In Spain, because of the financial crisis and lack of finance, there are very good opportunities to invest in real estate: retirement communities, hotels and tourist resorts, among others. The Spanish economy is recovering and tourism industry is continuing growing (the second tourist country in the world), becoming the European Florida for European retirees. If you are interested to go into detail about Spanish business opportunities in relation with Retirement communities and holiday residences, please do not hesitate to contact with me. We are a real estate advisor consulting firm with broad experience and high ethical standards. Rafael Codoñer http://www.lanaveurbanismo.com/en/index.html e-mail: rcodoner@lanaveurbanismo.com

1. Real Estate Consulting & Project Management
RETIREMENT COMMUNITIES AND HOLIDAY RESIDENCES IN SPAIN
Valencia, June 2013

2. I.- INTRODUCTION.
II.- SPAIN: ECONOMIC SITUATION, KEY FACTORS AND TRENDS.
III.- POSITIONING AND OPPORTUNITIES: ADVANTAGES OF INVESTING NOW.
IV.- LA NAVE.
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3. INTRODUCTION
Demand for Spanish property from northern Europeans (mainly UK, Scandinavia, Germany, Benelux and new markets like the
Russian Federation) has been extremely strong over the last 15-20 years. This has increased in intensity over the last 2 years, in
particular given the low prices and extensive offer, in addition to the advent of “budget airlines” and improved accessibility to most
Spanish coastal destinations.
The most recent figures show an amazing potential for growth caused by several demographic and economic factors, besides the
fact that Europeans want to improve their quality of life. When compared with the U.S., the northern European “baby boomer” has a
limited range of suitable alternatives when buying or renting a retirement home, second home or future retirement home, in terms of a
fully integrated Active Lifestyle, Wellness Style real estate offer in Spain.
The position of Spain in the European environment and its strong infrastructure of communications and services, place it in an
exceptional situation to become established as a tourist and residential destination for European citizens.
This information leaflet shows the main macroeconomic variables and anticipates the investment opportunities and development of
business projects related to tourism and residential retirement communities. The opportunity is immense and the figures compelling.
The broad experience and market knowledge of LaNave places it as ideal adviser and partner to locate opportunities and to develop
investment projects with greater guarantees of success.
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4. SPAIN: ECONOMIC SITUATION, KEY FACTORS AND TRENDS
Economy
Severe economic crisis with a big increase of unemployment
rate.
A fiscal package to reduce the deficit of 11% of GDP is
being implemented.
Strict control of public expenses (State, Regions and
Municipalities).
Problems of cash flow in public administrations with impact
on private companies (suppliers to public administration).
Cuts in some social services.
The new labour regulations and the adjustment measures
taken in the economy are getting the first results:
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Spain is growing through external demand, as
exports and tourism reach record levels.
The flexibility in labour costs and the increase of
productivity explain why this growth is structural, not
short term driven.
There is an orderly and constant reduction of the
“Spanish Risk Premium”. The international investors
are positioning themselves in different Spanish
industries.
Very good prospects for the Spanish stock market in
2013, according to analysts.
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5. SPAIN: ECONOMIC SITUATION, KEY FACTORS AND TRENDS
Financial system
The Spanish financial system is successfully addressing its liquidity and solvency
weaknesses.
The restructuring of “Cajas” has been completed through mergers and injections of public
funds.
The reduction of capacity (branches and employees) is continuing.
The financial sector is set to have provisioned close to €200 bn. by year-end 2012, as house
prices are falling in line with those of other economies.
Three Spanish banks (Santander, BBVA, and Caixa Bank) are among the world´s leading
private banks.
Bankia (result of merging of Caja Madrid, Bancaja and other saving banks) has completed its
bailout and its restructuring plan, through recapitalization and structural and capacity
adjustments.
Real Estate
Average prices have fallen 30% to 50% from their peak in 2006 (10% in 2012).
There are big differences between markets and locations.
Construction is back to 6% of GDP, below historic average.
Average house prices could fall 5 to 10 % in 2013 and stabilize going forward.
By 2013, house prices will reach historic averages vs. disposable income.
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6. SPAIN: ECONOMIC SITUATION, KEY FACTORS AND TRENDS
The Spanish “bad bank” (SAREB)
51% private company, with an advantageous tax scheme.
55.000 million euros in assets (67% loans and 33% foreclosed properties).
Transfer of foreclosed properties with an average haircut of 63% (54% dwellings, 63%
works in progress, 79% land).
SAREB has to administer the assets, maintain/increase their value and put them into the
market in the next 15 years of planned activity.
The Company has estimated a return on equity (ROE) of 14% in a conservative scenario.
Tourism
Spain is the second country with the highest income from tourism, after USA.
58 million tourist visited Spain in 2012 (Spanish population 46 million), and
the upward trend in tourists and income is continuing in 2013.
Spain is the world´s 2nd largest tourist destination for residential tourism,
where foreigners acquire a second residence.
Spanish touristic growth is structural.
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7. SPAIN: ECONOMIC SITUATION, KEY FACTORS AND TRENDS
Health System
Spain´s health care system is ranked 7th best in the world by World Health Organization (WHO).
Spain is the 8th best life expectancy in the world.
The statutory National Health Service provides universal coverage is funded from taxes and predominantly operates
within the public sector. Private voluntary insurance schemes play a relatively minor role within the Spanish health
system.
Most European citizens are covered by the Spanish public health system (European Economic Space).
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8. POSITIONING AND OPPURTUNITIES: ADVANTGES OF INVESTING NOW
Expectations & Facts
There are signs that 2013 has reached the bottom out of
the Spanish economic crisis and is the beginning of
(slow) recovery. So, it is time to be positioned in the
market and have access to the information and
opportunities for closing deals.
The “bad bank” needs to show high turnover from the
beginning of its activity. It expects to sell the best
properties during the first 3 years.
New legal and tax regulation for Spanish REITs
(SOCIMIs).
Proposed easier availability of “residence permits”, to
attract investors and residents from non EU countries
(Russia, China, etc.).
The tourism industry continues increasing with record
results.
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9. POSITIONING AND OPPURTUNITIES: ADVANTGES OF INVESTING NOW
Properties on the Spanish coast
There is a consensus that the recovery of market and prices in the “costas” will be before than other locations, because:
Spain is consolidated as an international purchase destination for holiday and retirement homes.
The steady increase of international tourism is the base for new buyers.
The recovery of the north and central European economy will be before the Spanish domestic market.
New markets are knocking: Russian Federation, Scandinavian countries and others are new buyers; and there are opportunities
in China and other countries.
The internal domestic market is more affected by the crisis: unemployment, fewer immigrants, lack of funding, etc.
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10. POSITIONING AND OPPURTUNITIES: ADVANTGES OF INVESTING NOW
Residential tourism and the 50 plus sector
International buyers and the active-life-style 50-plus living in Spain are a reality that is constantly growing.
According to the study carried out in 2012 by HSBC, Spain has a very easy going life style, aided to a great extent by its excellent
climate, a factor that is extremely important for people leaving their home land, particularly for those who have retired. More than half
(55%) believe that Spain offers a better standard of living than other countries around the world. The Spanish diet is another of the
highest scoring factors for expatriates living in Spain. The fact is that 77% of those surveyed admit that their diet has improved since
coming to Spain.
Products and prices
There is an excess of supply in some areas: generally in non-consolidated areas, third
ring of metropolitan areas, without services, good connections, etc.
The fall in prices has been 30% to 50% from the peak in 2006.
The prices of some new developments and urban land plots are below the
replacement cost.
House prices are expected to bottom out in 2013 after falling for 7 years.
The pricing policy of SAREB and other Spanish banks is more “accounting” oriented
than “market value” oriented.
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11. POSITIONING AND OPPURTUNITIES: ADVANTGES OF INVESTING NOW
Investment highlights: focus on distressed holiday dwellings, sheltered residential communities and touristic projects for the
European market:
There is a clear opportunity to get better distressed prices on holiday homes than on first-residence prime-located dwellings. It
is easier for banks and Spanish brokers to sell to Spanish buyers than to foreigners.
Average price correction at the coast has been bigger than in cities.
European buyers are back. The figure of dwellings sold to foreign residents has increased 15% in the last year, while total
dwellings sold have decreased 12%.
General prices index in Spain is decreasing more than in other countries. This will make Spain more competitive in terms of
tourism.
Spain is the European country that receives most foreign tourists yearly. The rental apartment accommodation option is
increasing quicker than other accommodation options.
There will be a lack of good quality and well-located holiday dwellings in Spain during the coming years. As Europe’s Florida,
more and more foreigners will spend holidays and retire in Spain. Therefore, a price increase can be expected in coming years.
There is a niche market for fully integrated resorts of sheltered communities for 50-plus citizens.
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12. POSITIONING AND OPPURTUNITIES: ADVANTGES OF INVESTING NOW
With enhanced fundamentals and depressed valuations, we believe now is a fantastic moment to take positions and invest in
Spain:
All the changes introduced in the Spanish Economy make the present moment attractive to
invest in Spain.
Spain is at a low level in the economic cycle.
Companies who take the lead in investing now will have the opportunity to benefit the most.
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13. LA NAVE
La Nave team of executive professionals has extensive experience in the real estate industry and is used to working in an
international environment. In particular, LaNave has wide experience of planning, development and management of touristic and
retirement projects along the Spanish coast.
LaNave groups and brings together the broad knowledge of experienced professionals to provide specialized strategic and
operational consulting and services for companies and real estate wealth and assets.
LaNave has a multidisciplinary team with ability to carry out the management of assets, from advice on buying, analysis and portfolio
selection, management of the value of properties to the final sale through the most appropriate marketing process for each type of
asset.
The main objective of the actions undertaken by LaNave is aimed at the enhancement of value of the real estate portfolio of our
customers through personalized attention to their needs, considering the current real estate market situation and making innovative
proposals for the development strategy of each client, portfolio or asset.
Our organizational structure allows us to develop an integrated service, with responsibility, control and single coordinator, and
coverage throughout Spain.
Pascual y Genís nº 1 - 2º
46002 Valencia
Spain
Telef.: (+34) 96 351 62 59
Fax : (+34) 96 394 10 20
Email: info@lanaveurbanismo.com
Web: www.lanaveurbanismo.com
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