities Index placed Spain’s capital second in Europe for luxury home price growth. Tinsa went on to report in late 2015 that Madrid had the most liquid market of Spain’s five largest cities, with the average property taking just 6.1 months to sell (by way of comparison, it was 14.3 months in Valencia).

However, according to the latest Madrid market report from data.kyero.com, home values in Madrid are down 18.35% on the same time last year, having fallen to a median price of €445,000 in February 2016.

The fall in prices means that Madrid’s property market is offering a great deal more for the money than it was a year ago, and for buyers paying in sterling the ongoing strength of the pound against the euro paints an even more positive picture.

At the same time as prices have fallen in Madrid, rents have been on the rise, increasing by 6.3% in the year to November 2015, according to Fotocasa , and positioning Madrid as the second most expensive place to rent in the country.

Lowered prices and higher rents are a great combination for those looking for a holiday home that they can also rent out and Madrid is offering the perfect storm of these factors, making now the ideal time to purchase a buy-to-let.

Low prices also mean the potential for capital growth, a situation which David Beckham enjoyed when he sold his Madrid mansion in 2015, making a £1 million profit in the eight years since he bought it.

While Becks might have sold up and moved on, those buying property in Madrid still have the chance to rub shoulders with plenty of other celebrities, including clusters of Real Madrid players who have adopted the La Finca and La Moraleja areas of the city as their home turf. Research from Promora has shown that owning a modern and spacious home is top of the priority list so far as Real Madrid players are concerned, followed by a quiet and private location, a house with top security measures and space for a home gym.

Professional footballers’ budgets may be a little higher than for most of those buying a second home, but the wealth of property available in Madrid certainly provides plenty of choice, regardless of how much a buyer has available to spend. At least, it does for those buyers who are prepared to act fast and take advantage of the city’s lowered prices, before they start to rise again!

For further details on properties to buy and rent in Madrid and other parts of Spain, visit www.kyero.com. For the latest data on the state of the Spanish property market, visit https://data.kyero.com.

• Spanish rental sector doubles in size in 5 years (National Statistics Institute)
• Yields of up to 7.6% available for long-term lets (Idealista)
• Strong demand from both Spanish nationals and foreign residents (Kyero)

In Spain, as in many other countries, home ownership has historically been seen as preferable to renting a property, due to the security and investment that ownership provides. However, the economic events of the past decade have brought about a shift in the Spanish long-term rentals market, with increasing numbers of people opting to rent either as a lifestyle choice or due to an inability to get onto the housing ladder.

Martin Dell, Director of Kyero.com, the portal which lists property sales, holiday rentals and long-term rentals, explains,

“The past few years have seen a significant increase in the number of people in Spain looking to rent property on a long-term basis. Kyero’s long-term rentals site has experienced strong demand, from Spanish nationals and from foreign residents, while our sales site has received interest from investors looking to build up buy-to-let portfolios while property prices remain low.”

The promise of improving yields has prompted many investors to turn to Spain as the next buy-to-let destination of choice. Figures from Idealista reveal that yields have increased from 4.7% a year ago, to 5.3% currently. Popular tourist areas, such as Las Palmas de Gran Canaria offered returns of up to 6%. A modern, one bedroom apartment with sea view can be rented out for €700 per month, while a spacious three bedroom townhouse with sweeping views of the bay and port costs from as little as €145,000.

Nor is it just tourist areas that offer strong returns. The highest yielding area, according to the Idealista figures, is the Catalonian regional capital of Lleida, where returns have reached 7.6%. A two bedroom, three bathroom, high spec apartment with balcony there can be picked up for €207,800.

The news that Spanish rents rose for the first time in seven years in Q1 2015 is further piquing the interest of buy-to-let investors with their eye on solid returns. According to Fotocasa, the average price of rental accommodation rose by 2.8% during the first quarter of this year, to €6.96 per square metre per month.

Added to all of this is the surge in demand from tenants, with the size of the rental sector more than doubling from 7% just over five years ago to 16.6% in 2014, according to figures from the National Statistics Institute’s Continuous Household Survey.

While more than half of rented homes house foreign tenants, Spanish nationals are increasingly looking to rent due to the flexibility that doing so provides. Following nearly a decade of high unemployment, the Profile of the Tenant in 2014 study has revealed that labour mobility is the main reason that many opt to rent a property rather than purchase one.

The same study provides an interesting insight into the average tenant, who is aged between 35 and 44 years old, married and with a university education. They are professional tenants with families, looking to rent due to the freedom that this provides for employment purposes (22%), the ability to rent in a city other than where they ultimately intend to settle (16%) and the possibility of accessing homes that they could not afford to buy (15%).

This last point is particularly interesting to buy-to-let investors, as it emphasises the increasing focus of tenants on high spec properties with luxury features. Whether it is proximity to a beach, a stunning roof terrace or fabulous sea views, a property with something extra special will certainly attract heightened demand from potential tenants.

With rental yields in the UK and other popular buy-to-let destinations beginning to be squeezed due to rising property prices, the combination of healthy yields, soaring demand and low purchase prices might just see Spain emerge as Europe’s next buy-to-let hotspot.

For further details on properties to rent and buy across Spain, visit www.kyero.com.

• 71% of agents feel more confident in Spanish property market than 1 year ago (Kyero.com)
• 30% of English-speaking agents see stronger sterling as most significant shift in market
• Almeria, Fuerteventura, Gran Canaria and Murcia highlighted as inspiring confidence

The new Spanish Property Market Confidence Index (SPMCI) from leading Spanish property portal Kyero.com has identified some interesting trends in the Spanish market. The survey, covering some 160 English-speaking and 216 Spanish-speaking estate agents across Spain, reveals that on a national level 71% of agents in Spain felt more confident about Spanish property in Q1 2015 than they did compared to a year earlier. Only 4% felt less confident than a year ago.

Interestingly, English-speaking agents were more bullish about the state of the market than their Spanish counterparts. Martin Dell, Director of Kyero.com, which lists more than 200,000 homes from 3,000 estate agents, comments,

“The strength of sterling has played a key role in the confidence divide that we are seeing currently between English-speaking and Spanish-speaking real estate agents in Spain. Some 30% of English-speaking respondents have highlighted stronger sterling as the most significant change over the past 12 months.

“For Spanish-speaking agents, increased marketing tops the table of significant changes, with 26% of respondents flagging this up as the biggest change.”

The findings reveal the stark difference that currency exchange fluctuations can have on similar businesses in the same country, just due to the language that their staff speak. While English-speaking agents in Spain have been able to enjoy more confidence in the market thanks to the pound’s movements, their Spanish peers have been working flat-out on their marketing activity in order to achieve the same goal.

Interestingly, both sets of respondents reported similar figures when it came to buyer confidence, with 20% of English-speaking agents feeling that improved buyer confidence had been the most significant change over the past 12 months, compared with 21% of Spanish-speaking agents.

Four geographical areas stood out as inspiring the most confidence in agents. The first of these was Almeria where a three bedroom, two bathroom villa just minutes from the beach can be picked up for around €175,000. For a lower cost option, a four bedroom, two bathroom cortijo in need of a little TLC, but with extensive land, can be had for as little as €79,000.

Fuerteventura, the second largest of the Canary Islands, also stood out as inspiring above-average confidence in agents. Property there offers excellent value. A two bedroom, two bathroom apartment in Corralejo, for example, can be purchased for just €77,000. The property enjoys a popular town centre location, with beach access just a few minutes away.

Nearby Gran Canaria was also highlighted by respondents. The sun-kissed island offers a variety of properties ideal as both second homes and main residences, as well as some exciting ready-made business opportunities. This stunning site with three villas, pool and existing tourist licence is available for €890,000.

Back on the mainland, Murcia was the fourth area to inspire above-average confidence among agents. A two bedroom apartment with pool in Murcia (city) can be picked up for as little as €69,000. Only the regions of Granada and Tarragona recorded no improvement in confidence since 2014.

For further details on the Spanish Property Market Confidence Index 2015, Spanish property market trends and to view properties available for sale across Spain, visit www.kyero.com.

• Labour voters prefer Greek sunshine – Conservatives head to Ibiza (Holiday Hypermarket)
• Spanish islands set for bumper season (Kyero.com)
• UKIP voters least likely to holiday in UK (Holiday Hypermarket)

With the dust of the General Election beginning to settle, the UK’s citizens can once more begin to focus on the detail of everyday life and now is the perfect time to book that summer break in the sunshine. But it seems that we can’t quite leave the politics behind just yet, as a recent survey from Holiday Hypermarket has discovered.

The survey of more than 2,000 holidaymakers found a direct link between political preference and holiday destination. Labour voters (17.8%) showed a fondness for breaks in Greece, while UKIP followers were keen to head to Egypt. Oddly, UKIP voters were also the least likely to holiday in the UK.

So with a Conservative government in power, where will we be headed this summer? Ibiza and the Canary Islands, according to the survey. Ibiza is well known as a popular holiday destination with the Cameron household and it seems that the Canaries are also a hit with the party’s supporters.

Both Ibiza and the Canaries enjoy a wealth of good quality rental accommodation. Martin Dell, Director of Kyero.com, which offers property sales, holiday rentals and long-term rentals, explains,

“Ibiza and the Canary Islands are ideal for UK holidaymakers wanting a break in the sun. Easily reachable by plane and with fantastic weather and stunning beaches, both have a lot to offer. Ibiza has a reputation as a popular clubbing destination, but also features some of the most tranquil and beautiful spots in the Mediterranean, making it ideal for families as well as younger groups of friends – it’s a very versatile island.”

Those looking to splash the cash can enjoy a four bedroom, three bathroom villa with pool in Ibiza city for a cool €12,000 per week, while those on a more limited budget can still enjoy a second line apartment just 50-70 km from the sea at Santa Eulalia Del Rio from €800 per week.

The Canary Islands also provide holidaymakers with a whole host of options. Tenerife offers some very affordable options, with a two bedroom apartment with terrace and shared pool available for just €350 per week, while Lanzarote has a plethora of one bedroom apartments with communal pool from €140 per week.

“The link between political allegiance and holiday destination is fascinating,” concludes Kyero’s Martin Dell. “With a Conservative majority government in place in the UK, it looks like the Spanish islands are in for a bumper season this summer!”

For further details on properties to rent and buy across Spain, visit www.kyero.com.

• 42% of enquiries in Cantabria for land parcels, 67% from Brits (Kyero.com)
• Buy and build often a cheaper option than resale property (Just Landed)
• 25% of Cantabria enquiries for sub €50k plots (Kyero)

The northern Spanish coastal region of Cantabria is known for its lush vegetation, archaeological sites, fierce local rowing competitions and the quality of its beef, which has earned certain kinds of native cattle a European Union “Meats of Cantabria” Protected Geographic Denomination. It’s a pretty region that makes up part of “Green Spain,” which runs between the Bay of Biscay and the Cantabrian Mountains.

Cantabria is also known for being home to the port city of Santander and to Spain’s third largest livestock market, but other than that the area has little to draw visitors away from the arguably greater attractions of the beaches of southern Spain or the lure of cities such as Barcelona and Madrid. One might therefore be forgiven for thinking that homebuyers would overlook Cantabria, but new data from leading Spanish property portal Kyero.com has revealed that the region is enjoying a significant amount of interest from British land buyers.

The Kyero Enquiry Report for Q1 2015 has shown that of those searching for property in Cantabria, 42% were searching solely for land, while 67% of enquiries were from Brits. The national average figure for those looking for land was just 7%.

Martin Dell, Director of Kyero.com, which lists more than 200,000 homes from 3,000 estate agents, comments,

“The level of interest shown in Cantabria highlights an interesting trend. Price is certainly an influential factor on purchases in the region – 25% of enquiries are for land or properties that cost less than €50k and another 17% are for those costing between €50k and €100k. Buying parcels of land in this way can be a really cost effective way of owning your dream second home in Spain – you buy the land, then build the house that you have always wanted.”

Of course, Spanish red tape can make the process a little more complicated than simply buying and building, but with the right checks before purchase and the right contacts for the design and construction parts of the process, buyers can end up with a home worth far more than they invested. As Just Landed observes,

“It’s still possible in many areas to buy a plot of land and build a bigger and better home for less than the cost of a resale property.”

“Always check that the land is designated as a finca urbana,” advises Martin Dell, “And work in partnership with the local town hall to obtain the approval and certificate that you need to build. Don’t expect the wheels of bureaucracy to move fast, but persevere and the results could be extremely rewarding. Work with a lawyer before making your purchase and ask him or her to investigate any conditions or regulations placed upon the land that you are considering purchasing. A little outlay in time and expense at the start of the process could be well worth it in the long run.”

As well as control over the design, building your own home provides control over the materials used and over eco friendly factors such as solar energy and rainwater harvesting. This can be particularly important for buyers looking to build their own retirement property, as investment in such components at the design and build stage can lead to significant reductions in energy bills once the home is completed.

The attractions of building your own home are being felt across Spain, with the number of building licence applications for new housing increasing by 38.9% in January 2015 according to the Ministry of Development. Applications to reform or restore homes were also up, by 10.6%.

When it comes to British buyers, the key to Cantabria’s popularity may well lie in its ferry link to the UK. Regular sailings from Santander to Plymouth and to Portsmouth provide an economical way to transport people, vehicles and goods between the two countries, with ferries taking around 24 hours to complete a single journey. Even pets can be taken along, with the right documentation.

250 km of coastal scenery and delicious, hearty peasant food add to Cantabria’s charms, though the weather isn’t quite as delightful as that in the Costa del Sol. Still, easy access to the UK and a cost effective way to own a dream holiday home seems to be a winning combination for many British buyers. For those of an active nature, the region offers some of the best surfing conditions in Spain, with both beach breaks and reef breaks present, as well as rockier areas for a wide variety of surfing fun.

The neighbouring Basque Country provides another surfer’s paradise, with Mundaka Beach hosting the World Championships in October each year. Windsurfers and kitesurfers also love the area, with both the Basque Country and Cantabria offering beautiful beach after beautiful beach.

The southern Costas may not have too much to worry about in terms of their overall visitor numbers, but one can’t help feeling that those snubbing Torremolinos in favour of settling in the peaceful countryside of Cantabria have discovered a way to enjoy Spain that they would really rather remained a secret.

To view properties across Spain available for sale and to keep up to date with the latest in Spanish property trends, visit www.kyero.com.

• New mortgages up 1.6% in 2014 (Spanish National Statistics Institute)
• Variable rate mortgages trump fixed rates in Spain, with more than 2% difference (Mortgage Direct)
• Leading portal Kyero.com now lists upwards of 200k properties

New mortgages for Spanish homes rose by 1.6% in volume in 2014, according to data from the Spanish National Statistics Institute, as the market heats up nicely in the wake of an influx of capital from overseas buyers looking to pick up a holiday home at rock bottom price. Both domestic and non-resident buyers are benefitting, as Mortgage Direct’s Kevin Monger observes,

“The market is definitely heating up. Banks are very keen to lend, so inevitably they have become more flexible and are offering better conditions. The conditions we can offer our non-resident clients are now quite similar to those we can offer to Spanish residents/nationals, which is unprecedented in our experience.”

This eagerness to lend – and to clear distressed properties from their books – has seen one bank offering 100% mortgages for new properties, with an additional cashback option of up to 13%. Variable rate mortgages are de rigueur in Spain, with over 95% of customers opting for them, according to Mortgage Direct. While fixed rate mortgages are popular in countries such as the UK, in Spain they remain largely uncompetitive with variable rate options, which tend to offer rates of at least 2% lower.

With overseas buyers included in those able to benefit from mortgages available in Spain, the options facing would-be holiday home owners have improved dramatically over the past year. Martin Dell, Director of leading Spanish property portal, Kyero.com, which now lists more than 200,000 homes from 3,000 estate agents, comments,

“As well as the traditional British market, Spain is also attracting buyers from an increasing number of French speaking countries, as well as further afield. It is a perennially popular country, offering an excellent cuisine, welcoming climate and some of Europe’s most delightful architecture. Second home owners look to Spain for everything from exquisite city apartments in the finest locations to luxury island villas with unrivalled sea views.”

Many buyers are specific in their mortgage requirements, as Kevin Monger points out,

“We do notice that a lot of clients from France and French-speakers from Belgium and Switzerland ask about fixed rates and interest rate caps. Fixed rate mortgages are more prevalent in these countries compared to Spain.”

However, just because they are technically available to foreign buyers doesn’t necessarily mean that those buyers are in for an easy time when it comes to obtaining a Spanish mortgage. Many mortgages for non-residents are complex and time-consuming to apply for and their conditions may change over the lifetime of the mortgage.

“Be sure to consider a range of borrowing options before you commit to buy,” suggests Kyero’s Martin Dell. “Think through the advantages of obtaining a mortgage in your own country as well as those of a mortgage here in Spain. Fixed rate mortgages in Spain, for example, are less attractive for many overseas buyers than they are for Spanish nationals. They are also less attractive than variable rate mortgages, so borrowers need to consider their interest rates carefully and ensure that they shop around for the right mortgage product. Once that part is sorted out, all they need to do is shop around on Kyero for the perfect holiday home in the Spanish sunshine!”

To view properties across Spain available for sale and to keep up to date with the latest in Spanish property trends, visit www.kyero.com.