Spanish press has released reports showing the Spanish real estate market in Cost Blanca region is low because of 50 percent less homes being built there.

Approvals were not given for home making in Costa Blanca region because there remained many unsold homes. The main aim is to clear out the existing homes at fast pace.

According to estimated reports of Alicante College of Technical Architect the housing projects in the last year was only 1900. The peak years had about 50,000 housing projects.

Continuous fall in price of homes is detected in Costa Blanca region because of rapid fall in home demands. The unsold homes need to be purchased to bring property growth in the area. It will take some time to restore the situation in this region.

La Verdad is Spanish newspaper publishing very unfortunate reports of Spanish real estate market. Redoven or Rafal area shows no home building projects. Only 11 homes are built in the popular Denia region in Alicante.

Alicante and Costa Blanca suffered maximum in respect to new home projects. International buyers can only bring relief to their sad condition.

More information and photos can be found at http://www.aplaceinthesun.com

One of Spain’s top developers, Taylor Wimpey España, is offering not just substantial price reduction on some of their prime developments but are also matching the Spanish government’s cut on value added tax from 8% to 4% by marketing new-build properties with a zero rated TAX deal.

Trying to revive the failing Spanish economy with a number of measures, the Spanish government announced the reduction in IVA/VAT last week. Good news for developers who have a multitude of unsold, key-ready properties on their books. The new ruling stays in effect until the end of 2011 and a purchase of a key-ready home can be legally completed by then.

Leading not just with regard to the number of high-end developments built but also in imaginative ways of marketing them, Taylor Wimpey are the first among Spain’s developers to offer such advantageous deals. The developer will carry the cost of the 4% VAT levy for any purchase made by the official deadline from a choice of their developments.

In total, an investor who buys before the 31^st December 2011, can enjoy price reductions of an additional 8% on top of the already generous discounts being offered across Spain.

Some 20 properties located in Mallorca, Costa Blanca, Costa del Sol and various other regions of Spain are being made available for the zero rated TAX offer.

More information and photos can be found at http://www.propertyinspain.net

Doom and gloom have been the key-words for describing the state of the housing market in Spain as of late. Various factors have caused the market to crash completely, both for foreign investors and Spaniards alike. The adage states, however, that once you hit rock bottom, you have nowhere to go but up.

The weak pound continues to make purchasing difficult for British investors, it’s true. Real Estate brokers are saying that, on the Costa Blanca at least, sales have been slow and the few contracts that had been signed were being retracted because of the value difference between the pound and the euro. It’s not just holiday home investors that are struggling under the weak pound, either. Retirees are seeing their life savings amount to less and less and can’t afford to purchase their own villa in the sun to enjoy their golden years. That’s tough to swallow. HiFX, a group of experts in the field of foreign exchange, the difference in pounds for an average priced home has risen £28,000 over the last year or so. Even if buyers estimate that they can still manage payments on the villa of their dreams, the next obstacle to overcome is the difficulty in obtaining a Spanish mortgage, and at that deposit rates have risen from a ridiculous 30% to an unbelievable 40%.

Still, all is not lost. In fact, it’s a great time to buy. Representative Jaqui Daly, who works for Savills Property Consultants, a UK firm, says that those of her countrymen who purchase homes in Spain typically belong in one of two groups. Investors looking for immediate returns and who don’t plan to enjoy their property for their own use are probably on the downside of things under current conditions. Lifestyle buyers, however, are more interested in using the property for their own vacations and enjoyment. This last type is finding this a great time to buy. These lifestyle buyers can take advantage of low prices without the stress or pressure of making money anytime soon. This style of ownership is often preferred by retirees. As a side note, Spain seems to be a fantastic choice for purchase because of its traditionally lower prices (compared to areas like the UK) and because its citizens, like other Europeans, are more frugal even during times of financial abundance, thus making the properties a more stable long term investment.

Another encouraging factor is the interest rate in the UK which has been slashed a full two percent in as many months. Prime Minister Gordon Brown has indicated that he believes this measure would be beneficial to other nations, as well. Banks have been somewhat less giving than the prime minister, however, and have stated that the lower interest rate will not be passed along to customers. The government force banks to pass along the rate cuts, but they can and will exert considerable influence.

More information and photos can be found at http://www.theleader.info

Searches for bank owned repossessions and distressed reached record levels in the first quarter of 2011 according to two leading sites, www.primelocation.com and www.propertyinspain.net

Managers at the two websites say that this activity is strong evidence that families and investors around Europe are aware of the property market in Spain and are looking for deals in the distressed market.

The website www.primelocation.com says that searches for Spanish property exceeded those for homes in France by 20% This is the opposite of the usual situation. Interest in Spanish property searches has increased by 43% whereas that of France increased by only 1%

The website www.propertyinspain.net has thousands of bank owned properties listed on its site. Hey say that the bargains on offer coupled with generous mortgage packages are tempting buyers back into the market.

The property manager of the website www.propertyinspain.net , Ben Walker said that they can nearly always match budget and financial requirements to produce a perfect deal for their clients. Many have booked Fly-to-Buy tickets when they contact the site but in some cases, the best bargains have already been snapped up.

An example of a bargain was the three bedroom riverside apartment on the Costa Blanca that sold for €18,600. Another was a finca with sea views in Mallorca which was offered for €1.7 million. Both sold within weeks of massive reductions to their prices being made.

www.primelocation.com international development manager, Ann Wright explained that there is no single explanation to the trend. She said that it is a combination of hard headed investors making decisions in a depressed market as well as changes in lifestyles and a small amount of politics.

As sellers of embattled Spanish properties try to sell a two tier market is emerging. On the one hand there are private sellers who for whatever reason need to sell their property. On the other are the banks who are being pressured by their regulator, the Bank of Spain, to dispose of toxic real estate assets, balance their books and provide liquidity to the Spanish economy as a whole.

Distressed developers are being forced to offer discounts of up to 40% or original asking price and the banks are offering generous mortgage packages in order to assist quick sales. One bank is offering an 80% fixed rate mortgage with a three year repayment holiday. This financing is available on thousands of key-ready beachside and golf side apartments and villas.

The strategy is definitely working and the banks have managed to sell off more properties than at any time since the recession hit. However, private sellers are unable to compete with the combination of massive discounts and generous mortgage packages. Private sellers usually need to charge more and there is no access to cheap mortgages for their properties. Even after successful viewings with potential buyers showing interest, deals are not completing as cheaper homes with better mortgages are winning the battle for new buyers.

Leading Spanish property specialists www.propertyinspain.net have over 16,000 properties, both private and bank owned on their books. They say that there is a two tier market emerging and that it is likely to continue for at least another eighteen months until the banks and developers have cleared problem properties from their books.

The firm emphasises that the private properties are offered at reasonable prices and are often in superior condition to bank repossessions. They are advising private sellers that they need to either reduce their asking price or remove their property from the market if they are getting little or no viewings. In one area of the Costa Blanca over 100 private sellers have reduced their total asking price by over €3 million in a campaign known as “Super Sale 2011.”

The firm’s sales manager, Ben Walker said that there is definitely a two tier market in Spain right now and that private sellers are losing out despite their properties usually being a much better offer than repossessions. He said that his firm offers on-line showcases to make it easier for buyers to compare locations, prices, mortgages and value for money. He also said that the firm’s Fly-to-Buy packages include privately owned properties as well as those belonging to banks.

An example of the buyer’s dilemma is this:

Private Sale

• One bedroom, walk to beach apartment
• Fully furnished with communal pool
• 60% mortgage
• €43,000

Bank Repossession

• Two bedroom, drive to beach apartment
• Unfurnished and no pool
• Guaranteed 90% mortgage
• €46,300