Málaga Leads the Construction Sector in Andalucía with an Occupancy Rate of 88%

10 May 2019 – Expansión

Málaga is leading the ranking of house sales in Andalucía with 32,438 transactions and a market share of 32%, almost doubling that of its nearest rival, Sevilla (17.4%).

According to the participants of the round table organised by the Association of Property Developers and Construction Companies in Málaga (pictured above), the province is currently the driving force behind the construction sector and is home to some of the highest employment rates in the country (88.5%). That means that the sector now employs 62,700 people of the 70,200 surveyed in the Active Population Survey (EPA) when just five years ago, that figure amounted to just 57%.

In terms of the challenges facing the sector, the most important ones are rising rental prices and the generation of buildable land. In this context, the General Secretary for Housing at the Junta de Andalucía, Alicia Martínez, took advantage of the round table event to announce a new housing plan called ‘Plan Vive Andalucía’, which includes a greater commitment to affordable housing, the reactivation of obsolete urban areas and the promotion of R&D in the sector, amongst other initiatives.

Original story: Expansión (by Juan A. Gómez)

Translation: Carmel Drake

Property Developers are Building 18,000+ Homes in Andalucía

18 March 2019 – ABC Sevilla

The real estate market in Andalucía is booming, and in a good way. According to the latest figures from the Ministry of Development, 12,363 permits were granted in 2017 for the construction of new homes, compared with the record before the burst of the bubble of 156,483 in 2006. Construction activity is responding to real demand in the market and is featuring some new players that are planning to build thousands of new homes in the region over the next three years.

Two markets

The investors, which include international funds and local property developers alike, differentiate between two markets – the eastern (Málaga) and the western (Sevilla) – the former accounts for 70% of new developments.

Aedas Homes currently leads the regional ranking by number of homes planned and investments forecast in the autonomous region. The property developer controlled by the US fund Castlelake plans to invest almost €1.3 billion in the region in the construction of 5,150 homes, primarily in the provinces of Málaga (2,600 homes) and Sevilla (1,800).

It is followed by Neinor Homes, which owns a portfolio of 29 plots for the construction of 3,628 homes; Metrovacesa, which has 2,300 homes in its Andalucían portfolio at various stages of completion; and Vía Célere, controlled by another US fund Värde, which is building 1,975 homes across 21 developments.

Meanwhile, ASG Homes has buildable land in Andalucía for the construction of 1,700 homes; Habitat Inmobiliaria, owned by the US investment fund Bain Capital, is working on the construction of 15 developments containing 1,621 homes; and the Sevillan property developer Insur is working on 17 residential developments comprising 1,136 homes at various stages of completion.

Finally, Q21 Real Estate, the property developer created from the alliance of the US fund Baupost and the owners of the former Pinar group, is also constructing almost 500 homes in the region, bringing the total number of homes under construction to more than 18,000.

Original story: ABC Sevilla (by Encarna Freire)

Translation: Carmel Drake

Brexit Deters Brits from Buying Homes in Andalucía

17 March 2019 – ABC Sevilla

The residential market in Andalucían is booming, despite the slowdown in demand from British buyers. The regional market is split into two clear segments – the market for second-hand homes for holiday use along the Costa del Sol, centred around Marbella and Estepona – and the market for primary residences across the rest of the autonomous region, where Málaga, Córdoba and Sevilla stand out with the most activity.

In the former, despite the decrease in demand from British purchasers due to Brexit, there has been a notable increase in buyers from the north of Europe, especially from Belgium and the Nordic countries.

In the latter, the local population, which primarily comprises families aged between 45 and 55 years old, with savings and stable incomes, is driving demand. For example, house sales in Córdoba grew by 16% in 2018, according to INE.

Original story: ABC Sevilla (by E. Freire)

Translation/Summary: Carmel Drake

ASG Homes Sets its Sights for Growth on Andalucía

12 March 2019 – ABC Sevilla

ASG Homes, which manages and develops projects for the British fund ActivumSG, owns a stock of land on which it could build 5,000 homes in Spain, making it the seventh or eighth largest property developer in the country by land bank. It largest regional presence is in Andalucía, where it owns land on which to build 1,700 homes, with Sevilla and, specifically, Sevilla Este, accounting for the majority of those plots, where it has capacity for 1,200 homes.

According to the CEO of ASG Homes, Víctor Pérez Arias (pictured above), his firm currently has 600 homes under construction in Sevilla, Estepona and Marbella, whose prices will range between €140,000 and €300,000. Moreover, it is also looking to repeat its activity in Sevilla and so is searching for land to purchase along the coasts of Málaga, Cádiz and Huelva. It is also interested in opening a hotel in Sevilla.

According to Pérez Arias, there is a shortage of buildable land across Spain, which is causing demand to exceed supply, and as such, prices to increase. The delays involved in processing building permits to convert developable land into finalist land is not helping either. In some cases, rather than taking up to 6 months, as permitted by law, those procedures are taking up to 14 or 15 months.

In light of the high level of demand in the rental market, ASG Homes is starting to work on projects in the residential rental market. Besides homes, ASG also promotes shopping centres, student halls, hotels and serviced apartments.

Original story: ABC Sevilla (by María Jesús Pereira)

Translation/Summary: Carmel Drake

Andalucía’s Property Market is Operating at Four Speeds

3 March 2019 – ABC Sevilla

According to INE, more than 100,000 homes were sold in Andalucía in 2018, a figure not seen since 2008. That figure represented an increase of 13.1% YoY, but growth was far from uniform across the region.

The main driver was the province of Málaga, where almost 32,500 homes were sold last year, up by 5% YoY. In fact, Málaga, along with Barcelona, Madrid, Alicante and Valencia accounted for almost 40% of all house sales in Spain as a whole in 2018 (with 235,000 sales between the five provinces).

Elsewhere in Andalucía, 17,626 homes were sold in the province of Sevilla, up by 19% YoY. Its rate of growth was higher than in Málaga since the recovery started there two years later.

In this sense, Francisco Martínez-Cañavate, President of Fadeco Promotores (pictured above), points out that “there is a lot of demand in the province of Málaga; then there is a second speed in Sevilla; a third in Cádiz, Granada and Almería; and finally a fourth in Córdoba, Huelva and Jaén”.

Original story: ABC Sevilla (by E. Freire)

Summary/Translation: Carmel Drake

Exxacon to Invest €200M in the Construction of 741 Homes in Andalucía & Madrid

28 February 2019 – Eje Prime

Exxacon Smart Living is stepping on the accelerator to expand its business. The Andalucían property developer, specialising in the residential market, is going to invest €200 million over the next four years to build 741 homes, distributed over twelve new developments in Andalucía and Madrid.

Within the coming weeks, the firm is going to unveil Living Colmenar, in Colmenar Viejo (Madrid), its first development outside of the Málaga and Costa del Sol area. The project will receive investment of €32 million for the development of a 156-home residential complex, the largest to be constructed by the company to date.

Exxacon, founded in Marbella in 2000 by Gastón Aigneren, the company’s current CEO and Chairman, is launching its expansion plan for the period 2019-2022, but at the same time will continue studying and considering investment in other markets, such as Valencia and Sevilla, according to sources at the company.

After consolidating its business on the Costa del Sol, the entry of the company into the residential market in the Community of Madrid is the real estate firm’s next challenge. The idea is to begin marketing Living Colmenar, which will have a buildable surface area of 17,400 m2, between March and April, and to start construction at the end of 2019.

The complex is going to be built on a plot acquired by Exxacon on Calle Alvarado in Colmenar Viejo, a municipality located to the north of the Community of Madrid, 39 kilometres from the centre of the capital. Living Colmenar will be a residential complex comprising 156 homes with various shared services, including: three swimming pools, a gym, a padel and fronton court and a children’s playground (…).

Original story: Eje Prime (by Roger Arnau)

Translation: Carmel Drake

Korian Makes its Debut in Spain with the Purchase of 7 Nursing Homes

31 January 2019 – Eje Prime

Korian is going on a shopping spree on the Costa del Sol. The French company has announced the acquisition of Seniors, a Spanish company that operates seven nursing homes for the elderly in Málaga. The Andalucían residential group, which recorded revenues of €15 million in 2018, has a supply of around 1,300 beds.

The operation represents Korian’s debut in Spain, the fifth market in which the company has a presence. In fact, the purchase forms part of its expansion strategy across Europe. Currently, the company also has operations in France, Germany, Belgium and Italy.

Although the economic terms of the sale have not been revealed, the CBRE group (which has acted as the financial advisor) said in a statement that “it is one of the largest corporate operations of 2018 by investment volume in the nursing home sector”. The Seniors group, founded in 1998, is a family company backed by 100% Andalucían capital.

Original story: Eje Prime 

Translation: Carmel Drake

Aedas Homes Buys Land in Granada on which to Build 600 Homes

6 December 2018 – Eje Prime

Aedas is expanding its presence in Andalucía. The listed Spanish property developer has purchased land in Granada, on which it is going to build 600 homes over the coming years. The plots are located in two expansion areas of the Nasrid capital, according to a statement issued by the company.

The property developer is going to start work on the construction of the first homes during the first quarter of 2019, within the West Railway area, an urban development where construction has been suspended for more than a decade. Now, the Town Hall has unblocked the land and the company is working on its urbanisation.

The other plot of land acquired by Aedas in Granada is located in the so-called North Rim N3, an area to the north of the urban nucleus of the capital, where the property developer has the objective of starting the urbanisation project next summer.

Recently, the company began the sale of its sixth development in Sevilla and Málaga capital, where it made its debut with 87 new homes in the Teatinos neighbourhood, one of the trendy areas of the Málagan region.

Aedas owns a portfolio of finalist land spanning more than 1.5 million m2 for the construction of more than 14,500 homes across the country, in the Central region as well as in Cataluña, Levante, the Balearic Islands and Andalucía.

Original story: Eje Prime

Translation: Carmel Drake

Metrovacesa to Invest €40M in the Construction of 180 New Homes in Córdoba

27 November 2018 – Eje Prime

Metrovacesa has already set up its first cranes in Córdoba. The Spanish property developer has started work on the Las Terrazas de Poniente Sur Residential complex, the first in a series of three projects that the company has underway in the city. In total, the real estate firm is going to build more than 180 homes, with an investment of €40 million in the capital of the Andalucian province.

The company is going to build 120 homes in its first development in Córdoba. On that site, located in the Parque Cruz Conde neighbourhood, the company is going to build flats with between one and five bedrooms, in a building comprising a ground floor and six upper floors. In the common areas, the development will have an outdoor swimming pool, a padel court, a garden and a children’s playground.

Metrovacesa’s commitment to the Andalucían city reflects the fact that Córdoba is “one of the Spanish cities with the highest demand for residential properties at the moment”, said the property developer in a statement.

Besides the Las Terrazas de Poniente Sur Residential development, the company is already marketing Villas de Alhakén, a development comprising 21 single-family homes in the El Brillante neighbourhood. Meanwhile, it is finalising matters to obtain the urban planning licence for Mirador de la Albaida, a residential development comprising forty homes, which will have views of the mountains in Córdoba.

Commitment to Andalucía 

The start of the work in Córdoba is strengthening Metrovacesa’s commitment to Andalucía, where 45% of the company’s land portfolio is located. In Eastern Andalucía alone, the property developer has land on which to build 6,000 homes, of which 4,000 units will be promoted along the Costa del Sol.

The objective of the property developer over the medium term is to generate revenues of €1 billion by 2020, and to increase that figure to €1.5 billion over the following years, according to sources speaking to EjePrime.

Original story: Eje Prime

Translation: Carmel Drake

Aedas Homes has a Landbank Covering 4+ years of Visibility

8 October 2018 – Nasdaq

Aedas Homes, a leading property developer in the new real estate cycle in Spain, already has enough land in its portfolio to cover deliveries until 2022, as well as a significant part of 2023, thereby confirming the delivery targets set out in its IPO prospectus. The company’s landbank (close to 90% is classified as ready-to-build) will allow it to develop up to 14,521 homes in Spain’s key residential markets and is considered by analysts to be the best in the country.

So far in 2018, the publicly traded company, with CEO David Martínez at the helm, has completed the construction of 222 homes scheduled for delivery this year, 190 of which have already been sold.  As of August 31, the company had 6,287 active units, 55% more than in December 2017, and of those, 1,623 were already under construction. These figures reflect the strength of the property developer’s operating capacity during its first year.

In 2019, the developer plans to deliver almost five times as many homes, with a delivery target of 1,055 residential units; 1,071 homes are currently under construction and 761 have been sold. In 2020, Aedas Homes will deliver 1,986 homes and reach its cruising speed in terms of launches (3,000). The plan for 2021 is to deliver 2,438 homes and begin 2,471 new projects. 2022 will mark the moment when the developer reaches its cruising speed in terms of deliveries, with plans to put 3,063 homes in the hands of customers and launch another 3,000. In 2023, the number of homes being delivered will reach 3,326.

Martínez highlighted the company’s strict compliance with the goals announced at its IPO, noting that the company returned a profit one year ahead of schedule. Specifically, the property developer earned €3.7 million during the first half of 2018, making it the first of the new large developers in Spain to become profitable, and doing so only eight months after being listed on the Madrid stock market.

“We designed a realistic business plan, meaning that we will reach our targets in the coming years: by 2020, for example, we will have delivered more than 3,200 homes. Right now, we have almost 6,300 active units across 117 developments which gives us the visibility we need in terms of our objectives,” Martínez explained.

About Aedas Homes

The property developer Aedas Homes became a listed company on 20 October 2017 in Madrid, with a market capitalization of over €1.5 billion. Aedas is an industry leader at the national level and aims to play an important role in the new cycle of the Spanish real estate sector, which must be marked by professionalism and an adherence to rigorous standards.

Aedas Homes has a fully permitted residential landbank with more than 1.5 million buildable square metres (the highest quality landbank in Spain, according to analysts). This will permit the development of 14,500 residential units in the key markets, and their surrounding areas (both in terms of real estate and finance) where Aedas operates: the Centre, Cataluña, the East & Mallorca, Andalucía and the Costa del Sol.

Original story: Nasdaq 

Edited by: Carmel Drake