http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/europe%92s-property-prices-to-plunge-in-2006.html http://www.articletrader.com/finance/real-estate/europe%92s-property-prices-to-plunge-in-2006.html Sat, 03 Dec 2005 00:00:00 -0600
2005 saw the first signs of a property slow down, and even the reverse of sharp gains in holiday home prices over recent years in Spain and Portugal.

With owners unable to sell their property likely to drop their asking prices in 2006 to secure a sale, buyers will be in their strongest negotiating position since the mid to late 1980’s when prices dropped by nearly a third on the Spanish Costas.

Europe’s worst drought in living memory had an affect on the markets in Spain and Portugal earlier this year, with many would be buyers wondering if they would be able to use their pool in years to come, with consequential rentals possibly tailing off.

‘Some buyers rely on renting their holiday home out as they take out a mortgage to buy’, says Roger Munns of Tribune Properties, ‘and if they can’t rely on this it creates doubt as to whether to buy or not. Some buyers were taking the view that they should wait to see what happens’.

But it isn’t just the possibility of more droughts and unreliable rental income that is beginning to see prices drop in some areas, according to Tribune Properties.

The emergence of new European markets in the former Eastern Bloc has seen British, Dutch, Belgian and German buyers head for countries like Bulgaria where apartments and houses can be bought at a fraction of the price of Spain and Portugal.

‘Second home buyers are seeing properties offered in Bulgaria at less than half the price they thought they would need to own a home overseas, and the traditional markets of Spain and Portugal are losing out.

Already we have seen villas in Menorca drop in value by around ten per cent, and they could, and probably will, go lower still.

In addition the rate of new builds on the Costa del Sol and Costa Blanca hasn’t slowed down to any great degree, and before long there could be a price correction as there is going to be quite an oversupply in the market.’

European Tax Havens

In contrast to lower prices on the Spanish Costas and Menorca, Tribune forecast that prices on the Algarve and Malta are likely to stay steady or increase as their domestic markets are strong.

The two countries they see in Europe with growth potential for 2006 are the tax havens of Andorra and Monaco.

Monaco and lesser known Andorra both offer no income tax for residents, and Andorra has seen double digit property price inflation for the last two years, with the 2005 figures likely to match. After a slow start to the year Monaco has seen strong buying in the last quarter.

With the new government in Germany increasing the top rate of income tax, Tribune forecast demand continuing through to 2006.

‘Andorra and Monaco are small countries with little room to build new property’, says Tribune’s Managing Director Roger Munns, ‘Despite the German economy being slow for the last few years it remains a very important market. The raising of the top level of tax will mean more Germans seeking residency in a country with low tax levels. Andorra and Monaco are the two most likely candidates for them to buy in and take residency’.

Tribune’s advice to potential overseas property buyers is to find out how long a property has been on the market for, and to make provisional offers of between five and ten per cent off the asking price on a shortlist of three or four properties as one owner is likely to accept. Their longstanding advice is to always employ an independent lawyer to handle any sale and deposits.


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Tribune Properties produce a guide for Monaco and Monte Carlo, including the weather, a Monaco map, hotels and the Grand Prix at www.yourmonaco.com For Malta hotels, holidays, self catering holiday villas and apartments, a map of Malta, flights, the weather, car hire and details of Malta’s main towns of Valletta, St Julian’s, Sliema, Mellieha, St Paul’s Bay, Qawra and Bugibba visit www.yourmalta.com For property in Andorra www.propertyandorra.com property in Malta www.maltaproperty.info , Menorca property www.menorcaproperty.info and for property and real estate in Monte Carlo and Monaco www.monacoproperty.net

Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/destinations/royals-highlight-forgotten-island.html http://www.articletrader.com/travel/destinations/royals-highlight-forgotten-island.html Sat, 03 Dec 2005 00:00:00 -0600
Malta missed some of her own government’s tourist targets in 2005, but a recent visit by Queen Elizabeth II and the Duke of Edinburgh resulted in four days of positive media coverage in the island’s most important market – the United Kingdom – and also in over 50 other countries attending the Commonwealth Heads of Government meeting, including Canada and Australia.

The Queen began her official visit to Malta before she opened the meeting, and was warmly greeted by friendly islanders.

Malta was governed by the British for a hundred and fifty years, and became independent in 1964. But the island has retained many British characteristics, including driving on the left, and British visitors account for nearly half of the island’s tourists.

The George Cross ranks with the Victoria Cross as Britain’s highest award for bravery – and Malta was awarded the Cross in 1942 by King George VI for the island’s resistance to German attempts to occupy the island, with Malta being under almost constant attack from June 1940.

As well as the challenge of drawing tourists away from other Mediterranean islands like Mallorca and Menorca, Malta has had to face the additional challenge of new holiday destinations in the former Eastern Bloc opening up, such as Bulgaria and Croatia, which tend to be cheaper.

Brighter Future

But where the Maltese tourist board has singularly failed to market the island’s appeal to the mass holiday market with any degree of success in recent years, the Queen’s visit has come at the right time for hotels and holiday companies hoping for a good 2006.

Tribune Properties, a British based company specialising in overseas properties including Malta comment:

‘Malta is not a high priority on the list of holiday destinations for many British people compared to the Spanish Costas, Canary and Balearic Islands. The visit of the Queen showed Malta in a very positive light, and hopefully the island’s tourist officials will be able to capitalise on the trip and increase hotel and holiday bookings in the months ahead. Given Malta’s past record of promotion though if 2006 sees an increase in visitors it will be despite of the official promotions, and not because of it.’.

More good news for the Malta holiday industry came in October with the announcement that low cost airlines had been been given the right to fly to the island.

‘This will help both the hotel and property industries in Malta’ add Tribune. ‘With the cost of getting to the island coming down, Malta should see her share of the short stay European holiday market increase substantially, increasing employment locally and benefitting the economy overall’.


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Tribune Properties produce a country guide for Malta, including embassy contacts, the weather, a map, hotels including the Qawra Palace and Palm Court, holidays, car hire, villa holiday details and Malta flights. Included are the main towns of Sliema, Valletta, Bugibba, Qawra, St Julian’s, Mellieha and St Paul’s Bay at www.yourmalta.com Details of houses, apartments, villas and other real estate for sale in Malta are available by request at www.maltaproperty.info For Malta hotels Hotels in Malta, for a map of Malta Malta map

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