Tag: Mediterranean

Tinsa: Investment In Coastal Housing Soars

19 June 2017 – Expansión

Guide for investors along the coast / House prices rose in 62% of Spain’s coastal towns during the first quarter of the year, in particular, along the Mediterranean Arc and in the Canary and Balearic Islands, thanks primarily to an increase in demand from investors and foreigners. The forecasts from analysts point to a clear improvement in prices this year in more than half of the areas analysed along the coast. Antigua, in Fuerteventura, recorded the best YoY price rise in Q1 2017, up by 26.1%. (…).

The holiday home market is performing well once again in the majority of Spain’s coastal regions and some economists say that 2017 could be the year of consolidation in the real estate sector. Property prices recorded YoY increases in 84 of the 136 coastal towns analysed, based on data for the first quarter of 2017. In 2016, that figure amounted to 71 and in 2015, just 32, according to the latest report from the appraisal company Tinsa about Coastal Housing.

Political stability, following the failed motion of no-confidence, has combined with economic growth, thanks to the good outlooks from analysts. The forecasts for GDP growth show that the figure is going to exceed 3% this year for the third consecutive year. Moreover, Spain is a strong candidate to become the tourism leader at the global level, with a record forecast in terms of visitor numbers of 82 million this year. The increase in confidence has opened the financing tap, driven by demand for housing, amongst Spanish and overseas investors alike, looking to acquire a second home. (…).

The highest increases were recorded in the Mediterranean Arc – Costa Dorada, south of Alicante, the western coast of Málaga and the Cádiz coast – and the islands, both the Canary and Balearic Islands – in particular, Mallorca and Ibiza. The Atlantic and Cantabrian coasts are recovering more slowly, above all in the area of A Coruña and Asturias, in part due to more significant price decreases following the crisis. Nevertheless, that area has some exceptions, such as Guipúzcoa, where demand for holiday homes mergers with demand for primary residences.

The burst of the real estate bubble meant that this sector was one of the hardest hit by the crisis. In some regions, prices dropped by 60%. (…). It is true that this decrease was less marked in some of the coastal areas, thanks to demand from tourism. Along the Mediterranean Coast, the areas that lag behind the most are the coasts of Almería and Granada, which are still recovering, as well as the south of Valencia and Barcelona, and Gerona, Tarragona and Castellón, to the north of the arc. (…). Excluding those capital cities that have a coastline, Antigua (Fuerteventura) recorded the highest house price increase, with a rise of 26.1% in the first quarter of 2017, compared to the same period in 2016. That was driven by an increase in demand, given that sales there soared by no less than 81% in 2016. The second highest price rise was seen in Gavà (Barcelona), with 17.8%, followed by Mojácar (Almería), with 17.3%. The outlook for prices in 2017 is promising. According to analysts, prices will improve in more than half of the areas analysed (52%). (…).

Original story: Expansión (by Inma Benedito)

Translation: Carmel Drake

Meliá Generates Profits Of €45M In H1 2016

2 August 2016 – Expansión

The hotel chain earned €45 million during the six months to June and reduced its net debt by €213 million.

The hotel chain Meliá, which will join the Ibex next week, replacing FCC, doubled its profits during the first half of the year, to €45 million. The company has highlighted that the 123% improvement in net profit has been generated even without the sale of any assets.

The company owned by the Escarrer family increased its average revenue per room (RevPAR) by 9.4% – or by 14.2% if we include the assets under management in its portfolio – and whereby recorded six years of consecutive quarterly increases.

The company closed the first half of the year with operating income of €856 million, 0.4% lower than in the same period in 2015. If we strip out the effect of gains from the sale of assets last year, operating income increased by 5.7%.

By geographic region, RevPAR in America was lower in H1 2016 than in H1 2015, which the company explains was due to the impact of the depreciation in the Canadian dollar, the economic deceleration in Brazil and Argentina, changes in reservations due to the Zika virus and the good temperature in the USA and Canada, the main issuing markets. By contrast, the company highlighted the strong performance of hotels in the Mediterranean and Caribbean, with a RevPAR increae of 30.9%.

In terms of the financial situation, Meliá decreased its net debt by €213 million during the first six months of the year, bringing it down to €556 million at the end of June, thanks primarily to the early conversion of a convertible bond issued in 2013.

The Vice-President and CEO of Meliá, Gabriel Escarrer Jaume, stated that the repositioning of its hotels, investment in assets and strategic markets, as well as financial strengthening have allowed the group to return to the Ibex thirteen years later.

The company is “optimistic” about the performance of its hotel complexes during the third quarter and its urban hotels during the second half of the year. In the same way, it forecasts a favourable “albeit unequal” performance across its “European hotels”, influenced by the world environment, especially France, in the face of the heightened terrorist threat. In terms of America, the firm expects a boost with the opening of several new hotels: Innside New York Nomad, ME Miami and Meliá Braco Village (Jamaica).

At a conference with analysts, the company made reference to Brexit explaining that it does not expect any impact in the short term, given that Britons have already booked their holidays for 2016, and some have even booked for next year.

Original story: Expansión

Translation: Carmel Drake

Estepona Receives 287 Million In Luxury Real Estate Investments

3 February 2016 – ABC

Real estate in Estepona is flatly taking off. Investment property in luxury homes recorded consitently upward figures. “The euro is too low and that makes the British and the Nordic countries, which have the most valued currency, have raised their purchasing power by 20 percent,” Eddie Martinez, representative of Siesta Home, one of the companies that is considering investing in that town of Málaga, comments to ABC.  The City Council has received requests for construction of five maximum level residential properties that can exceed 287-million-euro investment. These are luxury constructions aimed at a customer with a high purchasing power and mainly coming from northern Europe countries.

So far, there are three promoters that have started their business and that are selling villas and luxury apartments on the ground. “Panoramia” from the Company Ikasa expects to build 400 homes in lands of the city with a progressive investment of 205 million euros during the coming years. In a first step, the company has already planned the building of the first 74 residences in the Park of Las Mesas. It is an exclusive area of ​​126,000 square meters, whose main attractive is to offer a place for both rest and longer stays.

As reported by the company, the complex will be equipped with an area of ​​large commercial centers, gardens, sports facilities, school and institute. A place that is not only intended to spend holidays or retiring, but also to build a life in the area. “Estepona ensures the greater appreciation of real estate investment on the entire Costa del Sol” says Haryán Rodriguez, CEO of Ikasa, who affirms that “the latest political developments in the neighboring towns make their recovery and growth rate double that of the rest of the coast”.

Under this revaluation Siesta Home is also making a strong commitment with urban development in the city. The company, of Scandinavian origin, is building luxury villas at 150 meters from the beach. This is a promotion of 52 mansions in “Sunset Bay Village”. The investment will be around EUR 50 million and will be a residential complex with private security and clubhouse for proprietors.

According to the promoter, the prices of these houses will start from 695,000 euros. “It is a combination of cultures,” says Eddie Martinez. The company seeks to build on this coastal enclave a residential complex that combines modern buildings with the Mediterranean vision of Estepona. “The views of the complex are also a mix of cultures with the appearance of the Strait of Gibraltar and the African coast,” emphasizes Martinez.

With the arrival of the new year, the municipality has given the green light to another housing investment. It is an enclosed  luxury complex with paddle courts, putt-green and facilities such as gym or spa. It is a complex of 123 homes with an investment of around 32 million euros in the area of El Marqués de Guadalmina. The properties are located within a privileged enclave, with direct access from the highway and the proximity to the sea or the Benahavis mountains. Zahira Group has already begun marketing these products with prices ranging from 139,000 euros to 417,000 euros per residence. On the other hand, in the area of Guadalobón, 50 luxury villas have already been planned.

Original story: ABC (by J.J. Madueño)

Translation: Aura Ree