Tag: luxury residential segment

Global Geopolitics Fuels Demand for Luxury Homes in Madrid

12 May 2019 – El Confidencial

Wealthy investors and families from China, Russia, Venezuela and Mexico are particularly active in the luxury home segment in Madrid, in particular in the districts of Salamanca, Chamberí, Retiro and Moncloa-Aravaca.

According to the College of Property Registrars, foreigners accounted for 6.7% of all residential purchases over €500,000 in the Community of Madrid in 2017, a figure that rose to 8.4% in 2018.

There are several pull-factors motivating these buyers including tax exemptions, golden visas (thanks to Law 14/2013), (relative) legal certainty, low rates of crime and affordable prices, compared to Miami and other European capitals. The language, climate and excellent transport infrastructure also play their role, as do the world-class universities and business schools in the Spanish capital.

A number of push-factors are also evident, which is where the geopolitical developments come into play. The political and economic crisis in Venezuela, the election of Andrés Manuel López Obrador as the President of Mexico in December, the political uncertainty in Cataluña and even the on-going Brexit saga, are all important reasons for wealthy buyers to turn their backs on their home countries in favour of Madrid when it comes to buying a property.

To date, since they were introduced in 2014, 2,948 golden visas have been granted for the purchase of luxury homes, with half going to Chinese citizens (1,476) and a fifth going to Russians (621).

Moreover, according to official statistics from Spain’s National Institute for Statistics, the number of Mexican residents in Spain has risen from just over 20,000 in 2014 to more than 25,200 by the end of 2018, of whom one third live in Madrid.

Meanwhile, the number of Venezuelan residents has increased from just over 32,000 five years ago to 57,120 in 2018. Nevertheless, in both cases, the real number of arrivals is higher since many move to Spain through family links making them entitled to Spanish passports.

Original story: El Confidencial (by Marcos García)

Translation/Summary: Carmel Drake

Tiuna Invests €50M in the Luxury Residential Segment in Madrid

22 May 2018 – Eje Prime

Tiuna is adding new projects to its prime portfolio. The Spanish property developer, which specialises in luxury residential projects, has just finished the first of two phases of a residential development in Madrid. It is going to invest around €50 million in the project in total, according to sources speaking to Eje Prime.

The real estate company has placed twenty homes on the market located in one of the most exclusive areas of the Spanish capital, Parque Conde de Orgaz. At number 27 Avenida de los Madroños, the architecture studio Bueso-Inchausti & Rein has designed four floors of a building constructed on a plot of land measuring 7,341 m2.

The property developer has created three types of homes inside its latest project: ground floor homes with private gardens and individual swimming pools; homes on the intermediary floors with terraces; and triplex penthouses with gardens and swimming pools connected spatially by huge panes of glass. The private area of each home starts from 250 m2 upwards and they all have four ensuite bedrooms and terraces.

Similarly, the common areas of the urbanisation also comprise the typical garden areas, individual storerooms, between two and four parking spaces per unit, a gym and sauna with changing room.

The involvement of Bueso-Inchausti & Rein in this project is no coincidence. Not in vain, the three founding partners of the studio, Jorge Bueso-Inchausti, Alejandro Bueso-Inchausti and Pablo Rein, have been shareholders of the property developer since 1989, together with Germán Toro, founder of the real estate group in 1964, and his daughter Elisa. During its fifty-year life, the real estate company has built around forty developments.

The second phase of the project begins 

With 95% of the homes in this first phase sold, according to sources at Tiuna, the property developer is now starting work on the second phase of the project: a twin building located at number 29 on the same avenue, and expects to finish the work in 2020 (…).

Moreover, the property developer, encouraged by the strong performance of the residential sector in Spain, is currently holding negotiations to close the acquisition of two plots of land in prime locations in the Spanish capital (…).

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Resolution Property Re-enters Spanish Market With €100M JV

11 March 2016 – Press Release

Distressed luxury portfolio offers residential repositioning opportunity.

Resolution Property is re-entering the Spanish real estate market with a €100m joint venture to reposition a portfolio of luxury residential, hotels and land in Marbella.

The UK-based real estate investor is forming a 50:50 joint venture with a private investment partner to manage an existing €50m portfolio comprising 15 value-add assets in Marbella’s Golden Mile. The joint venture intends to invest up to a further €50m by growing the portfolio through distressed acquisitions and value-add asset management.

Resolution Property will provide expertise in niche residential repositioning, together with retail and leisure know-how, to complement its joint venture partner’s proven track record in the local area.

Michel Nangia of Resolution Property said:

“Marbella is a sheltered market, sustained by international high net-worth individuals. Furthermore, the wider Spanish economy continues its recovery, with declining unemployment and consistently positive GDP growth over more than two years. Against this backdrop, we have the opportunity to add significant value to this portfolio through an active asset management and refurbishment programme, and then grow the portfolio alongside a strong partner with access to off-market distressed opportunities on a scale enabling a future conversion into a Socimi.”

The joint venture represents the final investment for Resolution Real Estate Fund IV. It follows Resolution Property’s delivery of similar residential repositioning ventures in Switzerland and Denmark.

Resolution Property was an active investor in Spain and Portugal’s retail markets in the mid-2000s. The Marbella venture represents its return to the Spanish market, which it will also target for further acquisitions on behalf of its next fund, Resolution Real Estate Fund V, in which China’s Fosun Property will be the cornerstone investor.

Original story: Press Release

Edited by: Carmel Drake