Tag: neighbourhoods

Servihabitat: Rental Yields Now Exceed 10% in Madrid, Cataluña, Balearic & Canary Islands

18 December 2017 – Expansión

“The Spanish residential market has been showing clear signs of recovery in 2017 and all indications are that the rate of growth will be even higher in 2018. The number of house sales will rise by 16.9% this year, to exceed 472,000 operations, and by another 18.3% next year, which means that we will see the sale of almost 560,000 units”. In this way, Servihabitat summarises the trend in the residential sector, which is enjoying a sweet moment.

The key factors contributing to the boost in demand include: the growth of the number of solvent buyers; policies by financial institutions to grant more loans; the progress in terms of the construction of new homes; and the increase in investor interest – in the case of holiday homes, investors now account for 19% of all operations.

This last aspect is fundamental for understanding the boom in the most consolidated areas of Spain. According to data from Servihabitat, the average annual yield from buying a home to let is 10%: 5.5% from the gross rental yield and 4.5% from the appreciation in the property value over 12 months, which the real estate servicer calculates in its forecasts at the end of 2017.

This data tallies with the 9.8% calculated by the Bank of Spain. The difference is that Servihabitat breaks down the yield by region and province. The regions in which it is more profitable to acquire a home to let are: the Community of Madrid, (13.3% gross p.a.), Cataluña (13.1%), the Balearic Islands (11.4%) and the Canary Islands (10.8%).

They are the only four regions where yields exceed the national average, which gives us an idea of the importance that the two largest cities and residential investment along the coast play in the overall calculation for the Spanish market. It comes as no surprise that the most profitable provinces are: Barcelona (13.7%), Madrid (13.3%), Las Palmas (12.4%), the Balearic Islands (11.4%), Málaga (10.1%) and Santa Cruz de Tenerife (9.5%). In other words, the six largest real estate markets in Spain (together with Alicante), where demand from overseas buyers is boosting the sector and the cranes are back on the horizon. Overseas buyers now account for 17.4% of all purchases or one in six. That percentage rises to 47.6% in the case of Alicante, 40.8% in Santa Cruz de Tenerife, 33.7% in the Balearic Islands, 32.8% in Girona, 31.4% in Málaga and 22.6% in Las Palmas.

They are clearly the “hot” areas of the real estate sector, but they are not the only ones to be offering high returns. Other examples include: Salamanca (8.4%), Guadalajara (7.8%), Murcia (7.7%), Cantabria (7.6%), Valladolid (7.5%) and Lleida (7.5%), amongst others. This positive trend will become even more marked in 2018 (…).

In the Catalan capital, yields in the district of Sants-Montjuic are off the scale, with an average gross annual return of no less than 32.9% (5.3% from the rental yield and 27.6% from an appreciation in property prices). It is followed by Eixample (26.8%), Gràcia (25.9%), Sant Martí (25.6%), Horta-Guinardó (24.9%) and Nou Barris (21%). The centre (Ciutat Vella) yields 19%, and the exclusive district of Sarrià-Sant Gervasi 13.2%

In Madrid, yields in the Centre amount to almost 20% (19.7%), followed by Salamanca (19.2%) and Chamberí (18.8%) (…).

Despite this inflation in prices and yields, “there is no risk of a bubble in either city”, according to Cabanillas. “The problem is not speculative; the price rises are resulting from the pressure in terms of demand for the use of second homes and tourist accommodation. The risk is that gentrification will force young people out of city centres, but there is no risk of over-financing”, says the CEO of Servihabitat.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Barcelona From The Sky: 123 Cranes At Work In The Catalan Capital

7 November 2017 – Eje Prime

Cranes and new projects are drawing a new real estate business in Spain once again. According to the study Barcelona from the sky, compiled by the real estate consultancy CBRE, the Catalan capital has 187 projects underway, requiring 123 cranes altogether. Of the total number, 75% are dedicated to residential projects and 17% to tertiary projects, whilst 8% of the cranes are being used for other kinds of projects, according to the report.

By sector, the residential market is the most active in Barcelona with 107 new build projects and 34 refurbishment projects currently underway or due to start imminently. In total, the Catalan capital is currently decorated with 77 cranes working on the construction of new residential developments, led by the largest Spanish property developers, such as Neinor and Aedas, as well as some more local players, such as La Llave de Oro and Nuñez I Navarro.

Cuitat Vella and Eixample are the districts where the most refurbishment projects are being carried out, due to the age of the housing stock there. There are eight projects (24% of the total) and eleven projects (32%) underway in those neighbourhoods, respectively. Many of these renovation projects, especially those closest to the city’s nerve centre, such as along Passeig de Gràcia and Plaça Catalunya, are high standing affairs, such as the refurbishment of Casa Burés, located at number 2 Calle Girona.

In terms of new build homes, the districts of Sarria-Sant Gervassi, Horta-Guinardo, Eixample and Sant Andreu are leading the ranking, with 18, 15, 12 and 11 new build projects, respectively (…).

The tertiary sector is also building 

(…). In the office segment, there are twelve projects underway after several years of little construction activity due to the economic crisis, in general, and in the office sector, in particular.

“The greatest number of projects, both new build and renovations, are concentrated in the 22@ area, in the district of Sant Martí, where key projects include the future Parc Glòries and the Luxa Business Park, amongst others”, according to the study (…).

Several projects are also underway in the Sants-Montjüic area, including the construction of the Campus Administratiu, which the Generalitat de Catalunya will occupy and Can Batlló, very close to Plaça Cerdà. In addition, construction work is expected to start at the beginning of 2018 on the construction of the remaining two towers that form part of the Barcelona Fira District project, owned by Iberdrola (…).

In the retail segment, four renovation projects are underway in the Catalan capital, whilst one new space is being constructed, with the development of the Finestrelles shopping centre in Esplugues de Llobregat, which will open its doors at the end of 2018. This project is being executed by the Belgian property developer Equilis and has a gross leasable area of 25,700 m2.

Moreover, renovations are being carried out on several of the city’s main shopping streets, such as Las Ramblas, Fontanella and Paseo de Gracia, as well as in some of the large retail spaces such as the Glòries Shopping Centre.

Hotels and others 

“More than two years have now passed since the implementation of the hotel moratorium, which has negatively affected the number of hotel developments”, says CBRE’s study. Nevertheless, the construction of new hotels has not stopped in Barcelona, given that some players obtained their building permits in time. There are currently fourteen projects underway, with six cranes working on them in total (…).

According to CBRE, a small number of the projects currently being carried out in the city do not form part of the residential or tertiary sectors. Fifteen projects are underway at the moment involving twenty cranes to build or renovate parks, churches, schools, gyms, infrastructure work and nursing homes.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Aedas, Neinor & Aelca Start Building New Homes in Valencia

4 November 2017 – El Confidencial

(…) A sign that a new wave is coming to the real estate sector can be seen in the Nou Campanar neighbourhood of Valencia, one of the city’s areas of expansion, which was left frozen in time by the burst of the real estate bubble. For many years, an enormous plot of land measuring 12,000 m2 was a symbol of the indulgences of one of the leaders of the Valencian real estate sector, Juan Armiñana. He used to build his spectacular ‘fallero’ monument that won the Fallas competition year after year on that site (…)

Nevertheless, Arminñana, like many other local property developers, went bankrupt. And although he has now timidly returned to the sector, almost all of his assets ended up in the hands of the financial institutions. The large plot of land described above ended up on Sareb’s balance sheet, as collateral for a portfolio of loans. In turn, the bad bank sold those loans to the US investment fund Castlelake. Meanwhile, Aedas Homes, a listed property developer created by that fund, attended the Valencian real estate fair Urbe on Friday. There, it presented its plans for the city for the next two years, revealing that its star development is going to be located on the same iconic plot that used to be owned by Armiñana.

Aedas is one of the property developers of the day. It has arrived in Valencia as demand for new build properties is heating up, in parallel to the economic recovery. Since April, the firm has put almost 300 new homes on the market in Campanar, Quatre Carreres and Dénia, with the intention of putting the cranes to work early next year and handing over the homes in a couple of years. In turn, Aedas holds a portfolio of land and it is continuing to explore acquisitions, whenever the prices fall within acceptable ranges. (…).

Two of Aedas’s rivals, Neinor and Aelca, have also started to make a controlled landing in the Valencian market. The listed company led by Juan Velayos plans to build 500 homes per year in the Community of Valencia, which it considers its third largest market after Madrid and Barcelona. (…). The real estate company in which Lone Star holds stake has just purchased a plot of land for 200 homes in the neighbourhood of Benicalp and it already owns plots for another 450 homes in the neighbourhood of Malilla.

But, the player that has launched itself into the market without any qualms is Aelca. Although traditionally it has been very focused on Madrid, Barcelona and Málaga, the property developer founded by Javier Gómez and José Juan Martín has now launched developments to build up to 1,200 homes in Valencia. Its immediate projects, which are already being marketed, are located in the neighbourhoods of Patraix and Nou Campanar, and they will be joined by another residential building in the Cabecera Park area and another in Dénia. In Alicante, on the Playa de San Juan, Aelca is also working on its first project on the Levante Coast, Residencial Arenas, a residential complex executed in collaboration with Sabadell (…).

Aedas, Neinor and Aelca are the new kids on the block. But there are other players who have been in the market for a long time. Sareb is one of them. Until a few months ago, it was focusing on divesting its land and second-hand homes. The Community of Valencia is the second most active region in terms of sales for the bad bank behind Madrid, with 488 properties and €150 million of land sold since 2013, according to the entity’s CEO, Jaime Echegoyen. Now, Sareb has rolled up its sleeves and is trying to generate some value from the projects that are underway and unfinished from the banking portfolio that it received – more than €6.4 billion in properties and loans secured by real estate assets.

The bad bank has signed agreements with local property developers and construction companies to develop some of the assets that have not ended up in the hands of investment funds (…).

Another very active agent is CBRE Richard Ellis. It has sold more than 3,000 homes in recent years and has another 400 new build homes on the market in Valencia. These properties have been launched by funds and property developers such as Iberdrola Inmobiliaria, which has built a 58 home luxury residential building in Ruzafa and Q21 Real Estate, owned by the US fund Baupost, which has a presence in the so-called PAI of Quatre Carreres (…).

The volumes of off-plan sales are unprecedented in recent years. Developments that have been on the market for just six months are already reaching pre-sales ratios of 40% or 50% in Valencia and along the coast. These percentages mean that property developers are able to secure financing and improve the trust deposited in them by financial institutions (…).

Foreign property developers are also joining the activity being undertaken by the local players that survived the economic crisis. For example, Ficsa, the real estate brand of the Noguera family, has four developments underway in Valencia and its metropolitan area, with reservation rates of 50%. In addition, Parvasal, which has projects in Patriax and on Avenida Giorgeta (Patraix Plaça and Sosa Edificio) is in a similar position.

Metrovacesa, Grupo Lar, White Real Estate and IHomes also all have developments underway (…), which will be ready in 2019 (…).

Original story: El Confidencial (by Víctor Romero)

Translation: Carmel Drake

Private Housing Developments Reactivate Sevilla’s Crisis-Hit Neighbourhoods

26 October 2017 – Sevilla ABC

The new residential expansion zones planned for Sevilla and its metropolitan area will move from paper to reality over the next five years. The economic recovery and express reactivation of the property sector will allow neighbourhoods to be established once again, after the crisis reduced many of them to isolated developments without any services or public infrastructure.

Perhaps the clearest example of this new panorama is Entrenúcleos, in Dos Hermanas, where plans are afoot to construct 2,500 homes. The project has been entrusted to Insur and BBVA, which has already started to market the first phase, involving almost 300 properties. That development will be built in parallel to that of the social housing blocks promised by the real estate firm Altamira – a subsidiary of Banco Santander – and the Ferrocarril group.

The growth of this Nazarene enclave was originally reflected in the PGOU approved in 2002, with a view to creating a neighbourhood with more than 20,000 inhabitants, almost a small city between the urban centres of Dos Hermanos and Montequinto.

The latter nucleus has also undergone significant residential expansion  in recent times thanks to the company Bekinsa, which has constructed several developments in the area around Avenida de Europa, the last remaining space left to build on, next to the Metro stop, where a couple of urbanisations have already been sold, for delivery this year, and where off-plan apartments are being sold, for delivery in 2019.

More buildings are going to be built next to these homes on plots, located next to the shopping centre, which have been acquired by Quintos, S.A., with capacity for 800 two-, three- and four-bedroom homes.

In the Andalucian capital, the cranes are already appearing in the neighbourhoods on the outskirts, where there are still large blocks of land left to populate. As set out in the Urban Development Plan, the city will continue to grow eastwards, with a new recently announced development. It will be constructed by the Madrilenian company Vía Célere, which has acquired the former plots of the real estate company Osuna after they ended up in the hands of BBVA. The investment has exceeded €26 million and will allow for the construction of 1,700 homes on the land closest to the water park, on the Airport Industrial Estate (…)

New neighbourhoods

The property developer Metrovacesa is also working on a residential plan of a similar scale on land in Palmas Altas, taking advantage of the interest that the new shopping centre will generate there and the recent agreement that it has reached with the Town Hall to push ahead with the initiative (…).

The final area of residential expansion in Sevilla is Hacienda Rosario, located next to Torreblanca, where 1,977 homes are due to be constructed around a large park, which will form the lungs of the new neighbourhood. Of those, around 800 will be social housing properties and the remainder will be private homes (…).

Another aspect that has caught people’s attention is the decided commitment from the American investment funds to the real estate sector in Sevilla. Several, such as Värde Partners (through Vía Célere) and Aedas Homes, which is leading the project in Hacienda Rosario, will be looking to the Andalucian capital to push ahead with their plans over the next five years.

Original story: Sevilla ABC (by Elena Martos)

Translation: Carmel Drake

Luxury Brands Conquer Madrid’s Golden Mile

17 October 2017 – Expansión

Fashion labels such as Sonia Rykiel, Oliver Peoples, Tesla and Audemars Piguet are arriving on the main shopping streets of the Madrilenian neighbourhood of Salamanca, with their first stores in the Spanish market.

The Spanish real estate market is enjoying good times, with investors interested in buying assets and commitments from all kinds of brands to open stores on the country’s main shopping thoroughfares. This interest is very apparent in the Madrilenian neighbourhood of Salamanca, the capital’s luxury shopping area, with the arrival of numerous new brands, such as the car firm Tesla (…).

The exclusive brand behind the 100% electric cars has taken over a store on Calle Serrano in Madrid, just a stone’s throw from Puerta de Alcalá, as Expansión revealed on 2 September. Specifically, Tesla has leased a 275 m2 store, at number 3 on the famous street along the Golden Mile (…).

“The Golden Mile in Madrid is a sought-after area for the majority of the luxury brands that decide to move to the capital. This means that sections  (of the street) that were less appealing until now, such as the uneven side of the road and the bottom section of the street, no longer have as much availability as they used to in previous years. Examples of this are the case of Tesla at number 3, and Malababa at number 8”, explain sources at the consultancy firm Ascana.

Tesla and Malababa are joining Kenzo and Audemars Piguet, the latest luxury brands to open stores on the famous Madrilenian thoroughfare (…).

Other sought-after streets

The commitment to the luxury market does not end on Calle Serrano (…). Adjoining streets, such as Calles Ortega y Gasset, Lagasca and Claudio Coello are also welcoming new international brands. “The interior of the Salamanca neighbourhood has seen the departure of traditional businesses, which cannot afford the current rental prices, and their replacement by premium brands. Not all of the brands can afford to pay for a store on the best stretch of Serrano; such premises are only available to 10% of firms”, says Ignacio Acha, Associate Director of Retail & High Street at Cushman & Wakefield.

“Claudio Coello is continuing to consolidate its position as one of the main thoroughfares in the Salamanca neighbourhood. Several brands are planning to open stores on that street, such as Sonia Rykiel, at number 79, Max Mara Weekend at number 63 and Pedro Miralles, at number 58″, say Ascana’s sources (…).

For brands like that, a store on Serrano or Ortega y Gasset is very expensive. The difference in price between the best store on those streets and on Claudio Coello could be up to three times”, says the Partner at C&W, the consultancy firm that has advised Sonia Rykiel on its operation.

In addition to the upcoming store openings on Claudio Coello, Ortega y Gasset has been selected as the location of choice by another international brand for its debut in Spain. Specifically, the glasses firm Oliver Peoples, owned by the luxury Luxottica group, has taken over the premises on c/Ortega y Gasset, 4, where it will open its first store in the country.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Tinsa: House Prices Rose By 6.1% YoY In Large Cities In April

10 May 2017 – Expansión

House prices are continuing to rise sharply, boosted by an acceleration in the large cities and in the Balearic and Canary Islands, according to the latest estimates from the appraisal company Tinsa. Specifically, the price per square metre of properties rose by 2% in April with respect to the same month last year, according to figures published yesterday.

Although those figures are seven-tenths lower than those registered in March for the country as a whole, we cannot speak of a slowdown, given that the general trend over the last few years has been increasingly bullish. Moreover, the data also reveals a growing acceleration in several key markets, such as the large cities, where prices rose by 6.1%, and the Balearic and Canary Islands, where property prices rose by 4%.

In this way, the rise in house prices in Spain’s provincial capitals and large cities has accelerated by six-tenths with respect to the same month last year, to reach its highest rate since the outbreak of the crisis. This increase is being spearheaded by some of the prime areas of Madrid and Barcelona, where supply is constrained and demand is rocketing. Nevertheless, over the last few months, the price rises have been spreading to more and more neighbourhoods, given the strong buyer pressure in the most sought-after areas.

Meanwhile, property prices in the Balearic and Canary Islands are rising at a rate of 4%, driven by two main factors. On the one hand, the high level of demand from overseas buyers. On the other hand, the purchase of homes as investments, given that owners can rent them out easily for short-stays for most of the year, which raises their yields. Prices in these regions have fallen by 27.8% since 2007, i.e. by one-third less than the average.

On the other hand, this situation contrasts with the weakness in house prices along the Mediterranean Coast, in metropolitan areas and small towns, where there the stock of homes for sale is greater and demand is lower. (…).

Two speeds

(…). By way of illustration, house prices in the Mediterranean region are still 46% lower than their peak levels of 2007. (…).

In metropolitan areas, prices are still falling, with a decrease in property prices of 2.6%. That data also represents a slowdown of more than two points with respect to last month and is a kick in the teeth for a market that has seen its price plummet by 45.9% since the real estate bubble burst. The reason is precisely due to the fact that the crash in the market made house prices in the centre of large cities more affordable, which meant that most buyers did not have to move tens of kilometres away to buy a home.

Original story: Expansión (by P. Cerezal)

Translation: Carmel Drake

Madrid’s Town Hall Prepares To Legislate For Tourist Apartments

30 April 2017 – El Confidencial

The Town Hall of Madrid has decided to take the lead regarding the problem of the proliferation of tourist homes in the capital. Although it lacks the power to introduce legislation (that responsibility lies with the Community of Madrid), the Town Hall’s Councillor for Sustainable Urban Development is working towards signing a Memorandum of Understanding with Airbnb, and the other platforms that operate in the city, to try to put some order to a situation that isn’t showing any signs of letting up. (…).

José Manuel Calvo (pictured above), Councillor for Sustainable Urban Development, plans to have the agreement ready before the end of this legislature.

Specifically, there are three measures that the Town Hall of Madrid is hoping to extrapolate from an example that it has been studying in Amsterdam. The first is “to establish a maximum period of time, be it 60 days, 120 days, etc, that an owner may lease his/her property (home/room) for each year and for the platform to withdraw the property in question from its website, once that quota has been reached, until the following year”.

The second measure involves ensuring that only the owner of a property may lease it out, whereby preventing the involvement of any companies. This will allow “people who need to supplement their mortgage payments, or who need to lease their house to make ends meet, to continue to let out their homes/rooms, but it prevents people from creating tourist accommodation companies without paying taxes, or complying with legislation, etc”.

The crux of the agreement comes in the third measure: “we are considering a tourist tax for tourist homes only, not for hotels, given that hotels already pay taxes, fees, fulfil their obligations etc. Meanwhile, tourist homes do not currently pay any taxes. In other Central European cities, and even in some American cities, some of the landlords’ profits are reinvested in the town, in agreement with the operators”, said Calvo.

With this new revenue stream, the Town Hall could finance the systems of control that it plans to implement to verify that Airbnb and its competitors are complying with the agreed conditions.

But the problem of the touristification or gentrification of the centre of Madrid goes beyond the tourist homes and also affects the proliferation of hotels, to the detriment of residential buildings; another challenge that Calvo wants to tackle by limiting changes of use. (…).

Although he acknowledged that “Madrid faces a very different situation in terms of hotels to Barcelona, Venice and Lisbon (we have 2.7 beds for every 1,000 inhabitants, compared to 8 in Barcelona)”, he also admits that he is worried by the degree of saturation that is starting to be seen in certain neighbourhoods in the centre, where limits do need to start being imposed (…).

“Madrid undoubtedly still has the capacity to increase its hotel and tourist capacity, but, the question is whether that should all be concentrated in the centre, in the same neighbourhoods, where the residential fabric is being pushed out by the increase in hotels and tourist apartments? We don’t think so, we need to diversify. Ideally, they would go towards the Arganzuela district, towards Chamartín, towards Chamberí, to the outskirts, to the other side of the M-30…”.

And it was on this point that Calvo was most belligerent, going as far as to state that he would be willing to set thresholds, to establish limits in those areas where saturation is detected. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

E&V: 800+ Luxury Homes Were Sold In Madrid In 2016

29 March 2017 – El Economista

The luxury real estate sector seems to have been the least affected by the real estate bubble and the serious economic crisis that has hit the country over the last few years. In this sense, premium housing in Madrid has reached a historical high with the number of real estate transactions at maximum levels. During 2016, more than 800 homes costing more than €1,500,000 were sold in the capital. That represents an increase of 60% compared to the previous year.

This data has emerged from the latest report compiled by the prestigious luxury real estate agency Engel & Völkers. The report also states that house prices in Madrid have increased exponentially with respect to previous years.

According to data provided by this luxury real estate agency, in 2016, the vast majority of luxury homes in Madrid, almost 720, cost between €1.5 million and €4 million. A small percentage of the premium homes sold in the capital had a purchase price of more than €6 million. In fact, in some areas of the capital, a luxury home now costs more than €15,000/m2.

Good times for luxury homes

These are good times for luxury homes in Madrid. The current trend, according to the experts, is to construct new build properties, to the detriment of second-hand homes. Nevertheless, this increase in the number of luxury homes sold in the capital in 2016 could be explained by an increase in real estate renovations in the city’s most prestigious neighbourhoods. The high demand for homes in premium areas and the limited supply available also means that prices in certain areas of Madrid are soaring.

The Madrilenian neighbourhoods with the highest demand for luxury homes include El Viso in the Chamartín district and some neighbourhoods in the districts of Salamanca, Retiro and Centro.

In terms of new builds, developers are moving to the outskirts of the capital, given that there is no land left in the city on which to build new and exclusive developments. Boadilla del Monte, Villaviciosa de Odón, Las Rozas and Pozuelo have become the most appealing areas for the construction of exclusive new build homes.

Original story: El Economista (by María Sempere)

Translation: Carmel Drake

CBRE: New Build House Prices In Zaragoza Will Rise By 3% In 2017

28 March 2017 – El Periódico de Aragón

The price per square metre of new housing in Zaragoza grew by 1% last year and is expected to rise by 3% on average in 2017. Those were the comments expressed yesterday by the CEO of the real estate consultancy CBRE, Miguel Ángel Gómez, in the Aragonese capital, during his presentation of the latest report about the evolution of the housing market in Aragón.

A moderate reactivation in terms of development activity and a recovery in demand meant that the positive trend in prices that began in 2015 continued in 2016. In this way, the average price per square metre of a new build home in Zaragoza amounted to €1,976/m2 in 2016. By district, Centro and Universidad were the areas that saw the highest price rises last year, increasing to €3,800/m2 and €3,150/m2, respectively, as a result of the release onto the market of several iconic projects.

Those price rises went hand in hand with a recovery in the rate of house sales, which rose by 14.7% in Aragón last year with respect to 2015. According to the latest data from Spain’s National Institute of Statistics, 10,700 operations were recorded in total.

One of the indicators that reflects the improvement in the behaviour of the new build residential market was the rate of sales. Whilst in 2015, it took 18 months to sell an entire development, now, 75% of new developments are being sold off-plan within the first six months.

Fewer homes are available

CBRE’s report identifies a downwards trend in the supply of available new build homes in the city, as a result of an increase in demand and only moderate development activity. In this regard, Parque Venecia, Miralbueno and Arrabal-Barrio de Jesús are the districts that have the greatest availability of new homes. Meanwhile, La Muela, Cuarte de Huerva and Puebla de Alfindén are the towns that have the most stock.

By contrast, there is a shortage of residential land in the central area, which led to the launch of several renovation projects in 2016. Nevertheless, CBRE thinks that those homes will not cover demand. On the other hand, the consultancy firm forecasts an increase in the number of transactions involving land in the area around Miguel Servet, Avenida Cataluña, Miralbueno, Rosales del Canal, Valdespartera and Arcosur this year. The price per square metre of land in Aragón amounted to around €600/m2 during 2016 and whereby exceeding the national average (€400/m2).

Original story: El Periódico de Aragón (by Alicia Gracia)

Translation: Carmel Drake

Town Hall Of Madrid Launches Campaign To Buy 150 Homes

7 February 2017 – El Confidencial

The Town Hall of Madrid, governed by Ahora Madrid, wants to increase its stock of social rental housing. The decision was taken last September by the Board of Directors of the Empresa Municipal de la Vivienda y Suelo de Madrid (Madrid’s Municipal Land and Housing Company or EMVS), but the marketing campaign has not been launched until now.

Its aim is to attract the attention of individuals and companies that are looking to sell off their homes. However, not all properties qualify. Homes must be “free from charges and levies, tenants, occupants and squatters”. In other words, they must be empty. Moreover, the Town Hall has said that it will pay between €65,000 and €160,000 per property. The EMVS is hoping to acquire 150 homes in total (…).

Nevertheless, the Town Hall is not willing to pay any price, not even for those homes located in the best neighbourhoods. (…). It has established fixed prices for the homes it is will to buy, which vary depending on location. In this way, the price per m2 may not exceed €1,300 in Puente de Vallecas and Villaverde; €1,500 in Carabanchel, Latina, Usera, Vicálvaro and Villa de Vallecas; €1,800 in Arganzuela, Ciudad Lineal, Hortaleza, Moratalaz, San Blas and Tetuán, and €2,000 in Centro, Chamartín, Chamberí, Fuencarral-El Pardo, Moncloa-Aravaca, Retiro and Salamanca.

On the basis of these figures, the Town Hall is going to spend, at least, €9.7 million (assuming that it buys 150 homes measuring 50 m2 and pays €1,300/m2 for each one). (…).

To put these figures in context, the price per m2 of second-hand homes in the neighbourhoods of Salamanca and Retiro amounted to €4,590/m2 and €3,734/m2 at the end of 2016, according to data from Idealista. Meanwhile, prices stood at around €1,400/m2 in Puente de Vallecas and Villaverde. (…).

Interested vendors should submit their tenders by 14:00 on 1 March 2017 in the EMVS’s General Registry in Calle Palos de la Frontera, 13. Further information is available on the EMVS website.

Original story: El Confidencial

Translation: Carmel Drake