2019 Set to Be the Best Year for Residential Construction Since 2009

6 January 2020 Spanish municipal authorities issued 9,199 new construction permits new flats and houses in October of last year, an increase of 7.2% year-on-year. According to data from the Ministry of Development, those same authorities issued permits for a total of 91,156 homes from January to October 2019, 8.7% higher than in the first ten months of the year before.

Market forecasters believe that annual construction in 2019 will, therefore, exceed the total of 2018, when more than 100,000 homes were built for the first time since the real estate bubble burst.

Las autoridades municipales en España emitieron 9.199 nuevos permisos de construcción de nuevos pisos y casas en octubre del año pasado, un aumento del 7,2% interanual. Según datos del Ministerio de Desarrollo, esas mismas autoridades emitieron permisos para un total de 91.156 hogares de enero a octubre de 2019, un 8,7% más que en los primeros diez meses del año anterior.

Los pronosticadores del mercado creen que la construcción anual en 2019, por lo tanto, excederá el total de 2018, cuando se construyeron más de 100,000 casas por primera vez desde que estalló la burbuja inmobiliaria.

Original Story: El País

Translation/Summary: Richard D. Turner

Panattoni Europe with Massive Pipeline of Logistics Projects

5 January 2020 According to a study by PropertyEU, Panattoni Europe built the largest area of logistics facilities in Europe between the period running from 2016 to 2018, coming out on top in each of those years. The firm completed projects totalling 5,300,000 m² in the countries of Poland, the Czech Republic, Germany and the United Kingdom.

Furthermore, 35% are dedicated to e-commerce, while another 25% include highly advanced manufacturing facilities. Panattoni has clients such as Amazon, Arvato, Coty, DSV, H&M, Leroy Merlin and Tesco.

Additionally, Panattoni’s pipeline up to 2021 includes a total of 23,682,000 m² of space, well above the next two largest developers, Prologis (3,428,000 m²) and Segro (3,375,000 m²).

Según un estudio realizado por PropertyEU, Panattoni Europe construyó el área más grande de instalaciones logísticas en Europa entre el período comprendido entre 2016 y 2018, y se destacó en cada uno de esos años. La firma completó proyectos por un total de 5,300,000 m² en los países de Polonia, la República Checa, Alemania y el Reino Unido.

De ellos, el 35% se dedica al comercio electrónico, mientras que otro 25% incluye instalaciones de fabricación altamente avanzadas. Panattoni tiene clientes como Amazon, Arvato, Coty, DSV, H&M, Leroy Merlin y Tesco.

El gasoducto de Panattoni hasta 2021 incluye un total de 23,682,000 m² de espacio, muy por encima de los siguientes dos desarrolladores más grandes, Prologis (3,428,000 m²) y Segro (3,375,000 m²).

Original Story: cadenadesuministro.es

Translation/Summary: Richard D. Turner

Spain’s Retail Sector Saw a 60% Drop in Investments in 2019

4 January 2020 The retail sector has recorded a 60% drop in investments year-on-year, according to a report by JLL. The fall in the total investments, to approximately 1.6 billion euros, was due to a reduction in major deals with shopping centres. The sector accounted for 27% of the investments in 2019.

High-street establishments represented 61% of the total, including over 900 million euros. Meanwhile, medium-sized retail parks brought in around 11% of the investment with about 200 million euros.

El segmento retail ha registrado una caída del 60% en las inversiones frente al 2018, según un informe de JLL. La caída en las inversiones totales, a aproximadamente 1.600 millones de euros, se debió a una reducción en las ventas de grandes centros comerciales. El segmento representó el 27% de las inversiones en 2019.

Los establecimientos ‘high-street’ representaran el 61% del total, o más de 900 millones de euros. Mientras tanto, los parques retail medianos generaron 11% de la inversión con alrededor de 200 millones de euros.

Original Story: Financial Food / El Economista

Translation/Summary: Richard D. Turner

Madrid to Avoid Price Controls on Rental Flats

4 January 2020 José María García, the Community of Madrid’s General Director for Housing and Rehabilitation, explained to idealista/news in an interview that the government of Madrid will not intervene in the market to place limits on rental prices in the region. Such measures have generally proven counter-productive in other European cities. The government has instead opted to concentrate on increasing the supply of rental housing to combat the recent price inflation.

A regional plan, called the Plan Live in Madrid, will use publicly owned land for the development of affordable rental homes. At the same time, the government intends to invest in urban renewal to take advantage of existing, though possibly degraded, properties. Young buyers, under the age of 35, will also receive deductions on interest payments on mortgages.

The Spanish government has already identified sufficient land to build approximately 15,000 homes and expects to find enough for at least another 10,000.  The land is spread out around Madrid, in areas such as San Sebastián de los Reyes, Alcobendas, Getafe, Alcalá de Henares and Tres Cantos.

José María García, Director General de Vivienda y Rehabilitación de la Comunidad de Madrid, ha explicado a idealista/news en una entrevista que el gobierno de Madrid no intervendrá en el mercado de alquiler para poner límites a los precios en la región de Madrid. Dichas medidas generalmente han producidas resultados contraproducentes en otras ciudades europeas. En cambio, el gobierno ha optado por concentrarse en aumentar la oferta de viviendas de alquiler para combatir la reciente inflación de precios.

Un plan regional, llamado Plan Live en Madrid, utilizará terrenos de propiedad pública para el desarrollo de viviendas de alquiler asequibles. Al mismo tiempo, el gobierno tiene la intención de invertir en la renovación urbana para aprovechar las propiedades existentes, aunque posiblemente degradadas. Los compradores jóvenes, menores de 35 años, también recibirán deducciones en los pagos de intereses sobre hipotecas.

El gobierno español ya ha identificado suficientes terrenos para construir aproximadamente 15,000 hogares y espera encontrar suficientes para al menos otros 10,000. El terreno se extiende por Madrid, en zonas como San Sebastián de los Reyes, Alcobendas, Getafe, Alcalá de Henares y Tres Cantos.

Original Story: Idealista – P. Martinez-Almeida & Luis Manzano

Translation/Summary: Richard D. Turner

Spain’s Build-to-Rent Sector Found its Stride in 2019

4 January 2020 The build-to-rent sector is taking off in Spain. A series of large players are piling into the market, and the sector is no longer considered a niche investment. One of the first deals of 2019 came when Metrovacesa announced the sale of 121 new-build homes to the rental operator Ares for 29 million euros. The homes belong to two residential developments in Arganda del Rey and the Spanish capital of Madrid, with deliveries planned for the end of 2020 and 2021, respectively.

The developer Aedas Homes also reached an agreement with Ares to build 500 rental homes. Aedas will lead construction and sales in return for a payment of 70 million euros from Ares.

In October, Aurea Homes and the socimi Vivenio agreed to a 150-home development in Móstoles as well. The project is Vivenio’s second foray into the build-to-rent sector after it negotiated a 370-home development with Azora in Cañaveral, Madrid.

Just this November, ASG also jumped into the fray when it acquired a 300-flat project San Sebastián de los Reyes, Madrid in a €40-million investment.

El sector de construir de ‘build to rent’ está despegando en España. Una serie de grandes investidores se están entrando en el mercado, y el sector ya no se considera una inversión de nicho. Una de las primeras ofertas de 2019 se produjo cuando Metrovacesa anunció la venta de 121 viviendas de nueva construcción al operador de alquiler Ares por 29 millones de euros. Las viviendas pertenecen a dos desarrollos residenciales en Arganda del Rey y la capital Madrid, con entregas previstas para finales de 2020 y 2021, respectivamente.

La inmobiliaria Aedas Homes también llegó a un acuerdo con Ares para construir 500 viviendas de alquiler. Aedas liderará la construcción y las ventas a cambio de un pago de 70 millones de euros de Ares.

En octubre, Áurea Homes y la socimi Vivenio también acordaron un desarrollo de 150 viviendas en Móstoles. El proyecto es la segunda incursión de Vivenio en el sector build to rent después de negociar un proyecto de 370 viviendas con Azora en Cañaveral, Madrid.

ASG también se lanzó a la refriega cuando adquirió un proyecto de 300 pisos en San Sebastián de los Reyes, Madrid, con una inversión de 40 millones de euros.

Original Story: Idealista

Translation/Summary: Richard D. Turner

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

Real Estate Investment Reached €12 Billion in 2020

3 January 2020 Real estate investment in Spain ended the year of 2019 with a total investment volume of approximately €12 billion, a drop of 35% year-on-year, according to a study by Savills Aguirre Newman.

Despite the seemingly steep fall in investment, the firm noted that demand remains robust, with prices forecast to increase by 3% to 4% in the coming year.

Jaime Pascual-Sanchiz, the CEO of Savills Aguirre Newman, averred that the decline was largely concentrated in the market for existing homes. The executive expects the continued growth of new developments, though at a reduced pace. Construction has declined in some specific markets, such as Madrid, Valencia, Malaga and some of the islands, which had seen extraordinary levels of growth last year.

Original Story: Expansión / Europa Press

Translation/Summary: Richard D. Turner

Investments in Shopping Centres Falls Due to Concerns about E-Commerce

18 December 2019 – Investments in 2019 in shopping centres totalled €1.018 billion in the year to September, the lowest level since 2013. The volume of acquisitions in the same period was just 35% of the level in 2018, when it reached €2.9 billion. Analysts expect that total acquisitions for the year will reach between 1.500 and 2 billion euros, according to a report by CBRE.

The fall in investment in the sector is in large part due to the untrammelled growth in e-commerce even as sales in shopping centres remain robust. The revenues generated by e-commerce in Spain increased by 22.2% year-on-year in the first quarter of 2019, reaching €10.969 billion and an 8% market share.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Investment in Barcelona’s Office Market Reaches 20-Year High

17 December 2019 – Barcelona’s real estate office market is amid an investment boom and is projected to end the year with record investments of 1.7 billion euros. That figure is the highest of the last twenty years, according to a study by Savills Aguirre Newman.

In the year to date, investments in offices in Barcelona have hit 1.4 billion euros. Market sources also expect that another €300-€400 million in deals will be finalised before 2020. Investors, 75% of whom are from outside Spain, have concluded acquisitions of more than sixty buildings, totalling more than 400,000 square meters of surface area, in 2019.

Original Story: Eje Prime – Marc Vidal Ordeig

Adaptation/Translation: Richard D. K. Turner

Unemployment to Fall to Pre-Crisis Levels in Madrid

3 December 2019 – The Community of Madrid has had a series of years of growth above the average for Spain as a whole. According to the forecasts by BBVA Research, Madrid had the highest regional growth in 2018 and will continue to do so in 2019 ad 2020. Thus, in 2020, unemployment in Madrid is expected to fall to pre-crisis levels, which, until now, had only been done in the Balearic Islands and the Canary Islands.

BBVA Research stated that GDP in the Community of Madrid is expected to grow by 2.6% this year, a significant reduction in the pace of growth compared with last year (3.7%). The regional average for the country as a whole, however, only reached 1.9%. Next year, growth in Madrid is expected to fall to 2.2%, compared to the Spanish economy at 1.6%.

Original Story: Expansión – Pablo Cerezal

Adaptation/Translation: Richard D. K. Turner