OHL Pre-Sells Half of the Luxury Apartments in Canalejas

28 December 2017 – El Independiente

The pre-sales of luxury apartments in the Madrilenian Canalejas complex, the only one in Spain – and one of just a few in Europe – to be serviced by the hotel chain Four Seasons, is going from strength to strength. Knight Frank and Colliers, the two firms that have been exclusively appointed to manage their sale, have already placed almost half of the homes with their contacts and clients during the private launch, in other words, before the For Sale sign has been officially put up, according to sources speaking to El Independiente.

Even the penthouse, the jewel in the crown of the building promoted by Juan Miguel Villar Mir, together with his construction firm OHL, has an owner: a European millionaire, who is going to pay more than €9 million for a 500 m2  home in one of the most iconic areas of Madrid.

To date, most of the homes on this block of prime Madrilenian real estate in Canalejas – next to the Puerta del Sol – have been sold to wealthy Spanish families even though, initially, they were expected to attract interest from foreign millionaires, specifically, Latin Americans. “Wealthy families from Latin America prefer the traditional and exclusive Salamanca neighbourhood, whilst Spaniards are more interested this concept, which is going to revolutionise the centre of Madrid”, explain sources in the real estate sector.

The 22 most expensive new build homes currently available in Madrid have a minimum surface area of 130 m2 and a minimum asking price of €2.5 million, which means that buyers paying more than €13,000/m2. The combined value of all of the homes amounts to around €90 million.

The apartments are located on the 5th, 6th, 7th and 8th floors of the Canalejas Complex, have between one and three bedrooms each, have independent access (as well as through the Four Seasons hotel) and will be handed over completely finished and equipped, with the exception of furniture.

The homes form part of a complex that comprises seven historical buildings, which in recent decades housed the former headquarters of Banesto, Central Hispano and Zaragozano.

For the time being, most of the homes have been reserved by Spanish millionaires.

The complex spans a surface area of 50,000 m2 in total and in addition to the twenty homes, is going to house a five-star Four Seasons hotel with 200 rooms, an underground parking lot with 400 spaces, a retail outlet for bank use and a 15,000 m2 shopping arcade.

Original story: El Independiente (by Ana Antón)

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