Tag: family home

Century 21: Buyers Aged 60+ Purchase 3 Out Of 4 Homes In Spain

27 September 2017 – Eje Prime

Senior citizens are responsible for reactivating the real estate sector in Spain. People aged over sixty years are accounting for three out of every four sale-and-purchase transaction in Spain. Madrid and Barcelona are the cities where they are undertaking the most operations, according to a study by the real estate company Century 21.

The main reason behind the real estate activity of this cohort is the departure of children from the family home, which is causing them to look for smaller properties, close to hospitals and retail areas. Specifically, the homes put up for sale by senior owners have an average surface area of 100 m2, with three or four bedrooms, and they are located in urban nuclei such as Madrid and Barcelona. Their average sales price exceeds €225,000.

According to this study, the cohort of people aged over sixty years is leading the sale and purchase of homes. Specifically, 75% of transactions are undertaken by married couples aged between 60 and 70 years old (…).

In terms of the type of transactions being undertaken by the older cohort, nine out of ten operations involve the sale of properties, with the main reason cited being the large size of their properties after their children leave home.

In the majority of cases, the sale of family homes implies the purchase of another property. Older buyers are primarily interested in acquiring homes with a surface area of 70 m2, with one or two bedrooms, which are located close to their families. The average purchase price ranges between €100,000 and €250,000.

Original story: Eje Prime

Translation: Carmel Drake

Ministry Of Development: Housing Permits Rise By 42%

1 July 2016 – El Economista

The number of permits granted by the College of Technical Architects for the construction of homes shot up by 42% during the first four months of the year to 21,577, the best figure recorded between January and April since 2011, according to the latest data from the Ministry of Development.

Despite the increase, the number of housing permits granted still falls well below the maximum levels recorded in 2007, when at the height of the real estate boom, 276,588 permits were granted during the first four months of the year, 92% more than in 2016.

The number of permits granted started the year with an increase of 44%, at 4,943. In February, the YoY rise amounted to 35%, with 5,663 permits; meanwhile, in March, the number doubled to 6,176 and in April the increase moderated to 6.5%, with 4,795 permits.

In total, the number of permits granted for new builds, renovations and extensions during the four months to April stood at 30,236, which represents an increase of 27.6% with respect to 2015.

By type of property, permits to construct housing blocks rose by 45%, to 15,843 licences, whilst permits for family homes grew by 34%, to 5,730. In terms of surface area, the average size of family homes stood at 201 sqm, whilst the average size of apartments was 117 sqm.

Since the Ministry of Development began compiling these statistics in 1991, the number of permits granted reached its historical monthly low in August 2013, when just 1,585 licences were granted. The series maximum was recorded in September 2006 with the granting of 126,753 permits.

Original story: El Economista

Translation: Carmel Drake

Boadilla del Monte Sees A Flurry Of House Construction & Price Rises

13 June 2016 – El Confidencial

It’s been just over six months since, in October 2015, the Community of Madrid approved the General Urban Plan for Boadilla del Monte. The decision by Cristina Cifuentes released all of the construction permits that had been pending approval and gave the green light, once again, to the sale of land in one of the richest municipalities in Spain. It also marked the end of the development plans designed by the former mayor of Boadilla, Arturo González Panero, “the Albondiguilla”, imputed for the Gürtel case and against whom the prosecutor has just ordered 40 years in prison.

Since that Wednesday in October (28 October 2015), Boadilla del Monte has been a genuine real estate hotbed. Land sales have multiplied and the cranes have arrived in abundance. Buyers’ appetites have been so great that off-plan sales are practically covered and the first price rises have started to be seen – in some cases, close to double digits – for the new projects that are coming onto the market.

“The stars have aligned positively in Boadilla del Monte. Land there had been consolidated and developed and the only outstanding item was the approval of the General Plan, which was delayed due to the General Election. Once that had been ratified and blessed by the Community of Madrid, the new developments had the legal security to start without any problems”, explained Luis Corral, CEO of Foro Consultores.

The expert also thinks that the appeal of Boadilla has benefitted from the paralysis that, by contrast, its neighbour Pozuelo de Alarcón is experiencing. There, the new areas of development are currently awaiting the approval of a series of municipal infrastructures, such as the famous rain water collector, which is essential to meet the needs of the new neighbours. The infrastructure requires an investment of almost €60 million – double the amount predicted in 2007 –the cooperative owners that bought the land have to cover around €30 million and the other owners of the land and the Town Hall have to cover the remaining €25 million.

“The suspension of the largest development in Pozuelo has meant that much of the demand with medium-high purchasing power is moving to neighbouring towns such as Majadahonda and Boadilla del Monte”, said Samuel Población, the National Director of Residential and Land at the consultancy CBRE.

Price rises

(…). According to Luis Corral…”a family home or chalet in Boadilla costs around €450,000, on average, compared with between €700,000 and €1,000,000 in Pozuelo…”.

Although the supply of land is greater, the pressure from buyers due to the natural demand in Boadilla del Monte and the unmet demand in Pozuelo, will start to have an impact on prices. According to data from Foro Consultores, less than a year ago, in July 2015, the average price for chalets under cooperative regimes amounted to around €1,400 /sqm, whereas now the price has increased by around 7% to €1,500/sqm.

The same has happened with direct promotions. In July 2015, the price per sqm amounted to around €1,500 and now, it has increased to €1,600/sqm. In other words, prices have risen by 6%. At first sight, these prices do not seem at all exorbitant, however the homes are all very large and so the final price is not suitable for all budgets.

Four hot spots in Boadilla

In this Madrilenian municipality, one of the richest in Spain, there are four hot spots where all of the real estate activity is happening: El Pastel, Las Cárcavas, Cortijo Sur and Cortijo Norte. (…).

“El Pastel has been completely urbanised, it is full of cranes and families are already living there. Las Cárcavas is slightly behind, but the first homes are already being handed over and there are also a few people living there, whilst Cortijo Sur is also urbanised and under construction and the first homes will be handed over within the next few weeks. Cortijo Norte is the most delayed, it has not been urbanised yet, although work has begun on the urbanisation project. Family homes are being constructed in every area”, explained Luis Corral. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake