Málaga Redeems Itself: the Capital Pushes the Costa del Sol towards Record House Sales

8 June 2018 – Eje Prime

Málaga is in the real estate news but this time not only because of its coastal towns. The boom in the Malagan capital looks set to push the Costa del Sol to maximum highs this year in the residential market. According to the report Vision 2018. The Real Estate Market in Málaga, compiled by the consultancy firm Savills Aguirre Newman, more homes will be sold this year than in 2007 (19,464), just before the start of the crisis, which affected the sector for almost a decade.

The director of the consultancy firm in Málaga, José Félix Pérez-Peña, explained that the city of Málaga has become one of the main focuses of attention for the real estate sector at the domestic level, and it is also positioning itself as an investment location for overseas clients. “This is something that never used to happen, the residential engine used to always focus, almost 90%, on the Costa del Sol”.

Nowadays, property developers and funds are investing in the capital, acquiring land in light of the existing demand. In this regard, large real estate groups, such as in the case of Gilmar, have also opened regional offices in the city, as revealed by Eje Prime.

Similarly, the report from Savills Aguirre Newman highlights that, within Andalucía, Málaga has positioned itself as the main powerhouse, ahead even of the capital, Sevilla. In this regard, the consultancy firm underlines that 5,236 new homes were started in the city on the Costa del Sol in 2017 compared with 2,980 in Sevilla. In terms of deliveries, Málaga outperformed Sevilla once again with the handover of 2,580 finished units compared with 1,511 in Sevilla.

23.8% larger residential supply in 2017

Another one of the key aspects in the growth of Málaga Capital is its residential supply. Last year, new builds grew by 23.8%, increasing the number of planned homes by 3,859 in the case of apartment blocks and 370 in the case of detached family homes.

In terms of the city’s neighbourhoods, Puerto de la Torre accounted for the highest proportion of stock, with 55% of the total. In total, across the province, 17,738 homes were sold last year.

In terms of prices, the centre of Málaga is where the price per square metre for homes in apartment blocks is most expensive, reaching €3,073/m2, whilst Málaga Este is becoming a reference in the market for detached family homes with average prices of €2,568/m2.

Original story: Eje Prime

Translation: Carmel Drake

Aedas Hands Over its First Homes Since its Creation in 2016

16 March 2018 – Eje Prime

Aedas Homes is following its business plan to the letter and is handing over the first development in its history. The company has obtained its first certification of completion for the Brisas del Arenal development in Jávea (Alicante), a residential project conceived for the second-home market.

The Brisas del Arenal development comprises 64 homes in total with two-, three- and four-bedrooms as well as common areas. After obtaining the official certificate of completion for Brisas del Arenal, Aedas Homes has begun the process to apply for the First Occupancy Licence (LPO), a necessary step before the homes can be handed over.

These 64 homes are going to be the first to be handed over by the property developer in its history and represent an important proportion of the more than 200 units whose keys will be handed over in 2018. 75% of the buyers in Brisas del Arenal are Spanish, with a high presence of people from Valencia and Madrid acquiring holiday homes, and 25% are international, looking for homes for long stays.

In the strategic plan that Aedas presented as part of its stock market debut, the property developer estimated that it would hand over the keys to 1,286 homes over the next two years: 221 homes this year and 1,065 in 2019. Nevertheless, 132 more units have been added to the real estate company’s plans before the end of the first quarter of this year.

Currently, Aedas has 26 projects underway in the five regions of the country in which it has a presence (namely Madrid, Cataluña, Sevilla, the Costa del Sol and Levante&Baleares). By area, the property developer will finish this quarter having laid the first stone of five developments in four of the regions, with the exception of Levante&Baleares, where it will have started six new projects.

Original story: Eje Prime 

Translation: Carmel Drake

Land Prices In Madrid & Barcelona Have Doubled Since 2012

24 February 2016 – Real Estate Press

The price of urban land in Madrid and Barcelona has more than doubled since the lows of 2012 and is now threatening the recovery of the real estate sector, as property developers are being forced to put homes on the market at prices that consumers are unable to afford.

Domestic property developers are being the most active in denouncing the increase in land prices, driven by the scarcity of urban plots and the difficulties involved in obtaining licences for new developments.

In the case of Valdebebas, a development located 21 kilometres from the centre of Madrid, the ‘repercussion value’ per m2 has increased from €700/m2 at the beginning of 2014 to €1,200/m2 last year, with values now reaching €1,600/m2. “Land prices are increasing at an alarming rate in Madrid and Barcelona”.

According to the real estate consultancy firm Irea, the volume of land purchases tripled last year to reach €929 million (representing 7% of total real estate investment). According to the report, the majority of transactions involved plots of land assigned for development, which accounted for €706 million of the investment, whereby multiplying the figure recorded in 2014 by 7x.

Domestic investors accounted for just 1% of this investment, with real estate companies, many linked to international funds, accounting for 43%. Nevertheless, the bulk of the funds were direct investments by funds (38%) and Socimis (18%), which together invested €523 million.

The largest land purchase operations last year were seen in Barcelona and Madrid. In Cataluña, Neinor Homes, the property developer controlled by the fund Lone Star, purchased land worth €200 million, where it plans to construct 1,500 homes. Moreover, Vía Celere invested €78 million in the development of homes in Barcelona (Magòria and El Fòrum) as part of a joint venture with the fund Chenavari. Meanwhile, Corp acquired land in Sant Boi, Arenys de Mar and Molins de Rei to construct 850 homes. In Madrid, the US fund Castlelake bought a batch of four plots of land for residential use in Boadilla del Monte from Sareb, and Grupo Lar and Pimco joined forces to buy a plot of land in the centre of Madrid for €120 million.

The recovery of land prices is being driven by a rise in prices and sales in the wider real estate market, and has led the primary owners of land, namely Sareb and the financial institutions, to reduce their land sales and opt for direct development instead. Sareb will begin work on 13 housing developments imminently, ten of which will be constructed by Solvia, the real estate arm of Banco Sabadell, one of the most active banks in the development segment, with more than one thousand homes under construction across Spain.

Original story: Real Estate Press

Translation: Carmel Drake