Tag: luxury housing

Work Begins At Pryconsa’s Luxury Housing Development In Madrid

14 December 2015 – El Mundo

The details of one of the most iconic, exclusive and eagerly-awaited residential projects in Madrid have finally been revealed: the development that Pryconsa is undertaking on the 15,000 m2 plot of land that previously housed RTVE’s Buñuel Studios and which the Madrilenian based property developer acquired in November last year for €35.27 million.

It is a prime location, at number 5 on Avenida de Burgos, next to Paseo de la Habana, the best area in the district of Chamartín, surrounded by parks and gardens and just a stone’s throw away from hot spots such as the Chamartín train station, Plaza de Castilla and the Cuatro Torres.

In tribute to the great Aragonese filmmaker, who has lent his name to the studios for decades, the project has been named, in part, after his home town: Calanda Homes. The property development will contain 89 three- to five-bedroom homes, and will measure between 163 m2 and 218 m2. It will include different types of properties, such as flats (all with large terraces), ground floor flats with gardens and penthouse apartments with terraces of between 117 m2 and 165 m2. The homes will be distributed across two four-storey buildings, 35 m apart and located within a huge urbanisation containing gardens, a (Munich style) swimming pool, padel court and gym, amongst other features.

The project will be developed in two phases. During the first phase, the marketing of which has just begun, prices will start at €808,000 and go up to €1.8 million. Work to demolish the old television studios began last Wednesday, and if construction proceeds according to plan, then the property developer will hand over the keys to the homes in the first phase in June 2018.

Sales success

“During the first few days, almost 50% of the first phase that we are currently marketing has been reserved”, said José León, CEO of the company. (…).

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake

Knight Frank: Demand Rises For Luxury Housing In Madrid

23 November 2015 – El Mundo

The luxury residential sector in Madrid has now emerged from the crisis, according to the Prime Residential Report from Knight Frank (KF) for the third quarter of 2015. The study points to price growth of 5.2% in the Spanish capital, i.e. above the levels observed in markets such as London and Paris. The average sales period has also decreased to between 3-6 months, down from 10-12 months.

In fact, Madrid is the European city with the second highest rate of price growth YoY in the prime residential segment, where prices have recorded a cumulative decrease of 22% since the beginning of the crisis, according to KF. Thus, Madrid is ranked behind only Monaco (9.4%) in a classification, which is led by Vancouver (20.4%) (in global terms).

Nevertheless, the consultancy firm acknowledges that the level of activity has slowed down since the summer due to the political uncertainty. In this sense, it stresses that if a stable government emerges from the upcoming general election, then the market will grow at a faster pace, given that “investors have money, desire and intent, but are currently waiting to see what will happen”.

According to the report, the areas of Jerónimos and Salamanca have led the recovery, with price rises of 8% and 7%, respectively, for second-hand homes. Next in the ranking are Chamberí (3%); Justicia and Paseo de la Habana (2 %); Viso (1 %) and finally, Castellana, where prices have remained stable.

In terms of new homes, price rises have been more moderate. Salamanca and Chamberí lead the ranking, with price rises of 4%, followed by El Viso (2%). Justicia and Habana have seen decreases of 2% and 4%, respectively, marked by the low level of stock comprising undesirable properties. In general, the most coveted districts are Salamanca, Jerónimos and Chamberí, which account for 70% of the demand and where the most coveted homes have prices that range between €1 million and €2 million.

By type of investor, 70% of the buyers of luxury homes are Spanish, whilst 30% are international, double the rate recorded two years ago. The overseas demand is coming, primarily, from Latin America buyers, who are seeking luxury products in the centre of Madrid and second homes.

According to Ernesto Tarazona, the Director of KF’s Residential and Land department, average prices are expected to grow by between 5-10% and new homes are expected to enter the market leading to a trend in prices that “we are not used to seeing”.

Canalejas will be one of the iconic projects that will shape the near future, says the Director General of KF, Alberto Prieto, who warns that Spanish demand for that product will exceed international demand. The firm, which will be involved in the sale, has also expressed its interest in participating in the Grupo Villar Mir’s equivalent Canalejas project in London, which is being developed in the former war offices of the British capital.

Over the next 18 months, KF expects to see the development of 80,000 m2 of projects in Madrid, such as Lagasca 99 (Juan Bravo, 3); Lamarca on Fernando VI; José Abascal 48 and Antonio Maura, 8. (…).

Original story: El Mundo

Translation: Carmel Drake

HNWIs Want To Live In Madrid

21 September 2015 – Blog Anida

Luxurious and cheap. Numerous houses in Madrid meet these two criteria and as such, the richest people in the world increasingly want to purchase property in the Spanish capital.

A study performed by the company Coldwell Banker regarding the average price of luxury housing in Europe’s major cities explains why: Madrid ranks towards the bottom of the list, with an average price of €9,000/m2, well below Monaco (€60,000/m2), Paris (€25,000/m2), London (€18,000/m2) and Milan (€14,000/m2).

In addition to its low cost, the capital has significant urban appeal and strong economic growth forecasts. The complete package has meant that Madrid has appeared in The Wealth Report, the Top 40 cities that spark the most interest amongst high net worth individuals (HNWIs) for the first time.

The report, prepared each year by the real estate consultancy Knight Frank (which specialises in the sale and rental of exclusive properties), analyses both the investments and purchasing trends of HNWIs, i.e. those that have fortunes of more than $30 million (of which there are 172,850 individuals in the world, 3% more than in 2014).

Madrid is ranked 18 out of 40, ahead of cities such as Dubai, San Francisco and Amsterdam. Monopolising the podium for yet another year are London, New York and Hong Kong.

This ranking refers to trends, but a more rigorous data set can also be used to assess Madrid’s evolution: the number of wealthy individuals that now live in the Spanish capital. According to The Wealth Report, there are 544, up 5.1% from a year ago, the same increase as seen in London. This places the city in ninth position in Europe, with more ultra rich people than, for example, in Munich, Stockholm, Oslo and Barcelona (with 438).

According to Humphrey White, Managing Partner of Capital Markets at Knight Frank, “the cities of Madrid and Barcelona are home to 982 wealthy individuals, 63 more than last year, and are now following a clear and growing trend, which is contributing to the increase in the prices of luxury residential property”.

During the same period, the number of HNWIs resident in Spain increased by 2%. “Wealth continued to grow around the world last year” – says Kate Everett-Allen, Partner of International Research at Knight Frank -. In fact, around 15 people per day joined the ranks of the ultra rich. In one decade (since 2004), the number of HNWIs has increased by 61% and that trend is set to continue, with a forecast increase of 34% over the next 10 years. And in Spain, in particular, the number is set to grow by 24%.

Original story: Blog Anida

Translation: Carmel Drake

Amancio Ortega’s RE Jewels In The Heart Of Madrid & BCN

26 March 2015 – Expansión

The largest shareholder of Inditex has an extensive real estate portfolio that includes properties and retail stores on the two most desirable streets in both cities.

They are the most sought-after streets in Spain for any real estate investor. On the one hand, Paseo de Gracia, in Barcelona, the star shopping street in the Catalan capital. On the other hand, the Paseo de la Castellana, in Madrid, an object of desire for any investor and a prime office location. As such, both have piqued the interest of Amancio Ortega, who owns more than ten buildings on the two thoroughfares.

Through Pontegadea, the company that the founder and majority shareholder of Inditex channels his investments through after closing his Sicavs, Ortega has purchased six buildings on the Catalan avenue and another five on the Madrid street.

In the case of the Paseo de Gracia, the most recent acquisition was made last year when Ortega purchased an office building located at number 1 on the street, on the corner with the famous Plaza Cataluña, for €44 million. This space, which has been leased to Banesto until now, will be converted into an Iberostar Hotel. A few months earlier, he acquired the commercial premises in the same building for €80 million, which are leased to Apple (see picture above). That US multinational is not Ortega’s only illustrious tenant; others include Fnac, Baker & Mackenzie, Burberry and Google.

In March 2012, Pontegadea acquired another building also on the Paseo de Gracia. In that case, Ortega’s company paid Sacyr €53.5 million for the building located at number 56. Measuring more than 9,000 square metres, it is leased to the British textile manufacturer Burberry. The Inditex owner is also the landlord of the building at number 93.

Madrid

The purchases made in the last decade have made Amancio Ortega one of the largest property owners on Madrid’s main thoroughfare: the Paseo de la Castellana. The owner of Zara joined the select club of property owners in that area in 2004, when he acquired number 92 (that same year he made a joint purchase with Metrópolis of an office building on the Paseo de Gracia, 16, which was converted into luxury housing). On the Castellana, Ortega also owns number 35, which he acquired in 2005; and number 79, the former headquarters of Axa, which he renovated to create a new office building with a shopping area, now leased to Fnac and Habitat.

But, undoubtedly, the jewel in Ortega’s crown in Madrid was acquired at the end of 2011, when he signed an agreement with FCC to purchase the Torre Picasso. He paid €400 million for the skyscraper that sits in the heart of the city’s financial district, just a few metres from the Paseo de la Castellana – a record figure for a single building, second only to the €815 million that the then Caja Madrid invested in the Torre Foster.

Nevertheless, it was not the first time that Pontegadea had paid so much in a real estate transaction. At the end of 2007, Amancio Ortega paid €458 million to Santander for the acquisition of ten buildings located in several Spanish cities, which included Castellana, 24 and Paseo de Gracia, 5.

These two great Spanish streets are just an example of Ortega’s extensive property holdings, which also include buildings leased to Inditex companies, such as for example Serrano, 23, in Madrid, which is leased to Zara. In the last full financial year (2013), Pontegadea’s assets were valued at €4,519.5 million and they generated a profit of €93.3 million, compared with €70.5 million a year earlier.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Madrid: Destination Of Choice For Wealthy Investors

5 March 2015 – Expansión

For the first time, the Spanish capital enters the top 20 on the list of locations preferred by wealthy individuals for investing their capital.

The improved perception of the economy and the possibilities for obtaining returns on investments have placed the Spanish market and more specifically its major cities, Madrid and Barcelona, amongst the destinations of choice for investors with estates worth more than $30 million (€26.8 million).

Specifically, Madrid is ranked at number 18 on the list of large investors’ favourite locations around the world.

“Firstly, vulture funds make purchases, then institutional investors arrive and finally the wealthy individuals come”, explains Humphrey White, Director of Capital Markets at Knight Frank in Spain.

Amongst the attractive features of Spain’s cities, Mr White highlights the price of their luxury properties, which are much more affordable than those of other European capitals. Thus, according to Knight Frank’s report, with one million dollars, an investor can purchase just 20 square metres of residential property in London, 50 m2 in Paris and 68 m2 in Rome, whereas in Madrid he/she can acquire 133 m2. “If you have a lot of money, you can achieve a very attractive return from luxury housing in Spain. The highest prices currently stand at around €10,000/m2, compared with the levels they reached at their peak of €14,000/m2”, explains Alberto Costillo, Managing Partner of the Luxury Residential Department at Knight Frank.

Nevertheless, the price of luxury housing increased by more than 5% in Madrid in 2014. “It is worth noting that the price of premium property in Madrid rose by 5%, in contrast with the downward trend in Europe, where prices decreased by 0.4% on average. We expect this trend to continue”, says Kate Everett-Allen, partner in International Research at Knight Frank.

By country, wealthy investors from Mexico, Colombia, Argentina and Venezuela tend to opt to buy property in Madrid, whereas other millionaires, such as the Russians, prefer Barcelona and other coastal regions. Importantly, Spain’s cities have an opportunity in the Russian market, given that more than a third of the wealthy investors from that country have indicated that they intend to leave Russia during 2015, according to findings by The Wealth Report.

London

Although Spain has now entered the elite ranking of locations desired by millionaires, the first position on the list is held by London, which ousted New York a few years ago as the most favoured destination. New York moved down to second place; Hong Kong is ranked third. In terms of where these wealthy investors live, London leads that list too, for another year, with 4,364 resident millionaires, followed by Tokyo with 3,575 and New York with 3,008.

Meanwhile, Madrid is home to 544 individuals with estates worth more than 30 million dollars, whilst 438 live in Barcelona. “There are 63 new millionaires in Spain this year and one third of them are living in Madrid and Barcelona”, says Humphrey White.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Lar España Comes To The Rescue At Juan Bravo 3

2 February 2015 – Cinco Días

The largest luxury residential project in the neighbourhood of Salamanca had previously filed for bankruptcy.

The Spanish Socimi Lar has teamed up with the Luxembourg fund LVS II LUX XIII to re-launch the luxury housing project on Calle Juan Bravo, 3. After its acquisition of the developer’s shares , construction at Juan Bravo Plaza will commence within days.

On Friday, the real estate company reported to the CNMV that it has invested €120 million in the acquisition of this building and another one on Calle Claudio Coello. As a result of the deal, Juan Bravo Plaza will exit from its bankruptcy proceedings, in light of its commitment to pay all of its creditors. The developer Eurosazor will also emerge from its state of insolvency, according to the agency EFR.

Juan Bravo Plaza was led by the developer Eurosazor (owned by Rafael Ortiz) and owned by Fernando Fernández-Tapias and Paloma Mateo. The real estate project in the neighbourhood of Salamanca was destined to be a landmark development in the European luxury housing market, inspired by the British skyscraper One Hyde Park, in London.

Located on a plot of land on Calle Juan Bravo, on the corner with Calle Lagasca, the complex was to due to comprise 60 luxury homes (flats worth more than €2.5 million). The plans were developed during the “boom” years (2006) but were paralysed by the burst of the housing crisis.

The initial project included 19,400 square metres of constructible surface area, spread across two-, three- and four-bedroom flats.

It was being led by the prestigious architect Rafael de la Hoz and the best interior designers. To carry out the Juan Bravo Plaza project, better known as Juan Bravo 3, the real estate company spent €131 million in 2002 to acquire the two buildings that were located on the site: Juan Bravo B and Juan Bravo C.

In 2009, the initiative was resumed following the presentation of a special plan for the change of the use of the property, but it was paralysed again in mid-2012. Eurosazor has been advised through the process by Bazarra Abogados and Cuatrecasas, whilst Lar España has been advised by Freshfields.

Original story: Cinco Días

Translation: Carmel Drake