Home Sales Will Reach 420,000 Units In 2016

10 February 2016 – El Mundo

Housing demand will continue to grow in Spain to reach 420,000 properties sold in 2016 and 450,000 in 2017, according to a report of Bankinter, which indicates that nonetheless the price increase will not exceed 3% in average or 5% in the case of the best locations.

These transaction figures mean an increase by around 20% with respect to the 354.100 homes sold along 2015, according to National Statistics Institute (INE) data In addition, the report points out that second-hand homes will continue to be the dominant alternative in a scenario of economic recovery, with over 85% of all transactions in the coming quarters.

As properties which have started to be built from the second half of 2015 are put for sale, says Bankinter, new home sales should increase, reaching rates above 15%,so that these transactions could reach 60,000 or 70,000 units per year.

The financial institution says that this increase in demand is explained by the predictable improvement in employment, low interest rates and higher attractiveness of housing as investment.

On the price side, the report notes that the residential market is heterogeneous, but it will increase in average, driven by the lack of supply in places like Madrid or Barcelona. In this regard, it also notes that the first increases in land value could begin to affect the final price of housing.

However, Bankinter states that price increases will not be “substantial”, partly because the purchases will come in part from the process of marketing of homes awarded to banks, which have heavily discounted prices.

On the other hand, as a result of these market developments, the ‘stock’ of unsold homes could be reach levels below 500,000 homes in 2016

New housing will advance if there is political stability

At the same time, Bankinter points out that the improved outlook of the sector will extend to the promotion of new housing, which “will experience a new awakening in 2016 under the increase of work certifications in 2015, provided the political context does not result in a loss of confidence.”

“Promoter activity is currently going through a turning point and it will emerge over the next two years “, the financial institution ends with.

Recovery is already being talked of

For all those reasons, Bankinter says that “the consolidation of the recovery cycle in the residential property sector it is a reality “. It also notes that the commercial sector is already in a “clear upturn”.

Thus, the report indicates that the commercial sector will strengthen in 2016 and 2017 the positive trend of income, occupancy rates and revaluation improvement of the assets.

Again, Bankinter warns that the investment boom experienced in 2015 “will be slowed down by the lower number of large transactions and a situation of uncertainty that can postpone or cancel the launch of new projects.

Original story: El Mundo

Translation: Aura Ree

Aliseda Sold 1,300 Assets In ‘Eastern Andalucía’ In H1 2015

4 December 2015 – La Opinión de Málaga

Aliseda Inmobiliaria, the company that manages Banco Popular’s RE business, sold 1,300 assets in the region of Eastern Andalucía during the first half of 2015, for €250 million. 40% of that volume was concentrated in the province of Málaga, according to comments made yesterday by the Regional Director, Silvia Sánchez, who indicated that the forecast for the year as a whole is almost double those figures. Sánchez said that the region of Eastern Andalucía, spurred on by the Costa del Sol, accounts for 20% of Aliseda’s total national business, which sold 6,500 assets across Spain worth €1,200 million during the first half of this year. The objective at the national level is to close the year with asset sales worth €2,000 million.

In Eastern Andalucía, the stock held by Aliseda Imobiliaria includes more than 4,500 assets worth €700 million (43% are located in Málaga) not including land, work-in-progress developments or unique assets. The portfolio of land in this region amounts to a further €1,200 million.

The head of Aliseda said that the improvement in the market is “in no doubt” with areas such as the Costa del Sol leading the way. 80% of the assets sold during the first half of the year were homes (and more than half of those were new builds) and the remaining 20% were industrial warehouses, commercial premises and other types of rental assets, land and even hotels.

Sánchez announced that in 2016, Aliseda – which is jointly owned by Popular (49%) and by Värde Partners and Kennedy Wilson (51%) – will pursue a nationwide strategy that includes, in addition to sales, real estate development and the management of assets and land. In the case of the province of Málaga, the intention is to initiate the development of around 220 homes in Mijas, with plans also afoot in the Marbella-Benahavís-Estepone triangle and in Málaga city. “The stock is running low. It will run out within 18 months and so now is the time to launch new projects, they are going to receive a very warm welcome”, said the head of Aliseda. On the Costa del Sol, there is more demand from overseas customers, whilst in Málaga capital, demand comes mainly from Spaniards, although Sánchez said that foreigners are increasingly interested in homes located in the city centre and surrounding areas. By way of example, she mentioned the Félix Sáenz building and an apartment project that is going to be developed in Soho.

In terms of house prices, Sánchez said that sales and purchases are now “much more considered” with “more reasonable” values that those seen during the economic boom. “There is an upwards trend, but not at the rates seen in the past. Prices are not going to over-inflate. But buyers no longer have as much bargaining power, above all in the areas where prices are clearly on the rise”, she said.

Original story: La Opinión del Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake