Team Group Property Magazine Autumn 2015
Our previous Team Group brochure was the Spring edition issued in March. At that time our Sales headline read “The best start to the year in 8 years”, I am delighted to report that this trend other than a traditionally quiet August has continued.
We expect a similarly strong second half. The reasons are many but the feedback from our buyers whilst varied can be summed up in two words – Confidence and Nerja. Confidence in Spain and its improving economy plus the fact that Nerja is proving to be one of the more aspiring resorts to own a property on the Costa del Sol. The latter claim is supported by research undertaken by Tinsa one of Spain’s leading property valuation companies that Nerja is one of very few coastal towns where property values are improving.
Taking a look at our sales activity, it is interesting to note that our average asking price year to date as listed on teamespana.com and inland-property.com are:Nerja West – €272,000; Nerja Burriana – €354,000; Nerja Capistranos – €345,000; Nerja Parador – €299,000; Nerja Town Centre – €224,000; Frigiliana and surrounding countryside – €603,000; Torrox and surrounding countryside – €230,000; Competa and surrounding countryside – €216,000; La Herradura – €666,000; Almuñecar - €711,000. Whilst some areas are skewed like Frigiliana which includes Cortijos San Rafael and La Herradura and Almuñecar where a number of large villas increase average values, the asking prices are only slightly higher than same period last year but the agreed offer prices are considerably closer to asking prices than 2014, clear evidence of improvement. The source of our “active” buyers i.e. those who we believe are actively currently in a position and looking to buy, year to the end of June:Web site – 63%; Agent Referral – 15%; Walk in – 12%; Telephone – 4%; Other – 6%. In terms of viewings our busiest weeks, year to June being week 15 (Easter week) and weeks 2 and 7. I believe there are 2 challenges facing the market in the short term:- 1) Finding properties, demand is starting to exceed supply for the first time since 2007. We are constantly seeking properties of all descriptions. Much of our demand is for the Frigiliana and Torrox valleys, the Capistranos, particularly Oasis and Playa as well as the Parador region. 2) Managing asking prices of those UK vendors wishing to return home. Given the strong pound some vendors are choosing to increase their asking price pushing their price point beyond market norms. This can result in deterring many Eurozone buyers.
Our rental portfolio is pushing the 200 unit mark. Our short term holiday rental business continues to run at circa +30% year over year. Whilst the major booking season continues to be throughout quarter 1 we are experiencing a real surge in late bookings with many booking requests made for “the following day“. Not surprisingly our large villas tend to be rented before town centre and beachside apartments. Apartments where we have reformed in winter months are always in demand. All our properties can be seen in detail via a 360 degree on line tour and there is no doubt that the more contemporary and well presented properties experience higher occupancy rates. The sector is still awaiting definitive legislative guidelines, two years ago central government excluded holiday rentals from national legislation, and invited the regions to legislate as they saw fit. Last April, more than 5.5 million foreigners visited Spain. According to statistics from the Ministry of Industry, 583,229 of them stayed in holiday rental homes, 20.4 per cent more than last year. There is little doubt that the new legislation will offer more.
In short our services team improve our property stock during winter months and clean them during summer months! In addition they are responsible for the maintenance of pools, gardens and the general upkeep of our property portfolio on behalf of our owners. By the end of this year our housekeeping teams will have undertaken in excess of 2,000 property cleans and accommodated close to 7,000 people and….. purchased 6,000 toilet rolls! You do not need to holiday rent with Teamstar to use our services.
Back to news headlines Date: 20 September 2015