Ranking of the 20 Developers With the Largest Pipelines for Delivery over the Next Three Years


22 July 2017

The reawakening of the residential housing sector in Spain has brought with it a large group of developers that promise to build thousands of homes in the next three years. It is sometimes difficult to discover details, to find out which developer is behind each new project.

This analysis lists what the Spanish Coordinating Institute for Governance and Applied Economics, an independent research centre, has identified as the top 20 of the country’s largest real estate companies, ranked by the number of homes they will develop by 2020.

At the top of the list is Metrovacesa, a developer controlled by Santander, BBVA and Banco Popular, which in the next three years will bring 12,600 homes to the market and, considering Neinor, Aedas, Via Célere, Corp and Pryconsa, is the only company that already owns in its portfolio all the land needed to build the new homes.

In addition, the company headed by Jorge Pérez de Leza, controlled by three Spanish banking groups, is a break from the leadership of large international funds, which are behind the bulk of the companies that make up the top 20, and which are negotiating with local companies to purchase land together to meet their housing development projections.

To reach the tally of 80,000 houses in these companies’ development plans, the institute counted both current developments and those that can be developed in accordance with the available land and projected purchases of new land. The institute’s studies drew upon various sectoral sources.

Neinor Homes (Lone Star), expects to deliver 10,250 homes; Aedas Homes (Castlelake), 9,850; Via Célere (Värde), 6,200; and AELCA (Värde) forecasts 5,750 residential dwellings, complete the top five positions in a ranking where only two companies linked to the large listed construction groups appear: Acciona Real Estate with 4,500 dwellings and Realia (FCC) with 1,650.

Another company stands apart is the Catalan Corp, which is the only member of the ranking with no national presence and that focuses all its interests in its autonomous community, where it plans to develop 3,000 homes.

Among the new phenomena of the real estate development sector that stand out, in addition to the hegemony of large funds, is the family structure of many of the Spanish developers (Amenabar, Quabit, Pryconsa, Lar, Ibosa…); bank’s greater requirements for granting mortgage financing to local investors, with requirements such as down payments of more than 50%; and a focus on the customer.

An increase is expected in the number of developers that will be listed on the stock market, where in the short term there will be between eight and ten companies

“It is clear that the Spanish real estate development sector has learned from the crisis and now operates with completely different criteria. A key factor is a focus on the client, which for the first time in a long time has become an essential part of the real estate business. Developers who know how to connect with what the customer needs will be assured of survival in the market, and whoever does not will disappear, “says Jesus Sánchez Lambás, executive vice president of the Institute.

Among those that will survive, many will do so by listing on the stock market, where Neinor and Quabit can already found.  Aedas, Via Célere and Metrovacesa are expected to join them in the short term. Even more should soon join them in the near future. The institute forecasts that eight to ten companies should be listed on the stock market in the short term.

Original Story: El Confidencial – R. Ugalde

Translation: Richard Turner