On 14 April 2013 the Spanish Royal Decree 235/2013 came into force. It approves the basic procedure for the Certification of Energy Efficiency in Buildings.
As from 1 June 2013 there is an obligation for the vendor to make available to purchasers or tenants of buildings a CERTIFICATE OF ENERGY EFFICIENCY (EPC in UK), which must include objective information regarding the energy efficiency of their building or part of it. The Energy Efficiency Rating Symbol must be displayed when the property is being marketed so it is essential to obtain it now. Continue reading →
If you own a property in Spain with a spouse, relative or friend and wish to transfer or sell the share to the joint owner or take full legal title to the property then read on.
Many problems can arise post completion of a purchase of a property in Spain such as divorce, disputes between the joint owners or potential heirs as a result of an inheritance proceeding or even dissolution of a business relationship and Spanish law is on hand to assist in these situations. Continue reading →
The CEE – Certificado de Eficiencia Energética – regulation was finally published on Saturday and came into effect on Monday (15th April 2013). As from the 1st of June 2013, no property transfer, by sale or lease, will be registered by a Notary without a CEE. This results from an EU regulation that’s been in effect from 2002 and the equivalent CEE’s have been required for many years in other countries. New property in Spain has had to have the CEE since 2008 and the new regulation brings that requirement to resale properties.
The property owner is obliged to get the certificate by instructing a suitably qualified property professional. They then inspect the property; note the many relevant points of location, construction and condition; enter the information into a highly complex computer formula; and the bar chart ‘banding’ of the property will be produced. This is then submitted to the appropriate Comunidad’s office (eg Junta de Andalucia or Murcia or Valencia) for ratifying and then the CEE is issued to the owner. Continue reading →
Whilst Spain may be behind UK in introducing the requirement for Energy Certificates for property, it gives us to benefit from their experience. Here is a recent article that was aired on the RICS Chartered Surveyor’s website. Author is a specialist in Energy Performance Certificates in England.
The 10 years from 2008 to 2018 are seeing a profound transformation of the regulations relating to energy efficiency and, importantly, their impact on properties. Sam Parkes explains: Continue reading →
Read the title well, because it’s going to become very familiar over the next few months. On Friday, 5 April, the Royal decree was signed giving authority to the requirement for all property in Spain to have an energy efficiency rating certificate that will last for 10 years assuming no changes are made to the building. For the details, we now wait for the final text to be published in the BOE (Official State Bulletin). As the certification is to be regulated by each Comunidad throughout Spain, there are bound to be some variations. Continue reading →
Kyero’s recent report entitled – Spain will lead decline in house prices in Europe.
“According to a recent report by Standard & Poor’s, the Spanish housing market will lead the falling prices in Europe this year. They estimate that prices will drop by 7.8% in 2013, partly due to the creation of the bad bank (Sareb), and that the cumulative decline over the next four years will be around 20%.
The report shows that the European recession is still lowering housing prices in most markets, and that the other two European countries which will lead the declines this year will be the Netherlands (5.9%) and France (5%). Continue reading →
A bank connected Estate Agency has reported that ‘due to administrative reasons we have to take these properties off the market until the process of incorporating the property portfolio of their Bank into “SAREB” has been completed. Unfortunately, we cannot give you an exact time estimation for this process’
The government body behind Spain’s so called ‘bad bank’, which was set up to remove negative assets from struggling financial institutions, have forecast that Spanish property prices will not begin to rise again until 2017. FROB (The Fund for the Orderly Bank Restructuring) estimate that house prices will fall for the next two years, then stagnate for two years, before starting to increase at an annual rate of 3% in 2017.
Specifically, the organisation believes that prices will fall by 2.8% in 2013 and 1.5% in 2014 before beginning to rise. They also predict that land prices will follow a similar trajectory, falling by 12.5% in 2013 and 5% in 2014, land then beginning to recover in 2016, but at a lower level than that seen by property, just 2.5% a year. Continue reading →
On Monday the Bank of Spain said property loans would be moved into the bad bank at an average discount of 45.6 per cent in the hope of attracting investors. The figure would be 63.1 per cent for foreclosed assets and 79.5 per cent for empty land.
Madrid hopes private investors will own at least 55 per cent of SAREB, which was created as a condition of the European aid for the banks and is due to start operating by the end of November. About two-thirds of the assets transferred in an initial wave of 44 billion euros will be loans and the rest foreclosed properties.
“A large majority will be bad loans and a discount closer to the foreclosed asset price would have been more realistic. I wouldn’t expect more than 20 per cent of the loans to survive.” Continue reading →
“In the last five years there has been virtually no value for land,” said Rafael Powley, a Madrid-based director of strategic consulting at JLL. “There are no buyers and if you want to sell it right now, there is no price for it.”
Investing in land or half-built developments means spending money to start, demolish or complete schemes without any guarantee of selling them or finding tenants. Investors are reluctant to do this due to the Spanish recession and excessive supplies of property built up during the boom years.
“The money you need to spend upfront takes you backwards,” said Justin O’Connor, chief executive of property fund manager Cordea Savills, which has about 7 billion euros of assets under management in Europe. Continue reading →