Tag: housing

Ibiza’s Real Estate Market is a “World of its Own”

11 July 2018 – Diario de Ibiza

The real estate market in Ibiza is not encouraging (for the majority): the available stock of homes “is residual”, the majority of homes bought there are rented out, the peak prices reached in 2017 have been exceeded…and all of this is being compounded by a distinct shortage of land. All in all, it is a troubling scenario for those wishing to live on the island all year round.

Tinsa’s Regional Director for the East and South of Spain, José Antonio López, warned on Wednesday that the lack of land, combined with the demand for housing “is generating a dangerous melting pot” in the Balearic Islands. As such, he is asking the administration to get involved to facilitate the availability of land for property developers.

Those were the words used by López in response to a question from participants at a Proinba-Tinsa real estate meeting held in Palma on Wednesday, where the situation of the residential real estate market was discussed, in particular, the market on the coast.

López warned that this situation may “lead to serious problems” on the islands, where “young people need primary residences” and they “need options”. “For this reason, land is required, and the administration needs to get involved”, said Tinsa’s Regional Director, before adding that the supply of urban land with building permission is “almost non-existent”.

What’s more, “the supply is going to decrease” and with the “surplus demand”, we are seeing “dangerous growth that cannot be met”. In this context, “rental is not an option because those circumstances are also being taken advantage of”. In fact, according to data from Tinsa, in areas such as Ibiza (town), many people are buying to let (…).

Based on data from Tinsa, the average monthly mortgage payment on the Balearic Islands is very high, €792, well above the average for Spain as a whole, €543/month. The financial effort being made by families on the islands is also greater, given that they spent 22% of their household income on mortgages during the first year, compared with the national average of 16.8%.

Ibiza and Formentera set a new record

Of the 12 coastal municipalities analysed on the Balearic Islands, Sóller leads the increase in prices over the last year, with price rises of 21%. Ibiza and Formentera towns came in close behind, with 17.8%, followed by Santa Margalida (17.7%), Palma (14.7%) and Llucmajor (13.8%).

Palma is one of the top five most expensive capitals in Spain, with an average price of €1,951/m2, and in the last year, its growing trend has exceeded the average for the autonomous region.

By contrast, the municipalities that have grown by the least are Sant Lluís and Mahón (3.7%), Ciutadella (4.5%) and Manacor (7.1%) (…).

Ibiza is “recovering too quickly”

According to data from Tinsa, the real estate sector on the coast in Mallorca is “clearly recovering”, whilst in Menorca, there are “signs of recovery” and in the case of Ibiza, there may even be an “excessive recovery”, in López’s opinion.

Prices have been “rising rapidly” on the white island, on a consistent basis for the last few years, and the YoY variation is well above the average. In fact, current prices have already exceeded the maximums seen in 2007.

On the basis of all of these indicators, the Regional Director at Tinsa said that Ibiza’s real estate market could be considered “a world of its own, set apart from other islands and provinces” (…).

Original story: Diario de Ibiza (by E.P.)

Translation: Carmel Drake

Former Bacardi Factory Plots in Málaga to go up for Sale for €15M

7 June 2018 – La Opinión de Málaga

Yesterday, the consultancy firm Savills Aguirre Newman announced the upcoming sale of almost 75,000 m2 of land on the site of the former Bacardi factory in Málaga, an operation for which it is acting as the broker and which could reach a market value of around €15 million.

The land, which is classified as buildable industrial, could prove very attractive for investors, given the current lack of available spaces of this kind in Málaga on which to locate industrial or logistics facilities. The director of the consultancy in Málaga, José Félix Pérez-Peña, described the land as “one of a kind”, despite the fact that it is located on the Guadalhorce flood plan, and mentioned several high-profile “international funds” as possible interested parties. The consultancy firm, which indicated that the plots will come onto the market “soon” is placing the focus on the use of the site for office buildings.

Another attractive plot that Savills Aguirre Newman is brokering the sale of is the former Salyt brick factory, spanning almost 13,000 m2, although it is still unknown whether that will be allocated to industrial or commercial use. A Dutch group had expressed interest in building a shopping centre on the site although the price being requested by the Town Hall paralysed that operation. There has also been talk recently of the land housing a logistics warehouse. Pérez-Peña said that the final destination of these plots would be revealed over the next few months.

In terms of Astoria, he said that “several international groups are interested”, including one in particular that has properties of this kind in Spain and Europe and which may soon make contact with the Town Hall. In theory, the Town Hall is planning to convene a tender at the end of this year or the beginning of 2019 in which anyone who wants to will be able to participate (…).

Another one of the projects that is being “followed very closely” by Savills Aguirre Newman is that of Martiricos, where two residential towers are going to be built, plus an office building measuring 7,000 m2 and another commercial building measuring 3,000 m2. The consultancy firm classified it as one of the “star projects” in Málaga, which “is going to change” the city.

Pérez-Peña also summarised other matters such as the future of Pier 4, which has a surface area of 26,500 m2 and which, in his opinion, could become a great space for offices or homes. He also said that Repsol, spanning 117,000 m2, could be a wonderful enclave for making a city of offices, although that would be up to the Town Hall and Sareb to decide. And he also alluded to the potential of the Correos building (3,352 m2) as an office block, although he admitted that it would generate higher yields if it was allocated for residential or hotel use.

Original story: La Opinión del Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

Town Hall of Madrid Approves Construction of 400 Homes on Land near Barajas

3 May 2018 – Eje Prime

The Town Hall of Madrid is promoting housing in the city. On Thursday, the Town Hall approved plans that will result in the construction of 400 homes, green spaces and other facilities on land owned by Iberia. The plots span a surface area of 54,600 m2 and are located in the district of Barajas, to the south of the Adolfo Suárez Madrid-Barajas airport; they are currently home to some warehouses, owned by the airline.

This land is going to be urbanised by Iberia so that it can be used for the construction of around 400 new homes, green spaces, other tertiary-use buildings and a private facility. The budget for the urbanisation work amounts to €5.1 million and the execution period is nine months.

Specifically, the plans involve eight plots spanning 54,600 m2, of which 23,507 m2 are destined for residential, tertiary and private facility use, whilst 31,093 m2 are earmarked for public use, including for green spaces, road networks, parking and facilities.

The Town Hall approved this project after the Ministry of Development announced an urban development macro-plan on some of Aena’s plots close to the airport, where hotels, logistics centres and offices are going to be built.

Original story: Eje Prime

Translation: Carmel Drake

Junta de Andalucía Awards 6,627m2 of Industrial Land in Jaén

23 March 2018 – 20 Minutos

Specifically, the Junta de Andalucía has sold nine plots of industrial land located on several industrial estates in Alcalá la Real, Arjona, Martos and Torredonjimeno for a total amount of around €0.5 million, according to a statement issued by the Andalucían Government on Friday.

Most of the sales have been recorded in Alcalá la Real, where four plots spanning a surface area of 2,800 m2 on the Llanos del Mazuelo industrial estate have been awarded, which will whereby continue its development with the upcoming installation of new companies and the expansion of existing firms that already operate there.

In Torredonjimeno, three other plots have been awarded, spanning a total surface area of 2,184 m2, whilst in Arjona, one plot measuring 700 m2 has been sold and in Martos, another plot has been sold for the expansion of the Cañada de la Fuente Industrial Estate, spanning 941 m2.

The Minister for Development and Housing, Felipe López, explained that the land sales by the autonomous community were reactivated at the beginning of this legislature, “a decision that aims to place public assets at the disposal of business initiatives for the generation of economic activity and employment”.

According to López, the proceeds that the government has been receiving since the beginning of 2015 for these sales “are allowing the autonomous Administration to look for and generate new plots for future industrial and business uses with the aim of boosting economic development and responding to the growth needs of the production fabric” in the province of Jaén.

Moreover, he highlighted that Jaén leads the ranking for the sale of industrial land in Andalucía to date during this legislature. In total, including the plots that have just been awarded, 96,655 m2 of land has been awarded in the province since 2015 for almost €8 million.

Meanwhile, he added that the first offer for land owned by AVRA this year has resulted in the award of 28,376 m2 in residential and industrial plots right across Andalucía, for a total amount of €5.6 million.

In addition to the plots of industrial land sold in Jaén, the award of land for social housing in Córdoba is also noteworthy, where a plot measuring 4,656 m2, with capacity for 88 homes, has been divested for €1.7 million.

Moreover, a free residential plot, spanning 15,450 m2 and with capacity for 86 homes in the Malagan municipality of Rincón de la Victoria, was sold for a price of €3.1 million. In addition, another free residential plot for 10 homes was also sold in the Cordoban municipality of Obejo, for €103,500.

The sale that has just been completed was opened on 26 January and remained open for the presentation of offers until 1 March. The offer, the first in 2018 involving the sale of industrial, tertiary and non-residential land, as well as residential plots and other real estate assets, contained almost 900,000 m2 spread over 772 plots across all of Andalucía’s provinces.

The residential plots that were included in this sale have capacity for 3,060 homes, of which 1,437 are social housing in nature and the remainder are for free/private development.

Original story: 20 Minutos

Translation: Carmel Drake

Blackstone & BBVA “Inherit” Prime Plot in Sevilla for 600 Homes

21 March 2018 – Eje Prime

BBVA and Blackstone are going to be able to take advantage of the mortgage signed back in the day by Juan Rojas. The loan for forty million euros granted to the Sevillan businessman by the Basque bank and Popular, whose toxic property has been in the hands of the US fund since last year, has given them the right to now inherit some very sought-after prime plots of land in Sevilla, after the liquidation of a dozen companies that Rojas had under his control.

The Sevillan property developer owned a plot of land in Tomares with a surface area of 260,000 m2 on which up to 600 private homes may now be constructed. Moreover, the plot, known as SUS-1, is located in the town that has the highest income per capita of all of Andalucía, according to El Confidencial.

Tomares, located in the Sevilla metropolitan area, is one of the towns that has served in recent times as a breath of fresh air for the residential sector in Sevilla, where there has been practically no movement in the capital and where over the last decade, only 5% of the urban plan (PGOU) has been executed.

Spanish property developers had been making moves to take control of the management of this plot, which was owned by one of Rojas’s holding companies, Ferro Grupo Empresarial y Urbanizadora Rojas, until now. On this plot, in addition to 600 private homes, there is space available to build 400 protected status homes and a medium-sized shopping complex.

Original story: Eje Prime 

Translation: Carmel Drake

Footballer Andrés Iniesta Buys Land in Mataró for €11.5M

15 March 2018 – Expansión

On 23 March, the FC Barcelona midfielder Andrés Iniesta is going to formalise the purchase of 30,642 m2 of land in Mataró (Barcelona) for €11.5 million. The operation is going to be carried out through the company Maresyterey. It is a surface area that is going to be allocated to housing (70%) and to companies, offices and businesses (30%). The vendor is the company Porta Laietana, which was jointly owned in equal parts by the Town Hall of Mataró – which has recorded a gain of €5.1 million – and the Catalan construction company Copcisa, owned by Eloi Carbonell.

Original story: Expansión

Translation: Carmel Drake

Q21 Real Estate & Baupost Buy Luxury Property Developer Levitt

1 March 2018 – Eje Prime

A new corporate operation has been closed in the Spanish real estate sector. Q21 Real Estate, a company created by the former Grupo Pinar and the US fund Baupost, has acquired the luxury property developer Levitt. Following the purchase, the group will consolidate its position as one of the reference players in the luxury residential market in Madrid, as well as in the northeast and northwest of the Community of Madrid.

With this purchase, Q21 is going to increase its existing portfolio, comprising more than 1,700 homes, with 145,000 m2 of residential buildability in the northeast and northwest areas of the region, and with more than 75,000 m2 of buildable surface area in the tertiary sector. Levitt is going to provide the buying company with a contribution of land and housing under development in prime areas of Madrid.

According to the latest information available in the Mercantile Registry, Levitt-Bosch Aymerich had net assets worth €162 million at the end of 2016. The company recorded turnover of €61 million last year.

Besides Baupost, some of the other US investment funds that are very active in Spain also submitted bids for Levitt, such as Lone Star, Värde and Castlelake; they all expressed their interest in the property developer in recent months.

Levitt, founded in 1929 to construct luxury homes in New York, arrived in Spain in 1971 at the hand of José María Bosch Aymerich. In 1973, the company completed its first development, the Monteclaro urbanisation, on the outskirts of Madrid. Since then, it has constructed various high-standing developments in Madrid and Barcelona, as well as several office developments.

Original story: Eje Prime

Translation: Carmel Drake

Forcadell: RE Investment Fell by 3.5% in 2017 to €13.5bn

27 February 2018 – Eje Prime

Investment in real estate continued to perform well last year but actually fell with respect to 2016. In total, €13.5 billion was invested in the domestic real estate market in 2017, which represents a decrease of 3.5% compared to the €14 billion that was registered during the previous year, according to data from the consultancy firm Forcadell.

Spain was the fourth-ranked country in Europe in terms of the most money received in the sector, behind only Germany, France and the United Kingdom, in that order. Moreover, Madrid and Barcelona were the two cities that received the most demand, accounting for 85% of the total capital invested in the domestic real estate market last year.

The office market was the sector that stood out the most in terms of investment volumes. And within that sector, Madrid and Barcelona, which together captured €2.455 billion of investment, were the main drivers of the segment, accounting for 95% of the total. In those two cities, prime rents reached 4.25% in Madrid and 5% in Barcelona.

On the other hand, the good performance of the housing sector also allowed an upturn in the residential sector, which saw investment of €3 billion in 2017, a level of activity not seen in that market since 2008, according to the consultancy firm. Besides the two major capitals, Valencia, Sevilla and Bilbao were the three cities that saw a significant increase in the field of residential development.

The logistics sector was the most profitable

One of the areas that is growing by the most at the moment in the Spanish real estate market is the logistics sector. Despite having the lowest rents per m2, the segment offers great returns from the point of view of real estate investment. The strong leasing figures and scarce supply close to large cities are generating interest from funds, primarily international players, who want to build new large industrial spaces measuring between 3,000 m2 and 50,000 m2, to rent them out.

Retail, on the other hand, continued its record figures from 2016 throughout last year with an investment volume that reached €4 billion. Moreover, land became very sought-after once again in the real estate sector, which had great demand, above all, in the residential market.

Looking ahead to 2018, Spain is expected to continue to represent a country of great interest for real estate investors, both domestic and international. Moreover, Forcadell forecasts that fundraising will increase significantly, both in terms of the number of players involved and the volume disbursed.

Original story: Eje Prime

Translation: Carmel Drake

Madrid’s Town Hall Approves the Master Housing Plan for SE of the Capital

29 January 2018 – Inmodiario

The Governing Body of the Town Hall of Madrid has approved the Master Plan that defines and organises the actions that the Town Hall of Madrid is going to launch to execute the Strategy for the Development of the Southeast of the capital (EDSE). The Master Plan covers the districts of San Blas-Canillejas, Vicálvaro and Villa de Vallecas and aims to adjust the urban growth strategy of the General Plan of 1997, whereby ensuring its feasibility and coherence, and making it compatible with a sustainable, balanced, social and environmentally responsible regional model.

Los Cerros, Los Ahijones, Los Berrocales, Valdecarros, la Nueva Centralidad del Este and el Ensanche de San Fernando were spaces planned by the General Plan of 1997 to develop 4,400 hectares, building more than 105,000 homes and 6.5 million m2 of space for economic activity.

The Master Plan that has just been approved proposes a redefinition of that Plan, which adjusts the public use, the residential use – it proposes half the number of the homes, down from 105,000 to 53,000 – and the economic activity use.

The objectives of the new plan include improving the urban quality of the Los Ahijones and Los Berrocales neighbourhoods in terms of public spaces, commercial activity, the location of facilities, and the necessary public transport networks, introducing modifications in their detailed planning.

It also requires a strengthening of the management conditions and guarantees from the Compensation Boards that build the 38,000 homes and develop 1.9 million m2 of space for economic activities.

Moreover, new areas of management will need to be defined with smaller territorial dimensions, inside the M-45, that continue the existing city, corresponding to the new areas of Valdecarros-La Gavia and Los Cerros Norte-San Fernando with almost 530 hectares and capacity for 14,500 homes. And to strengthen the network of free spaces with two large green spaces around the Cerro de Almodóvar and the connection of the La Gavia park with the Manzanares River.

The new Master Plan also proposes the creation of a 1,850-hectare land reserve on the remaining land in Los Cerros, Valdecarros and the Nueva Centralidad del Este, whose planning and execution will be defined and scheduled depending on future needs (…). That land has capacity for approximately 45,000 homes and 2 million m2 of buildable space for economic activity (…).

Finally, the plan stresses the need to carry out two programs of land development, in accordance with the real demand for residential housing and economic activity: the first, forecast for the years 2022-2030 will allow the construction of 27,700 homes and 1.3 million m2 of buildable space for economic activities; the second program, which will run between 2031-2039, will involve the construction of 26,000 homes and 1.2 million m2 of buildable space for economic activities.

Original story: Inmodiario

Translation: Carmel Drake

Ministry of Development Will Report Variations in Rental Prices Every Quarter

29 January 2018 – Eje Prime

The Government is taking an interest in the rental market. The Ministry of Development is planning to report on the evolution of rental housing each quarter with new statistics reflecting different data and aspects of the market.

The report will be compiled by the Ministry’s Observatory for Housing and Land, which will analyse the situation in the market, which is currently booming in Spain. The increase in prices in this segment in certain cities, such as Madrid and Barcelona, is coming close to setting new records, driven by the increasingly high demand for these types of assets. In 2017 alone, residential rental prices rose by 8.9% across the country, led by Cataluña, where rental house prices increased by more than 10%.

The team that is going to launch this new quarterly report is already working to compile the first edition, gathering information and forecasts on the rental market from the main bodies and public institutions, as well as from companies in the private sector.

Similarly, the Ministry of Development is going to publish research that will reveal citizens’ perceptions of rental housing in order to, according to the public body, “identify the main problems and barriers facing the segment”.

Currently, the Government of Spain has the Housing Plan for 2018-2021 on the table, pending approval by the Council of Ministers. With that, young people aged under 35 years will receive financial assistance of up to 50% to cover the cost of renting their homes, taking into account the salary level of the claimant and provided the cost of the rental contract does not exceed €900 per month.

Original story: Eje Prime

Translation: Carmel Drake