2 April 2018 – Inmodiario
Aedas Homes, a key player in the new cycle of the residential property development market, which made its stock market debut in October last year, exceeded its objectives in terms of the acquisition of 100% developable land in 2017. In fact, last year, the company invested €123.1 million in the purchase of land with the potential for the construction of 3,172 homes, up by 27% compared to the forecast set out in its Strategic Business Plan.
Specifically, 66% of the land acquired by the property developer in 2017 was located in the Community of Madrid, one of the areas that is seeing the highest demand for new housing, along with Cataluña. This significant stockpile of raw material has allowed the property developer to protect itself against the shortage of developable land in the Madrid region, a dearth that is causing major inflationary tensions in the market.
The plots acquired by Aedas Homes in Madrid have the potential for the construction of 2,093 homes, which, added to the land that the property developer already owned, means it now has a portfolio of land with the capacity to build 4,300 homes across the region.
Completion of the first developments
The Community of Madrid is one of the main focuses for the property developer. The firm has now sold more than 1,000 homes across Spain and is on course to achieve its objective of 1,500 operations at the national level in 2018. The high rate of transactions has been reflected in the sale of entire developments in Madrid, such as Terrazas de los Fresnos, in Boadilla del Monte, and Phase I of Escalonia, in Las Rozas –Escalonia II is now being marketed.
Raw material without any regulatory or political uncertainty
The land acquired by the property developer led by David Martínez in Madrid, along with the entirety of Aedas Homes’ land portfolio, is completely developable, which removes any kind of regulatory or political uncertainty. In other words, the property developer remains at the margin of the land transformation process (from not suitable to its conversion into “developable”), which involves some administrative activities that take a long time and which, therefore, delay the processing of urban development plans.
The company has a total land bank spanning more than 1.5 million m2 ready for development and with the capacity to house almost 13,000 homes, which represents 84% of the units that it plans to hand over between now and 2023. Many experts rate its land portfolio as the best in the market “We are committed to quality and not quantity”, say sources at Aedas Homes.
Original story: Inmodiario
Translation: Carmel Drake