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Real estate market in Tenerife: they rent a sofa for 250 euros

Mercado inmobiliario

The shortage of new homes in the Canary Islands is causing an upward rise in prices that people cannot afford to cover a basic need for survival such as being under a roof and living in a dignified way.

This situation is causing new cases that exceed science fiction. The last one is an advertisement for the rental of a sofa in a house in La Caleta, Adeje, Tenerife. It is not even about renting a room, but about a sofa in the community space of a house.

“We rented our sofa to amortize the rental price. The house is located in La Caleta facing the sea. Electricity, water and Wi-Fi included. The tenants are a boy and a girl who are hardly ever at home. Extreme cleaning is required”, post the ad.

“We are mainly looking for a WOMAN always for a cleanliness factor,” he adds. A citizen of Italian nationality published the announcement where he indicated that the entry would be immediate from August 6. This message has not gone unnoticed. From the Association of Real Estate Experts of the Canary Islands (APEI) they have denounced this type of advertisement.

“Do I rent a sofa to share with other people? We are going to a time when anything goes,” denounces Isidro Martín, spokesman for APEI. “We are talking about people who are trying to take advantage of the situation to get revenue that they will never declare,” he adds. “This cannot be allowed, this should be penalized. You cannot make this type of advertisement on this type of portal. I have been stunned,” he adds.

Interestingly, this announcement comes the day after the approval of the rental bonds for the emancipation of young people and with worrying poverty data on the islands. In the Canary Islands, not a single social dwelling has been built for almost twenty years.

Source: El Día

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Real estate scam in Tenerife: Recommendations to avoid scams

The Team of the island of Fuerteventura, in the framework of the ‘Nanur’ investigation, identified a person residing in the province of Madrid, as the alleged perpetrator of a crime of fraud. According to the investigation, said person defrauded a resident of Fuerteventura by asking for a transfer of 2,100 euros for the rental of a home that does not exist in Tenerife.

The investigation of said real estate scam in Tenerife, began after the Civil Guard received the victim’s complaint in the facilities of the Puerto del Rosario Post (Fuerteventura), in which he stated that to reserve and rent a home on the island of Tenerife He had to send 2,100 euros, by bank transfer, to the alleged landlord of the property.

However, the person later stated that he had become aware of the scam when he verified that the house did not exist. The scam was perpetuated by advertising on a web page widely used by users with a house supposedly located on the island of Tenerife.

In order to identify the alleged perpetrator of the scam in Tenerife, the Cybercrime agents collected all the data on the events that occurred, verifying that the alleged scammer had used the website as a tool to attract the victim, publishing a false rental advertisement with a housing that did not correspond to reality.

Recommendations to avoid real estate scams

Given these facts, the Civil Guard advises that when looking for rentals, it is first verified that the property exists on the market and that the landlord has access to it, requesting a prior appointment on the spot. It is also advisable to request information from a neighbor to avoid deception.

Likewise, it is necessary to be careful with deceptive advertisements and with those that ask for speed in sending a signal or deposit, since the objective of the rush is none other than to prevent possible victims from agreeing to send the money without verifying the property. . On the other hand, it is also advisable to be wary of landlords who send all the documentation electronically and avoid identifying themselves in person.

If you are looking for a property and need professional advice, we recommend that you ask for help from a certified real estate agent who can provide you with the necessary information. Contact us now and we will respond to your request as soon as possible.

Source: Diario de avisos

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They discover millionaire real estate scam in Tenerife

The National Police has dismantled in Tenerife a continuous scam of more than 800,000 euros carried out by a couple who acted as external agents of a recognized real estate company. The marriage requested money as signs or reservations and then seized the money of their victims.

The agents of the National Police began to receive similar complaints from people who stated that they had signed penitential deposit contracts for the purchase of houses, delivering large sums to a real estate company that were resolved with the loss of money and without options to acquire the house.

The modus operandi consisted of capturing data from the clients of the renowned real estate company, and through the agency itself, they carried out fictitious purchases of the properties. Potential buyers paid sums of up to 85,000 euros, in some cases, to reserve a home that they never managed to acquire.

The investigation triggered a police device, which after judicial authorization, culminated in the entry and search of a luxurious home valued at one million euros located in the area of ​​Puerto de la Cruz, where the marriage was arrested and made available. of the competent authority.

Source: El Dia

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Empathy and trust in competitive environments

Is it possible to survive in a competitive environment and at the same time develop the empathy and confidence to collaborate with others?

In the business environment we deal with competition as an organization but what we are not aware of is that our organization is made up of people who are competing every day. My question is: Who are we competing against as professionals? Against others or against ourselves?

I want to make you reflect because perhaps your competitor is not out of you. Your competition is you. Your fears, Your insecurities, Your Ego, Your feeling of not being enough. Your procrastination, Your inaction. In short, the excuses you tell yourself for not doing what you should.

Sometimes we take as references other professionals who are having better results than us, who are selling more, having greater visibility, generating more contacts, etc. What I have to ask myself is: What are they doing that I’m not doing?

Analyze it and take action. If they are referents, observe with an honest, humble look and give yourself permission to learn and from there be able to learn from those who set the pace. Your true competition is you, so compare yourself to yourself. Who were you a year ago? How much you grew? How much have you learned? and then learn and grow.

By: Belén Díaz

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How the rental price limit impacts the real estate sector

The Rental Negotiating Agency (ANA) expressed its dissatisfaction with the recent limitation on the rental price increase of 2% imposed by the Government for the coming months. In his statement, he stated that this measure seriously affects the development of the current real estate market.

The general director of the Agency, José Ramón Zurdo, criticized that this measure “freezes” the rental market and makes owners lose up to six percentage points in their profitability. He also considered that the measure turns all of Spain into a stressed area, affecting private landlords, who represent 93% of rent in Spain.

“Private landlords are the main affected by the intervention and freezing of their rents, compared to the large holders and investment funds, which no matter how much is said, they only represent 7% of the real estate market,” Zurdo explained.

A measure implemented outside the Regulations of the CCAA

The announcement of the extension has been rejected by the Rent Negotiating Agency, and it points out that it is a structural measure that will end up affecting all the leases in the country. Likewise, Zurdo has denounced that the successive extensions that are expected to take place in the coming months, the Government is skipping the housing regulations of the different Autonomous Communities.

Faced with this scenario, “the owners have gone from resignation to concern, and are already considering raising the rental price in the face of the immediate freezing of their rents,” Zurdo explained.

Source: Europapress

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The effect of the funds on the stability of the real estate sector

In a recent interview, the president of Gestilar, a developer from Madrid, Javier García-Valcárcel, spoke about the growth that the company has had in recent years, which has managed to build more than 3,000 homes.

The director pointed out that stability is a key factor for the sector to maintain the good health it currently enjoys, and it is clear to him that the real estate sector is today fully prepared to overcome future changes in the cycle thanks to the large institutional funds.

How is activity in the residential sector behaving in the first half of the year?

We are growing in sales compared to last year, but we have detected that the pace of sales is stabilizing. We are no longer seeing the big spike that occurred after Covid. This is a very good and positive thing for the sector, since spikes in any economic activity are not good. We prefer to always have an ascending linear activity, than an activity of ups and downs, since this situation is never easy for the structure of the company.

What is the reason for this stabilization in sales?

As a result of the Covid, the trend and the type of housing where people wanted to live changed. In addition, buyers accumulated a lot of savings and this led to an increase in sales. Now this stock has been consumed and external factors such as inflation have been added to this.

Can inflation be a major brake on the sector?

The truth is that we find ourselves in a scenario that until now we had not experienced and from the sector we must be cautious when raising prices. The population, due to inflation, will have less savings available for the purchase of a home and at the same time will increase its financial effort to pay the mortgage, so we find that the price of housing will be capped. In addition, the price of land, except when there are structural crises, never goes down and on the other hand, the production process of construction, which represents from 20% to 50% of the price, has risen between 15-20%. The equation is really complicated.

Are we in a cycle change?

I think that despite this situation it will be extended with stable prices. I do not see a change of cycle in Spain. There is a lot of intention to buy and there is little supply. The only thing is that you have to be careful not to increase the selling prices. In addition, the sector currently has the backing of large institutional funds, which have significant long-term capital capacity and strength that provide a lot of stability to the sector.

Aren’t you afraid that this purchase intention could change with the rise in rates?

A rate hike always affects the real estate sector and not always positively. In the case of companies, this increase in the level of the production process does not affect us excessively because it is a very small part of the costs. Much more worrying in general for the sector is the rise in construction costs. Although, it is true that a rise in rates can affect the financial effort of the final buyers and also in the case of Build to Rent, it could make the funds ask for more profitability in these operations and that can complicate the agreements.

Have you detected that the rise in construction costs affects the investment appetite of the funds for rental projects?

So far we have not seen a lack of appetite, quite the opposite. The BRT in Spain started a few years ago and therefore one must be very careful with the projects. If there begin to be significant cost deviations or breaches of contracts, obviously the funds will take note and based on that they will act asking for a different return. But now everything runs normally.

Are you negotiating more rental agreements with new funds?

We currently have projects that add up to 2,000 units and that will be delivered in their entirety during the first quarter of 2024. In addition, we are constantly in negotiations for BTR land and we are also interested in the affordable housing that the Madrid City Council is going to offer. In all cases we would always go hand in hand with a partner. We are currently negotiating an important operation in Palma and we are also seeing volume operations in Levante and Andalusia.

What investment in land purchase do you have planned for this year?

We have a land portfolio for more than 3,000 units, of which 1,800 are under construction. In 2021 we have broken an investment record with 130 million and right now we are studying land for a value, as a whole, higher than last year’s figure and that would add up to 1,000 homes. But they are each in different phases so we cannot give a specific figure.

Source: El Economista

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The real estate sector facing the risk of legal uncertainty

The Spanish real estate sector continues to be an attractive area for investment. With solid foundations, the sector remains stable in the face of a possible crisis that could be generated by inflation or the rise in rates. However, different experts in the sector highlight a risk to take into account that can impact their behavior: legal insecurity.

“Spain continues to be a focus of attraction for international investors,” says Antonio Sánchez Recio, partner in charge of PwC Real Estate, who highlights that, although there is caution due to uncertainties, investors consider real estate as a haven asset.

With a privileged situation within the European context

Among the factors that influence the arrival of liquidity in the Spanish market, Sánchez pointed out that it is a market where prices are more attractive and affordable compared to those of other European countries. On the other hand, the real estate manager points out that private indebtedness is not high and that generates a certain peace of mind; added to the fact that it is an area far from the armed conflict.

Faced with the uncertainties that may alter its behavior, the sector arrives stable and healthy. “If we look at liabilities, we have a historically healthy situation,” says Juan Manuel Ortega Moreno, Director of Investments at Colonial, adding that the sector is much more prepared to withstand the temporary ups and downs that may come from the impact of interest rate hikes. The real estate sector today is in a rather privileged situation within the European context.

Source: El Economista

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No one can convince another to change

Each of us has the power to make the decision to open the door that allows us to make a real and lasting change in our lives. The key is that it can only be opened from within, and what happens? Most of the time we try to find the answers to our change outside of ourselves.

Whatever the current situation you are experiencing on a physical, mental or emotional level is conditioning you because you are identifying with what you are living. Obviously, the situation you are experiencing has been created by you. Consciously or unconsciously. Whether you like it or not, it is the result of the decisions you made and the ones you didn’t make as well.

Of your daily habits. From the people you surround yourself with. From your internal vocabulary. All these attitudes, skills and behaviors you learned at some point and have given rise to your way of Thinking, Feeling, acting and ultimately LIVING.

You can replace all those patterns of behavior with new patterns. More efficient and healthy habits. more trusting relationships. Make responsible decisions. Be aware of how you talk to yourself. The key for this personal change to occur is patience.

Personal development and self-knowledge to be a better version of ourselves sometimes implies experiencing unpleasant situations…. Just as the butterfly must experience a dark night of the soul to come out of its chrysalis flapping its wings in freedom, becoming in whom he has truly come to BE.

By Belén Díaz

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Will there be a boom in the real estate sector during 2022?

Real estate sales have picked up again in many countries after the pandemic. Spain is one of the places where the cost of the “brick” has increased, with housing construction figures not seen since 2008. Is there a risk of returning to a bubble? How does the future present itself in Spain regarding this issue?

Last 2021 was a good year for the real estate market, with a sale of 674,014 homes, according to data from the Ministry of Transport, Mobility and Urban Agenda (Mitma). Of all of them, 115,038 operations were purchases of new homes, according to the INE.

The 2020 confinement due to the pandemic caused a sharp drop in this figure (415,748 contracts). However, after the economic and social recovery, the figure will probably continue to grow, opening the possibility of a new real estate boom in 2022.

How the housing market has evolved

Regarding the price, there are also three sources that point towards an uptrend. According to data from the Appraisal Society, the price of new housing rose by 3% in 2021 (2-551 euros/m2). Taking the entire market as a reference, Tinsa places the average price of housing in Spain at 1,609 euros/m2.

For its part, Idealista, another expert in the sector, places this price at 1,825 per square meter, during the first quarter of 2022. In this case, it sets a drop of 0.2% compared to the previous quarter.

The savings accumulated during the pandemic, the recovery of the tourist market from the second-hand market and the 0% interest rates maintained by the European Central Bank (ECB) are factors that can drive up the price of money.

On the contrary, high inflation, which stood at 9.8% in March, the economic consequences of the Russian invasion of Ukraine, a near rise in interest rates and the rise in the Euribor could stop the trend . This indicator has remained in negative territory for the past few years, but is about to return to positive figures.

What happens if there is a new housing bubble?

The real estate bubble had a devastating effect on the Spanish economy, causing a crisis from which scars still remain. Hundreds of thousands of mortgages were left unpaid, many construction companies went bankrupt and as a consequence, many homes were left empty.

In the event of a new bubble, these circumstances could occur:

  • A collapse in housing prices, which fell by almost 30% from 2007 to 2016 according to Idealista, falling from almost 2,100 euros/m2 to below 1,500.
  • A collapse of built homes: 2013 marked the historical minimum of new-build homes with 34,288. On the contrary, 2006 was the maximum with 865,561.
  • An increase in delinquencies and evictions, which could increase with a possible rise in interest rates.

It is a hard and accurate blow to one of the most productive sectors of the Spanish economy, although it is far from happening as it did in 2004-05. At that time, Spain built more new homes than France, Germany, the United Kingdom and Italy combined.

If you are looking for advice from a professional in the real estate sector, you can contact us and consult with our team of professionals.

Source: Housell

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The CIO group invests millions in a luxury hotel complex in Tenerife

The Western Islands Group (CIO), through its brand The Tais Hotels & Villas, announced the development of an exclusive luxury tourist complex, which will include a hotel, an area of ​​high standing villas and a golf course of more than 500,000 m2.

The project will include the study of the architect Norman Foster -Foster & Partners, as well as the golf course design expert Gary Player. It is estimated that more than 100 million euros will be invested.

The CIO project already has the green light from the first administrative procedures. Thus, the plenary session of the City Council of Guía de Isora (Tenerife) has approved the partial plan Maguenes, which constitutes progress for the urban project.

About Maguenes Resort

Maguenes Resort, with an area of ​​more than 850,000 m2, will offer three different types of products, a luxury boutique hotel, a Private Residence Club (PRC) and the Maguenes Residences private villas. It will also have a complete wellness & spa area.

The importance of sustainable development is one of the priorities in the project, therefore, it will be integrated with the existing landscape, organic terraces will be used and the slopes of the land will be used to maximize views and differentiate the various areas of the Resort.

About CIO Group

The Company is a family group that brings together tourism, industrial and service companies with more than 100 years in the market.

CIO began its journey in the tourism sector in 1993, with the inauguration of the Hotel Bahía del Duque. Later, in 2008, they inaugurated Las Villas, which have spaces and services for the exclusive use of their guests. In 2009, the Bahía Wellness Retreat was added to the complex, a unique thalassotherapy center in the Canary Islands due to its facilities.

Source: Brainsre News