Tag: price per square meter

Housing Price Increases Slow Down in Madrid and Barcelona

3 January 2020 – The average price per square meter for a residence in Spain reached 1,373 euros in the last quarter of 2019, an increase of 2.6% year-on-year, according to a report by Tinsa. That figure represents the lowest inter-annual growth in almost three years.

Market watchers believe that the frenetic expansion of recent times in Spain’s principal markets is reaching an end. Average prices in Madrid rose by 1.8% between October and December, while falling by 0.8% in Barcelona. Year-on-year growth stood at 3% and 2.9% respectively.

Spain’s secondary markets are now the main drivers of growth. Palma, Santa Cruz de Tenerife, Valencia, Malaga, Zaragoza and Seville all saw increases of over 7% in 2019.

El precio medio por metro cuadrado de una residencia en España alcanzó los 1.373 euros en el último trimestre de 2019, un aumento del 2,6% interanual, según un informe de Tinsa. Esa cifra representa el crecimiento interanual más bajo en casi tres años.

Los observadores del mercado creen que la frenética expansión de los últimos tiempos en los principales mercados de España está llegando a su fin. Los precios medios en Madrid aumentaron un 1,8% entre octubre y diciembre, mientras que cayeron un 0,8% en Barcelona. El crecimiento interanual se situó en el 3% y el 2,9%, respectivamente.

Los mercados secundarios de España son ahora los principales motores del crecimiento. Palma, Santa Cruz de Tenerife, Valencia, Málaga, Zaragoza y Sevilla registraron aumentos superiores al 7% en 2019.

Original Story: Eje Prime

Translation/Summary: Richard D. Turner

Amenabar Wins Bidding for Ferrovial’s Land in Valdebebas

8 November 2019 – Amenabar won the bidding for a plot of land put on sale by Ferrovial in Valdebebas, just in front of the Cercanías RENFE stop in Madrid. The firm won out over Vivenio and Acciona, offering 56 million euros for the developable land. Amenabar has thus consolidated its position as the largest developer in the region, where it will build a total of nine developments, with approximately 1,000 new homes.

The sale fell in line within Ferrovial’s expectations, which had been around €2000/m2. The land measures a total of 27,200 m2, 22,700 m2 for residential development and 4,500 m2 for commerce, enough for roughly 230 new homes. Knight Frank provided Ferrovial with advice on the transaction.

The region of Valdebebas has seen several major transactions in recent months. A few months ago, Acciona also paid about €2,000/m2 (63 million euros) for a 31,700-m2 plot of land from Celteo. The land, which is located nearby Amenabar’s new asset, has enough land for about 260 homes.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Valencia, in Search of Land for Construction

21 August 2018

The lack of available land is the reason that only 2% of the acquisitions of homes are for new housing in Spain’s third biggest city by population.

Valencia is after new land to re-energise its real estate market. With stable prices and an increasing number of transactions, the absence of new buildings is palpable in the statistics for the first quarter of this year, when just 2.3% of purchases (a total of 2,658) were for newly-built homes.

With a population that has been relatively stable in recent years, around 790,000 inhabitants, the city of Turia has doubled the number homes sold in the city since 2013, from 4,922 operations that year to 10,973 last year.

This has not yet pushed up prices, but it has been the basis for recovery. After the harsh effects of the crisis (apartments are 45% cheaper today than in 2007), housing prices reached 1,235.60 euros per square meter in the first quarter of this year, according to data on bank valuations at the Ministry of Public Works.

In homes less than five years old, the average price rose to 1,536.90 euros in the first quarter, while in second-hand homes, the investment needed to acquire a home fell to 1,233.70 euros per square meter.

The absence of development ready lands is a fact for the Spanish city’s real estate developers. According to a report by CBRE, the city is currently in the midst of desvloping and marketing sixty new construction projects, and it is expected that twenty more will be put on the market by the end of the year. Companies such as Neinor, Aelca and Aedas have housing developments in neighbourhoods such as Quatre Carreres, Patraix, Nou Campanar and Malilla Norte.

However, the high demand will cause prices to rise if more land is not made available, according to the consultancy. Metrovacesa’s project for the development of Benimaclet could be one of the most outstanding in this regard in Valencia. The real estate company controlled by Santander and BBVA is pushing for an agreement to present to Valencia City Council a project to build 1,500 homes in partnership with the local developer Urben.

Vía Célere is another of the developers active in the city: the company will build 22 homes in the Pechina neighbourhood, next to the Turia gardens. Aedas Homes is more advanced: the Spanish developer has sold another 120 homes in Turia’s capital through its Torres project, a residential complex that will be composed of two 16-floor apartment blocks. Aedas also has 252 flats in Valencia.

Residential prices in Valencia are now 45% lower than before the start of the crisis, but the city has great appeal, and the activity of private operators has been intense. Attikos is another local developer that has carried out work in the city, with the purchase of 1.9 million euros of development-ready land, where it will build 27 houses.

Offices on the rise

With a total of 63,480 companies, 88.2% of which are in the service industry, the office market in Valencia saw record allocations last year. According to a report by BNP Paribas Real Estate, the contracting amounted to 39,500 square meters in 2017, which caused a slight upward trend in rental prices, which are close to 14.5 euros per square meter in the city centre.

“Since the end of 2013, the last year of economic recession, demand has been positive,” the consultancy noted. “The good pace of allocations in recent years, together with the lack of new projects, are generating a considerable adjustment in the vacancy rate of the Valencian market which, fell to 10.4% at the end of 2017, out of a total stock of 774,000 square meters. This means that there are currently 80,546 square meters of available offices on the market,” they added.

One of the most notable operations in recent months was the rental of the former headquarters of CAM, leased by Solvia to the architectural firm Join Contract. The property’s new tenant will remodel it to transform it into a luxury hotel.

Original Story: EjePrime – C. De Angelis

Translation: Richard Turner

 

The Price Of Existing Homes In 2015 Recorded The Highest Increase Since 2006

4 February 2016 – El Mundo

The price of existing homes in Spain recorded, in the second half of 2015, an increase of 5.76%, representing the highest growth rate since 2006, according to XXII Market Report from Tecnocasa Group and the Pompeu Fabra University (UPF) in Barcelona. With this slight increase, the price per square meter has averaged in Spain the 1,560 euros.

As explained by the Head of Department of Reports Analysis  (DAII) of Tecnocasa Group, Lázaro Cubero, after a cumulative decline of 55.29% from the peak of the historical series (late 2006 – early 2007), the data the second half of 2015 shows that the market “is in a phase of slight growth.”

Seville is the only city that has not experienced a rise in the price (stays stable), while the highest increase was registered in Barcelona, ​​where house prices rose by 8.2% and now stands at 2,217 euros per square meter. It is closely followed by Madrid with an increase of 6.13% and 1,697 euros per square meter, and Zaragoza, where the price has risen by 4.29% and stands at 1,046 euros per square meter.

The average mortgage amount also grows

The average mortgage amount has also recorded a slight growth of 3.1%, following the change in trend that began in the first half of 2015 and now stands at 91,992 euros. Despite this increase, the monthly mortgage payment remains stable at 358 euros per month, due to the fall in the mortgages cost.

CEO of Tecnocasa Group, Paolo Boarini, has stated that credit entities begin to show more confidence and a trend towards more normal parameters as to granting mortgages, as drawn from the risk indicator analysis. For instance, from 2009 a tendency to grant shorter mortgages was observed, but in the second half of 2015 there has been a slight increase in the longest mortgages (mortgages to 35 years have gone from 2.3% to nearly 4% and 40-year mortgages from 1.4% to almost 3%).

Investment Buying remains steady

According to the DAI a 75.35% of buyers purchase housing to live in it, compared to 24.65% who buy it as an investment, a proportion that has remained stable for the past three years. The possibility of investing in housing “is still interesting due to the profitability offered by the market,” said Cubero, who added that the rent price “is rising in the big cities.”

José García-Montalvo, Professor of Economics at UPF and coordinator of the report, pointed out that the first-home buyer “has gained weight in the market thanks to the opening in the funding,” whereas investors in the current economic situation, have been found in housing “the only asset that provides positive returns.”

As for the first-time buyer, the majority (58.39%) uses a mortgage to pay off the property. The average profile of first-time buyer with a mortgage is that of a man (in 51.46% of cases) between 25 and 44 years (76.86%), Spanish nationality (76.42%) and with an undefined contract (78.20%).

Methodology

The report has been performed with the data of intermediated operations by Tecnocasa Group, in particular with the purchases transacted through Tecnocasa and intermediated loans by Kiron, the intermediation financial network of Tecnocasa Group.

Original story: El Mundo

Translation: Aura Ree