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No misleading prices for flights
From this week misleading price adverts for tickets sold by airline companies is forbidden. In accordance with a new Directive from the European Commission, they are now obliged to include all charges; airport taxes, gasoline, handling, etc. in the price advertised. The aim is so that consumers will know immediately the real price and thus be able to easily compare various offers. Special insurances must be presented as a voluntary option and may not be included in the price.
Eviction, 138 apartments in Alfaz del Pi
A court has ordered the eviction of 138 families who bought apartments, in good faith, in a tourist complex in Alfaz Del Pi. The reason for the action: the apartments were designated as “apartementos turisticos” instead of “residencial” dwellings (we have been warning all foreign buyers about this for many years). The order to the town hall is that the owners must be evicted and the supply of water and electricity cut off. The Mayor is pleading for a change in the classification of the complex.
“Marina d’Or” out of luxury office in London
The Valencia promotion company “Marina d’Or” who were responsible for some of the ugliest apartment blocks along the Mediterranean coast is leaving their luxury offices in Oxford Street, London. At a time when the British market for second homes in Spain has gone from 50,000 sold units in 2006 to less than 5,000 this year, the company had been paying 728,112 euros in lease and taxes. Ben May, analyst in the London property company Capital Economics, is estimating a fall of 30% in the price for properties in Spain in the coming years.
Court blocks mega-project in Castellon
The Supreme Court of the Valencia Region has annulled the change of 897,380 m2 of farm land to building land, which was to make space for the construction of 6,000 dwellings in the city of Castellon. The Valencia Government had given complete approval for the project.
The court found the project infringed even the previous urban planning law of Valencia (LRAU) and that the land may be affected by flooding during heavy rainfalls.
ETA bomb against university
Navarra in Pamplona, the regional capital: Basque terrorists exploded a 20 kilo dynamite car bomb in a parking area situated between the central building and the university’s library of humanities. 28 people were slightly injured but substantial material damage was caused. The explosion could have resulted in a massacre.
Opinion poll prediction, PP wins elections
The latest opinion poll predicts a victory for opposition party PP over the ruling socialists in PSOE, if elections were held today. It shows PP would win 41.3% of the votes (39.7% in the real elections in March 2007) whilst PSOE’s share would fall from the 43.6% gained in last elections to 40.2%. However, Prime Minister Rodriguez Zapatero comes out ahead of opposition PP leader Mariano Rajoy as the preferred candidate for prime minister, with 5.1 points (out of 10) against the 4.4 points of Rajoy.
Victims must pay in Almanzora
A representative of the Andalusia Regional Government has declared that the property owners must pay the substantial infrastructure costs in the regularization process needed in the Almanzora Valley in Almeria Province. He maintained that neither the cash starved municipalities nor the small developers would be able to carry the burden.
6,000 expats have bought or built properties in the inland valley of Almanzora, without the installation of the most important infrastructure and without building approval, although they did so with the assistance of property agents, builders, local lawyers and on a ‘nod’ from the town halls.
Spain excluded from G-20 summit
Spain has not been invited to attend the G-20 summit meeting which is taking place in Washington on 15th of this month. Prime Minister Zapatero has mounted an international campaign against the decision, claiming that he has important things to say. What could they be? Maybe to repeat his comments over most of this year: “There is no crisis!”
8 months delay in payments by Town Halls
Town halls are in increasingly in a worsening economic situation. A study shows that the average delay in payments by the municipalities to suppliers and service companies is 8 months. At the beginning of this year the delay was 6 months. Many of the smaller companies dealing with municipalities are on the brink of collapse. Four years ago, a law stipulating that the public administration must pay an interest of 7% above Euribor for delay in payment, was passed. The suppliers, nor service companies are not getting the principal, or the interest. The word is that Orihuela Town Hall are thousands in debt to contractors and service providers.
The weekly crisis:
- 192,658 more workers joined the unemployment list in October; 7% more than in September. This is the biggest increase in statistical history. Total unemployment now stands at 2,818,026 following 7 consecutive monthly increases. In Andalusia the increase from 1st September to the end of October was 42,344.
- The number of people contributing to the Social Security System fell by over 100,000 in October, bringing to 450,000 the number lost over the past 12 months. The construction sector has lost the most contributors over the past month, with fall of 41,916. Security System expenditure rose 41.8% in September.
- Investment funds in Spain lost deposits of 9,600 million euros in October. The losses over the past year and a half total 75,000 million euros and several ‘funds sales’ companies have closed their doors.
- Banco Sabadell is selling 600 branch offices, with the new owners leasing back the premises to the bank. BBVA is selling 30 buildings and 1,288 offices. Banco Popular put 19 buildings up for sale at the beginning of the year. Caixa Galicia has sold 40 properties to Zara and Santander has sold their administrative “town” outside Madrid.
- The banks are not using the money placed at their disposal in the government’s “rescue fund” because they are afraid this will damage their reputation. They demand that any loans made be kept secret. The government has refused to accept this demand but has proposed not to publish details of any loans from the rescue fund for a period of 4 months.
- The Government has left a door open for the banks to sell the bad credits they advanced to the promoters during the hay-days of the property boom, to the Treasury, thus nationalising the losses and leaving the bill to be paid by the tax payers.
- Spanish EU Commissioner for the Economy, Joaquin Almunia, has confirmed Spain is in a recession which will probably last until 2010 and that unemployment will rise to 15.5%.
- Jesus Encinar, founder/leader of the property channel Idealiste.com, has declared, ” Spain is probably the worst place to invest.”
- The number of bankruptcies proceedings in the courts rose by 395.65% from 2007 to October this year. The 36 commercial courts are drowning in an avalanche of 2,000 proceedings. In 95% of the cases the companies will fail to survive.
- “El Corte Inglés” without giving detailed figures, have confirmed, this year they will not reach their 2007 turnover.
- Total shop sales fell 5.6% in September. This is the seventh consecutive month of negative results. The drop in June was 9.8%
- The President of CNC (National Association of Constructors) has asked the Government to provide incentives by increasing the amount of construction of public infrastructure. He is predicting 200,000 of the dwellings, anticipated for construction this year, will not be built.
- Spain’s trade deficit for the eight first months of this year amounts to just over 72,957 million Euros, an increase of 6.4% compared with the same period last year.
- The Government has announced a partial moratorium on mortgage repayment installments by people who have become unemployed. The reduction has a limit of 500 euros per month and will last for 24 months.
- Minister of Finance, Pedro Solbes, has declared Spain has spent all its available resources for combating the crisis.
From this week misleading price adverts for tickets sold by airline companies is forbidden. In accordance with a new Directive from the European Commission, they are now obliged to include all charges; airport taxes, gasoline, handling, etc. in the price advertised. The aim is so that consumers will know immediately the real price and thus be able to easily compare various offers. Special insurances must be presented as a voluntary option and may not be included in the price.
Eviction, 138 apartments in Alfaz del Pi
A court has ordered the eviction of 138 families who bought apartments, in good faith, in a tourist complex in Alfaz Del Pi. The reason for the action: the apartments were designated as “apartementos turisticos” instead of “residencial” dwellings (we have been warning all foreign buyers about this for many years). The order to the town hall is that the owners must be evicted and the supply of water and electricity cut off. The Mayor is pleading for a change in the classification of the complex.
“Marina d’Or” out of luxury office in London
The Valencia promotion company “Marina d’Or” who were responsible for some of the ugliest apartment blocks along the Mediterranean coast is leaving their luxury offices in Oxford Street, London. At a time when the British market for second homes in Spain has gone from 50,000 sold units in 2006 to less than 5,000 this year, the company had been paying 728,112 euros in lease and taxes. Ben May, analyst in the London property company Capital Economics, is estimating a fall of 30% in the price for properties in Spain in the coming years.
Court blocks mega-project in Castellon
The Supreme Court of the Valencia Region has annulled the change of 897,380 m2 of farm land to building land, which was to make space for the construction of 6,000 dwellings in the city of Castellon. The Valencia Government had given complete approval for the project.
The court found the project infringed even the previous urban planning law of Valencia (LRAU) and that the land may be affected by flooding during heavy rainfalls.
ETA bomb against university
Navarra in Pamplona, the regional capital: Basque terrorists exploded a 20 kilo dynamite car bomb in a parking area situated between the central building and the university’s library of humanities. 28 people were slightly injured but substantial material damage was caused. The explosion could have resulted in a massacre.
Opinion poll prediction, PP wins elections
The latest opinion poll predicts a victory for opposition party PP over the ruling socialists in PSOE, if elections were held today. It shows PP would win 41.3% of the votes (39.7% in the real elections in March 2007) whilst PSOE’s share would fall from the 43.6% gained in last elections to 40.2%. However, Prime Minister Rodriguez Zapatero comes out ahead of opposition PP leader Mariano Rajoy as the preferred candidate for prime minister, with 5.1 points (out of 10) against the 4.4 points of Rajoy.
Victims must pay in Almanzora
A representative of the Andalusia Regional Government has declared that the property owners must pay the substantial infrastructure costs in the regularization process needed in the Almanzora Valley in Almeria Province. He maintained that neither the cash starved municipalities nor the small developers would be able to carry the burden.
6,000 expats have bought or built properties in the inland valley of Almanzora, without the installation of the most important infrastructure and without building approval, although they did so with the assistance of property agents, builders, local lawyers and on a ‘nod’ from the town halls.
Spain excluded from G-20 summit
Spain has not been invited to attend the G-20 summit meeting which is taking place in Washington on 15th of this month. Prime Minister Zapatero has mounted an international campaign against the decision, claiming that he has important things to say. What could they be? Maybe to repeat his comments over most of this year: “There is no crisis!”
8 months delay in payments by Town Halls
Town halls are in increasingly in a worsening economic situation. A study shows that the average delay in payments by the municipalities to suppliers and service companies is 8 months. At the beginning of this year the delay was 6 months. Many of the smaller companies dealing with municipalities are on the brink of collapse. Four years ago, a law stipulating that the public administration must pay an interest of 7% above Euribor for delay in payment, was passed. The suppliers, nor service companies are not getting the principal, or the interest. The word is that Orihuela Town Hall are thousands in debt to contractors and service providers.
The weekly crisis:
- 192,658 more workers joined the unemployment list in October; 7% more than in September. This is the biggest increase in statistical history. Total unemployment now stands at 2,818,026 following 7 consecutive monthly increases. In Andalusia the increase from 1st September to the end of October was 42,344.
- The number of people contributing to the Social Security System fell by over 100,000 in October, bringing to 450,000 the number lost over the past 12 months. The construction sector has lost the most contributors over the past month, with fall of 41,916. Security System expenditure rose 41.8% in September.
- Investment funds in Spain lost deposits of 9,600 million euros in October. The losses over the past year and a half total 75,000 million euros and several ‘funds sales’ companies have closed their doors.
- Banco Sabadell is selling 600 branch offices, with the new owners leasing back the premises to the bank. BBVA is selling 30 buildings and 1,288 offices. Banco Popular put 19 buildings up for sale at the beginning of the year. Caixa Galicia has sold 40 properties to Zara and Santander has sold their administrative “town” outside Madrid.
- The banks are not using the money placed at their disposal in the government’s “rescue fund” because they are afraid this will damage their reputation. They demand that any loans made be kept secret. The government has refused to accept this demand but has proposed not to publish details of any loans from the rescue fund for a period of 4 months.
- The Government has left a door open for the banks to sell the bad credits they advanced to the promoters during the hay-days of the property boom, to the Treasury, thus nationalising the losses and leaving the bill to be paid by the tax payers.
- Spanish EU Commissioner for the Economy, Joaquin Almunia, has confirmed Spain is in a recession which will probably last until 2010 and that unemployment will rise to 15.5%.
- Jesus Encinar, founder/leader of the property channel Idealiste.com, has declared, ” Spain is probably the worst place to invest.”
- The number of bankruptcies proceedings in the courts rose by 395.65% from 2007 to October this year. The 36 commercial courts are drowning in an avalanche of 2,000 proceedings. In 95% of the cases the companies will fail to survive.
- “El Corte Inglés” without giving detailed figures, have confirmed, this year they will not reach their 2007 turnover.
- Total shop sales fell 5.6% in September. This is the seventh consecutive month of negative results. The drop in June was 9.8%
- The President of CNC (National Association of Constructors) has asked the Government to provide incentives by increasing the amount of construction of public infrastructure. He is predicting 200,000 of the dwellings, anticipated for construction this year, will not be built.
- Spain’s trade deficit for the eight first months of this year amounts to just over 72,957 million Euros, an increase of 6.4% compared with the same period last year.
- The Government has announced a partial moratorium on mortgage repayment installments by people who have become unemployed. The reduction has a limit of 500 euros per month and will last for 24 months.
- Minister of Finance, Pedro Solbes, has declared Spain has spent all its available resources for combating the crisis.