Canary Islands property market is flourishing on the back of high tourism

The Canary Islands property market is flourishing on the back of high tourism figures. The Canary Islands is an established tourism destination, which means it has a solid infrastructure, and all the mod-cons, luxuries and amenities necessary for a wicked holiday. It also has a perfect climate; warm all year, but never scorching and has many good golf-courses. As a result, Canary Islands property is often marketed as the only place you can guarantee a sunny game of golf on Christmas day. They are the commodities that give the Canary Islands property market so much vitality and continued growth.

The Canary Islands property market’s established status, with a reputation for sustained growth presents a safe investment location.

Investment Property in the Canary Islands:

Canary Islands investment property is favoured by people looking for a holiday home/investment property. Because of its established market, people looking at making a property investment in the Canary Islands should know prices are not as low as emerging markets, but rental yields on Canary Islands property will always be above the 6% mark, capital appreciation around the established market average (8-10%) or just a little above.

Canary Islands property will continue to be a popular choice with investors as long as the Canary Islands continue to attract ten million tourists per year.

If you want to buy property in Canary Islands contact info@goldacre-estates.com, call 0034-928535044, or browse options at www.goldacre-estates.com.

Source: DSR

Corralejo apartment in Fuerteventura for sale

A spacious penthouse apartment with a large roof terrace and an enclosed corner terrace enjoying views to Lobos and Lanzarote. This is a 3 bedroom apartment with 2 bathrooms so it is the perfect family home. Property has a lift to all floors and comes with a fitted kitchen. There are also gardens and a huge communal swimming pool. Besides, we offer great price so what are you waiting for ?

For more information on this contact info@goldacre-estates.com, call 0034-928535044 or browse other options at http://www.goldacre-estates.com

Spanish & Canary Island Property Sales up on 2009

Spanish Property Sales are up on 2009 according to latest statistics. The media love to kick you when you’re down and Spain has received a particularly savage beating at the hands of the press over the past few years. It has not a bed of roses in the UK market either but at least British agents could console themselves that it could have been a whole lot worse – they could have been selling Spanish holiday homes in a rapidly falling and over-supplied market. However, new data published this week may cause a few UK agents to look south with envy and not just because of the sunny weather.Although, according to the TINSA index the rate of price falls in Spain is increasing (5% in September compared to 4.6% in August and 4% in July), property sales are up 26% year-on-year (although sales are down 45% on 2007) accordingly to the Spanish National Institute of Statistics (INE). Now Spanish house price statistics are hardly known for their robustness (in absolute terms) but they are usually fairly reliable when it comes to spotting trends. The best explanation for the figures is that Spanish vendors are finally beginning to realise that they have to accept lower prices. The stand off between buyers and sellers could be coming to an end and that only means one thing: higher transaction volumes and more agent commission. Contrast this with the situation in the UK where actuall prices achieved are falling sharply but asking prices are rising. I am not saying the Spanish property market is in a healthier state that of Spain long term; but I know which market I know which market I would rather be working in right now and its not the one where sellers have become deluded and out of touch with reality.
For the latest Fuerteventura property price reductions visit http://www.goldacre-estates.com/ or contact info@goldacre-estates.com or call 0034-928535044.

Fuerteventura Canary Islands Flights up 50% Over Winter Season

Winter flights to Fuerteventura in the Canary Islands are expected to soar following release of slot reservation numbers that show a 50% increase over 2009 figures. Visitor numbers so far to the Island have been higher following increased routes and new market growth – August saw 194 International flights this year up by 57 flights and many hotels have experienced 80-100% occupancy levels.

Fuerteventura Tourism Board headed by Agueda Montelongo has been working to improve the exposure of the Island to new markets such as France, Poland and Scandinavia and at the same time increase connectivity to traditional markets. Encouragingly these traditional markets are to see the biggest increases with the UK set to increase by 52%, Germany 29%, and Ireland a huge 756%! Emerging markets will also improve with France 59%, Holland 90% and Scandinavia 55%.

The new figures also show a particular bias to Fuerteventura compared to other Canary Islands, re-establishing it as the fastest growing Island. General forecasts for the Canary Islands show a 31% rise with Fuerteventura 50% and although flights from mainland Spain look to fall by 2% across the archipelago, Fuerteventura is looking at a 13% increase.

Agueda Montelongo also mentioned the increase in Cruise ships for this winter with an additional 12 berths between September and April starting with the Aidablu which arrived yesterday to Puerto Rosario. Although these visitors only spend a day on the Island they are still important to the promotion of the Island in general and the impressions they leave with are crucial to Fuerteventuras image.

Much of the increase in traffic is down to the return of Ryanair especially for the Irish markets however with the investment to lengthen the runway, build a second terminal and other projects like the Northern motorway, other major carriers have also seen the potential of Fuerteventura. Monarch, Easyjet, Air Lingus have been busy this year and their continued commitment lends stability to the growth figures.

Of course the forecasts will be good news to many businesses across the Islands and in particular to those second home property owners who not only will be able to visit more frequently but will also benefit from additional rental bookings. Short term rental figures have also increased this year with many owners experiencing 40 weeks occupation making their return on investment very high. The improved winter season flights also establish Fuerteventura as the fastest growing winter sun destination in Europe.

For more information on Fuerteventura, Gran Canaria and Greece Head to the 'more' section of our website www.goldacre-estates.com

Get Your Sterling Highs For Euro Exchange and Canary Property

Sterling appreciates against the euro to levels last seen in December 2008 Sterling’s appreciation against the euro continued last week with a new 18-month high recorded at €1.2114, whilst a higher low was seen at €1.1715.

The main releases from the UK saw the publication of the Purchasing Managers Index (PMI) figures, which are leading indicators of economic health and seen as a good barometer of the sustainability of the current recovery in markets around the world. The UK’s Manufacturing PMI maintained a 15-year high reading of 58 (above 50 is expansionary, below is a sign of contraction in activity) despite a small fall being forecast. The construction sector also continued its recent resurgence with a reading of 58.5 (which was marginally above expectations), while the services number – the most important of the three – was slightly down on expectations, but still strong at 55.4. All of this lends further credibility to the UK recovery gathering pace.
Elsewhere, the pound also gained on news that UK house prices rose to the highest levels in more than two years. The Nationwide Building Society said the average cost of a home increased 0.5% in May to the highest level since July 2008. They maintain their view that the current supply and demand balance in the market is still consistent, with relatively stable to modestly increasing prices.

The other main news of the week was the collapse of the ambitious attempt by Prudential to buy AIG's Asian arm. This prompted the unwinding of currency hedges put in place in anticipation of a deal, when the initial bid was announced back in March. AIG’s outright rejection of a reduced offer from The Pru’ put an end to the deal once and for all, with the UK insurer confirming that the deal was off on Wednesday. Sterling rose broadly on Tuesday as anticipation grew that the deal was close to collapse. The currency was still benefitting when the deal was finally taken off the table.

The euro has continued to struggle, as risk aversion at one point waned, resulting in renewed buying of riskier assets, including sterling. The recent downgrade of Spanish sovereign debt by credit ratings agency Fitch left the euro on the back foot due to ongoing structural weaknesses, particularly in the southern Mediterranean area of the eurozone.

Despite assurances from China and Kuwait that the euro’s current troubles would not affect their purchases of the single currency, rumours surfaced that Iran planned to sell some of its euro holdings as a result of the volatility. A Chinese news agency report that the Iranian central bank would sell €45bn of its foreign exchange reserves to buy dollars and gold further dented investors’ desire to hold the single currency. This adjustment to their reserve holdings was expected to be conducted in three stages, with the first tranche already underway. It was also claimed that other Gulf states had started to cut their euro holdings.
Data flows have had limited impact on the single currency in recent weeks and the same was true this time around. German retail sales and employment figures were better than forecast, whereas the Europe-wide unemployment rate remained constant. European retail sales were down 1.2% against the forecast of a small rise and revised GDP was unchanged at 0.2%. As mentioned above, this had almost no effect on the euro, with investors preoccupied with more serious matters. However, the data is not supportive of a broad-based recovery in Europe, which will be of concern to those nations about to embark on significant spending cuts that will only hinder growth further.
A more specific indicator of future growth rates was the composite European version of the Purchasing Managers Index (PMI). This showed a fall to 56.4 from 57.3 in April – although this was still above an estimated 56.2. The service sector component rose to 56.2 from 55.6, whereas the manufacturing figure declined to 55.8 from 57.6. The outlook for the region’s economy has darkened in recent months, as the threat of contagion from Greece’s fiscal crisis raises investors’ concern about the future of the euro area. While the problem has pushed the euro lower this year, making exports more competitive, governments have had to respond with tougher austerity measures to cut budget deficits. This, in turn, has dampened consumer confidence. Further alarming news from the eurozone came from an eastern European member state. Last week saw Hungary’s new Prime Minister, Viktor Orban reveal that his nation’s finances were in a “very grave situation” and that his predecessor had falsified the true state of his country’s finances.
Whilst Hungary is not the biggest economic power in the world, this news will further undermine confidence in the eurozone due to the lengthening list of nations that may need to seek emergency funding from the European Central Bank (ECB) in the future. With worsening economic conditions gripping the southern Mediterranean countries, we are already seeing great levels for euro buyers to hedge all or part of their exposure. Whether for a one-off real estate purchase or ongoing living costs, they would be wise to fix a price for half the amount of currency they are going to need. Hedging does not guarantee buying euros at the best possible price; it guarantees not buying them at the worst.

Britons Can Save Millions on Euro Exchange in Spain

Britons missing out on £101M each year on international money transfers

Poor bank rates and high charges for foreign exchange transactions mean individuals need to be savvier when transferring money overseas. Research by Moneycorp reveals that Brits are potentially losing over £101m a year by not shopping around for the best deals when transferring money abroad. Furthermore, uncompetitive exchange rates and high bank charges are costing individuals a lot of money, despite a concerted effort by most to reduce their outgoings on luxury and even staple items.

David Kerns, Head of Personal Clients at Moneycorp, comments:

“While many individuals are visiting comparison websites more frequently, checking voucher code sites and consulting online consumer forums before purchasing goods in order to save money, this mindset doesn’t seem to have extended to foreign exchange. As a result, individuals are missing out on a very large sum of money they could be saving, by transferring funds overseas through a foreign exchange specialist rather than a bank. Not surprisingly, high street banks are cashing in as a result of this surprisingly apathetic approach.”

People buying or selling property overseas and people emigrating or repatriating will be particularly affected, though this issue will affect all Brits who are transferring money overseas.

People who own additional properties abroad and make regular mortgage and/or utilities payments will also be badly affected, as every transfer is open to individual transfer charges, in addition to exchange rates.

Data from the UK’s number one property website, Rightmove Overseas, reveals that the average house price in the Costa del Sol in Spain is currently €369,860.68. With a deposit of 10% (€36,986), using a high street bank rather than Moneycorp would cost an individual, on average, an extra £558 on their deposit alone.

An individual who wants to transfer a lump sum of £100,000 to an account in Europe would lose out on an average of €1,690 by using their bank for the transfer into euros.

David Kerns concludes: “Despite the UK coming out of recession recently, individuals shouldn’t be lining the pockets of their bank managers and it’s in their best interest to maximise their investments. Prior to making any overseas payments, we always advocate that people shop around to get the best rates possible.”

If you are looking for the best currency deal for buying or selling property in the Canary Islands ask Goldacre Estates on 0034-928 53 50 44 or contact them at info@goldacre-estates.com

Sterling vs Euro for Property Purchase in Eurozone & Canary Islands

Latest on Sterling vs Euro and financial markets by Halo Financial for those buying properties in the Euro zone and Canary Islands:
Yesterday was a day of ooops moments; Gordon Brown forgot he was wearing an open microphone when he spoke insultingly and dismissively of a woman who had merely expressed her fears over unbridled immigration and the Eurozone suffered a couple of oops moments when Spain had its credit rating downgraded by Standard and Poors and when it seemed the Greek bailout could suffer further delays; delays that Greece can ill afford. There was a bright spot for Greece though in that the International Monetary Fund suggested the bailout package could be more than double the initial estimate of €45 billion that was mooted a few weeks ago.
Apart from being long overdue in many analysts’ eyes, the Spanish rating downgrade was seen by many as a warning shot across Britain’s bows; a strong hint that unless the next government gets to grips with our debt problems straight away, Britain too could have its sovereign debt rating lowered. Apart from being just plain embarrassing, it makes servicing the existing debt more expensive because, just as Greece is discovering right now, a lower credit rating means a country has to pay a premium over and above bonds in countries like Germany and America, to lure investors. When you owe as much as Britain does, even a small premium sucks significant funds out of the domestic economy and hampers growth.
So when the dust had settled on all of that, the outcome was that the Pound fell, the Euro fell and the US Dollar which is the global safe haven these days, strengthened across the board. Of the Pound and Euro, Sterling had the most to lose in the short term because it has been doing rather better than the Euro of late and Gordon Brown’s faux pas made the hung parliament story spring back to life. I know the threat to the economy of a coalition government is being downplayed by all manner of ‘experts’ and politicos but the fear of a lack of clear leadership is the issue that dogs the Pound whenever hung parliaments are mentioned and I don’t think it is a debate with an answer until the election is over and, if we are to have a hung parliament, the wrangling and negotiating about the form that the next government will take is concluded.
In other news we saw the Reserve Bank of New Zealand leave its base interest rate on hold last night at 2.5 percent. Not only did the RBNZ do as many had forecast they would but they also suggested the tightening cycle, when it comes, would not have to be as fast and furious as had previously been thought. This is a factor of the steadier recovery than we had all hoped for. The New Zealand Dollar weakened a little against most currencies when the announcement was made but Sterling was on a slide anyway so the Sterling - NZ Dollar exchange rate is actually 5 cents lower this morning than when it peaked earlier in the week.
We also had an interest rate announcement from the US Federal Reserve late yesterday and, just like the RBNZ, they left their base rate on hold but their current level is much lower than the Kiwi base rate. The Fed is currently operating on a variable Fed funds rate between 0.0% and 0.25% and they reiterated their view that this will remain the case for some time to come. However, they did change a couple of lines in their well read standard statement; they saw both the housing and the employment markets improving slightly whereas in previous statements they have commented that these areas were flat. Don’t laugh but these miniscule changes in central bank communiqués get some analysts in a right old tizzy. It is certainly enough to move the US Dollar but that is already being bought heavily by investors seeking the safety of the US bond and equities markets.
Today is a quiet one on the data front with no more than a smattering of EU data to keep the financial market roulette tables spinning. We get EU money supply data and three economic confidence indices to mull over along with German employment data. This evening’s main event is the last of the party leader TV debates before polling day and it looks set to be a corker. I think we should have a sweep on how many times Gordon Brown’s “bigoted woman” comment gets alluded to, another on how many times the word ‘Brave’ is used to describe those in the armed forces in that rather patronising tone that politicians tend to adopt when they speak of the military personnel and another on how many times the word ‘change’ is used. This being the last chance for the three of them to make their mark, it looks set to make for very entertaining viewing.
Have a great evening’s viewing. Popcorn anyone?

4th Quarter Boost in Property Sales In The Canary Islands

With the majority of 2009 behind us it is becoming easier to piece together a picture of how the Canary Islands and in particular Gran Canaria’s and Fuerteventura’s property markets have been moving this year. Compared to mainland Spain the Real Estate market in the Canaries have enjoyed a certain amount of ‘cushioning’ due to its unique geographical position, endless summer climate and restricted supply of luxury second homes, however it has not escaped the general effects of the downturn over the last 18 months with property prices levelling earlier this year.

Higher sales figures this quarter are no doubt due to the specific price deals available on selected products as no doubt were Q1/2 sales when prices had ‘bottomed’ after a long slide in 2008. GoldAcre Estates reported that the return of buyer confidence in Fuerteventura was quite noticeable in Febuary / March showing particular interest in 1-2 bedroom luxury apartments which offer increasingly higher returns as prices had fallen against potential rental incomes.

Resorts in Corralejo like Oasis Papagayo and Oasis Tamarindo were the biggest movers as these had the added advantage of large swimming pools, lush tropical gardens, security and extra sports facilities which make them ideal for holiday rentals. Others like Oasis Royal, Dunas Residential and Atlantic Gardens were a little slower to react to the market changes but offered high value due their central positions closer to the main tourist centre and beaches. In fact GoldAcre Estates said it was not uncommon to see multiple purchases for these style of apartments.

To begin with, Sterling rates dampened the return of the UK investor early in the year and many British buyers lost out to new European markets including the Netherlands and Italy in particular which have not been affected by the need to exchange their monies as they are already euro based.
New flights from these areas including Poland also helped transfer these ‘holiday’ markets into the second home ownership market with buying interest mainly in the North Island of Fuerteventura.

The luxury villa section also saw growth as private owners and specialist developers offered limited price deals. The villages of Lajares, Villaverde, and to a lesser extent La Oliva and El Roque caught the attention of those who may have never considered these areas due to budget constraints. 3-4 bedroom detached villas with large private pools and 1000m2+ plots in a quite country setting yet 10 mins from the beaches were on occasion lower than the magical €300k mark.

Surprisingly despite recent macro economic conditions the trends still follow traditional historic patterns with the main sales in the periods either side of summer holidays. During August as many public services close for holidays including some Notaries and lawyers offices there are fewer exchanges of contracts plus the main holiday markets are busy enjoying the beaches rather than scouting for their next property purchase. August 2009 however saw a high interest level with many visitors taking a serious look at apartments and villa offerings. This has also been extended into the winter season .

In fact the increase of flights to Fuerteventura and Gran Canaria will be a big factor for Q4 as already Christmas flights are becoming booked out. For those existing property owners and clients of Goldacre Estates, Christmas in their second homes in the Canaries never looked brighter. www.goldacre-estates.com

New Sea Route Linking, Canary Islands, Puerto del Rosario, Fuerteventura to Valencia, Spain

The shipping and ferry company “Boluda” is starting a new sea route from Puerto del Rosario, Fuerteventura, Canary Islands to Valencia, Spain.



It is hoped that with the start of this new route with the Spanish mainland goods will arrive sooner and in better condition in the Canary Islands. This will be a weekly service for commercial goods and vehicles and offer ongoing routes to other European destinations by the same shipping company. This is good news for people buying Real Estate in Fuerteventura as now it will be easier to furnish their new properties that they buy and of course owners wanting to bring furniture and personal items over to the island from other European countries