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residential Market News: Spanish Real Estate Intelligence

CBRE: New Homes Under Construction on the Costa del Sol Will Be Sold for c. €6,000/m2

18 February 2019 - Diario Sur

Six thousand euros or one million pesetas (…). That is what the buyers of the new single-family homes in Nueva Andalucía, in Marbella, can expect to pay per square metre. The real estate consultancy CB Richard Ellis has compiled a report about the characteristics of the new build developments that are being constructed on the Costa del Sol. And, the changing trend is reaching such an extreme that the analysts involved are talking about “a new building paradigm” in the residential market on the Costa del Sol, in this cycle of reactivation of the sector. The general conclusion is simple: better quality homes are being built, with more considered designs and common services, but also with much higher prices.

The document points out that in the past, the large number of transactions were sold for speculative purposes and, therefore, fundamental questions such as finishes, orientation, views and distribution were often neglected in the developments that were put on the market (…).

But times have changed. In this new cycle, property developers are taking care of their products and focusing their attention on clients with medium/high purchasing power and primarily those from overseas. It is not so much a question of location, be it in one specific municipality or another, but rather the quality of the product. (…). Now, most of the developers are backing more contemporaneous designs, with straight lines and large windows, with some of the best finishes in the market.

Change in model

“The reality is that during the last cycle, homes were built for the average market, but following the crisis years, almost everything is now being constructed to serve a niche in the market, of average-high purchasing power, which was previously unmet demand”, explains Andrés Moreno, Director of the Valuations Department at CBRE in Andalucía (…). “Now, much more care is being taken. Everything is designed with the final purchaser in mind (…)”.

The report highlights that the Costa del Sol is consolidating its position as an exclusive and luxurious destination. And that trend means that the newest flats are far from affordable for the general public (…).

In areas around Torremolinos, there are developments with sales prices of more than €4,000/m2, when the average for the area does not exceed €2,500/m2 for second-hand properties. In the Fuengirola/El Higuerón area, new build homes are being marketed for more than €4,000/m2. Prices amount to close to €3,000/m2 in La Cala de Mijas and rise to €6,000/m2 in Nueva Andalucía and Behahavís. The average budget of these clients ranges between €500,000 and €1 million.

Original story: Diario Sur (by Ignacio Lillo)

Translation: Carmel Drake

 
The Capriles Family will Set the Tone for Operación Calderón with Flats Priced from €5,700/m2

14 February 2019 - El Confidencial

It is a question of weeks. Gran Roque, the investment vehicle owned by the Venezuelans Miguel Ángel and Áxel Capriles, is going to start marketing homes in its most affordable development in Madrid within the next few weeks. The development comprises 105 homes and is located just 600 metres from the Vicente Calderón stadium. The properties are going to be put on the market for €5,700/m2. That price will, undoubtedly, serve as a reference for the potential buyers of the plots in the future Operación Mahou-Calderón, which is currently on standby until the plans for the urbanisation and Reparcelation of the area have been definitively approved.

As reported by El Confidencial, in October 2017, the Venezuelan clan purchased buildable land from Prosegur, just a few metres from where Operación Calderón is going to be built. For that plot, which has not required any type of urban development procedure and which is designated for residential use, as provided for in the General Urban Development Plan (PGOUM) for Madrid dated 1997, they paid around €25 million, approximately €2,900/m2. That price is close to those what is being considered for the plots owned by Atlético de Madrid.

According to explanations provided to El Confidencial by various sources, the development comprises five 5-storey buildings – except for one that has 4 storeys – and to optimise the price, Gran Roque has decided to start by marketing just two of the blocks, which contain 55 flats. In other words, like other property developers have been doing in Madrid, if the first homes maintain a high rate of sales, all indications are that the prices in the subsequent phases will be higher.

The construction permit will be ready by the end of April or the beginning of May, and so the marketing cannot officially begin until then. Nevertheless, 20% of the 55 units have already been reserved, according to assurances given by those same sources.

The project includes 2-, 3-, and 4-bedroom homes, all of which have a parking space and storeroom included in the price. The smallest units will go on the market from €450,000 plus VAT; the 3-bedroom homes will start at €550,000; and the largest homes will cost more than €600,000. That equates to a price of €5,700/m2, which is very high for many Madrilenians, but well below the prices typically charged for luxury developments.

Located just a few metres from Madrid Río and the Río Manzanares, the development will contain two swimming pools (one for children and one for adults), a gym, a children’s play area, a bicycle room and 24-hour surveillance, amongst other features. In total, it will have 1,719 m2 of common space (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

 
Proyme Buys Land from Sareb & Starts Construction at 4 Sites in Valencia

13 February 2019 - Valencia Plaza

Four residential buildings as it starts out life as a property developer. They are the figures with which the firm iHomes Urban Life is being created. It belongs to the company Proyme Grupo Gestión. The group, whose trajectory has focused exclusively on construction, decided to take advantage of the change in the cycle to develop residential projects.

Three of its projects are located in the city of Valencia and the fourth in Quart de Poblet. The largest of them is the latter, where 60 homes are being constructed in La Plaza San Rafael in the town of l'Horta Oest, on a plot acquired from Sareb. The smallest, known as Residencial Jardins del Botánic, will have 10 homes at number 16 Calle Turia.

The two remaining sites, which are both in the construction phase, are located on Avenida Primado Reig in the Valencian capital, specifically at number 136, with project Nexo Residencial, comprising 16 homes on a plot also purchased from the bad bank; and another 30 units at number 40, with project Alfa Residencial, on a larger plot before the tunnel that links to Peset Aleixandre.

According to explanations provided by sources at the group, which is originally from Algient and administered by Juan Bautista Pelufo Gayà, it is a family business with 30 years of experience, currently managed by the second generation and strengthened with personnel from other property developers (…).

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake