Málaga is the Province with the Third Highest Cadastral Values in Spain

25 June 2018 – Diario Sur

The real estate bubble burst a decade ago, but the effects of the boom that the property sector experienced before the crisis are still reflected in the cadastral values of the assets in the province, a circumstance that would not be so important, if it wasn’t for the fact that this variable is the one that the administrations use to set the tax rate for the state (IRPF and property), the region (Sales and Transfers) and municipalities (IBI and capital gains). Although in recent years, those values have been corrected downwards to reflect market prices, the reality is that the strong pull of the Costa del Sol places Málaga in third position in the national ranking of Spain’s highest cadastral values. Together, the 1.45 million properties registered in the province have a total value of €114.1 million, which translates into an average of €78,598 each.

That average, which is well above the national average (€59,424), is exceeded only by the Community of Madrid (€115,779) and the Balearic Islands (€81,234), and comes ahead of Barcelona with an average €76,944. According to statistics managed by the General Directorate of the Cadastro, the differences are also more than considerable compared to other provinces of a similar size, such as Valencia (€51,271), Zaragoza (€66,914) and Sevilla (€55,397), as well as with other predominantly tourist areas, such as Alicante (€45,481), Las Palmas (€64,054) and Tenerife (€56,601).

The trend in recent years has been downwards after the peak of 2013 (€90,770 on average), although the current figures are still a long way from the €49,921 that was registered in 2006. That reduction is the result of the updates to the cadastral figures that are being made in most municipalities, be it because they are due because ten years have passed since the last update, or because the Town Halls have requested them once five years have passed and provided substantial differences exist vis-à-vis market prices (…).

Whilst the differences are notable between different parts of the country, if we zoom in on the province of Málaga, we also see significant variations between the 103 municipalities that comprise the province, where the average is €78,600. The western coast takes the biscuit with Benahavís in the lead, with an average of €154,770. That figure doubles the average for Málaga capital (€70,201) and is explained by La Zagaleta, the most luxurious urbanisation in Europe. Although clearly not all of the properties in this municipality of barely 7,350 inhabitants have the same value, the 14,437 properties there have a combined value of €2.2 billion, placing it above cities such as Antequera and Ronda in the ranking even though those towns issue twice as many receipts (29,415 and 25,403, respectively).

Just behind Benahavís is neighbouring Marbella, with an average of €125,350, and other towns in the area such as Ojén (€103,790), Mijas (€96,780) and Manilva (€90,960). Alhaurín de la Torre also sneaks into the top of the ranking, whilst on the next step down are other municipalities on the west coast such as Benalmádena (€88,040), Estepona (€80,440) and Fuengirola (€79,090).

Original story: Diario Sur (by Francisco Jiménez)

Translation: Carmel Drake

The Price of Luxury Housing Soars by 7%


18 August 2017

The real estate market is beginning to take off. The luxury housing sector has accumulated a level of growth that shows just how good times are. During the first six months of 2017, the price of luxury homes saw an increase of 7% over the same period in 2016, according to data released yesterday by the real estate agency Barnes International. In absolute terms, this means that the average price per square meter of luxury residences in Spain has already reached 6,500 euros.

Despite the good data, growth is not homogeneous throughout Spain. The two principal Spanish cities, Madrid and Barcelona, stand out at the top of the table. Also worthy of mention are other largely touristic regions such as the Catalan Costa Brava, the Andalusian Costa del Sol, the Valencian coastline and the Balearic Islands. In all these areas, growth is even higher and increased 10% between January and June 2017 compared to the year before.

According to Barnes, this increase in prices has not had a negative impact on sales. If the pace of real estate transactions in the first half of 2017 is maintained in the second, the average level of purchase and sale transactions will increase by 10%. In particularly dynamic areas, such as the main Spanish cities or coastal areas, the pace is even higher, with year-on-year growth of up to 20%.

“The real estate sector is experiencing its best moment since the economic crisis,” Emmanuel Virgoulay of Barnes International said yesterday. “The previous three years have served to leave behind the effects of the recession and now the market is enjoying greater security, with investors in luxury housing who again trust Spain as a country with highly profitable assets.”

The data concerning average sales times in the luxury real estate sector are also positive. Between January and June, the average was around five months, although in the most buoyant areas the average time fell to three months. The French are the ‘fastest’ buyers of luxury properties, with an average of two months and four visits to the home, followed by the British (three months and five visits), the Belgians (four months and five visits) and the Germans (five months and seven visits). For their part, Spaniards and Italians required an average of seven months and eight visits to make the decision to acquire the property.

In terms of financing, Spanish buyers of luxury homes required a 40% financing to buy a luxury property. The French were the ones that least availed themselves of financing, with between 10% and 15% using loans. They were followed by British and Belgians (about 20%), while Germans and Italians approached the Spaniards (25% -40%).

Original Story: Expansion ProOrbyt – Héctor Millano

Translation: Richard Turner

Aliseda’s CEO, Pedro Berlinches, Opines On The RE Sector

24 August 2015 – Expansión

Interview with Pedro Berlinches (pictured above right), CEO at Aliseda. 

The real estate company owned by Banco Popular and the funds Värde Partners and Kennedy Wilson will start to build homes this year.

18 months after Popular outsourced the management of its real estate assets to Aliseda, its CEO, Pedro Berlinches, takes stock and is optimistic about the future. The company – jointly owned by the funds Värde Partners and Kennedy Wilson (51% stake) and Popular (49% stake) – is already paying dividends (the yield for shareholders is 18.2%) and expects to close 2015 with a double digit growth in profits, after it recorded profits of €68.4 million in 2014. As well as managing Popular’s foreclosed assets and loans, Aliseda, which has recently received additional investment of €100 million from Värde, will commence the development of 900 homes this year, for completion in 2018.

How have your first few months been?

The overall picture has been very positive. We exceeded our targets for the sale of real estate assets during 2014 and the first half of 2015. And we are going to slightly outperform the objective we set for property sales (€2,000 million) by the end of the year (i.e. 33% more than in 2014). The sale of land has been boosted and we will end the year with much higher figures than in 2014.

Which new activities will you focus on?

Basicaly, the development of real estate and the management of portfolios for third parties, be they real estate assets or loans. (…).

Aliseda recorded profits of €68.45 million in 2014 (…). What is the profit forecast for 2015?

We expect profits to experience a significant double-digit increase compared with 2014.

Why was the share capital increased by 2014?

The company was created with a capital structure that included loans from shareholders and third parties. The shareholders converted around 50% of their subordinated debt into capital. (…).

What are the plaform’s main sales channels?

Banco Popular’s retail network plays a very important role, as it accounts for 73% of sales. Another 23% of sales are made through direct marketers and 4% of sales are closed online. We launched a new website in April to increase the weight of direct sales made online to 10% by the first quarter of 2016.

Why has the sale of a large batch of assets amounting to €450 million been postponed?

Due to the economic conditions of the offers received, Popular (the owner of the assets) has decided to postpone the transaction. (…).

Have international funds withdrawn from the market due to the political situation in Spain?

No, not for the time being at least. To date, we have not seen any funds withdrawing from the market, quite the opposite. We have seen concern amongst investors. I think they have been nervous about the political situation. But the decision to postpone Popular’s €450 million transaction was taken purely on the basis of price.

How do you think the real estate market and prices will evolve?

There is not a single real estate market in Spain. The evolution by province is going to be uneven. Prices decreased by 0.3% on average during the first quarter (of 2015), nevertheless, they increased in certain areas, such as in Madrid, Barcelona, Valencia, Alicante and Málaga, where there is demand and a shortage of supply. And prices have bottomed out now so that the trend is towards a slight increase. I do not see us having double-digit growth rates again like before the onset of the crisis. We shouldn’t think that the problems are over and everything is positive now, but clearly there has been a change in perception, the macroeconomic indicators are very positive. Local property developers and international investment funds are seeing that clear opportunities are arising.

Is there a danger of over-supply of new housing?

Quite the opposite. Permits for between 35,000 and 38,000 homes are being approved this quarter, whereas during the peaks before the boom, hundreds of thousands of permits were being granted per year. The supply of new homes is limited and yet there is demand. It is good that the number of permits has increased in recent quarters, but we are light years away from (the levels seen in) 2007.

Can we expect to see a wave of consolidation amongst the servicers?

It is too early to anticipate any movements. But experts are certaintly talking about a possible concentration of servicers. Most of them are at least partially owned by investment funds, which will establish their exit strategies at some point and that may lead to movements, but I do not see that happening in the very short term. (…).

Original story: Expansión (by Alicia Crespo)

Translation: Carmel Drake