Holiday Accommodation Industry Expands in Spain as Property Owners Struggle to Pay their Mortgage

Recent mortgage and interest rate rises have prompted an influx of available holiday accommodation in Barcelona, and other Spanish holiday cities, just in time for the 2008 peak summer tourist season.

Barcelona, Spain (PRWEB) May 30, 2008 -- Recent mortgage and interest rate rises have prompted an influx of available holiday accommodation in Barcelona, and other Spanish holiday cities, just in time for the 2008 peak summer tourist season. Those in the short term accommodation business, Get Ready Rentals included, are delighted to have the extra bed space to meet the growing demand from Barcelona's swelling tourist market.

Spain's housing crisis is far from over. Many property owners, mostly local residents, are struggling to pay off their mortgages or selling at a loss out of desperation, while foreign investors enjoy the Spanish lifestyle with their holiday homes and coastal retirement villas. Forecasters, such as the Global Europe Anticipation Bulletin are predicting dramatic and ongoing consequences, including a collapse of the already "stricken real estate market...towards a recession and national banking crisis".

stricken real estate market...towards a recession and national banking crisis

It's unfortunate that local home owners have been forced into this position, but at the same time, renting their property to tourists is also providing them with a way out of the housing crisis

The good news is that more and more tourists are coming, and they're unlikely to stop

Barcelona is a great city for holiday makers, as are many other Spanish cities, so it's good news for everyone in that the city can cope with the increasing demand for holiday accommodation, tourists can enjoy their time in Spain and home owners get a boost to help pay off their mortgage

It's clear that the problem is not going to resolve itself quickly, and most agree that it will take some years to develop a bit of stability in the market, but local homeowners are really feeling the pinch and are looking for new ways to ease the strain. They are left with a choice of either trying to sell their property at a loss, or try to make ends meet by renting their property at premium rates, targeting the steadily growing demand from the tourist market.

But is it a viable solution? The European Cities Tourism Report 2006/2007 published by European Cities Marketing pegged Barcelona as one of Europe's top three tourism source markets, with a bed-space growth rate of 57% over five years between 2000- 2005. Barcelona's attractiveness as a hot holiday destination has brought with it an increased need for holiday accommodation, providing an opportunity for local home owners to capitalise (as best they can) on their investment.

These developments have delighted those in the Barcelona holiday accommodation industry, such as Gaizka Pujana, owner of holiday apartment rental business Get Ready Rentals.

Since 2003, Pujana has been providing holiday apartments in Barcelona to tourists, and naturally, has noticed the increase in demand for bed space, particularly during the busy summer months between June and September.

"It's unfortunate that local home owners have been forced into this position, but at the same time, renting their property to tourists is also providing them with a way out of the housing crisis" he says.

With the most basically fitted apartments in Barcelona attracting prices of 80-120 euros a night for two people, its easy to see why a property owner would elect to aim for a four month summer turnover in the vicinity of 10,000 euros, as opposed to 4,000- 7,000 euros return on a one to two bedroom property, from a longer-term rental contract.

"The good news is that more and more tourists are coming, and they're unlikely to stop" Pujana says. "Barcelona is a great city for holiday makers, as are many other Spanish cities, so it's good news for everyone in that the city can cope with the increasing demand for holiday accommodation, tourists can enjoy their time in Spain and home owners get a boost to help pay off their mortgage" he says.

It's clear to see that Pujana believes the influx of tourists is happening Spain-wide and not just concentrated on the Catalan capital: Get Ready Rentals has, since 2007, opened several other Spanish city destinations, offering short term apartment rental in Valencia, Costa Del Sol holiday accommodation, apartments in Granada, and accommodation in Seville. All cities are doing well and Pujana reports that most new properties that advertise with Get Ready occur as a result of home owners contacting him directly to represent their accommodation.

It seems that as long as the tourists continue to come to enjoy their slice of the Spanish lifestyle, things are looking up, at least a little, for home owners struggling to pay off their investments. It could just be a viable solution after all.

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