Metrovacesa will Invest €400M to Build a New 550-Home Neighbourhood in Palma

30 November 2018 – Eje Prime

Metrovacesa is going to expand the city of Palma. The listed property developer is going to construct a new neighbourhood comprising 550 homes in the Balearic capital with an investment that will exceed €400 million. The company is going to build five developments in the Nou Llevant area, which is expected to be completed in 2023.

The real estate company has already started marketing the first phase of the project with Jardins del Llevant, a development comprising 91 multi-family homes with between one and four bedrooms and eleven duplex homes with four bedrooms.

Construction of the complex will begin during the second quarter of 2019 to be ready by the end of the following year. In the common areas, the enclosure will have gardens and two panoramic, outdoor swimming pools on the roof.

Through this commitment to Palma, Metrovacesa is going to develop more than 160,000 m2 of land, of which 110,000 m2 will be for tertiary use and the remaining 56,000 m2 will be for residential use.

Currently, the property developer owns a portfolio of land for the development of 38,000 homes across the country. The company is going to put sixty developments and 5,000 new units on the market next year, as Eje Prime reported. Metrovacesa expects to close the year “with double-digit growth”, according to explanations provided recently by Juan Núñez, Operations Director at the real estate firm. The objective of the company for 2019 is to be the number one property developer in Spain and to reach an annual turnover of €1 billion in 2020.

Original story: Eje Prime

Translation: Carmel Drake

Town Hall of Málaga Authorises Four Buildings for Tourist Apartments

16 October 2018 – Diario Sur

The boom in projects to build new tourist apartments in the Málagan capital continues apace. That is reflected in the list of activities that received building permits from the Municipal Urban Planning Department during the months of July, August and September, which will be submitted to the governing board of that Town Hall body tomorrow. The projects include four properties for tourist apartments, of which two involve the adaptation of existing buildings, and the other two the construction of new properties on separate plots, located in the Trinidad neighbourhood.

One of the authorised projects involves the construction of a building for 49 tourist apartments, 26 parking spaces and a swimming pool on the plot located at numbers 7, 8 and 9 Avenida de Fátima, located right next to the parish of the same name. It is being promoted by the company Pinar Concept. Similarly, around 200 m from that site, also in the Trinidad area, the Town Hall has granted a construction licence for another tourist apartment building, to be promoted by Inmoplan Promociones, which will be constructed on the plot at numbers 5 and 6, Plaza de Nuestra Señora de la Soledad, next to c/Don Juan de Austria.

The other two approved initiatives involve the conversion into tourist apartments of two residential-use buildings located at number 52 Calle Mariano de Cavia, in the Pedregalejo area, on the one hand, and at number 2 Calle Barroso, next to Calle Córdoba, on the other. As this newspaper already reported (refer to SUR18/9/2018), behind this latest activity in the Soho area is the chain Hotusa, which is planning to develop a project involving 42 tourist apartments through the company Tandem Apartments.

Student halls

On the other hand, on another plot of land in Trinidad, located at numbers 8 and 10 Calle Carril, the Urban Planning Department has approved the construction of a hall of residence for students promoted by the company specialising in internships for overseas students, Euromind Projects.

In addition, the Urban Planning Department plans to approve tomorrow the start of the procedure to declare the expiration of the permit that was granted in 2008 for the construction of an industrial, office and parking lot building at number 303 Avenida de Velázquez, next to the headquarters of Canal Sur. That project was started but only the structure was completed. In a letter to Aena in July, it was stated that in 2009, the obligations of the airport were modified and so currently its height represents “an obstacle” for manoeuvres for the approach and take off of planes from the runway.

Original story: Diario Sur (by Jesús Hinojosa)

Translation: Carmel Drake

Inmoglacier Acquires 8 Residential Plots in Arganda del Rey (Madrid)

12 April 2018 – Inmodiario

The project, Residencial Ciudad Futura, is going to be located in an important area in the centre of Arganda del Rey and will constitute one of the most significant new developments in the southeast of the Community of Madrid.

The total buildable surface area amounts to 102,220 m2, of which 6,706 m2 will be dedicated to commercial use and the remainder to residential use (homes to buy and rent).

The firm also announced the acquisition of land in Boadilla for 157 homes.

Grupo Inmoglacier, one of the most important property developers in the country, has completed the purchase of eight plots of residential land in Arganda del Rey, with an expected investment of €165 million. The plots have a surface area of 20,883 m2 and a total buildable surface area of 102,220 m2 of which 6,706 m2 will be dedicated to commercial use and the remainder to residential use, reaching a maximum density of 1,057 homes. Marketing of the project, which is going to include homes to buy and to let, is expected to begin in June this year.

Inmoglacier’s development is going to be located in the UE-124 Sphere “Central Area” of Arganda, opposite the Line 9 metro station. The project constitutes a new reference point for the population of Arganda, considered the capital of the southeast of Madrid, and will involve the creation of a completely new neighbourhood. The objective of Inmoglacier is to reactivate this urbanisation, which has been paralysed for years, turning the area into a unique space with high-quality designer buildings, in a green, family, pedestrian environment to meet demand in Arganda, Rivas-Vaciamadrid and the whole of the eastern area of Madrid.

This project represents the largest investment that Grupo Inmoglacier has made in a land purchase since its creation more than 35 years ago.

Boadilla del Monte

Inmoglacier has also announced the signing of a land purchase for the development of 157 homes in the west of the capital’s metropolitan area, in the Madrileñan town of Boadilla del Monte, specifically in the area known as “Cortijo Norte”. The total investment in that project will amount to €58.5 million.

The acquisition of land for new residential developments forms part of the group’s strategy to boost and maintain its organic growth thanks to the development of new projects, to which end it combines its extensive experience in promotion and robust financial stability.

Through these operations, the company is consolidating its position as one of the Spanish property developers with the largest land bank in Spain and one of the major players in the residential market in the Community of Madrid, with more than 2,000 homes currently under construction, 1,100 of which it plans to hand over in 2018. Inmoglacier is the fifth largest residential property developer in the country and the largest in Madrid by volume of homes handed over.

Ignacio Moreno, CEO of Inmoglacier said: “With our new partner, Cerberus, we have exponentially increased our investment capacity to develop a large residential supply in the country and that undoubtedly strengthens our position within the property development sector in Spain”.

Original story: Inmodiario

Translation: Carmel Drake

Solvia: Buy-to-Let Returns Reach 11% in Alicante

3 March 2018 – El Mundo

If you want to generate some decent returns from your savings and are thinking about getting into the world of real estate, to buy a home and let it out, then the best options in Alicante can be found in the neighbourhoods of Carolinas Altas and Bon Repós, where rental yields currently exceed 11%. The lowest returns are being recorded in the centre and in the old town, with 5.8% and 5.6%, respectively. That is according to the report Solvia Market Overview: Alicante, the forecast for 2018, prepared by Solvia, the real estate arm of Banco Sabadell.

The analysis indicates that in the local rental market “prices are rising at a faster rate than sales prices, taking the average rent to €614/month, up by 9.6% compared to one year ago”. Tenants paid €6.6/m2/month. The stock of rental homes has increased to 3,297 units, up by 0.5% compared to the previous quarter. The average return on a rental property in Alicante amounts to 6%, which significantly exceeds the returns generated by other conservative investment options such as bank deposits and treasury bonds, whose yields are in tatters. The average return on rental properties across Spain is 6.1%.

The most expensive rental prices are located in the centre of the city: €8.65/m2/month, which means that for a 90m2 home, the monthly rent amounts to around €778 on average. Playa de San Juan is the second most expensive location, at €8.61/m2/month, which corresponds to an average monthly rent of €774.

The most affordable areas are La Florida Alta and Florida Baja, with rents of €5.64/m2/month and €6.23/m2/month, respectively. Moreover, the most profitable neighbourhood for a landlord to rent out a flat is Carolinas Altas. The €560 that can be obtained for the rent on average, taking into account the sales prices in the area at the moment (around €60,000 per property on average) allow for the generation of a return of 11.2%; that is much higher than, for example, the dividend yield of any company listed on the Ibex.

Upwards trend

In its report, Solvia highlights that the forecast for 2018 is that house prices “are going to continue to rise in the city, with an expected increase of 5.3%, slightly below the 6.1% that is forecast for the whole of Spain”.

Property prices in Alicante recorded a YoY increase of 4.1% at the end of 2017 to reach €1,258/m2, above the national average. Specifically, second-hand properties reached a sales price of €1,207/m2, whilst new build homes cost €1,653/m2. “The amount per square metre is still considerably lower than the highest peak, reached in 2007 in the case of second-hand homes (€1,765/m2) and in 2008 in the case of new build properties (€2,041/m2). The most expensive areas are in the centre (€2,250/m2), the old town (€2,126/m2) and Playa de San Juan, where prices have soared by 9.7% over the last year.

Original story: El Mundo (by F. D. G.)

Translation: Carmel Drake

Forcadell: New Home Sales Rose by 28% in Barcelona in H2 2017

21 February 2018 – Eje Prime

Barcelona is growing with new homes, even though they are more expensive than they were five years ago. The Catalan capital is experiencing significant growth in the sale of new homes from its residential stock, despite the socio-political situation that has been rumbling along for several months. During the second half of 2017, the sector saw the number of new house sales grow by 28% in the province of Barcelona compared to the same period in 2016, according to a report from the real estate consultancy Forcadell.

In addition to transactions, the price of new homes and the number of developments also increased, although the consultancy indicates that the current supply of homes in this segment is still scarce in the city of Barcelona, due to the lack of space. The only land reserves left are located in the 22@ district and in Poblenou, “which makes an increase in building renovation activity very necessary in the Catalan capital. Currently, such activity only accounts for 3.5% of new residential developments”, according to Forcadell.

During the second half of the year, the report highlights the activity recorded in the months of July and November, with significant peaks in the number of new home sales: 717 and 607, respectively, according to data from the National Institute of Statistics (INE). In this sense, and given the lack of land in the Catalan capital, the Barcelona market is expanding towards its neighbouring municipalities, such as el Barcelonès, el Baix Llobregat and el Vallès Occidental.

Within the city of Barcelona, the district that had the largest supply of new build homes between June and December was Sarrià-Sant Gervasi, whilst Ciutat Vella and l’Eixample put the most renovated assets on the market. Prices in the capital grew by 2.7% in half-yearly terms, with an overall average price of €5,439/m2. In this area, Sant Andreu was the neighbourhood with the highest increase in prices; and for this year and next, Nou Barris is set to see the highest increases in the price of new homes, according to Forcadell. The overall trend for this year is also expected to be bullish.

Forecasts from the consultancy firm indicate that construction activity in Barcelona will continue to increase over the coming months, above all in the towns adjacent to the city. Nevertheless, the lack of buildable land and the delay in the granting of licences may water down the good times that the property development sector will enjoy from 2019 onwards.

Rental market – mismatch between supply and demand

The rental market, which has been so in vogue recently, suffered from an important mismatch between supply and demand for rental homes costing between €850 and €1,000. This situation has resulted from an increase in the interest from clients in the metropolitan area.

In terms of demand, Forcadell indicates that during the second half of the year (…) rental prices continued to rise.

In this way, the report from the consultancy firm places the average price of a rental home at €15.50/m2/month, up by 1.9% with respect to the same period in 2016. Ciutat Vella is the district that registered the highest rents in the Catalan capital, of €19/m2/month, but Forcadell estimates that the trend will stabilise in the city in 2018 (…).

Moreover, the sale of second-hand homes recorded a YoY increase of 5.1%, with 31,485 operations. According to Forcadell, l’Eixample was the district with the largest supply of homes in the second half of the year, followed by Sant Martí, Ciutat Vella and Sarrià-Sant Gervasi.

The sales prices of second-hand homes increased by 1.7% between the first and second halves of 2017, to record an increase of 6.8% with respect to the end of 2016. The average price paid for a home measuring 90 m2, with three or four bedrooms, in Barcelona was €2,952/m2.

Original story: Eje Prime 

Translation: Carmel Drake

Rental Prices Rose by 9.48% In Barcelona in 2017

15 February 2018 – Eje Prime

Rental prices are continuing to rise in Barcelona. The average price of the new contracts signed in 2017 amounted to €877.20, up by 9.48% compared to a year earlier. In this way, the Catalan capital has now recorded four consecutive years of price increases.

Last year, 49,953 new residential rental contracts were formalised in Barcelona, almost 8,000 more than in 2016, according to data published today by the Chamber of Urban Property in Barcelona.

The neighbourhood of Eixample accounted for the highest market share, with 21%, followed by Sant Martí, with 12%, Ciutat Vella, with 11%, and Sants-Monjuïc, Sarrià-Sant Gervasi and Gràcia, with 10% each.

This data contrasts with the forecasts made by the Chamber at the end of last year, which predicted a containment of prices in the city. The districts that saw the highest price rises were Sants-Montjuïc (12.43%) and Ciutat Vella (12.11%), followed by Nou Barris (11.48%) and Horta-Guinardó (10.38%). The lowest price rises were seen in Les Corts (6.73%) and Sarrià Sant-Gervasi (7.27%).

Original story: Eje Prime 

Translation: Carmel Drake

Madrid’s Town Hall Approves the Master Housing Plan for SE of the Capital

29 January 2018 – Inmodiario

The Governing Body of the Town Hall of Madrid has approved the Master Plan that defines and organises the actions that the Town Hall of Madrid is going to launch to execute the Strategy for the Development of the Southeast of the capital (EDSE). The Master Plan covers the districts of San Blas-Canillejas, Vicálvaro and Villa de Vallecas and aims to adjust the urban growth strategy of the General Plan of 1997, whereby ensuring its feasibility and coherence, and making it compatible with a sustainable, balanced, social and environmentally responsible regional model.

Los Cerros, Los Ahijones, Los Berrocales, Valdecarros, la Nueva Centralidad del Este and el Ensanche de San Fernando were spaces planned by the General Plan of 1997 to develop 4,400 hectares, building more than 105,000 homes and 6.5 million m2 of space for economic activity.

The Master Plan that has just been approved proposes a redefinition of that Plan, which adjusts the public use, the residential use – it proposes half the number of the homes, down from 105,000 to 53,000 – and the economic activity use.

The objectives of the new plan include improving the urban quality of the Los Ahijones and Los Berrocales neighbourhoods in terms of public spaces, commercial activity, the location of facilities, and the necessary public transport networks, introducing modifications in their detailed planning.

It also requires a strengthening of the management conditions and guarantees from the Compensation Boards that build the 38,000 homes and develop 1.9 million m2 of space for economic activities.

Moreover, new areas of management will need to be defined with smaller territorial dimensions, inside the M-45, that continue the existing city, corresponding to the new areas of Valdecarros-La Gavia and Los Cerros Norte-San Fernando with almost 530 hectares and capacity for 14,500 homes. And to strengthen the network of free spaces with two large green spaces around the Cerro de Almodóvar and the connection of the La Gavia park with the Manzanares River.

The new Master Plan also proposes the creation of a 1,850-hectare land reserve on the remaining land in Los Cerros, Valdecarros and the Nueva Centralidad del Este, whose planning and execution will be defined and scheduled depending on future needs (…). That land has capacity for approximately 45,000 homes and 2 million m2 of buildable space for economic activity (…).

Finally, the plan stresses the need to carry out two programs of land development, in accordance with the real demand for residential housing and economic activity: the first, forecast for the years 2022-2030 will allow the construction of 27,700 homes and 1.3 million m2 of buildable space for economic activities; the second program, which will run between 2031-2039, will involve the construction of 26,000 homes and 1.2 million m2 of buildable space for economic activities.

Original story: Inmodiario

Translation: Carmel Drake

Tinsa: House Prices Fell by 1.7% in Barcelona & Rose by 4.5% in Madrid in Q4

30 December 2017 – Expansión

The real estate market is continuing on the path to recovery, but it has encountered an unexpected obstacle: “the process” (‘el procés’ in Catalan). In fact, the instability generated by the independentist challenge in Cataluña caused a slow down in the rate of growth that had been seen in both Cataluña and Barcelona until September, when the Catalan capital was leading the reactivation of the sector.

The path that Madrid and Barcelona had been following together diverged in the last quarter of 2017 when house prices in Barcelona decreased by 1.7% compared to the previous quarter, whilst in the Spanish capital, they rose by 4.5%, according to the Local Markets Index compiled by the appraisal company Tinsa. That figure represents the first decrease in the Catalan capital since Q2 2016.

“The political situation had a negative impact on house prices in Barcelona during the final quarter (of 2017)”, explained Jorge Ripoll, Director of Research at Tinsa. According to his explanations, “we are seeing a build-up of demand, primarily amongst investors, which has now started to spread to other buyer profiles”.

The quarterly decrease in Barcelona was concentrated in some of the districts that have some of the highest prices, such as Ciutat Vella (which saw a decrease of 5.8%), Les Corts (-5.5%) and Sarrià-Sant Gervasi (-1.1%); and they were not offset by the increases recorded in other neighbourhoods, such as Nou Barris (4.6%) and Sants-Montjüic (4.2%). Meanwhile, the growth in Madrid was boosted by significant increases in the districts of Chamartín (8.4%), La Latina (7.9%) and Carabanchel (6.9%).

This data means that Madrid outperformed Barcelona in terms of cumulative growth over the course of the year. In this way, the Spanish capital went from a YoY increase of 15.5% in Q3 to 17.1% in Q4, the highest of any of the provincial capitals. By contrast, the YoY increase in Barcelona moderated from 20.6% in Q3 to 14.8% in Q4, making it the second-placed municipality. In the Spanish capital, the most significant YoY increases were recorded in the following districts: Centro (21.1%), Salamanca and Retiro (both 17.6%); whilst in the Catalan city, prices soared in Sants-Montjüic (26.5%) and Sant Martí (24%).

The pull of the country’s two largest cities meant that house prices in Spain rose by 4.2% last year, accelerating significantly with respect to the 0.6% recorded in 2016 to reach an average price of €1,264/m2. This represents “moderate growth” according to Ripoll, who highlights that 2017 marked “the start of the recovery”.

Besides Madrid and Barcelona, the cities that recorded the highest price rises were Palma de Mallorca (13.7%), Pamplona (12.5%), Burgos (8.8%) and Vitoria (8.2%). In total, 30 of the 49 provincial capitals analysed in the study recorded positive growth. They also included important urban nuclei such as San Sebastián (6.1%), Sevilla (5.9%), Alicante (5.7%), Málaga (4.5%) and Valencia (3.9%). Of the 19 provincial capitals that recorded negative figures, the most notable decreases were recorded in Bilbao (-3.5%), Vigo (-0.6%) and Zaragoza (-0.8%), although Ciudad Real (-12.6%) recorded the worst result.

The decrease in house prices in Barcelona during the fourth quarter means that the Catalan capital was knocked off of its podium by San Sebastián as the most expensive town in Spain per square metre. In this way, the average house price in the Donostiarra city amounts to €3,231/m2. Meanwhile, the average house price in Barcelona amounts to €3,129/m2, and so, the sizeable gap – of approximately 20% – was maintained with respect to Madrid, where appraisers estimate that the average house price amounts to €2,601/m2 (…).

In terms of the effects that the Catalan crisis may have on the performance of the sector over the medium-term, Ripoll highlights that if the uncertainty experienced over the last quarter is prolonged, the negative evolution in Barcelona “may become endemic and result in a contraction”. Moreover, “we cannot rule out that” that phenomenon “will affect the rest of Spain” (…).

In this way, the average price of €1,264/m2 represents a return to the levels last seen in Q3 2013 and means that prices have decreased by 38.3% on average with respect to the historical maximum reached in 2007 (…).

Original story: Expansión (by Ignacio Bolea)

Translation: Carmel Drake

Grosvenor Buys 3 More Residential Properties In Madrid

26 October 2017 – Eje Prime

The youngest multi-millionaire in the world has set his sights on Spain. The young Duke of Westminster, 26, has acquired three properties in Madrid, where he is going to build luxury homes. The latest project involves the transformation of a property that used to house the Philatelic Forum for many years. The plan is to build twelve properties there for wealthy tenants, according to Cinco Días.

The Spanish subsidiary of Grosvenor has also purchased a plot of land on Calle Jorge Juan, where it plans to construct seven apartments and a property on Santa Engracia, which will contain 18 homes once the building has been renovated.

To carry out this series of investments, the British company has joined forces with the holding company Amcorp, which is headquartered in Malaysia and which has funds amounting to €70 million.

In addition to the residential market, Grosvenor is looking to purchase offices for their rental, according to the company. In Spain, the firm is a partner of the Sonae Sierra joint venture, one of the main players in the shopping centre sector.

Grosvenor, led by Mark Preston, currently owns properties with a value of around €7,300 million, most of which are located in the United Kingdom, where, it is also the main landowner in London’s most exclusive neighbourhoods. These assets generated revenues of €298 million in 2016 and profits of almost €90 million.

Original story: Eje Prime

Translation: Carmel Drake

Optimum III Buys Residential Building In Barcelona For €6.6M

6 July 2017 – Eje Prime

Optimum III, the residential Socimi created by BMB Investment Management and the US fund Bluemountain, is continuing to grow its portfolio of assets with new purchases. In its latest deal, the company has acquired a residential building in the neighbourhood of Sarrià-Sant Gervasi, in the upper area of Barcelona. The purchase of this property has seen the group invest €6.6 million.

The property is located at number 46 on Calle Calaf, in one of the most expensive districts in the Catalan capital. Until recently, Sarrià-Sant Gervasi was the most expensive neighbourhood in the country in which to buy a home, according to data from Tinsa’s IMIE Local Markets index. During the fourth quarter of 2016, the upper area of Barcelona became the most expensive in Spain, with an average house price per square metre of €3,901/m2, up by 8.6% compared to the fourth quarter of 2015.

Nevertheless, during the first three months of this year, the boom in Madrid saw the tables turn, with the neighbourhood of Salamanca becoming the most expensive in the country, exceeding €3,800/m2 (up by 6.8% compared to a year earlier). Meanwhile, Sarrià-Sant Gervasi was ranked in second place, with an average price of €3,778/m2 during the first quarter of the year.

Optimum III is continuing to increase its portfolio of assets (…), however, its business is different in several ways to that undertaken by its predecessor Optimum Real Estate. Firstly, due to the reactivation of the real estate market, the average price of acquisitions will now be approximately €2,500/m2 in Barcelona and €2,800/m2 in Madrid, according to the group. Secondly, the capital of Spain will play a greater role in the portfolio; the city accounted 20% of the total assets owned by the previous Socimi, whereas it will now account for 30% of the total, with Barcelona accounting for the remaining 70%.

Moreover, taking advantage of the work already performed by BMB for Optimum Re Spain between December 2016 and February 2017, Optimum III has now acquired five properties in the two cities. In Barcelona, it purchased buildings located on Avenida Diagonal at the intersection with Calle Girona, and on Calle Bruc at the junction with Calle Aragó, amongst others. BMB’s intention is to invest €100 million through the new vehicle, in the form of both acquisitions and improvements. In this way, Optimum III’s portfolio will comprise more than twenty buildings.

Optimum Real Estate, the older sister  

In parallel to Optimum III, BMB and Bluemountain are continuing to fatten up their other Socimi in Spain, Optimum Real Estate. Currently, the asset portfolio of that Socimi, which was created following the success of two vehicles constituted in 2007 to purchase residential buildings in Berlin (Germany), comprises fifteen assets located in Barcelona, in central areas such as El Eixample, Gran Vía, El Born and Ramblas, as well as one in Madrid, located at number 8, Calle San Bernardino. Optimum’s portfolio is currently valued at €63.7 million (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake