Catalonia is not quite a Spain. It is prestigious to own properties here, as prices during the crisis years fell there not as much as in the other regions. Natalia Lazenkova, General Director at EHR (Barcelona), dispels myths about cheap Spanish property and tells ee24.com readers about promising resorts, where the Russians like to settle.
– It is not the first time when we come to the exhibition in St. Petersburg, in order to provide the Russians with the correct information. Internet is full of false information about the objects, their value and purchasing process, – says Natalya Lazenkova, with whom we talked at exhibition in St. Petersburg in the spring 2014.
– What myths you dispel more often?
– For example, in Catalonia there are no objects for €50,000 at the first line of the sea beach. Objects for €100,000 that may be found on the Internet at Idealista and other sites are mostly the real estate for poor Spaniards and cannot be purchased by non-country residents, which is not mentioned on these sites. These are protection programs of the Government of Spain for poor people. These are also objects located far away from the sea, in some cases even in buildings requiring major repairs, etc. And the Russians say, we’ve seen in the Internet that such prices exist! I'm not saying that there are no offers for such price, but it's either a studio or a maximum one-bedroom apartment and not on the first line of the sea beach, but at least 5-10 minutes away by car.
The second myth is that the commission is paid by the buyer. Spanish agencies work in accordance with the Spanish system. This means that the commission is taken only from the seller. Buyers probably may pay for some extras but without commission taken.
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"There are many regions in Spain, where prices have decreased, but not in Catalonia"
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"There are many regions in Spain, where prices have decreased, but not in Catalonia"
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In Internet is also written that real estate prices in Spain decreased by 50%. Actually that happened in most Spanish regions, but not in Catalonia as in Barcelona and at the coasts of Catalonia real estate prices fell by 20-25% maximum. Interesting liquidity real estate in Catalonia is always highly-prized and it is now – the best time to purchase housing in the region. Moreover there is already a shortage of good objects in the center of Barcelona.
– What the Russians are usually interested in?
– Russian clients ask about real estate in the heart of Barcelona or about houses and apartments at the coasts of Catalonia. Recently appeared people who come often and are already looking for houses and townhouses in areas remote from Barcelona and the coast. And, it is true that there are good options located just 5-10 minute by car away from the sea and also much cheaper than, say, a second or third line of the sea beach.
A typical real estate purchase in Catalonia for the Russians is to buy seasonal housing residence or one for renting. Tourist apartments are in demand: you may stay here yourself or lease it. Such apartments are looked after and maintained in a clean and tidy. If you lease an apartment in Spain permanently, profit margin is 4-5% but without any risk. Apartments in Catalonia will never become cheaper and you'll only make a profit.
– How much is real estate in the heart of Barcelona?
– Nice apartments in Barcelona city center cost from €250,000-280,000 to €1-1.5 million. In the first case it will be a one or two-bedroom apartment with area of 60-70 sq. m. I’d like to note that in 2007 for €250,000-280,000 could be purchased only apartments on the outskirts of Barcelona, and now we may find a good offer in the city center. Liquidity of Barcelona could be explained by the lack of areas for development. All that could be built is already built, and there are no new complexes. Sometimes old buildings are completely remodeled and only a facade remains the same.
– Where to buy an apartment in Barcelona that generates income from the lease?
– For example, in the Eixample district or the district of Raval. Basically, it's the whole center within 1.5 km away from the Passeig de Gracia. There was no crisis as such in the center. Compared with 2007 prices have fallen by 20-25%, with good options have been sold long ago. Search of good real estate in Barcelona is constantly complicated.
– And what is the price level at the coast?
– Apartments in Costa Dorada with one or two bedrooms cost from €130,000. Costa Brava is a bit more expensive, the same is sold here from €150,000-170,000, but it is better to focus on €200,000-250,000.
– Do the Russians have favorite city places at the coast?
– Of course, and we are those who recommend them to our clients. It all depends from the purpose: will you come there from time to time for vacation, will you lease an apartment or will combine both options. Although today clients become smarter they have visited Spain for several times and know what they want, that makes us happy.
Lloret de Mar or rather its area "Fanals" is considered to be a good place as it is quiet, new, good and not very expensive area, where we have an apartment for sale from the builder and the secondary housing market options as well. Playa de Aro is supposed also to be very elite. Furthermore, Begur – it's very elite place among all tourists not only the Russians, but real estate there is more expensive: houses and villas but not apartments.
At Costa Dorada people are acknowledge with Tarragona, Salou and often ask about them. We are very pleased that customers became more trained and give real requests for specific locations. It started a year or two ago and we have been working for more than eight years. Previously, we were asked about "advise – suggest" and now: “We want a certain area and for a certain price”. Spain is not an exotic country any more as it used to be 10 years ago. It started three years you that you can get Spanish visa without any problems and our customers say that for real estate owners visa is given for two years.
– Does it happen that the Russians ask for "Russians free" places?
– It happens. But rather it’s not about "Russians free" but about calm and “noise free” places. There are resorts where you will never manage to fall asleep. Someone say that have come just for the holidays and prefer to live in the center of events. Catalonia is convenient as «quiet" and "noisy" places along the coast change one another. We recommend purchase a house in a quiet location, 5 minutes away from the center of all events.
– Who else among foreigners purchase real estate in Spain in addition to the Russians?
– Our main customers are the Russians. But there are also the French opening a business in Spain, a country with lower taxes and a better climate. If taken as a whole, then the demand among the Chinese is also high. But for them it's not just a property purchase but a residence permit also matters. This wave began with the enactment of the "golden visa" in 2013.
– Is it difficult for foreigners to get a mortgage in Spain?
– Speaking of Catalonia, it is quite difficult, so it is better not to rely on it. You need to leave a deposit, but the Russian real estate doesn’t suite: in case of emergency the Spanish bank will not be able to pick it up. Although we have recently proceeded negotiations with banks about the possibility of mortgage loans for our customers.
– There are a lot of news about the alleged cheap banking property in Spain. Will purchase from the bank be profitable?
– We must realize that free cheese is only in a mousetrap, although it is not free, in any case we are talking about real estate with the cost starting from €60,000. Really interesting options from the bank are already sold out; most of them are bought by investors.
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"Free cheese is only in a mousetrap. But in our case even that it is not free"
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"Free cheese is only in a mousetrap. But in our case even that it is not free"
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Good, liquid object will never be sold cheaply. Several banks in Catalonia offered us their property but we did not manage to find objects that might interest our customers, it's either located very far from the sea or in unknown cities where no one will ever go. We would be happy to sell the banking real estate, but, we did not find anything interesting there for ourselves.
– What are your outlooks for prices in 2014?
Today in Barcelona we see a slight rise in prices, according to the statistics it is only 0.8%. There won’t be any dramatic changes during the year, just increase by 1-2% is possible. The situation is expected to change in the autumn if the banks will give a mortgage, the Spaniards themselves will start to purchase, demand will increase and prices will follow. Now they do not buy not because they do not want to, but because they cannot. The banks have more money that may be allocated to the mortgage. But it is better not to wait. Good offers are less and less with each passing month. If you want to buy a real estate, you know the place and everything prepared so go ahead.
