Habitat Acquires Land for Residential Development in Bétera

31 October 2019 – Habitat Inmobiliaria has acquired a 25,600-m2 plot of land in the Torre en Conill residential development in Bétera, Valencia. The land has roughly 11,100 m2 of buildable surface area, sufficient to build 80 homes. Habitat expects to invest a total of 17 million euros in the project.

The development is located in one of the most developed areas of the western part of the metropolitan area of Valencia, next to the Technology Park and the Scorpion Golf Club.

Original Story: Levante

Adaptation/Translation: Richard D. K. Turner

Orinoquia Real Estate to Invest €47.7 Million in Co-Living and Temporary Stay Projects in Spain

30 October 2019 The Venezuelan family Capriles is increasing its bet on the Spanish real estate market, after a major push into the luxury residential market with Gran Roque, its developer. Now, their socimi, Orinoquia Real Estate, will invest more than 47.7 million euros in co-living and temporary stay projects.

The socimi plans to build seven buildings and more than 205 flats. The first two buildings, in Málaga and Valencia, are already under construction. The others will include another in Málaga, two in Seville and one in Madrid.

Original Story: Idealista – Custodio Pareja

Adaptation/Translation: Richard D. K. Turner

Vivenio Partners With Áurea Homes to Build Rental Housing

24 October 2019 – Áurea Homes, the developer owned by the construction company ACR, has reached an agreement with Vivenio to build a turnkey project with 150 homes in Móstoles. Áurea had initially owned the land, but it sold it to Vivenio after having completed the first phase.

This operation will be Áurea second in the rental housing segment. The developer is also about to finalise an agreement to build another 400 rental rent homes in four new developments, including two in Madrid, one in Pamplona and one in Sabadell.

With this operation, Vivenio’s property portfolio will total nearly 5,000 homes.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Stoneweg Sells a Penthouse for €5,550/M2 in Tetuan

15 October 2019 – Stoneweg has just sold a flat in one of the two high-rise apartment buildings it is building in Tetuán, Madrid. The Swiss firm managed to sell one of the penthouses for a record sales price of 5,500 euros per m2.  The two 25-storey towers are located at Paseo de la Direccion 246.

The three-bedroom penthouse, which a total surface area of ​​195 m2, sold for 60% above the average price for the district of Tetuán. The price is even above the average for the district of Salamanca, the most expensive in Madrid, at 5,148 euros per m2.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

The Lack of a Spanish Government Halts Aena’s Real Estate Ambitions

14 October 2019 The airport operator Aena has yet to get approval to go ahead with construction on two residential developments around Madrid-Barajas and Barcelona-El Prat due to the lack of a political agreement to form a new Spanish government. The firm had hoped to start the works in Madrid and Barcelona this year. However, the plots of land are still untouched.

Aena’s project in Madrid will occupy around 200,000 square meters of land in a total investment forecast at €2.997 billion over the next 40 years. Existing plans divide the space into four areas: a logistics hub, airport services, an aeronautical maintenance centre and leisure areas.

In Barcelona, ​​the 300,000 square meter area will have a total investment of €1.264 billion. The project will try to attract technology companies and logistics platforms as well as hotels, restaurants and offices to service the airport.

Funds that invest in the airport operator have been pushing the government to install an independent CEO, separate from any governmental changes, to facilitate work.

Original Story: Economía Digital – Carles Huguet

Adaptation/Translation: Richard D. K. Turner

TM Real Estate Sells Out Almost All of its Luxury Sidi by TM Development

14 October 2019 The Torrevieja-based company TM Real Estate Group has sold almost all of the 162 properties that make up its Sidi by TM project in Alicante. Sidi, a luxury residential development built on the site of the old Hotel Sidi, on the San Juan beach, is still in the second phase of its construction and work is only expected to resume next week.

TM decided to temporarily halt construction in August to avoid any problems when delivering the keys to the new residents of the first 102 flats completed. The start of the second phase of construction, with another 59 homes, was delayed until March of this year due to a complex approvals process given its beachfront location.

Original Story: Alicante Plaza – Raúl Navarro

Adaptation/Translation: Richard D. K. Turner

Trinitario Casanova’s Baraka Group to Build Hotel in Valdebebas

14 October 2019 The executive Trinitario Casanova is planning on building a new hotel in Madrid Norte, the capital’s new residential area, between Valdebebas and Operation Chamartín. Casanova’s Baraka Group confirmed that it would develop the new hotel on a 38,000-m2 plot of land its owns near to the Real Madrid sports complex and the access to Madrid-Barajas airport. The project reportedly also includes plans for rental offices on the same site.

The area where the hotel will be located is in the ‘Valdebebas Fintech District’ in the new Madrid Nuevo Norte in the north of Madrid, where 11,400 new homes are already under development.

Original Story: La Información – Ana Sánchez Juárez

Adaptation/Translation: Richard D. K. Turner

The Student Hotel Raises €90-Million in Financing for New Investments

14 October 2019 The Netherlands-based student hotel group The Student Hotel (TSH) announced that it had obtained €90-million in bank financing Santander, Sabadell and HSBC. TSH will use the funds to build two new hotels in Madrid and Barcelona as well as to refinance its existing debts in Spain. The investments are part of a €2-billion investment strategy that the group plans to implement over the next five years in Europe.

TSH is currently working on three projects in Spain: Madrid La Imprenta (340 rooms), Barcelona Provençals (300 rooms) and the TSH San Sebastian (328 rooms).

Original Story: Hosteltur

Adaptation/Translation: Richard D. K. Turner

Developers in Spain Need to Build 2.5 Million New Homes to Satisfy Demand

14 October 2019 Foreign and domestic investors have recently poured a larger and larger amount of money into Spain’s residential rental market. In the last two years, large investment funds and developers like Blackstone, Ares, Greystar, TPG, Aedas, Quabit, Metrovacesa, Vía Célere have invested in the sector, going after the relatively high yields available.

The increasing investment in the sector is due to a series of factors. The last few years have seen major price increases, for both home sales and rentals, in Spain’s biggest cities, particularly in Madrid and Barcelona. The high cost of buying a home is also leading many Spanish families to forgo potentially buying a home, as they would have in the past when prices were more affordable.  Those families are now in the market for rentals.

Considering that the rising prices are due to an imbalance between supply and demand, common sense would suggest that a relatively easy solution would be to great increase the supply of homes for sale and rent. The total number of homes for rent in Spain is equivalent to 23% of the total housing stock, 9% lower than the European average of 34%.

To reach the European average, therefore, developers would have to build another 2.5 million homes, taking the total for Spain to 8.5 million homes. Building that many homes in the next fifteen years would require that developers construct approximately 167,000 houses per year during that period. That amount of development would require a total investment of roughly €300 billion, or 25% of Spain’s current GDP.

The need for that kind of investment in affordable rental homes to help curb rising prices is beginning to be addressed in a series of measures by some political parties, such as the PSOE. One of the proposals includes a law that would facilitate the transfer of the surface rights for public lands to developers which agree to building affordable housing, a measure that developers have demanded for years.

One of the biggest obstacles to such large-scale development is the complexity of managing and aligning interests between the municipal, regional and central governments. Market sources recommend common regulatory frameworks to facilitate the creation of greater legal certainty and the agility to obtain the necessary licensing and permits.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Locare & Tectum to Launch New Fund as Rental Market Heats Up

14 October 2019 Locare RE and Tectum Real Estate Investments are preparing to launch a new €240-million fund aimed at the affordable rental housing market. The new fund, Tectum II, comes hot on the heels of a similar, €120-million fund the two firms launched just a few months ago. The investments come at a time when foreign investment and rising real estate prices, especially in Spain’s major cities, are driving families further out of city centres.

The first fund allowed the two firms to acquire seven plots of land, enough to build 1,000 affordably priced rental homes in the Community of Madrid. The plots of land are located in Torrelodones, Villalba, Móstoles, Arroyomolinos, Valdemoro (two plots) and Alcalá de Henares. The fund expects monthly rents to cost between 500 and 900 euros per month.

Short-term plans for Tectum II aim to start advertising approximately 1,500 new rental homes already in 2020.

Original Story: El Confidencial – E. Sanz / C. Hernanz

Photo: Locare

Adaptation/Translation: Richard D. K. Turner