Tagged: Catalonia

ILLEGAL RENTERS COULD FACE PROSECUTION

Many people bought their apartments or villas with a view to renting them out during the holiday seasons

After listening to bodies representing Hotel and Tourism sectors in the community the Valencia Government is to embark on a campaign aimed at rooting out illegal rental agencies and owners that are operating on the Costa Blanca.

The Ministry of the Economy, Industry, Tourism and Employment say that they are now in the process of preparing a plan, in the form of a legal decree, which will punish ‘on line’ portals which currently market homes in tourist areas irregularly, ie without the minimum safety and quality certificates and authorities and without proper registration at the Generalitat. Those found to be in contravention of the law will face fines of between 50,000 and 90,000 euros

Accompanied by employers from within the Tourism Council, the plan was announced in Valencia last week by the Minister of Economy, Maximo Buch. He said that the measures will be implemented from next spring, the season from which fraud within the tourist apartment sector tends to intensify.

According to sources it is claimed that most digital platforms do not distinguish between legal and illegal renters (those who evade taxes and the necessary registration) and that the new decree will establish the “joint responsibility” of those marketing platforms. In future the owner of the holiday apartment or property will be responsible in paying the same fines as those responsible for the website, with very serious offenses incurring penalties of up to 90,000 euros.

Both the hotel and non-hotel sectors applauded the action saying that it would almost certainly help to improve their situation where unregulated apartments have been partly responsible in the average holiday occupancy dropping by four points from 70.1% in 2013 to just 66.1% last year.

Hoteliers maintain that the illegal rental of apartments is a fraud to the Tax Agency, Social Security and to the Treasury and they have asked for more inspectors to manage this growing occurrence, where there are only five for the entire Region. They hoped that Valencia will follow the example of Catalonia, whose Ministry was the first to take action against illegal portals, although they accept that action is not quite that simple as the administrators of many of the Internet portals are living abroad.

However a spokesman for the real estate promoter Provia says that 95% of all tourist accommodation in Torrevieja is based in apartments and villas and not in hotels, either through rental or via relations or friends, while the figure across the Costa Blanca is put slightly lower at 77%. They say that whilst such resorts as Benidorm wouldn’t be quite so affected, because of the hotel population, a more rigorous application of the current rules by Government regulations could completely destroy the tourism model for Torrevieja and other similar locations where there isn’t the same concentration of hotels.

Many people bought their apartments or villas with a view to renting them out during the holiday seasons and if regulations were introduced to make that more difficult it would certainly affect the numbers purchasing property in the area in the future.

Filed under: http://www.theleader.info/article/46153/

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RUSSIANS MONOPOLIZE LUXURY PROPERTY MARKET

Russian buyers are now the primary target for developers of luxury properties

Russian buyers are now the primary target for developers of luxury properties in their quest for foreign clients. The reason is quite simple: they are the nation who, on average, spend more money when buying a luxury home in Valencia, specifically, 918 700 EUR, this is despite the political crisis between Russia and the European Union following the conflict with Ukraine.

And according to data provided by the General Council of Notaries, buyers from the former Soviet Union now lead the ranking of investments in real estate for property of over 500,000 euros in three Spanish provinces.

The latest figures available, based on the first half of this year, indicate that wealthy foreigners spent 161 million euros on acquiring luxury homes in the Community (214 purchases), 10% more than during the same period last year.

Sources seem to indicate that those wishing to purchase luxury properties in Spain feel that the time is now right to make their investment as, with the worst of the crisis now behind us, you get the feeling that transactions are safe and profitable. The same sources added that the good sales figures “have little impact on the ‘granting of residence permits to foreigners who spend more than half a million euros on investment property.

Valencia is actually the third largest market for Russian clients in Spain with 59 transactions completed during the first 6 months of 2014 showing a total investment of 54 million euros. However, in the two Provinces out in front, Catalonia has sold 137 homes to Russiana, at an average price of 1,136 million euros, while in Andalusia there have been 94 properties, costing 98 million at an average price of 933,000 euros. After Valencia in 3rd position, the Canary Islands come next.

The figures show that every Russian investor who buys a house worth more than 500,000 euros in Spain actually spends EUR 1.065 million in the remainder of the country whilst in Valencia the spend averages out at 918,000 EUR with 18% of the national total.

The faithful and traditional British market, which has historically been the major customer of the autonomy in this type of transaction, now ranks second, with 25 purchases and an average spend per property of about 714,000 euros. It would seem that the reason why the British market has declined is that they are changing their preferences to other regions.

Of 397 luxury purchases made by British buyers in Spain only 6% are made within the Valencian Community. Norwegians, Belgians, Germans and the French complete the picture of customers of this elite market in the Community.

But local developers still rely on the British market and a delegation of Provia, the Alicante Promoters Association, has recently moved to London to negotiate agreements with British estate agents in the sale of property in the Alicante region.

Filed under: http://www.theleader.info/article/45179/

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