Rental Homes Generated an Average Yield of 7% in 2019, according to Solvia

Lleida, Toledo, Valencia and Segovia were the most profitable cities for rental properties in 2019. The average rental price was €9 per square metre.

Rental homes generated a return of 7% in 2019, up by one percentage point compared to the previous year. The average rental price amounted to €9 per square meter, which represented an increase in interannual terms of 2.4%, according to data from the IV Solvia Market View 2019.

The most profitable cities last year were Lleida, where yields amounted to almost 8%, Toledo (7.5%), Valencia and Segovia (both 6.6%). “That is because in those cities you can still buy properties at affordable prices and, due to their locations, renting is a good option when it comes to obtaining a return on the investment,” explains Solvia. On the contrary, Barcelona is now the city with the least profitable rentals due to the high sales prices of the properties there.

Barcelona City Council Defers the Rental Payments on the Homes it Manages for the Next Three Months

Families living in properties managed by Barcelona City Council will pay their monthly rental payments for April, May and June on a pro-rata basis over the following 18 months.

Barcelona City Council will not collect any rental payments for the homes in its public housing stock for the months of April, May and June. Thus, a total of 8,748 families living in rental homes managed by the Municipal Institute of Housing and Rehabilitation (IMHAB) – its acronym in Catalan – will not pay any rent until July.

These families will pay the amounts corresponding to the monthly payments for April, May and June on a pro-rata basis over the following 18 months, in other words, between July 2020 and December 2021, according to a statement issued by the City Council on Tuesday.

The three-month moratorium will also apply to the 1,400 subsidised homes and 400 commercial premises that IMHAB leases on the ground floors of the buildings that it has promoted.

Toni Kroos Launches his own Real Estate Company

The company’s activities include property rental, as well as development and construction. The firm’s registered office is located in La Finca.

The football player Toni Kroos has created his own real estate company for the development and rental of properties, amongst other activities. The Real Madrid footballer has founded the company Kroos Properties XXI SL, according to Cinco Días.

The company started trading on 17 February and its corporate purpose describes its activities as “the promotion, construction, purchase, sale, lease, transformation, development and marketing, in general, of all kinds of buildings, land, plots, and rural and urban estates”, in addition to ” the construction, urbanisation, excavation, foundation and demolition, either for itself or on behalf of others, as well as the disposal, sale, lease or operation, in any form, of all kinds of properties, buildings, flats, apartments, commercial and industrial premises, offices, hotels and hospitality establishments in general”.

Colonial Postpones 40% of its Investments for 2020 and Joins the Rent Waiver Initiative

In light of the crisis caused by the coronavirus, the Socimi is postponing part of its capex program until next year: €60 million, which represents 40% of the total investment of €150 million that it had planned to spend on the refurbishment and development of buildings in 2020.

The real estate company has acknowledged that “the coronavirus crisis is impacting our portfolio of projects and so specific delays on some of them are expected,” in a statement sent to the National Securities Market Commission (CNMV). One third of the amount deferred corresponds to investments in the office and housing project that the company is working on in the Méndez Álvaro area of ​​Madrid.

According to the listed real estate company, the impact of the coronavirus crisis on Colonial’s real estate activity, as well as on the economy in general, continues to be “uncertain and difficult to predict.” For this reason, the company has acknowledged that it has reviewed its investment criteria and policies “in accordance with a more prudent context”. However, it stresses that the company’s asset portfolio, as well as its current liquidity and solvency, allow it to “face and manage the situation in an optimal way”. Regarding its financial position, the firm explains that it has available credit lines and cash amounting to €2,000 million and net liquidity that covers “the maturities due over the next two years by more than four times.”

Construction Professionals and the Mayor of Madrid Ask for Building Sites to be Closed Down

Building sites are getting closer to being shut down. Public work architects, technical architects and technical engineers have joined the very critical voice of the Mayor of Madrid, José Luis Martínez Almeida, to ask the Government to enforce a temporary closure.

The three institutions, representing more than 110,000 collegiate professionals in the sector, estimate that, in the current situation, it is not feasible to guarantee the health and safety of all the agents, workers and personnel interacting on building sites.

Kronos to Defer Monthly Payments for People in a Vulnerable Economic Situation

The real estate company is using technology to continue to serve its clients and is pushing ahead with the construction of residential projects that were already underway.

In this context, the Kronos real estate development brand has created a chat channel on its website to maintain direct communication with the clients of each of the Kronos Homes projects. The chat incorporates a video call function and allows document sharing.

In addition, those clients who are in a vulnerable economic situation caused by the Covid-19 crisis may defer the payment of their monthly instalments.

Ministry of Development Delays the Launch of the Rental Price Index due to Coronavirus

The purpose of this index is to facilitate subsequent regulations that will limit rental price increases in pressure point areas.

The Government has postponed the presentation of the rental price index, which had been scheduled for the end of this month, due to the health crisis in the country. No new date has yet been set for its publication, according to El Economista.

The purpose of this index is to facilitate subsequent regulations that will limit rental price increases in pressure point areas, through temporary measures that may be applied by City Councils or autonomous regions.

From 73m2 in Central Malaga to 27 m2 in Villaverde: the Lockdown by District

Residents of the Centro district in Málaga have more than 72 square metres of surface area per inhabitant, compared to 48 square metres in Madrid, specifically, in the Moncloa-Aravaca area, and 26 square metres in Rekalde.

According to data compiled by the Brainsre big data real estate platform, each Spaniard has an average of 42.73 square metres of space in their respective homes, where an average of 2.51 people live. In terms of the locations with the most square metres per person, the regions with large rural areas stand out. But what about the large capitals? How much space do the residents of the most populated cities in Spain have?

The differences between the ten largest cities in the country are substantial. In this way, the 3.26 million inhabitants in Madrid have between 27 and 45 square metres of space per person, according to data collected by Brainsre.

Calviño Asks for Another Week to Consider the Minimum Wage and Rent Suspension Measures

Over the last few days, progress has been made in the development of these two measures for rent suspension and the minimum wage, but not enough for them to be approved immediately.

Aid for the payment of rents and the introduction of a minimum wage for the sectors hardest hit by the coronavirus crisis was not approved at the Cabinet Meeting on Tuesday. The debate between the factions of the coalition government will rage for another week.

Over the last few days, it has been reported that progress has been made in the development of these two measures, but not enough for them to be approved immediately. The positions are still too far apart, according to El Confidencial.

On Monday afternoon, a meeting was held to discuss the moratorium on rental payments, with proposals from the second vice-presidency led by Pablo Iglesias, and from the Ministry of Transport, Mobility and the Urban Agenda led by José Luis Ábalos. However, representatives from the economic (third) vice-presidency, led by Nadia Calviño, and from the Ministry of Finance, led by María Jesús Montero, asked for more time to study the proposals and design them in the best way possible.

CaixaBank will Waive the Rental Payments of its Tenants during the State of Emergency

The entity has launched this measure for tenants who have lost their jobs or been affected by an ERTE, as well as for self-employed workers who have ceased their activity due to the state of emergency.

From April, CaixaBank, the entity chaired by Jordi Gual, will waive the rental payments of its tenants in the homes owned by its real estate subsidiary BuildingCenter, if they meet certain conditions. This measure will remain in force until the month that the end of the state of emergency is decreed, if it has to be extended, according to reports made by the firm in a statement.

The bank has launched this measure for people who have lost their jobs or been affected by a temporary employment regulation file (ERTE), as well as for self-employed workers who have ceased their activity or whose activity has been reduced by more than 40% as a consequence of the state of emergency.