Andalucía To Draft New “Land Use Plan” For Western Costa del Sol

5 September 2017 – Inmodiario

Following the cancellation by the Supreme Court of the Land Use Plan (POT or ‘Plan de Ordenación del Territorio’) approved in 2006, the Governing Board of the ‘Junta de Andalucía’ has started the process to prepare a new POT for the Western Costa del Sol.

As well as addressing the formal questions behind the legal ruling, the document will update and adapt to the changes that have been seen in the region in socioeconomic terms over the last ten years. The aim is to establish a new framework for urban and land development in the area, which comprises nine municipalities and has a population of almost 400,000. In addition, the plan will set objectives and supra-municipal organisation criteria for infrastructure, green spaces, and areas of growth.

To prepare the plan, the formulation decree approved by the Board establishes the creation of a drafting committee, which will comprise representatives of the central and regional administrations, as well as from the Provincial Council and the Town Halls in the district.

In general terms, the POT identifies those areas that should be protected from the urbanisation process due to their environmental, scenic cultural value, and those that should be allocated to the development of economic activities and the location of supra-municipal equipment and facilities, given their strategic value. All urban plans and public and private initiatives must adhere to these guidelines.

The POT for the Western Costa del Sol includes the following municipalities within its scope: Benahavís, Casares, Estepona, Fuengirola, Istán, Manilva, Marbella, Mijas and Ojén (…).

Original story: Inmodiario

Translation: Carmel Drake

Ministry Of Development: House Sales Return To 2008 Levels

9 June 2017 – El Mundo

After the storm always comes the calm. The same is true in the residential real estate market. During the first quarter of 2017, house sales returned to levels not seen since 2008. According to transaction statistics from the Ministry of Development, between January and March, 122,787 operations were completed, up by 18.5% compared to the same period in 2016. To find a higher figure during the first quarter of the year, we have to go back to 2008 (159,088).

Of the total number of operations, only 10,771 related to new builds, which accounted for 8.8% of the total. Meanwhile, second-hand properties (112,016) accounted for 91.2%. This data shows once again that the segment of second-hand homes is consolidating its position as the real driver of the market.

In term of protection regimes, the number of free (unsubsidised) house sales amounted to 117,477, accounting for 95.7% of the total. Meanwhile, social housing transactions amounted to 5,310 during the same period, up by 4.3%.

In terms of the data by autonomous region, increases in the number of house sales were recorded in every single one, with the exception of La Rioja, which recorded a decrease of -1.6%. The highest increases were observed in Aragón (53.5%), Asturias (32.5%), Cataluña (27.6%), Cantabria (26.6%) and Castilla-La Mancha (26.3%).

By municipality, the highest volume of transactions during the first quarter of 2017 was recorded in Madrid (9,674), Barcelona (4,657), Valencia (2,588), Sevilla (2,007), Zaragoza (1,799), Málaga (1,778), Palma de Mallorca (1,386) and Alicante (1,194).

Foreigners account for 16.8% of all purchases

In terms of the nationality of buyers, the number of transactions undertaken by foreign residents in Spain experienced a YoY increase for the 23rd consecutive quarter. Specifically, the number rose by 17.9% compared to the first quarter of 2016, totalling 19,805 sales. In total, the number of purchases made by foreigners (residents and non-residents) amounted to 20,593, in other words, 16.8% of the total.

By province, the most purchases by foreign residents were recorded in Alicante (4,539), Málaga (2,206), Barcelona (1,806), Madrid (1,581), Santa Cruz de Tenerife (1,416) and Baleares (1,254).

Original story: El Mundo

Translation: Carmel Drake

Ministry Of Development: Urban Land Prices Rose By 6.6% In Q2

16 September 2016 – Expansión

The market for urban land is starting to show signs of recovery. The price of plots of land rose by 6.6% during the second quarter of the year, to amount to €163.4/sqm. It is the best figure since Q4 2012, although it is still light years away from the peak recorded in 2007, at the height of the real estate boom, when prices reached €285/sqm.

One of the main conclusions coming out of the statistics published yesterday by the Ministry of Development is that, thanks to the real estate pull in the capital and Barcelona, the Community of Madrid and Cataluña account for almost half of the market for urban land. Specifically, they accounted for a total sales volume of €351.9 million, i.e. 47% of the total volume for Spain (€751.1 million). This most recent figure is 21.7% higher than a year ago. The total surface area sold in Spain amounted to 5.6 million sqm, up by 7.7%.

The total value of land sold soared by 85% in Barcelona and by 11% in Madrid.

The number of transactions grew by 16% YoY across Spain. In April, May and June, 4,435 plots of land were sold, compared to 3,819 during Q2 2015. The most significant increase was recorded in municipalities with more than 50,000 inhabitants, where sales rose by 20%. In towns with between 10,000 and 50,000 inhabitants, there were 1,580 transactions, up by 24.6%.

In municipalities with more than 50,000 inhabitants, the highest average prices were reported in the provinces of Barcelona (€485/sqm, equivalent to triple the average for Spain), Madrid (€456/sqm) and the Balearic Islands (€373/sqm). The lowest prices were recorded in Guadalajara (€72.6/sqm, less than half the national average), Cádiz (€100/sqm) and Tarragona (€101.4/sqm).

Prices rose by just 0.1% in the cities, given that Madrid pushed down the statistics with a decrease of 14%. According to the real estate consultant, José Luis Ruiz Bartolomé, that is a result of the comparison with data from 2015, when “there was very little urban land available in Madrid, and investors sought refuge in plots of land in the most solvent areas, whilst this year land sales have spread across the whole city and are no longer limited to just the central areas”.

In Barcelona, the increase in land prices amounted to 3.5% during Q2 2016.

The Ministry of Development also published statistics yesterday about the appraisal value of unsubsidised homes, which rose by 2% YoY to €1,506.4/sqm in Q2 2016.

After 26 quarters of YoY decreases in house prices, which began at the end of 2008, “this data represents the fifth consecutive quarter of nominal price increases”, said the Ministry. In real terms, in other words, accounting for the effect of inflation, the increase amounted to 2.9%.

Ten autonomous regions reported YoY increases, led by the Balearic Islands (+5.9%), Madrid (+4.8%), Cataluña (+4.6%), the Canary Islands (+2.9%), Extremadura (+2.4%), Ceuta and Melilla (+2.3%) and Galicia (+1.4%). By contrast, the other regions reported YoY decreases – in appraisal prices, not in sales prices – led by Navarra (with a decrease of -2.2%), Aragón (-1.9%), País Vasco (-1.7%) and Cantabria (-1.3%).

House values are now 28.3% lower than their maximum levels, reached during Q1 2008. (…).

Original story: Expansión (by Juanma Lamet)

Translation Carmel Drake

Ministry Of Finance Auctions Off 34 Buildings In Community Of Madrid

30 August 2016 – Expansión

The Ministry of Economic Affairs and Finance has announced the public auction of 34 properties owned by the Central Government in Madrid capital and in another nine municipalities across the Community of Madrid, according to a statement published today in the Official State Gazette (BOE).

The properties comprise urban buildings and land in the centre of Madrid as well as in the municipalities of Galapagar, Torrelodones, Somosierra, Boadilla del Monte, Chinchón, Loeches, Tres Cantos, Valdemoro and Estremera.

Bids will be submitted in sealed envelopes and the amount of the guarantee will be 5% of the value of the assets, according the statement made in the BOE by the Delegation for Economic Affairs and Finance in Madrid.

The period for the submission of bids will open tomorrow and will end on 20 October, with the sealed envelopes being opened on 3 November.

In the capital, the properties located in the following places will be auctioned off: Calle General Varela, 21-23; Calle Almagro, 28; Calle Monte Esquinza, 41- ground floor; Calle Cervantes, 6; Calle la Oca 15, ground floor, right; the plot of land on the corner of Avenida Santo Ángel de la Guarda and General Cadenas Campos 19, as well as plots in the APR Calle Cantalejo, in the UNP Ciudad Aeropuertuaria de Valdebebas, in the UZP Ensanche de Vallecas and in the PAU de Carabanchel.

The urban plot on Avenida Santo Ángel de la Guarda, which has a surface area of 3,173.81 sqm and a constructible area of 11,230.15 sqm, has the highest appraisal value (€17.18 million) of all of the assets in the portfolio.

It is followed by the buildings on Calle General Valera de Madrid, valued at €5.9 million and Calle Almagro, worth €3.18 million, whilst in the municipalities, the most valuable building is a rural property in Valdemoro, measuring 46,999 sqm, worth more than €3.4 million, as well as a plot of land in Tres Cantos, valued at €3.2 million.

Those interested in participating in the auction must provide the information detailed in the tender specification document, and may request information about the properties from the State’s Real Estate Service from the Treasury’s delegation on Calle Guzmán el Bueno, or through the Ministry’s website

Original story: Expansión

Translation: Carmel Drake

Tinsa: House Prices Rose By Just 0.1% In April 2016

11 May 2016 – Expansión

House prices remained stable in April, increasing by just 0.1% with respect to the same month last year, according to Tinsa’s IMIE index.

“The average price of finished homes, both new and second-hand, continued to increase, but in a more moderate way, after registering YoY rises of 0.8% and 2.1% in March and February, respectively”, said the appraisal company.

However, the positive balance continued during the first four months of 2016, with an average increase of 1.9% between January and April. In addition, the index has recorded a cumulative decrease of 41% since the peaks of 2007 and has now returned to the level last seen in Summer 2003.

Metropolitan areas

Following YoY growth of 4.4% in the Mediterranean Coast, the next best YoY movement in April was reported in towns clustered close to metropolitan areas, which in April reported stable prices, in line with those recorded a year ago.

The capital and large cities showed a slight YoY decrease, of -0.2%, followed by the Balearic and Canary Islands, where prices fell by -0.4%. The group of other municipalities (small and medium towns not included in other areas) reported a decrease of -0.9%, although they have performed the best out of all of the groups during the year, with a cumulative increase of 3.8% between January and April.

The average price of homes across every area was higher in April than at the end of 2015. The following areas reported above-average price growth between January and April (for Spain as a whole, the average was 1.9%): other municipalities (+3.9%), the Balearic and Canary Islands (+2.9%) and the Mediterranean Coast (+2.7%). At a slower pace, growth in the metropolitan areas amounted to 1.1% during the first four months of the year and to 0.7% in the capitals and other major cities.

The average decrease in Spain since the peak of 2007 now amounts to 41.1%. The Balearic and Canary Islands (-30.6%) and other municipalities (-35.8%) recorded below-average cumulative decreases. The Mediterranean Coast continued to reduce the difference with respect to the peak of the cycle, with the average cumulative decrease there now amounting to -46.7%, followed by capitals and major cities (-45.1%) and metropolitan areas (-44.4%).

Original story: Expansión

Translation: Carmel Drake