Idealista: Rental Prices Rose by 13.2% in Málaga in 2017

11 June 2018 – Diario Sur

Do you live in Málaga for less than €700/month? Then, hold on tight to your home as if it were a treasure. These days, people who are coming to the end of their rental contracts or who are experiencing life changes that are forcing them to find homes in the city – whether it be a move for work, a separation or an emancipation from the family home – are coming up against a harsh reality: the high cost of rent, which has gotten worse to the extent that, today, homes coming onto the market have an average monthly rent of more than €1,000 in half of the neighbourhoods in the provincial capital. That is according to statistics based on the active adverts on the real estate portfolio Idealista, which calculates that rental prices increased by 13.2% over the last year, one of the highest rises recorded in all of Spain’s large cities. Over the last five years, the cumulative increase amounts to 38% and the price per square metre now amounts to €9.80, the highest of all of the Andalucían capitals.

The sharp rise in prices is the consequence of a significant imbalance between supply – which has decreased by 36% in three years, judging by the adverts on Idealista – and demand for rentals, which has increased by more than 120% over the same period. “What is happening in Málaga is what happened previously in Madrid and Barcelona: a genuine shortage of rental housing, especially in the Centre and Teatinos districts, which are the most sought-after areas”, says Carlos Rueda, spokesman for Idealista in the south of Spain, who knows real estate agents in those neighbourhoods who have waiting lists with more than 100 people on them.

Since Málaga has come late to this trend, its prices are now rising rapidly, whilst prices in the country’s two largest capitals are starting to enter a stabilisation phase, according to the Head of Research at Pisos.com, Ferrán Font. “In Barcelona and Madrid, there are areas where prices have stopped rising because price increases cannot be infinite in the rental market”, he added.

But in Málaga, that ceiling has not yet been reached. Inmaculada Vegas, Partner of the real estate agency specialising in rentals Rentacasa, summarises the situation as follows: “The supply has decreased significantly; almost no homes come onto the market. And those that do come on are very expensive. Many owners can’t help themselves: they see that their neighbour has let his home for €800 and so they raise their asking price to €900…the problem is that they find people to pay those prices”, she explains.

The perception of rising prices is even greater in the case of rentals governed by the old Urban Leasing Law, which are being updated now after five years. They are contracts that were signed at the height of the crisis (2013) and now they are being renewed in a radically different scenario. “In those cases, prices may rise by €300 or €400 overnight”, explains Carlos Rueda (…).

For Vegas, much of the blame for what is happening lies with tourist rentals: “Over the last two years, we have seen continuously how long-term rentals are being taken off the long-term rental market to be let by the day or by the week, above all in the Centre, but increasingly in the east of the city as well”, she says.

Rueda does not agree that the influence of holiday rentals has been that great. In his opinion, “since the crisis, Málaga has seen a huge explosion in demand for rental properties, not only from those who cannot afford to buy but also from those who want to live in rental homes” (…).

Original story: Diario Sur (by Nuria Triguero)

Translation: Carmel Drake

Conren Tramway to Invest €150M in 3 Buildings in Barcelona

22 May 2018 – Eje Prime

Conren Tramway is on a spending spree in Barcelona. The real estate company has invested €150 million in the purchase of three office buildings in the Catalan capital, two of which are located in the sought-after 22@ district and the third is in the Paral·lel area. The three properties have a combined surface area of around 60,000 m2, according to a statement from the company.

The asset manager, which is headquartered in Barcelona, is controlled (50%) by the brothers Jaime Enrique and Paco Hugas, through Tramway, and by the German company Conren Land, formed by large business families from the Bavarian country.

The company is creating a different vehicle for each project, although it explained that investors tend to be recurrent. In the latest operation, the assets acquired are located in two sought-after enclaves for offices. Two of the properties are located in the 22@ district, the technological hub of Barcelona, and an area where the neighbours of Conren Land’s future tenants will include Amazon, WeWork and King, amongst others, all of which have recently moved into the district.

At number 97 Calle Badajoz, the company has acquired an asset with a surface area of 14,000 m2. Meanwhile, the second property to enter Conren Tramway’s portfolio in the 22@ district measures 8,300 m2 and is located at number 65 Calle Sancho de Ávila, which was previously a plot owned by Sareb.

The third asset is the former headquarters of Endesa in Paral·lel. The company paid €20 million last year for that property, which has a surface area of 33,800 m2 and has already started renovating it to turn it into a corporate office building.

Created in 2014, Tramway Capital joined forces with Conren Land two years ago to specialise in the office market, primarily in Madrid and Barcelona. “Between 2013 and 2016, the market offered lots of opportunities and we had to take advantage of them, but now, in a much more mature phase of the cycle, the capital requires a greater degree of specialisation because more added value needs to be contributed to the operations”, according to Jaime Enrique Hugas.

Original story: Eje Prime

Translation: Carmel Drake

UST Global Leases 3,150 m2 in Madrid’s New Techie Zone

6 April 2018 – Eje Prime

UST Global is plugging into the new techie zone in Madrid. The technology company has leased 3,150 m2 of office space in the Avalón Business Park, a closed office complex located in the Julián Camarillo area. In its new home, the US company will share the district with other technology companies such as IBM, Atos, Tecnocom and The Cube Madrid, amongst others.

The company is going to move a team of 400 employees to Avalón, half of the company’s total workforce in Spain, who are going to be spread over three floors. The technology company’s neighbours will include Konecta and Kone, amongst other companies.

UST Global, which is headquartered in California, has a presence in 25 countries and its clients include large listed companies from the banking, insurance, retail and healthcare sectors.

Original story: Eje Prime

Translation: Carmel Drake

Valdebebas’ Legal Problems: The End Is In Sight

21 September 2016 – El Mundo

The capital’s residential sector has endured several months of uncertainty, awaiting the ruling from the Supreme Court (TS) regarding the appeals filed against the express review of Madrid’s Urban Planning General Plan, undertaken by the Town Hall of Madrid during Ana Botella’s mandate.

The ruling, which the Supreme Court finally published on Tuesday, validates the legality of the PGOUM and means that urban development can now resume in the capital with a sound legal base. The main beneficiary of this ruling is the area of Valdebebas, affected by a first instance judgement from the Dispute Tribunal number 24 in Madrid, which declared the economic urban planning project null and void in July.

As a result of this ruling, the Town Hall notified the Valdebebas Compensation Board at the beginning of August that “on criteria of prudence”, it would suspend the granting of all new construction permits until it was aware of the meaning of the ruling from the Supreme Court. This setback represented the latest obstacle in a long list of legal proceedings that Valdebebas has been involved in since 2012.

According to sources, this legal uncertainty and the questions regarding the meaning of the ruling from the Supreme Court have paralysed some important land purchase operations – they have been delayed until the contents of the ruling are known. Now, and after hearing the ruling from the Supreme Court, the Valdebebas Compensation Board believes that normality will return.

In this sense, according to a statement, the Board will request the Town Hall of Madrid for “its support to restore the urban planning instruments (that were recently cancelled) as soon as possible, so as to be able to offer all of the legal guarantees necessary to neighbours, cooperatives and property developers”. The Board says “that it does not see any reason for the Town Hall to maintain its recent stance of suspending the processing and granting of construction licences”.

“It is time to implement solutions and we are going to urgently seek the necessary collaboration with the Town Hall”, said Jorge Serrano, manager of the Valdebebas Compensation Board.

“Today we are all celebrating the support for the decisions and developments made and for the opportunities being presented to continue to respond in a normalised and sustainable way to the growing residential demand that Madrid is experiencing at the moment”, he added.

The ruling has partially upheld some of the appeals, annulling the Transitory Disposition of the Agreement dated 1 August 2013, which sought to provide retroactive effects, but has limited its annulling effects exclusively to three urban planning projects that were carried out following the ruling from the Supreme Court on 28 September 2012 and until the resolution to approve the general plan was agreed on 1 August 2013.

According to an explanation provided by the Compensation Board in a note, in the case of Valdebebas, the ruling affects only the construction licence granted in 2012 for plot 168 (Residencial Adhara), which has been cancelled, although that does not have any practical impact given that the building on that land is covered by a subsequent licence granted in 2014.

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake