Tag: holiday homes

Baraka Invests €60M in the Construction of 2 Skyscrapers in Torrevieja

21 January 2019 – Idealista

Trinitario Casanova is on a roll with Baraka. Baraka Properties, the group’s arm specialising property development, has invested €60 million in the construction of two skyscrapers in Torrevieja, which will house more than 130 homes and 250 tourist apartments, according to explanations provided by the company to Idealista News.

The project is going to materialise into two 26-storey towers. Whilst the first will be dedicated to housing in its entirety, the second will be dedicated to hotel use. “Right now, the approval of the project is in the evaluation phase, although our plans are to finalise this first phase during the first quarter of the year”, explain sources at the group, “and once the project has been approved, we will request the licence”.

The land on which the two towers are going to be built is located on Avenida Doctor Gregorio Marañon, on the seafront next to the Doña Sinforosa park. “It is 200 metre from the marina, and all of the homes from the first floor up will have views of the sea. The homes from the fifth floor up will have 360º views”, say sources at Baraka Properties.

According to the company, these will be the first towers in the city, and the tallest to date. The other enclave with towers of this calibre is Benidorm. “The trend for tourists in the area is to look for more unique properties, with higher quality finishes, where they can be offered services like in an American condominium, and this plot fulfils all of those characteristics, both due to its location, and its scale/volume”, they conclude.

In total, 32,000 m2 of space is going to be built in the two towers, and by way of reference, the price per m2 of the penthouse will amount to around €7,000/m2, making it one of the most expensive developments in the area (…).

Original story: Idealista (by Custodio Pareja & P. Martínez-Almeida)

Translation: Carmel Drake

Málaga Captures the Attention of Neinor, Aedas & Quabit, Amongst Others

20 January 2019 – La Información

The real estate sector is certain. After Madrid and Barcelona, the city where the property business is going to grow by the most is Málaga. The capital of the Costa del Sol is on everyone’s lips and is forming the focus of the real estate investments being made by many of the leading firms in the sector. Aedas, Neinor and Quabit are just a handful of the property developers that have decided to set up cranes in the Andalucían city, which is seeing how more and more people are choosing to live and spend their summers there.

The experts are not hesitating to point to the capital of the Costa del Sol as the third city in the shadow of the real estate market, behind only Madrid and Barcelona (…).

The attraction of foreign investment is another of the most important factors in Málaga. In this sense, Fernando Ferrero, Director of Merlin Properties, said that in the office sector, there is still “a lot of potential in Madrid” (…), but he highlights Málaga and Palma de Mallorca as the two cities where foreign investment is proving to be very important (…).

The property developers have been wise to it and so, in recent months, have started to launch promotions in Málaga. That is what Neinor Homes has done, which is offering several urbanisations in the capital, as well as some in nearby areas, such as Marbella and Estepona. In the same way, Quabit (…), has launched itself in the province with both single-family homes, and blocks of flats. Aedas Homes is not being left behind and is going to build Vanian Green Village, a housing complex in Estepona, another town that is growing in the capital’s shadow.

The boom in residential properties, both primary residences and holiday homes, has turned Málaga into a reference for the future of real estate. So much so that the data for the granting of new building permits soared in the province by 56.85% in 2018. In total, 7,678 permits were granted compared with 4,895 in 2017, according to data from the Official Architects College of Málaga (…).

Original story: La Información (by Lucía Gómez)

Translation: Carmel Drake

Taylor Wimpey Invests €95M in Costa del Sol to Meet Demand from Brits

14 June 2018 – Eje Prime

Taylor Wimpey España is going to invest €95 million in seven of the developments that it has up for sale on the Costa del Sol. The property developer is strengthening its commitment to the Malagan coast after verifying that Brits, one of its main client cohorts, have doubled their investment in housing in Spain.

“Demand is increasing in general”, explained the Director of Sales and Marketing at  Taylor Wimpey España, Marc Pritchard. The executive also added that “although the Brexit effect caused Brits to buy less in 2017, the fear is disappearing”.

Another important factor in the evolution of house purchases by Brits is the devaluation of the pound, which last year made investment in Spanish housing more expensive for buyers from the islands.

Nevertheless, Spain is still the preferred destination for Brits looking to buy a home, something that is reiterated by the British Embassy in the country. Across the whole of Spain, there are around 300,000 British citizens and “they are still the main overseas buyers of homes, accounting for 15% of the total”, says Pritchard.

In the ranking of foreign nationalities who buy homes in Spain, the Brits exceed the French, who account for 8.64% of the total; the Germans, with 7.77%; the Belgians, with 6.39%; and the Swedes, who continue as a historical investor, accounting for 6.38% of the total.

Original story: Eje Prime

Translation: Carmel Drake

Brits Are Buying Homes On The Costa Del Sol Once Again

13 October 2017 – Inmodiario

The latest figures from the property developer Taylor Wimpey España relating to the sale of homes in urbanisations on the Costa del Sol to British citizens are encouraging. During the third quarter of the year, the number of citizens from the United Kingdom buying homes in developments such as Botanic, in the Reserva del Alcucruz, and Horizon Golf, in La Cala de Mijas, increased considerably, to make Brits the top-ranking nationality in terms of the sales made by Taylor Wimpey España.

Brits accounted for 19% of the buyers of Taylor Wimpey residential homes on the Costa del Sol, followed by Belgian citizens in second place and Swedes in third place.

For the Director of Sales and Marketing at the company in Spain, Marc Pritchard, “this data is a clear sign that citizens from the UK are continuing to choose the residential areas that Taylor Wimpey is creating when it comes to acquiring holiday homes”.

Moreover, adds Pritchard, another piece of data is noteworthy: the Brits who are buying holiday homes on the Spanish coast are very aware of sustainability and the environment and so prefer to invest a bit more in homes that fulfil those requirements (…).

This means that homes are being conceived to ensure minimum energy consumption and maximum environmental protection, through the use of solar panels, thermal insulation and maximum acoustic-protecting materials. As such, these homes have the highest energy rating in the market (“B”). In the same way, green spaces are becoming particularly important in the Botanic development, and the ecological environment of the Mediterranean pine tree wood is being further strengthened by the creation of a botanical garden for the enjoyment of all the neighbours.

These credentials that are respectful of the environment increase ownership values to 38%, according to CBRE Residencial, a company that also says that 82% of citizens from the United Kingdom are willing to pay more for a sustainable home.

The Botanic urbanisation on the Costa del Sol comprises 92 bright and spacious 3-bedroom homes, featuring large south-facing terraces. The 4-storey buildings have spacious penthouses with modern designs and spectacular solariums from where residents can enjoy the sunrise and sunset, with panoramic views over Los Arqueros Golf course, the sea and Gibraltar. The asking prices for these homes start at €365,000 (…).

Original story: Inmodiario (by Carmen Durán)

Translation: Carmel Drake

Morgan Stanley Joins Forces With Gestilar To Build 1000+ Homes

15 September 2017 – Expansión

A new alliance between international funds and Spanish real estate companies has been forged in the market. This time, the stars are the fund Morgan Stanley Real Estate Investing and the Madrilenian property developer Gestilar.

Created in 2009 by Javier García-Valcárcel (pictured above), the real estate company specialising in residential property development has become a leading player in the north of Madrid, following the construction and completion of more than 800 homes in just four years. With García-Varcárcel as the sole shareholder, the company launched the so-called Project Orizone, with the aim of finding a strategic partner. Through a process led by A&G, more than a dozen international funds interested in the project were invited to participate, and in the end, the winner was the fund owned by Morgan Stanley.

“The investor was looking for a partner in Spain and after a year of negotiations, we have reached an agreement. We were never looking for a corporate operation but rather a strategic partner to work with over the next four or five years”, explains Javier García-Valcárcel, President of Gestilar.

The agreement between the fund and the real estate company has materialised in the creation of a joint venture, in which the former will hold a majority stake of the share capital, whilst Gestilar will take care of searching for the land and of the construction and sale of the homes. “The objective is to launch 14 or 15 new projects, with around 1,000 homes”, said the executive.

Currently, Gestilar has a portfolio of 1,000 homes under development, which will generate revenues of €500 million for the company. Its land portfolio has involved investment of more than €350 million.

After closing the agreement with Morgan Stanley, Gestilar has already selected three plots of land to contribute to the joint company, to which it will also incorporate new assets soon, says its President.

“Although our current developments are located in Madrid and Cataluña, following the agreement with Morgan Stanley, we could increase our activity right across Spain”, explain sources at the company.

This is not the first time that the real estate company has reached an agreement with a fund to invest jointly in housing. Nevertheless, on this occasion, it is a long-term alliance for more than one development.

Return to Spain

The agreement between Gestilar and Morgan Stanley represents the return of one of the investors that backed the Spanish real estate market most heavily before the burst of the bubble.

In this way, in 2006, the American fund announced that it had €1,000 million proceeding from various funds to invest in real estate assets in Spain.

As part of its commitment to this market, Morgan Stanley launched a joint venture with another real estate group Lar (managers of the Socimi Lar España). In February 2005, the fund joined forces with the real estate company owned by the Pereda family to construct shopping centres and holiday homes on the coast. In 2009, they closed that company after investing in 5 holiday home projects (comprising more than 1,500 units) and ten shopping centres.

Original story: Expansión (by Rocío Ruiz)

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

Tinsa: House Prices Rose By 5.5% In Large Cities In March

19 April 2017 – Expansión

The latest statistics confirm the continuation of the good vibe in the housing market, which is advancing at cruising speed thanks to the boost from large cities. Last week, the appraisal company Tinsa reported that the average appraisal value of residential properties experienced a YoY increase of 2.7% in March.

The YoY price rise amounted to 5.5% in large cities, which account for 40.8% of the market, according to the weighting that Tinsa applies to calculate the statistics. Major cities saw their positive evolutions accelerate in March. Although the average price in January was 1.5% higher than at the end of 2016, the increase during the first three months of the year amounted to 3.5%, thanks to the fact that the rise in March was 2.2 points higher than in February.

Once again, the most marked price increases were recorded in the Balearic and Canary Islands: up by 7% on average. In both cases, the increase in demand for holiday homes and in purchases made by overseas investors, are spurring on the recovery in the real estate sector.

Something similar is happening on the Mediterranean Coast, which saw prices rise by 1.9% YoY, despite the huge surplus of new unsold properties in certain provinces in the region, above all in Castellón.

The cities and the coast are the two segments where the housing market has performed the best traditionally, due to the high level of demand. In the case of provincial capitals, due to the creation of new households and, above all, the marked increase in purchases made by investors. Those two variables, combined with the strong rise in the rental market, mean that Madrid and Barcelona are continuing in their role as the real engines of the housing market.

In aggregate terms, the residential market is following the positive trend with which it started the year. The growth of 2.7% is almost one point above the figure recorded in February (1.8%). These increases are in line with Tinsa’s forecasts for 2017. The Head of Research at the appraisal company, Jorge Ripoll, revealed his predictions: growth will be almost flat this year, “ranging between 0.1% and 2%”. This is a moderate estimate, compared to those published by other analysts. Overall, the consensus amounts to around 5%.

The other two real estate sub-markets analysed by Tinsa experienced a YoY decrease in prices in March. The metropolitan areas and “other municipalities” saw reductions of -0.5% and -0.6%, respectively, over the last 12 months.

“During the first quarter alone (January, February and March), average prices in Spain rose by 3.2%”, according to Tinsa’s report. “The cumulative decrease since the peaks of 2007 now stands at 39.4%”. In other words, it has fallen below 40% for the first time since June 2014.

The largest decrease in prices since the peaks of 2007 was recorded on the Mediterranean Coast (down by 45.5%), followed by metropolitan areas (-44%) and then the provincial capitals and large cities (-42.1%). In the Balearic and Canary Islands, where historically, prices have decreased by the least, the cumulative reduction amounts to 24.2%.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Taylor Wimpey To Invest €20M In Mallorca

24 March 2017 – Inmodiario

The island of Mallorca has proved attractive to the British property developer Taylor Wimpey ever since it launched its business in Spain. Currently, the property developer Taylor Wimpey España has almost half a dozen operations underway on the Balearic Island. The climatic conditions there and the island’s ever improving infrastructure, mean that it is still a location of choice for the British property developer.

On this occasion, Taylor Wimpey España has announced the development of two new urbanisations in Cala Vinyes and Nova Santa Ponsa, in the west of the island of Mallorca, which will benefit from the significant investment that will accompany the creation of jobs and improvements in the environment. In this way, the budgeted investment for the Serenity urbanisation amounts to €16 million, whilst the amount earmarked for Cala Vinyes Hills stands at €4.4 million.

Specifically, in Cala Vinyes Hills, Taylor Wimpey plans to construct 15 exclusive and spacious homes in an urbanisation comprising five completely independent buildings. The asking price for these homes will start at €375,000.

The second development is Serenity, an urbanisation that will see the construction of 65 homes, which will be completed in two phases and which will adhere to the highest quality standards and services that are so integral to Wimpey Homes España’s business. These homes will be put on the market for prices starting at €545,000.

According to the Director of Sales and Marketing for Taylor Wimpey España, Marc Pritchard, these are not the only investments that the property developer plans to make in Mallorca. (…). He said “the current economic environment is encouraging both Spaniards and overseas residents alike to invest in property before prices start to rise again”, as reflected in the data offered by the most recent report from Tinsa, which states that the average price (of a home) per square metre has increased by 1.8% p.a.

Cala Vinyes Hills is located in the area of the same name in the south-east of Mallorca, in Calviá, and just a few minutes away from the exclusive marinas of Portals and Port Adriano. Palma airport is 25 minutes away. The 15 homes at Cala Vinyes Hills will be constructed in five independent buildings with private terraces, a communal swimming pool, gardens and private parking. The homes are expected to be ready by July 2018.

In the case of Serenity, Taylor Wimpey España expects the homes to be finished by October 2018. (…).

The first phase of Serenity will commence immediately. During this first stage, three of the seven buildings will be constructed, comprising 28 homes in total. The second phase will involve the construction of another 37 homes in four separate buildings. The residential development will boast gardens, swimming pools and parking areas.

Original story: Inmodiario (by Carmen Durán)

Translation: Carmel Drake

Tinsa: Coastal House Prices Share In The RE Recovery

4 July 2016 – Expansión

Analysis by region / The price of tourist housing is thriving once again in many areas along the coast, including in the Balearic Islands, Canary Islands, Málaga, Cádiz, Alicante and Gerona. More than half of Spain’s beaches are experiencing clear recoveries in their property prices or are showing signs of recovery, with an increasingly active market, according to Tinsa; very few areas are still in decline.

The housing market has taken off with a bang, above all in the major cities. Nevertheless, certain other areas also stand out, in particular: the coasts, where 56% of the areas are now in recovery and where foreign demand and the limited stock in the prime areas has further encouraged increases in real estate prices. Specifically, and according to a recent report from the appraisal company Tinsa, 56.2% of the coast areas are now in a process of recovery, whilst prices have bottomed out in 28.1% of areas and only 15.8% are still experiencing price decreases.

In this way, the report highlights the Balearic and Canary Islands, which have several areas in “clear recovery”, followed by the Costa del Sol (Málaga) and the Costa de la Luz (Cádiz). In addition, there are significant improvements in Barcelona, Gerona and Alicante. In these areas, a good portion of the unsold housing stock has now been sold off, given that the number of transactions has shot up, and so too therefore has the granting of new permits, which have doubled. By contrast, prices in some parts of the Comunidad Valenciana, Murcia and Andalucía are still decreasing, as the markets there are saturated with unsold properties, which means it is still possible to find bargains relatively easily. The Cantabrian Coast has experienced a more moderate evolution. There are several keys that point to the prolongation of the rising trend. “We have been observing a moderate but stable increase in prices for several quarters now, foreign demand is rising sharply, above all along the coast, which means that the remaining unsold homes are now starting to run out in many areas”, said Beatriz Corredor, Director of Institutional Relations at the College of Property Registrars. (…).

Original story: Expansión (by Pablo Cerezal)

Translation: Carmel Drake

SIMA’s Director Confirms That The RE Recovery Is Underway

10 May 2016 – Fotocasa

The Director of Madrid’s Real Estate Fair (SIMA), Eloy Bohúa, praised the “good” impressions in the real estate sector at the start of the 18th Fair, which he considers will serve as “confirmation of the recovery”.

With more than 200 exhibitors, 25% more than last year; a larger surface area, up by 30%; and more diverse international presence, with exhibitors from 12 countries, SIMA began with a “good prospects”, boosted by positive feelings at the Investment Forum, the pre-cursor to the fair, which more than 300 people attended. (…).

Bohúa explained that 2015 was the year of recovery, although the first signs of recovery were actually seen in Autumn 2014. He expects the “confirmation” of the recovery to be seen this year, but said that “we must be cautious and ensure that the sector does not repeat the same mistakes of the past”, something that “is present in everyone’s minds”.

During the opening of SIMA 2016, the acting Ministry of Development, Ana Pastor, observed that the real estate fair was “busier than ever”, and noted that data in the real estate sector “is continuously improving”.

In this vein, she said that growth in the sector amounted to 4.5% in 2015 and that 50,000 jobs were created in the sector last year (…).

This recovery was reflected at SIMA in data such as the supply of properties at the fair, which this year depended less on the Community of Madrid than in previous years. Whilst in recent years, it was customary for the supply in Madrid to account for 60% of the total supply at the fair, this year that figure amounted to less than 50%.

In addition, for the first time since the burst of the real estate bubble, the supply of off-plan projects for sale at SIMA exceeded the number of turn-key products, in such a way that the proportion of new projects to property developments (stock) this year was 60%:40%.

68% of the developments marketed at the fair relate to primary residences, of which 83% are unsubsidised and 17% have some kind of protection/subsidy; the remainder are holiday homes.

Markets operating at different speeds

In terms of the stock left in Spain, Bohúa explained that it is different in major capitals, where the recovery first started, given that there “sales are growing”, and the stock “is being drained off very quickly”. By way of example, he said that he estimates that around 5,000 new homes are left, which means the stock will run out within eight months.

And in the major capitals, there is “minimal stock that is not significant in terms of the market”, which is why Bohúa thinks that “now is the time to start new projects in response to a thriving demand”.

Other areas of the Peninsula are experiencing a different situation – particularly where the recovery is happening “more gradually”, i.e. in smaller population nuclei. In the holiday home segment, there is “a lot of activity and a great deal of interest from buyers and investors” in certain areas, such as along the Costa Blanca and the Costa del Sol, but again “the stock is not being absorbed at the same speed along the entire coast”, which means there the markets are operating “at different speeds”.

Investor appetite continues despite uncertainty

Regarding the possibility that the political uncertainty may affect real estate investments and purchase decisions, Bohúa acknowledges that uncertainty affects all economic sectors and “we are seeing slow downs and delays in decision making, but that is only natural because investors want certainty”.

Nevertheless, he said that investor appetite is “still high”. (…).

“There is no risk of investors fleeing from Spain because the fundamentals of the Spanish economy are in place”, he said. (…).

Original story: Fotocasa

Translation: Carmel Drake