Will high tourist numbers make a difference to house prices?

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This topic contains 13 replies, has 5 voices, and was last updated by Profile photo of katy katy 4 years, 12 months ago.

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  • #56428
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    http://www.elpais.com/articulo/english/Number/of/overseas/visitors/to/Spain/hits/record/levels/in/August/elpepueng/20110922elpeng_8/Ten

    I suspect it won’t. A lot of the increase this year can be put down to unrest elsewhere (Egypt, Tunisia, even Greece) and tourist numbers may slip back next year. Also, with rental prices remaining low and the currency outlook uncertain, many will prefer to rent and wait to see what happens. Having said that, certain areas may stay strong. Mallorca, Marbella to name a couple. I don’t think Madrid (the only community to record a fall in unemployment in November) will see further falls in house prices either. The only thing that may affect niche locations is where foreign buyers move in. I follow this person on Twitter, and he’s starting to sell properties of a certain standard to overseas Chinese speculators. https://twitter.com/#!/grahunt But in general I still see further falls to come, unless Spain leaves the Euro. At that point I suspect (if their currency is devalued) a flood of buyers will descend to pick up the bargains.

  • #106868
    Profile photo of katy
    katy
    Spectator

    You follow him on Twitter, wouldn’t waste my time. Just another estate agent spammer 😆 The Chinese/Russians are coming…we have heard it all before. Are you this guy by chance 😉

  • #106869
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    @katy wrote:

    You follow him on Twitter, wouldn’t waste my time. Just another estate agent spammer 😆 The Chinese/Russians are coming…we have heard it all before. Are you this guy by chance 😉

    You have a very suspicious mind – is it because you mislead people yourself? 😉
    No, I’m not that guy, I’m in the UK (and currently without work). Flattered you think so – I admire the way he’s made a living around Valencia – not an easy thing to do in these times. A lot of his entries actually point out the difficulties of life and earning a living in Spain. But if he states he’s starting to sell to Chinese investors, I believe him as I’ve never seen anything he’s posted that seems to distort the truth. It’s only small numbers so I don’t think it will affect the overall numbers yet.

  • #106870
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    This article has the guy at Taylor Wimpey claiming the rise in tourist numbers has increased property sales this year. At such a small number though I don’t think it has any basis for the market as a whole.

    http://www.ibtimes.com/articles/260224/20111201/no-rain-in-spain-with-8pc-increase-in-tourism-and-positive-property-sales.htm

    Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España, comments,

    “In spite of the waves of recession and economic hardship, Spain this year has managed to perform well experiencing a record breaking summer. This year has also been positive for Taylor Wimpey España, selling nearly 30 units in the Costa del Sol alone to date, a performance better than last year.

    Even if you accept his figures, who can say with certainty that tourist numbers will continue to be so high next year? There is a chance of it happening, as Egypt still looks a little unstable, but who knows?

  • #106878
    Profile photo of peterhun
    peterhun
    Participant

    @katy wrote:

    The Chinese/Russians are coming…

    The Chinese aren’t really allowed to to invest overseas.

  • #106883
    Profile photo of katy
    katy
    Spectator

    @dbmarcos99 wrote:

    @katy wrote:
    You follow him on Twitter, wouldn’t waste my time. Just another estate agent spammer 😆 The Chinese/Russians are coming…we have heard it all before. Are you this guy by chance 😉

    You have a very suspicious mind – is it because you mislead people yourself? 😉
    No, I’m not that guy, I’m in the UK (and currently without work). Flattered you think so – I admire the way he’s made a living around Valencia – not an easy thing to do in these times. A lot of his entries actually point out the difficulties of life and earning a living in Spain. But if he states he’s starting to sell to Chinese investors, I believe him as I’ve never seen anything he’s posted that seems to distort the truth. It’s only small numbers so I don’t think it will affect the overall numbers yet.

    Correct I have a very suspicious mind, I have a very good nose for spotting Agents after being on this forum 6 years :mrgreen:

    One tip…stay away from Almería. It is cheap for a reason. Choose somewhere like Marbella. Location etc.

  • #106886
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    The Chinese aren’t really allowed to to invest overseas.

    No, but they do emigrate with a lot of cash. One only needs to visit Barcelona to verify this.

  • #106888
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    @katy wrote:

    @dbmarcos99 wrote:
    @katy wrote:
    You follow him on Twitter, wouldn’t waste my time. Just another estate agent spammer 😆 The Chinese/Russians are coming…we have heard it all before. Are you this guy by chance 😉

    You have a very suspicious mind – is it because you mislead people yourself? 😉
    No, I’m not that guy, I’m in the UK (and currently without work). Flattered you think so – I admire the way he’s made a living around Valencia – not an easy thing to do in these times. A lot of his entries actually point out the difficulties of life and earning a living in Spain. But if he states he’s starting to sell to Chinese investors, I believe him as I’ve never seen anything he’s posted that seems to distort the truth. It’s only small numbers so I don’t think it will affect the overall numbers yet.

    Correct I have a very suspicious mind, I have a very good nose for spotting Agents after being on this forum 6 years :mrgreen:

    One tip…stay away from Almería. It is cheap for a reason. Choose somewhere like Marbella. Location etc.

    Marbella is off the list. Too expensive for one. I can see that it’s a safe bet for an investment. but I’m looking for a relaxed place to retire to, that is inexpensive. Almeria (or even Murcia) seem to fit the picture. Although I may look inland Valencia if the price is right.

  • #106890
    Profile photo of angie
    angie
    Spectator

    DBM, it’s not a given that Marbella is a safe bet for investment, property prices have also fallen there as our friend has experienced in his upmarket location, trouble is, he’s now stuck with escalating community costs which makes re-selling even harder so ‘catch22’ All around Marbella are 1000’s of unsold properties, you’ve also only got to look at the crumbling pavements in P. Banus, parts of Marbella, closed businesses and worst of all, loads of dog poo even in the Old Town, it’s not what it once was! I thought it was all a bit tired and dirty last time I was there, but that’s just my opinion, or is it? 🙄

    One of the best places in Spain to protect investment is always going to be the more niche areas of Majorca, which has a much smaller market too, and cleaner IMO 🙂

  • #107165
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    It seems that Spain is looking into attracting more Poles as tourists, via winter subsidies for pensioners.

    http://www.google.com/hostednews/afp/article/ALeqM5iLyQo0cSpQgFN8ZrBxsFjVDAwkFQ?docId=CNG.9e2e5143c9e0e20fe79d9fd7518c9fe6.2e1

    “The Spanish government is targeting new markets, especially from countries where seniors rarely choose to visit Spain,” said Edyta Romanowska, an EST project employee.

    She described it as a win-win situation on both sides.

    “Spain is also really benefiting. Each euro spent on a senior visitor earns Spain 1.30 euros or more indirectly,” she added. “The goal is to give the hotel sector some business in the off-season and to create jobs.”

    To attract the maximum number of tourists, seniors can be accompanied by a younger person, who also is also eligible for the 130-euro subsidy.

    Anna Walicka, 63, was able to invite her daughter Barbara, who is 40.

    “My daughter also received the help of the Spanish government,” the elegant pensioner told AFP at Warsaw’s Frederic Chopin international airport.

    Poles are taking full advantage of the bargain, making up about 20 percent of the 100,000 seniors who have traveled to Spain during the first two seasons of the EST project in 2009-10 and 2010-11.

    Greek seniors took first spot with 15,254 visitors in 2009-10, but Poles outpaced them in the second edition of the program in 2010-11, with 12,964 visitors.

    “Romanians and Bulgarians also responded enthusiastically this year,” Romanowska said, stating “the Eastern European market has huge potential and a bright future.”

    Tourist Walicka had only one regret.

    “It’s a pity that the Spanish government only contributes to one week of vacation, we would very much like to have stayed longer,” she said.

    I can’t see this affecting the sale of house prices if the customer can’t afford to pay for the holiday full-whack. But if it results long term in an increasing number of Polish holidaymakers…

  • #107169
    Profile photo of peterhun
    peterhun
    Participant

    Spain is a expensive destination from Poland, think well over £1000 for a week, two months average earnings. Israel, Egypt Bulgaria are a third the price and cheaper when you get there. I’m sure there would be a lot more visitors if Uk price levels were charged, I booked and flew by London (to La Plama) its was half the price of flying a charter from Krakow.

    Apartment prices per m2 aren’t much more expensive than Polish cities (which average, say, 1500 euro), the lack of low cost flights is a bigger issue.

  • #107175
    Profile photo of katy
    katy
    Spectator

    Every month Spain comes out with a press release about someone they are trying to attract 🙄 Russians, Chinese, last year their hopes were on Americans after M. Obama’s visit. Eventually they should attract some more tourists as there are less and less safer places in the world to visit. Can’t see that spending 2 weeks in a cheap apartment block or a third rate hotel will actually make them decide to buy there though!

  • #107176
    Profile photo of DBMarcos99
    DBMarcos99
    Participant

    @angie wrote:

    DBM, it’s not a given that Marbella is a safe bet for investment, property prices have also fallen there as our friend has experienced in his upmarket location, trouble is, he’s now stuck with escalating community costs which makes re-selling even harder so ‘catch22’ All around Marbella are 1000’s of unsold properties, you’ve also only got to look at the crumbling pavements in P. Banus, parts of Marbella, closed businesses and worst of all, loads of dog poo even in the Old Town, it’s not what it once was! I thought it was all a bit tired and dirty last time I was there, but that’s just my opinion, or is it? 🙄

    One of the best places in Spain to protect investment is always going to be the more niche areas of Majorca, which has a much smaller market too, and cleaner IMO 🙂

    You may have a good point. According to this report, Mallorca is bucking the trend in Spain. Of course that’s the slant put on it by a vested interest…

    http://www.aplaceinthesun.com/news/feature/tabid/131/EntryId/1407/Mallorca-bucking-the-trend-in-Spain.aspx

    Property sales in Mallorca rose by 15 per cent both in September and year to date according to Taylor Wimpey de España’s latest data.

    Whilst the rest of Spain suffers from a drop in prices and is experiencing a far from a bullish economy, it’s not currently the case in Mallorca. This treasured Balearic Island has maintained its stronghold as a highly desirable investment destination and holiday home spot. With excellent accessibility from the rest of Europe and pretty traditional Spanish villages to boot, overseas buyers are still flocking to this idyllic Balearic isle.

    One area showing growth is Porto Cristo – also known as “‘The Port of Christ.” While some areas have been a victim of a mass tourism influx there are still towns and villages on Mallorca that have retained their soul and Porto Cristo is certainly one of them.

  • #107178
    Profile photo of katy
    katy
    Spectator

    I went to Porto Cristo it was lovely. more than 20 years ago though so it could have changed. If Taylor Wimpey are doing as well as they have been saying for the last 2 years they should have sold all their properties by now 😆

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