residential Market News: Spanish Real Estate Intelligence

The Cortina-Koplowitz Brothers Acquire a Prime Asset in Central Madrid for €22M

22 January 2020 - El Confidencial

Alberto and Pedro Cortina Koplowitz, two of Alberto Cortina and Alicia Koplowitz’s children, have acquired the property on Calle Orellana, 1 in the Justicia district of Madrid.

The building went on the market just over a year ago for between €33 million and €35 million, but the Cortina Koplowitz brothers have snapped it up for a mere €22 million, much to the frustration of the vendor, a Canary Island-based family office.

The property dates back to the beginning of the 20th century and has a constructed surface area of 3,800 m2, spread over six floors (a semi-basement, a ground floor and four above-ground floors).

It houses two commercial premises and eight homes, which are or have been leased as offices. The property generates annual rental income of €400,000, with a yield of just over 1%, which could well rise significantly if the new owners decide to put up the rent following their planned renovation of the building.  

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Bank of Spain: Demand for Mortgages Suffered its Largest Decline Since 2013 in Q4 2019

21 January 2020 - Expansión

During the period October to December 2019, demand for mortgages recorded its largest decrease since 2013, due to the poor outlook for the housing market and, to a lesser extent, regulatory and tax changes.

That is according to a survey about bank loans published by the Bank of Spain, which reveals that consumers are suffering from a reduction in confidence, and so are drawing on own funds and other sources over mortgages to finance their property purchases.

Moreover, the deterioration in the economic outlook and consequent increase in the perceived risk has led financial institutions to tighten up their lending criteria in terms of amounts, terms and collateral.

Original story: Expansión

Translation/Summary: Carmel Drake

Avantespacia Buys a Plot of Land in Pamplona

20 January 2020 - Eje Prime

Avantespacia has purchased a plot of land spanning 9,764 m2 in the Soto Lezcairu area of Pamplona from Altamira and Metrovacesa for an undisclosed sum.

The real estate division of Inveravante is planning to build its third development in the Navarran capital on the site in the form of a 72-home high-rise block.

Following this purchase, Avantespacia's land portfolio now spans more than 1.5 million m2.

Original story: Eje Prime

Translation/Summary: Carmel Drake