Tag: private companies

Junta Awards Plot for Construction of 88 Social Housing Properties in Córdoba

20 March 2018 – Diario Córdoba

The Junta de Andalucía has awarded one of the two plots of residential land in Córdoba destined for protected housing that were included in the most recent offer for the sale of real estate assets by the Agency for Housing and Rehabilitation in Andalucía (AVRA), which will enable the construction of 88 social housing properties in the O-3 Residential Sector of the provincial capital. The plot, measuring 4,656 m2 and with a buildable surface area of 9,462 m2 over the ground floor and six storeys, has been awarded for €1,687,103, according to reports from the Junta itself in a press release.

The sale of this plot comes in addition to the sales that the Agency has been formalising in Córdoba over the last three years, where it has managed to dispose of 11 units of residential land in the O-3 sector, for a price of €11.3 million, with capacity for the construction of 710 protected homes, some of which are going to be promoted by private companies and others by municipal initiatives.

The total number of protected plots sold in Córdoba since 2015, including the plot that has just been awarded, now amounts to 12 plots for the construction of 798 homes, with a combined surface area of 54,817 m2. These plots have been awarded for €13 million in total.

The regional delegate for the Ministry of Housing and Development, Josefina Vioque, said that “sales of regional plots of land were reactivated at the beginning of the legislature after the Ministry decided to recover this activity as a strategic axis in the management of its public assets”.

Original story: Diario Córdoba 

Translation: Carmel Drake

How Long Does It Take To Sell A House In Spain?

21 June 2016 – Cinco Días

The improvement in the economy, the credit recovery and the belief that discounted house prices have come to an end are all driving up house sales. In fact, several studies agree that it now takes just 10 months to sell a home, on average, when in 2013 it took more than a year. What’s more, in April, homes in good locations with reasonable prices in Madrid and Barcelona were sold within 30 days.

The three major indicators of the real estate market: price, sales and construction have been reflecting an improvement in the sector for months now, and in some cases for years. But another way of taking the pulse of this activity is to look at how long it takes to sell homes, on average. For the time being, the only figures available are provided by private companies operating in the market, such as the appraisal company Tinsa, and the real estate portals Idealista and Fotocasa.

Care should be taken because the results depend on the methodology used in each study, and given that we do not know what happened in terms of average sales periods before 2010, the reality is that all of the cases indicate the same trend: it takes less time to sell a home now than it did a year ago.

The appraisal company Tinsa has been preparing its study for just four quarters (its figures for Q2 2016 are due to be published within the next few days). It obtains its data by cross-checking the volume of supply and demand for homes in all of the provincial capitals and in the country’s five major cities: Madrid, Barcelona, Valencia, Sevilla y Zaragoza. Two conclusions stand out from its finding.

The first is that, on average, during the first quarter of this year, it took 10.5 months on average to sell a home in Spain, slightly less time than during the previous quarter (10.6 months). Although, we should keep in mind that the start of the year tends to be the quietest time for house sales, which could also affect the average sales period.

The second aspect…is the disparity in average sales periods by region. Whilst in some parts of the country, average sales periods are pretty stagnant and have barely experienced any changes in four quarters, either up or down; in other areas, there has been a clear upwards or downwards trend (homes are being sold more quickly or it is taking longer to complete sales, respectively).

In the ranking by province, for example, Madrid stands out because it now takes just seven months to sell a home there; meanwhile, in Cantabria, the autonomous region with the longest average sales period, it takes 19 months to sell a home, almost triple the period reported in Madrid. Other regions at the top end of the ranking include: the two Canary Island provinces, Badajoz and Zaragoza. Whilst, at the other end of the scale, as well as Cantabria, we have Ávila, Álava, Segovia and Ciudad Real, amongst others. The large cities that complete the appraisal company’s study all have a common denominator: they are the areas where average sales periods are decreasing the most quickly.

Meanwhile, Fotocasa’s figures are prepared based on a survey of owners with homes up for sale. Its latest figures relate to 2015 as a whole. Its findings show that it takes 10.6 months to sell a home on average…well below the maximum peak of 13.2 months reached in 2013. In addition, it breaks down the supply by tranches and concludes that last year, just 15% of the homes that were bought had been on the market for more than 24 months.

Finally, recent analysis performed by Idealista shows that in April, 20% of the homes sold in Madrid and 15% of those sold in Barcelona found a buyer within less than a month. (…).

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake

Investors Spend €12,000M On RE Assets In 15m To Mar 15

5 June 2015 – Expansión

International funds, private investors and other companies have purchased assets worth almost €12,000 million during the last 15 months. American investors favour large properties, whilst Asians players prefer hotels.

The purchases of almost €12,000 million…mean that the Spanish market has returned to its pre-crisis levels and illustrate the focus that investors from around the world have placed on our country. But, what is the profile of these buyers? And which assets do they prefer?

According to data from the last 15 months, office buildings and shopping centres have been the star investments. Nevertheless, rather than making direct purchases, investors, both Spanish and overseas, have chosen to participate in the market through the new listed companies for real estate investment (Socimis).

For their stock market debuts, the four large Spanish Socimis – Merlin Properties, Hispania Real, Axiare and Lar España – raised funds amounting to more than €2,550 million; and this year they have undertaken capital increases to raise another €1,300 million…Hispania raised €550 million for the IPO of its Socimi subsidiary, from large international investors such as the US magnates George Soros and John Paulson. Just a few weeks ago, it raised a further €337 million from investors with a similar profile. Meanwhile, the real estate company GMP secured €300 million from the Singapore fund GIC.

Offices

The four Socimis have created portfolios worth around €4,000 million. These companies, headquartered in Spain, have been the major investors. Thus, 64% of the €2,727 million invested in offices was disbursed by Spanish investors. “The main Spanish investors are Socimis, but they also include investment funds, private equity firms, wealth managers and family offices. The average price for this type of transaction is €29 million, compared with the large deals carried out by British investors (above all investment banks and private investment companies), which exceed €100 million”, explain sources at the consultancy JLL.

Spanish investors have also exceeded foreigners in terms of the purchase of retail premises; 78% compared with 22%, respectively. “During 2014 and Q1 2015, Spanish investors spent €738 million on retail premises. The average price of these transactions was €37 million and the typical buyers were retail operators (such as fashion brands), family offices and private investors”, say JLL.

Meanwhile, international buyers dominate the market for shopping centres and hotels. Of the €3,092 million invested in shopping centres between January 2014 and March 2015, 82% was foreign capital, thanks to the purchases made by US funds such as Tiaa Henderson and specialist companies, such as the French firm Klépierre.

Almost €2,500 million has been invested in hotels in the last 15 months and 55% of the capital invested was foreign. Furthermore, it was very diversified, with Chinese investors such as the Wanda Group and Qatari funds, such as Katara Hospitality buying hotels in Spain – the latter acquired the InterContinental Hotel in Madrid. (…)

In the residential segment, several US funds have chosen to buy land in Spain. The clearest case is Lone Star, which has become the largest developer of land in the country. (…)

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake