Servihabitat: 9 out of 10 Non-Resident Buyers Prefer the Beach

18 December 2017 – Eje Prime

17% of the homes purchased in Spain today have a foreign accent. During the first half of 2017, 83,675 homes were acquired by foreign buyers, which represents an increase of 10% with respect to the same period last year. Nevertheless, that increase weakened slightly if we look at the previous quarter, according to the Servihabitat Trends report published by the national servicer.

The reason for this annual increase is found in the climate: 83.7% of non-resident buyers in Spain during the first six months of this year focused their attention on just seven provinces, all of which offer sun and sand. Málaga leads the ranking, exceeding even Alicante according to the latest figures. According to data from the Ministry of Development, 30% of all house purchases by foreigners were recorded in Málaga, compared to 23% in Alicante (…).

The data is clear. Almost nine out of every ten foreign buyers in the Spanish market values the quality of life offered by the Mediterranean climate. Another factor to take into account is the reason for the purchase. In this sense, the Government reports that 95.8% of new foreign house buyers in Spain are resident in the country, which accounts for 80,191 properties in total (…). ,

Besides Málaga and Alicante, the other most sought-after provinces by these investors are: Almería (9.6%), the Balearic Islands (9.2%), Las Palmas (5.2%), Tenerife (4.7%) and Murcia (3.5%). Beyond these coastal areas, the remaining 12.7% is spread over the rest of the country, with large cities such as Madrid and Barcelona accounting for a large share.

Influence in the regional market  

As well as the growing number of international investors, their influence in the regional markets where they are interested in buying homes is noteworthy. In regions such as Alicante and Tenerife, overseas investors account for almost half of all residential property purchases in the regions. Similarly, in the Balearic Islands, Málaga, Las Palmas and Girona, the figure exceeds 30%.

In Cataluña and the Community of Madrid, house purchases by foreigners account for 15.9% and 8.8% of the total number of operations, respectively.

At the other end of the spectrum, the regions where fewest foreign investors are active are Extremadura (2.2%), followed by Galicia (2.5%) and País Vasco (3.3%).

Brits lead the investor ranking

In terms of the country of origin of overseas investors in Spain, British buyers continue to constitute the largest community of house buyers in the country, although their market share decreased during the third quarter of this year, from 19% to 15.13%, according to data from the College of Registrars.

The collateral damage from Brexit may have led to that decrease, although the loss in the purchasing power of UK households will have also played its part, due to the depreciation of the pound against the euro, according to the servicer’s report.

After Brits in the ranking of foreign investors in Spain, come the French and Germans, although neither group manages to account for 10% of the total market. The Swedes, Belgians, Italians and Romanians, all with a percentage market share of around 5%, buy similar numbers of homes in the Spanish residential market, which is speaking more languages every day.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Rentalia: Tourist Rental Homes Break Records Over Easter

19 April 2017 – Expansión

(…). Over the last few days, Spain’s large cities have experienced occupancy rates of 90.5%, i.e. 9.6% percentage points higher than last year, when the occupancy rate reached 80.9%. That is according to a study of prices and occupancy rates conducted by Rentalia (a company that belongs to the Idealista group). Sevilla, San Sebastián and Barcelona were the cities with the highest occupancy rates.

The cities with the highest occupancy rates over the Easter break were: Sevilla, with 98.3% (+14.6 percentage points higher than last year); San Sebastián, 98.1% (+9.1 points); and Barcelona, 96.6% (+13.9 points). Those with the lowest occupancy rates, but still above the national average were: Granada, 94.7% (+1.4 points); Valencia 93.9% (+12.5); Madrid, 92.7% (+1.2); Gijón, 91.5% (+3.8); Córdoba, 91.4% (+27.1); and Málaga 91.4% (-0.5).

“Beyond the large cities, other areas also recorded good occupancy rates”, said Rentalia. 67.5% of tourist homes on the coast were occupied over Easter, which represents an increase of 19.7 percentage points with respect to last year. Homes in rural areas had an average occupancy rate of 68.7%, which is almost identical to the figure recorded in 2016 (68.6%). “Of all the tourist homes in Spain, including homes in all areas, the occupancy rate amounted to 69.1% in 2017, whereas last year, it stood at 58.2%, which means it has grown by 10.9 points”, said the report.

The average price of tourist homes over the Easter break amounted to €30.40 per person per night. The most expensive cities for renting a tourist apartment between 12 and 16 April were: Ibiza, at €65.20 per person per night; Palma at €50.90; and Barcelona, at €42.30.

The best value-for-money destinations over Easter were Gijón at €20.80 per person per night, Alicante (€21.30) and Valencia (€22.80). In other cities, prices ranged between €24 and €40 per person per night: San Sebastián (€40.60); Málaga, €40.50; Sevilla, €39.30; and Granada €36.10, amongst others.

“In terms of the nationality of visitors, it seems that domestic tourists travelled the most during the Easter holidays, above all, given that 89% of reservations were made by domestic tourists and 11% were made by foreigners”, according to the report.

According to Almudena Ucha, Director at Rentalia, “the occupancy rate this year is the best since 2008. The good weather forecasts and the possibility of going to the beach and enjoying the (traditional Easter) processions without rain means that this Easter broke records for holiday rentals”.

Original story: Expansión (by J. M. L.)

Translation: Carmel Drake

The Seven: Sotogrande Unveils Its Latest Ultra-Luxury Villas

11 April 2017 – Cinco Días

Unless you have €5,000 a month to spent on the service charge, then these exclusive villas are not for you. In fact, they are a concept that has rarely been seen anywhere in the world: a residential development comprising seven homes, each of which is going to be designed by an internationally-renowned architect, in a natural setting designed by a famous landscaper. The development is called The Seven. And it is the latest ultra-luxury initiative in Sotogrande, San Roque (Cádiz).

Sotogrande is undergoing a complete transformation. Established in 1962 by the millionaire Joseph Rafael McMicking, a businessman of Filipino origin, it quickly became one of the poles of attraction for domestic and overseas millionaires alike. Following the purchase from NH Hoteles in 2014 by the funds Cerberus and Orion, for €225 million, the management company has spent a while reflecting on what this urban complex in the Mediterranean should look like in the future. And the answer came from the past. “When you look at the history of Sotogrande, everything revolves around exclusivity and quality”, explains Marc Topiol, CEO of the company. (…).

The villas will crown a small outcrop in one of the highest areas of Sotogrande, with views over the sea, in the closed reservation of La Reserva, spanning 467 hectares. Construction of these dream homes, in the middle of this natural setting, will begin this year, with the aim of selling the properties by 2020.

The company has chosen seven internationally renowned architects to integrate their designs into The Seven (…).

A home in The Seven will cost between €14 million and €18 million. Each property will have a surface area of between 1,800 m2 and 2,400 m2, with the main bedroom measuring more than 120 m2. All of the homes will be equipped with everything a millionaire could wish for: a private spa, indoor and outdoor swimming pools, a cinema and gym. “We will take care of everything. From paying bills to maintaining the garden and the home, opening up the home when the owner so requests, daily room service, chef, shopping, cleaning, restaurant reservations, transport, it will be live living in a hotel”, says Topiol. All for €5,000 per month (excluding extras).

In addition, residents will enjoy use of the shared facilities that Sotogrande has designed for La Reserva: a spa resort, one of the largest navigable lakes in Europe, tennis courts, golf, an artificial beach, a beach club….in an investment made by the company amounting to €40 million. Not to mention the well-known facilities at the urban complex, such as the Santa María Polo Club, horse riding facilities, the port and the famous golf courses, such as Valderrama and Real Club de Sotogrande. (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Hispania Buys Hotel Paradise Portinatx In Ibiza For €11M

19 July 2016 – Expansión

The Socimi Hispania Activos Inmobiliarios has acquired 100% of the shares in the company Later Deruser, owner of the Hotel Paradise Portinatx in Ibiza (Balearic Islands), for €11 million, which will now be operated by Barceló.

Hispania has performed the operation through its subsidiary Bay Hotels & Leisure, according to a statement filed with Spain’s National Securities and Markets Commission (CNMV).

Hotel Paradise Portinatx is a three-star facility, with 134 rooms.

As part of its investment strategy, Hispania will undertake a comprehensive refurbishment of the property, spending approximately €8 million, to increase it to an “adult only” 4-star hotel.

The Barceló Group will operate the hotel through a lease contract (with fixed and variable elements) under a framework agreement that covers all of the hotels operated by the group.

The asset is located on Playa de Portinatx, right on the beach. The town of Portinatx, in the north of the island, is seeing a significant upgrade of its hotel offerings.

According to available data about occupancy rates and average revenues per room, Ibiza has established itself as one of the primary destinations in the Mediterranean.

Hispania considers that there are still attractive investment opportunities in the hotel sector, as it gains presence in vacation destinations with growth potential, as well as in privileged locations.

According to the CEO of Hispania, Concha Osácar, this operation shows, once again, that the Balearic Islands – and Ibiza in particular, which is the best performing island in the region – are a key market for Hispania.

Currently, Hispania owns four hotels on the island: the recently repositioned Hotel Barceló Pueblo Ibiza, and three hotels recently purchased in Cala de San Miguel, which will be repositioned in 2017.

Original story: Expansión

Translation: Carmel Drake