1 Million m2 Of Logistics Space Was Leased In 2015

3 February 2016 – Mis Naves

This increase was driven primarily by Barcelona, according to the consultancy firms CBRE and Aguirre Newman based on their respective Market Reports.

Around 1 million m2 of logistics space was leased in Spain in 2015, showing further evidence of the improvement in the sector thanks to the recovery in consumption, according to data published by CBRE.

The report from the consultancy firm confirms that 378,000m2 of space was contracted in Madrid, in line with the figures seen in 2014, but that expectations for future growth are high, thanks to several projects that are underway and due to be completed this year, including those in Cabanillas del Campo and Getafe.

In Barcelona, according to the Logistics Market Monitor report published by Aguirre Newman, 549,894m2 of space was leased in 2015, which represents an increase of 76% compared with the previous year and a historical maximum. During the fourth quarter of the year, 51,959 m2 of space was leased in eight operations in Barcelona, and the largest six deals accounted for 75% of the total surface area leased.

Moreover, 40,000m2 of space was leased in the cities of Zaragoza and Valencia, respectively, according to CBRE’s report. Those two markets, together with Madrid, Barcelona and Andalucía accounted for the vast majority of logistics transactions in Spain last year.

According to Alberto Larrazábal, Director of Logistics and Industry at CBRE Spain, “the increase in ecommerce will be a key factor boosting the sector in 2016. The lack of large platforms, those measuring more than 25,000 m2, will drive new projects, whereby consolidating the growth of the sector in 2016”.

Original story: Mis Naves

Translation: Carmel Drake

Málaga Accounts For 53% Of Andalucía’s Holiday Homes

11 December 2015 – La Opinión de Málaga

The province of Málaga may account for more than half of the supply of holiday homes for rent in the autonomous region of Andalucía – specifically, 53% – at least, that is according to the calculations performed by the international firm Homeaway. The company is one of the market leaders in a segment that is causing a lot of controversy at the moment, with hoteliers, through groups such as Exceltur, accusing its participants of unfair competition given that they operate in a legal vacuum and are not subject to tax charges. The spokesman for Homeaway in Spain, Joseba Cortázar, who was speaking at a conference about the collaborative economy held yesterday in the Andalucía Lab de Marbella, said that the region, which has 14,600 properties advertised on its website (7,800 in Málaga) accounts for 16% of its total holiday rental supply in Spain (around 88,000 properties). Homeaway, together with Airbnb and Niumba, is one of the most representative companies in this sector, accounting for almost a quarter of all activity in Spain.

Homeaway, which cites that the Costa del Sol is one of its main markets, says that, at the global level, rented holiday homes have generated an economic impact of €793 million in Andalucía over the last two years, of which €761 million was spent on leisure and food during visitors’ stays, “impacting directly on businesses in the region”. The data is presented in a report compiled for the company by the Marketing Department of the University of Salamanca. In its conclusions, it says that rented holiday homes “are not competition, but are actually complementary to hotels, given that 81% (600,629) of the 740,000 visitors (resident in Spain and aged between 18 and 65) who leased tourist accommodation in Andalucía during the last two years, also stayed in hotels and only 19% (140,088) exclusively leased holiday home accommodation.

Homeaway’s report also says that the people who rented both holiday homes and hotels for leisure and holidays are the ones who take the most trips per year (6.57 times), a higher number than those that have stayed in a holiday home in Andalucía at least once in the last two years, independently of whether they have complemented their stay with nights in a hotel (5.84 times). According to this data, families (47%), couples (28%) and groups of friends (23%) are the main users of holiday homes in the autonomous region, whilst couples (49%) and families (34%) are most prevalent in hotels, with groups of friends taking a smaller share of the market (10%). For Homeaway, the report demonstrates the “complementarity” of the two accommodation types.

Cortázar did acknowledge that holiday homes in Andalucía are still in a “lawless” situation given the lack of specific regulation beyond that afforded by traditional rental guidance. (…).

On the flipside, Exceltur published a study in Málaga a few weeks ago, which showed that holiday homes do not represent a complementary offer, but rather are an invasive, substitute product, which offer no real capacity to attract new or different tourist besides the ones who typically use regulated hotels and apartments. Exceltur indicated that the majority of the visitors opting for that formula do so primarily for price reasons (…). Its report also denies that holiday homes can be defined as part of the collaborative economy: only 7% of homes advertised on digital platforms – the real driver behind the sector – involve free exchange and are offered in return for no payment. The rest, according to Exceltur, represent “a huge business”.

Original story: La Opinión de Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

Neinor Wants To Sell 1,000 Homes In Andalucía

21 July 2015 – El País

The residential property developer Neinor Homes has announced its new real estate project for Andalucia, where in addition to continuing to market CajaSur Inmobiliaria’s portfolio, it also expects to sell 1,000 homes and reach a cumulative investment of €200 million by purchasing buildable land. The real estate company has opened a new office in Córdoba, from where it will coordinate its expansion across the autonomous region.

Neinor Homes, which was launched in May of this year, is committed to marketing residential assets from both Kutxabank, as well as from its subsidiary CajaSur, throughout Spain over the next seven years. It also owns a stock of land for the new development of more than 5,000 homes and its business plan for 2015 includes a domestic investment of around €1,000 million to purchase land.

For the time being, Neinor’s own residential portfolio of finished products, which the firm has started to market in Andalucía, contains approximately 500 homes, including properties in developments such as Benalmádena Golf, the second phase of Residencial Duquesa de Manilva and Valle Romano.

Original story: El País

Translation: Carmel Drake

IPE: Urban Land Prices Will Rise By 10% In 2015

17 June 2015 – Expansión

Land will be the next market to be affected by the change in the economic cycle. That is the main conclusion drawn by the first Land Pulsometer, prepared by the Institute of Business Practices (IPE). The average price of urban land will grow in 2015 “by almost two-digit figures”, according to the study coordinator, José Antonio Pérez, Director of Real Estate at IPE.

In this way, if in 2014, each square metre cost €147 on average, by the end of 2015, it will be worth €160/m2, the highest figure since 2012. “It is a clear turning point” says Pérez, who says that “investment in land has a threefold economic impact, due to its direct, indirect and induced effectcs”. That means, every euro spent on land leaves a final economic footprint of three euros.

This recovery will take place because prices will increase “at double that rate” on the coast and in the major cities, i.e. at around 20%, “especially on the Costa del Sol, in Levante, the Balearic Islands, the Canary Islands, Madrid, Bilbao, Barcelona and A Coruña”, says Pérez.

These forecasts come a day after the Ministry of Development published its official statistics, which confirmed the beginnings of an upwards trend – from very low figures – in the market for land. During the first quarter, the average price of urban land (per square metre) increased by 5.9%, and in cities (with more than 50,000 inhabitants), the increase was 37.8%. (…)

According to the report, the number of transactions involving buildable plots of land will increase by 5.04% in 2015. Andalucía will account for 22% of operations, followed by Cataluña (16%) and Castilla-La Mancha (11%). (…)

Andalucía and Madrid will generate the most value: €579 million and €508 million, respectively, which means that the two regions alone will account for 42% of the national activity, which will amount to €2,593 million, i.e. 0.25% of GDP. The total impact (direct, indirect and induced) of the market for land will be €7,780 million.

The average price of land in Madrid, the highest in Spain, will exceed €300/m2, followed by the País Vasco and Balearic Islands, where it will exceed €250/m2. (…)

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Tinsa: Coastal House Sales – Marbella & Málaga In Top 5

12 June 2015 – El Mundo

Marbella and Málaga were ranked fourth and fifth in the national coastal real estate market for house sales in Spain in 2014, with 3,997 (+28.7% YoY) and 3,947 (+25.4%) homes sold in each municipality, respectively, according to the latest report from Tinsa (the real estate valuation and advice company), which contained data relating to forty Spanish towns.

The first three in the ranking were: Barcelona (12,819), Valencia (6,474) and Torrevieja (4,136). (…)

In addition, Mijas and Estepona, with more than 2,000 transactions each, also sat near the top of the national list, if we exclude provincial capitals.

In line with the recovery that is happening at the moment on the Costa del Sol, and according to data from the Ministry of Development, Torremolinos and Benalmádena are also performing extremely well, with growth rates in terms of house sales of 70% and 55%, respectively, in 2014 compared with 2013. Those figures place them in the ‘top 4’ in terms of percentage increase in activity.

According to the findings of this report from Tinsa, entitled “Homes on the coast”, “the markets with the greatest presence of international buyers are those where prices have stabilised first”.

On the basis of this and other data, the technical network of the entity that prepared the study, also cites “areas of recovery” on the Andalucían coast between Marbella and Benahavís,. Furthermore, “it detects signs of improvement” in Rincón de la Victoria, Nerja and around Manilva, Estepona and Casares, as well as in other towns in the Andalucían region. In the latter, prices have decreased by 61.5% from their peak, the largest decrease in the national study.

Original story: El Mundo (by Francis Mármol)

Translation: Carmel Drake

Carmena Will Not Sever Ties With Banks That Evict Families

27 May 2015 – El Confidencial Digital

The candidate for mayor of Madrid distances herself from Podemos and says that she will not apply the measure that Teresa Rodríguez imposed on Susana Díaz.

The greatest triumph of Podemos in the municipal elections held on 24 May has been the opportunity to become the mayor of the largest city in Spain. However, Manuela Carmena will govern Madrid without implementing one of the most controversial measures proposed by the party led by Pablo Iglesias.

It was after the elections in Andalucía when Podemos launched the headline-grabbing idea: to sever ties with the banks that force the eviction (of families) from homes with mortgages that the owners cannot pay.

The leader and regional candidate, Teresa Rodríguez, proposed this measure during talks with Susana Díaz to negotiate a possible agreement to allow the inauguration of the socialist as President of the Regional Government. Firstly, she demanded that the Andalucían Government should not work with banks that carry out evictions and next, she reduced the condition to require that the Government should not hold accounts with financial institutions that evict those unable to pay their mortgages.

After proposing this measure, several municipal candidates supported by Podemos for the May 24 elections included in their electoral program, or at least declared in public, their commitment to severing ties with banks involved in evictions.

Negotiations with the banks and non-retaliation

However, Confidencial Digital has learned that this measure will not be applied by the candidate who will govern Madrid’s town hall, given that Ahora Madrid did not include this idea in its election manifesto.

Sources close to the candidacy of Manuela Carmena confirm that this measure is not included in her election manifesto and therefore, she does not plan to apply it if she ends up ruling the municipal government of Spain’s capital.

“Ahora Madrid is committed to stopping evictions”, says the electoral manifesto of the municipal brand of Podemos for these elections. Below, it details a series of proposals that the town hall will undertake to avoid evicting people from primary residences and, in the event that they do take place, to offer an alternatives for evicted families.

Nevertheless, at no time does it mention “non-retaliation” against the banks that carry out evictions. Carmena’s manifesto includes only, amongst other measures, incentives for use to be made of  empty homes held by the financial institutions or the “bad bank” (Sareb), through agreements whereby the homes are transferred to the public stock of housing for use in the rental scheme.

Other Podemos candidates do support the measure

It is noteworthy that the candidacy of Ahora Madrid is distancing itself from one of the measures that, after being proposed by Teresa Rodríguez in Andalucía, was supported by many of the candidates that stood in the municipal elections, with the support of Podemos.

That is the case in Sevilla, where Participa Sevilla publicly committed that, if it was elected to the Town Hall, the Sevilla government would not work with banks that evict (people). Its candidate for mayor, Susana Serrano, even asserted that “it is inconsistent that the money from evicted families is held in the same banks that evicts them”.

Participa Sevilla will be key to enabling the socialist Juan Espadas to take the capital of Andalucía from the Popular candidate Juan Igancio Zoido. But the proposals made by the candidates supported by Podemos are more noteworthy; furthermore, they have won the elections and, presumably, will govern the town halls.

In La Coruña, Marea Atlántica – which won four more votes than the second ranked party, the PP – intends to apply the “cancelation of balances with banking institutions that carry out evictions”. Meanwhile, Barcelona En Comú, which has won with Ada Colau as the leader, is going to study measures to put pressure on the banks that do not negotiate with the town hall to put a stop to the evictions: including, “putting a stop to trading with the banking entities in question” and imposing sanctions on those banks.

Original story: El Confidencial Digital

Translation: Carmel Drake

Andalucía’s Housing Sector Finally Shows Signs Of Recovery

17 March 2015 – Cinco Días

The region has joined the recovery later due to its poor employment situation.

The autonomous community of Andalucía was undoubtedly one of the hardest hit by the burst of the real estate bubble, due to the weight that holiday homes have traditionally held in the region. Attracted by the influence that the areas of Marbella and the Costa del Sol have had on the rest of the Andalucían coast for decades, Andalucía was no exception and also joined the construction craze and the boom in prices.

In fact, according to figures published by the local Government, led by the socialist Susana Díaz, based on census data compiled by the National Institute for Statistics (INE) and estimates from the Ministry for Development, the total stock of real estate in Andalucía currently amounts to around 4.5 million homes.

If we compare this figure with data from 2001 (population census numbers and housing data are compiled every 10 years), the stock of housing has increased by more than one million homes, which represents a rise of more than 25% in relative terms. This means that, just like in the rest of the country, a significant stock of unsold new homes has accumulated (in Andalucía); some sources estimate (that the stock amounts to) 150,000 properties and others, such as the Spanish Confederation of the Construction Product Manufacturers Association (Cepco) estimated (that the stock amounted to) 114,000 in 2009.

What has happened since then? As in the rest of the country, between 2009 and 2013, construction activity (in Andalucía) virtually ceased, prices experienced the largest slump in recent history and house sales dropped to historical lows, dampened by the poor employment situation and the closure of the credit tap.

Foreign buyers

In this context, sales did not begin to take off again until price reductions started to decelerate and the flow of financing started to slowly open up; and since then, sales have evolved unevenly in each region.

Six years on and Andalucía is not known for being one of the regions where house sales have grown the most or where cranes have begun to appear again, since it is still weighed down by the employment situation, which has not improved there as it has done in other autonomous regions. And this is the case, regardless of the statistics that we analyse.

If we take the most recent statistics (published last Thursday) as a benchmark, which were prepared by the Ministry of Development using data from notaries, house sales in Andalucía grew by 21% during the last quarter of 2014 with respect to the same period in the previous year. These figures are roughly equivalent to the national average (19.5%), however according to the Ministry of Development, seven regions experienced increases that exceeded those recorded in Andalucía.

Meanwhile, if we consider the statistical figures compiled by INE, which obtains its data from the property registers, then house sales in Andalucía increased by just 0.3% year-on-year in 2014, compared with an average rate of increase across Spain of 2.2%. This modest growth in Andalucía contrasts with the recoveries of 18.5% and 12% in terms of real estate sales experienced in the Balearic and Canary Islands, respectively, two other regions that are heavily influenced by holiday homes and purchases by foreigners. Even so, the surplus of new homes in Andalucía had decreased by 44.5% to amount to 63,250 new homes as of last September, according to Cepco.

And where is Andalucía in terms of prices? Again, it worth considering the two sets of statistics that are regarded as ‘official’: those published by the Ministry of Development and INE. The department led by Ana Pastor recently published its price statistics relating to the entire year 2014 (compiled on the basis of appraisal values) and although they showed that house prices (in Spain) increased by an average of 0.5% on a quarter-by-quarter basis (the last quarter in 2014 compared with the previous three months), on an annual basis (fourth quarter 2014 compared with the same period in 2013), the most recent figure was negative, with house prices decreasing by 0.3% at the end of last year.

Nevertheless, Andalucía recorded positive rates in both cases, although the increases were very modest: 0.4% QoQ and 0.2% YoY. By province, five ended 2014 with lower prices than they had recorded a year before. Meanwhile, according to INE’s data (compiled using figures from notaries), Andalucía closed 2014 with an average annual price increase of 1.8%, just one (basis) point below the highest figures, which were recorded in Madrid and Valencia, with annual increases of 2.9% and 2.8%, respectively.

Industry experts agree that the recovery in the real estate market has started later in Andalucía than in other regions, but consider that now is the moment to take advantage of the ‘pull of tourism’ to construct there once again, since there is demand, and that will generate activity and employment.

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake