Foreigners Account For Nine Out of Ten Hig-End Home Purchases in Barcelona

21/10/2014 – El Economista

Foreign investors have bought 90% of all dwellings priced at more than a million of euros sold in Barcelona over the last three years, reports real estate group Coldwell Banker.

Typically, such an investor has no problems in terms of financing and aims at obtaining high yields.

According to the U.S. firm, the purchasers are mostly attracted by the quality of life in Barcelona and good prices for quality properties as the luxury stock has cheapened 25% to 40% during the recession.

Traditionally, the buyers come from Europe, more specifically from the northern countries like France, the United Kingdom or Switzerland.

However, recently they have been joined by customers from the Eastern Europe, Northern America and Asia.

Coldwell Banker assures that the Golden Visa scheme approved in September 2013 also contributed to greater interest in luxury homes among foreigners who wanted to obtain a Spanish residency permit in exchange for a real estate investment exceeding €500.000.

Barcelona is currently listing around 400 units priced at more than a million of euros each. On average, this segment sees 150 transactions sealed annually, totalling at €300 million.

 

Original article: El Economista

Translation: AURA REE

Pimco & Lar to Restart Top-End Project in Madrid

9/10/2014 – Expansion

One of the world’s largest fund managers, Pimco, has just signed a joint venture agreement in order to acquire Inmobiliaria Juan Bravo 3, the company owning the plot located on a street of the same name in Madrid.

Founded in December 2006 by Eurosazor, the firm is controlled by Rafael Ortiz. The target was to build a top-luxury housing development inspired by London’s One Hyde Park skyscraper. To bring the plan to reality, Eurosazor bought two office buildings from Repsol and Mutua Madrileña in 2007 for the total of €165 million.

The recession hit halted the project. In June 2011, Mr. Oritz and partners decided to pick the venture up and construct 60 apartments of more than 150 square meters each and sell them at prices starting from €2.5 million.

The complex was about to be designed by prestigious architect’s office Rafael de La-Hoz and traded by real estate company Gilmar. Finally, the new trial ended up in fiasco and pulled both Eurosazor Activos and Inmobiliaria Juan Bravo 3 down to bankruptcy.

Pimco’s offer amounts to €130 million, by €30 million less than originally asked. For this venture, the U.S. property giant allied with Spanish Lar Group. This is not the first time the business partners cooperate as Pimco holds a 12.49% stake in a Socimi (a REIT company) created by the Lar Group and valued at €46.75 million.

The U.S. fund manages a $1.8 billion worth of assets. What is more, it has got shares in Spanish public debt and preferred participations in BBVA, Bankia and Sabadell.

 

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE

High-End Property Sales Hit Best Since 2007

30/09/2014 – Cinco Dias

Spain’s real estate market recovers. This is a fact supported by such arguments as creation of more jobs, fall in prices, shy return of lending and more property sales. Even construction pulled up with new housing developments.

When sales go up, usually the luxury market reflects it as one of the first. High-end properties are defined as those which cost more than €500.000. According to the data published by the General Council of Notaries, such an amount was crossed in 2.345 real estate transactions sealed in the first half of the year. It means a 10% rise in comparison with H1 2013.

Thus, it turns out that this year will see the best luxury home sales volume since 2007, when it post 2.659 properties changing hands. Experts reckon that the advance shall be associated with better tourist flow and general recovery of the Spanish economy, as now the country has become one of the most desired investment destinations in the world.

However, so-called Golden Visa, the permanent residency given to foreign buyers who purchase real estate properties for over €500.000, has had none or very little impact on the overall sales. The Ministry of Economy informed that during the first half of the ongoing year, only 260 visas have been issued, representing mere 11% of the high-end house sales. Still, if compared to their number (43) in the first quarter of 2014, the exponential growth went through the roof with 504% more.

Who Buys the Homes & Where?

The British lead in the ranking with 400 transactions and an average expenditure of €981.000. Second come the Russians, who buy less (321 properties) but pay more (€1.06 million on average). The German take the third place with 288 purchases and a mean of €1.14 million. The French, the Chinese and the Swedish close the list of top nations that sealed more than 100 deals.

When it comes to investment destinations, 99% of all sales are concentrated in only six Spanish regions: Andalusia, the Balearic Islands, the Canaries, Catalonia, Madrid and Valencia. The British poach homes in Andalusia, while Russians would rather pick dwellings in the Canaries, Valencia and Catalonia. Madrid is very popular among the French and the Chinese.

 

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: AURA REE