Tag: new homes

Spaniards Hold onto their Homes for Almost 15 Years on Average

1 April 2019 – El Confidencial

On average, families and individuals in Spain own their homes for 14 years and 8 months, almost double the figure reported in 2009, a year after the burst of the real estate bubble. According to data from the College of Registrars, the average ownership period recorded in 2018 is the longest in the historical series and reflects the fact that purchase decisions nowadays are more prudent and less speculative.

Specifically, 70% of homeowners have not sold their home for almost fifteen years, whilst 80% have owned their homes for more than 8 years. Meanwhile, just 10% of homeowners buy and sell their home within five years.

Moreover, the data reveals that second-hand homes accounted for 82.5% of all transactions in 2018, compared with new homes, which accounted for the remaining 17.5%. At the height of the crisis, the two types were almost on a par. Both of these data are positive for the real estate sector as a whole because they are allowing more sustained growth.

The other major finding to emerge from the Registrars’ data relates to the economic effort that families have to make to buy a home. The mortgage payment over salary percentage was 29.7% in 2018, with higher rates in Madrid (35%) and Cataluña (33%). According to experts, that figure should not exceed 30% if households are to have enough to cover their other expenses. What’s more, the ideal percentage is between 20% and 25%.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Íbero Capital Lends €80M To Property Developers to Finance 600 New Homes on the Coast

28 March 2019 – El Confidencial

Property developers are finally able to access alternative financing. Over the last 12 months, Íbero Capital Management has granted loans amounting to €80 million to various property developers to finance the construction of more than 600 homes across Spain.

In its latest operation, Íbero CM has signed an agreement with Grupo Sankar to finance six residential projects in the province of Málaga for €40 million. The projects will involve the construction of more than 400 homes, and follow three other projects to which financing was granted (to another property developer) last year in Mijas.

Looking ahead, Íbero CM expects to sign several new loan operations during 2019 to close the year with total financing granted of almost €250 million. The manager is negotiating with national and regional property developers alike in regions such as the Community of Valencia, Andalucía and Madrid.

Alternative financing for residential development projects is finally taking off after years on the fringes. Other companies operating in the sector include MCAP Global Finance, Azora and Oquendo Capital, amongst others.

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Dei Homes to Invest €100M to Build 200+ New Homes in Estepona

26 March 2019 – Eje Prime

Dei Homes is going to invest €100 million to build more than 200 luxury homes in Estepona (Málaga) in 2021. The company, created just two years ago, is already working on three high-end projects elsewhere in the town, comprising 48, 52 and 109 homes, respectively, at various stages of completion.

In addition, Estesur, the parent company of Dei Homes, is preparing finalist land for the construction of between 600 and 700 new homes over the next five years.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Property Developers are Building 18,000+ Homes in Andalucía

18 March 2019 – ABC Sevilla

The real estate market in Andalucía is booming, and in a good way. According to the latest figures from the Ministry of Development, 12,363 permits were granted in 2017 for the construction of new homes, compared with the record before the burst of the bubble of 156,483 in 2006. Construction activity is responding to real demand in the market and is featuring some new players that are planning to build thousands of new homes in the region over the next three years.

Two markets

The investors, which include international funds and local property developers alike, differentiate between two markets – the eastern (Málaga) and the western (Sevilla) – the former accounts for 70% of new developments.

Aedas Homes currently leads the regional ranking by number of homes planned and investments forecast in the autonomous region. The property developer controlled by the US fund Castlelake plans to invest almost €1.3 billion in the region in the construction of 5,150 homes, primarily in the provinces of Málaga (2,600 homes) and Sevilla (1,800).

It is followed by Neinor Homes, which owns a portfolio of 29 plots for the construction of 3,628 homes; Metrovacesa, which has 2,300 homes in its Andalucían portfolio at various stages of completion; and Vía Célere, controlled by another US fund Värde, which is building 1,975 homes across 21 developments.

Meanwhile, ASG Homes has buildable land in Andalucía for the construction of 1,700 homes; Habitat Inmobiliaria, owned by the US investment fund Bain Capital, is working on the construction of 15 developments containing 1,621 homes; and the Sevillan property developer Insur is working on 17 residential developments comprising 1,136 homes at various stages of completion.

Finally, Q21 Real Estate, the property developer created from the alliance of the US fund Baupost and the owners of the former Pinar group, is also constructing almost 500 homes in the region, bringing the total number of homes under construction to more than 18,000.

Original story: ABC Sevilla (by Encarna Freire)

Translation: Carmel Drake

Industrialised Construction: Vía Célere Follows in Aedas’s Footsteps

13 March 2019 – Merca2

Vía Célere is going to be the first property developer to build an industrialised development of multi-family homes. Aedas has already paved the way with the model, but in its case, the properties were single-family homes.

The company led by Juan Antonio Gómez-Pintado is going to launch its first project of this kind in Boadilla del Monte (Madrid) and expects to finish the work within seven months. That would represent a time saving of one year compared to the normal construction period for such a development, thanks to the employment of industrialised systems.

Specifically, whilst the underground work is going on at the site of the new development (which is expected to take three or four months), the 50 modules that will comprise the first 17-home building will be manufactured off-site, in parallel. It will take just three weeks to install those modules and the last two months will be spent joining the facilities and the façades so that the homes are ready for delivery at the end of month seven.

Moreover, the firm is planning to build a 26-home development using the same industrialised system, also in Boadilla. In the future, Vía Célere aims to industrialise 30% of its future developments.

Original story: Merca2 (by Carlos Lospitao)

Translation/Summary: Carmel Drake

Avantespacia Buys Land in Pamplona to Build 164 Homes

11 March 2019 – Europa Press

Avantespacia, the property developer owned by Manuel Jove’s company Inveravante, has purchased two plots in Pamplona for the construction of 146 new homes, whereby expanding into Navarra for the first time.

The plots are located in the city centre, close to Plaza de los Fueras, where it will build 18 luxury homes and next to the Glorieta de Cuatro Vientos, where it will construct 128 luxury homes.

These developments will be added to projects that the company is already working in premium areas of Madrid, Andalucía, the Canary Islands, Asturias, Aragón, the Balearic Islands and Galicia.

Original story: Europa Press

Translation/Summary: Carmel Drake

Caledonian Plans to Double its Investments with New Projects Worth €150M

10 March 2019 – Expansión

The property developer Caledonian is planning to carry out projects worth more than €150 million in 2019, an investment that will double the amount of the projects announced by the firm to date.

The President of the company, Enrique López Granados (pictured above), highlighted that his firm’s most recent projects include the renovation of a complex of properties that are going to be dedicated to housing and which are located on Calle Javier Ferrero in Madrid, in which his firm has invested between €80 million and €90 million.

The company has also applied for a licence to build a luxury office building in the north of Madrid, next to the CNI’s headquarters, which will involve an investment of €20 million.

Meanwhile, the firm is currently working on a luxury development comprising 16 homes in Aravaca (Madrid), as well as on some smaller projects, for example, in Ibiza.

Despite Caledonian’s commitment to Spain, López Granados expressed concern regarding the impact of the political uncertainty in the country and criticised Town Halls for taking too long to process construction permits.

Original story: Expansión 

Translation/Summary: Carmel Drake

Habitat’s Land Portfolio Now Spans 1 million m2 with Capacity to Build 10,000 Homes

9 March 2019 – Expansión

The property developer Habitat now owns more than 1 million m2 of land after investing €121 million last year to expand its portfolio. As such, the firm led by José Carlos Saz (pictured below) has the capacity to build around 10,000 homes. Specifically, the firm backed by Bain Capital acquired 27 plots last year on which to build around 2,500 homes. 5% of those plots were non-buildable (in the process of being approved for construction).

The company expects to reach cruising speed with the delivery of 2,000 homes per year from 2021 onwards. Last year, it handed over 270 homes across 4 developments in Barcelona, Málaga and Madrid, to generate turnover of €89 million, EBITDA of €1.83 million and a net profit of €250,000. The company plans to invest €500 million in land purchases until 2021, financed by Bain.

Moreover, like its competitors Neinor, Aedas and Metrovacesa, Habitat is also considering entering the rental home sector and may even begin to build developments for Socimis.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Insur & the Moya Yoldi Family Team Up with the Cosentinos in Córdoba

1 March 2019 – El Confidencial

Inmobiliaria del Sur (Insur), the listed real estate firm, which joined forces with the Moya Yoldi family (the owners of the Persán detergent manufacturers) last year to promote three residential developments in Sevilla, Marbella and Madrid, has now teamed up with another high profile family: the Cosentinos – the manufacturer of Silestone.

The three companies are going to co-invest in a residential development in Córdoba comprising 187 homes. Insur will own 50% of the development, whilst ownership of the remaining 50% will be split between the two families.

Coincidentally, the Moya Yoldi and Cosentino families are already partners in the Socimi Trajano, which is chaired by José Moya.

Original story: El Confidencial (by Carlos Pizá)

Summary/Translation: Carmel Drake

Quabit’s Revenues Soared in 2018, but its Profits Fell by 53%

28 February 2019 – Eje Prime

Quabit’s revenues soared but its profits decreased. The real estate company closed 2018 with a net profit of €6.7 million, down by 53% compared to the previous year, when it reached €14.3 million. The company attributes that reduction to the “activation of tax credits in 2017, amounting to €26 million”, according to reports in a relevant fact submitted to Spain’s National Securities and Exchange Commission (CNMV).

The firm’s EBITDA also deteriorated, with losses of €25.3 million, a figure that quadruples the loss recorded a year earlier when it amounted to €7.3 million. “The negative impact in terms of EBITDA is due to the extraordinary effect of the valuation corrections on the land and the lower discounts on the debt”, said the company in a statement about its results.

In terms of revenues, they soared last year to reach €39.6 million, whereby multiplying the figure from the previous year (€5.7 million) eight-fold. At the end of the year, the gross value of its assets amounted to €506 million, 27% higher than at the end of the previous year. That growth was attributable to the company’s new investments and the revaluation of its portfolio.

In terms of its portfolio, Quabit handed over 190 homes in 2018 and also invested in its land bank, increasing it by around €180 million since 2017. It currently has around 4,000 homes in different phases of development and is working on the launch of new projects included in its business plan for 2018-2022.

Original story: Eje Prime

Translation: Carmel Drake