The Student Hotel to Invest €110M in 2 New Mixed-Use Student Halls/Hotels

15 March 2019 – Eje Prime

The Student Hotel is going to invest €110 million in order to open two new mixed-use student halls/hotels over the next few years in Madrid and Barcelona.

The first, located in a former print house at number 28 Cuesta de San Vicente in Madrid is expected to open in September 2020 following a €60 million purchase and renovation project. Once completed, that property will have approximately 340 rooms, a parking lot, a coworking office space and common areas including a lounge bar overlooking the Royal Palace.

The second, located on Calle Provençals in Barcelona, in the heart of the 22@ district, is scheduled to open in January 2021, following a €50 million investment. It will comprise around 300 bedrooms, a coworking office, common areas as well as a cocktail bar on the rooftop.

TSH is launching a new operating model for these properties, which combines short term lets with accommodation for students. The mixed-use aspect of these building means that between 45% and 50% of them will be used for student residences and the rest for hotel purposes, which will offset the seasonality of the two models.

Besides the two openings described above, TSH is also considering opening other hotels in Valencia, Málaga, Sevilla and País Vasco, in Bilbao and San Sebastián.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

BBVA Research: RE Sector Makes “Good Start” To 2017

6 June 2017 – El Mundo

BBVA Research has given the real estate sector a “good mark” for the first quarter of 2017, following a “positive” trend in terms of sales, which accelerated the growth in prices. However, the organisation indicated that the sector showed signs of a “significant heterogeneity” by region once again, and that there was a loss of “momentum” in terms of new loans in April due to a decrease in refinancings.

That was according to the latest Real Estate Observatory for Spain report, prepared by BBVA Research, the financial entity’s research service, which acknowledges a “positive trend” in terms of house sales, given that, based on data from the Centre for Statistical Information from Notaries (CIEN), 48,695 homes were sold during the month of March.

This means, after correcting the series for seasonal variations and calendar effects (CVEC), there was a stagnation in sales with respect to the previous month, but an increase in sales (19.5%) in YoY terms. In this way, sales during the 3 months to March rose by 16.2% YoY, above the average for 2016, in large part thanks to the fact that the main determinants of demand “continued their positive tone during the first quarter of the year”, said BBVA Research.

In this sense, it highlighted that employment is continuing to evolve positively, given that the number of people registered for Social Security in April and May grew at an average MoM rate of 0.4%, above the average monthly rate recorded during the first quarter (+0.3%) (…).

Fewer new loans

Nevertheless, the report warns that new loan operations to buy a home stagnated in April, due to a sharp decline in the number of refinancings. According to data from the Bank of Spain, during the fourth month of 2017, new loans to buy a home decreased by 41.6% YoY, a reduction that actually reflects the high volume of refinancings that took place in April 2016. As such, if we exclude refinancings, the number of new loan operations remained stable with respect to the same month last year (-0.1%).

BBVA Research is “certain” that the stagnation is related to the fact that Easter fell in April this year. In fact, the sum of new operations in March and April rose by 13.1% YoY. With this, during the first four months of the year, new loans to buy a home rose by 10.6%, with respect to the same period a year earlier. Excluding refinancings, which decreased by 86% during the same period, the increase in new mortgage loans amounted to 16.5%. (…).

Heterogeneity in terms of price rises

Meanwhile, the growth in house prices accelerated during the first quarter of 2017. According to the Ministry of Development, the average house price amounted to €1,525.80/m2 during the first quarter, up by 0.7% in QoQ terms, after correcting for seasonality (CVEC), in other words, 0.2 percentage points higher than during the fourth quarter of 2016. Moreover, the YoY evolution saw an acceleration in the growth rate to 2.2% during Q1, up by 0.7 percentage points compared to the previous quarter.

In any case, BBVA Research indicates that the evolution of house prices was still “significantly heterogeneous by region” between January and March. After correcting the series for seasonality, price rises were reported in nine autonomous regions (Andalucía, Canarias, Cantabria, Cataluña, Comunidad Valenciana, Madrid, Murcia, Navarra and País Vasco), with particularly noteworthy rises in Cantabria, Navarra and País Vasco – the three regions have shown less activity in previous quarters.

By contrast, average house prices fell during the first quarter with respect to the previous quarter in all of the other autonomous regions, led by Aragón and La Rioja, which saw QoQ decreases of around -2%. (…)….whilst the price increases being recorded in the Balearic Islands, Madrid and Cataluña exceeded 10% in all three cases.

Housing permits on the rise again

Finally, the first quarter of 2017 closed with a renewed growth in construction activity. (…). The number of housing permits rose by 18.7% during Q1 2017. In this way, almost 20,000 new homes were approved during the first three months, up by 3,141 compared to the same quarter in 2016. (…) .

Original story: El Mundo

Translation: Carmel Drake

Notaries: House Prices, Sales & Mortgages All Rose In Feb

26 April 2017 – Idealista

February was a good month for the residential market. House sales rose by 9.9% YoY to reach 38,176 units, whilst house prices increased by 2.5% YoY, to €1,305/m2. The granting of mortgages also increased, by 2.5% YoY, to amount to 16,337 new loans, according to figures published by the General Council of Notaries.

By type of home, flat sales recorded a YoY increase of 11.2% (11.9% in the series corrected for seasonality) and sales of free (private) housing rose by 12.9%. This increase in the number of transactions involving private homes was due, exclusively, to growth in the sale of second-hand homes (14.5%), given that the sale of new flats decreased by 1.7% YoY. Meanwhile, the sale of family homes rose by 5.1% YoY.

In terms of prices, the cost per square metre of homes purchased in February amounted to €1,305, whereby reflecting a YoY increase of 2.5%. That increase was due to an increase in the price of flats (2.6%), as well as a rise in the price of family homes (1.9% YoY).

Meanwhile, the price per square metre of free (private) flats rose by 2.3%. Of those, the price per m2 of second-hand homes amounted to €1,426/m2 (up by 2.0% YoY) and of new homes stood at €1,809/m2, reflecting a YoY increase of 8.7%.

Finally, the percentage of house purchases financed using a mortgage loan amounted to 42.8%. Moreover, for these types of purchases (with financing), the loan amount represented 77.4% of the property value, on average.

Original story: Idealista 

Translation: Carmel Drake

Notaries: House Sales Rose By 26.6% YoY In January

16 March 2016 – Expansión

House sales shot up by 27.7% during the first month of 2016.

The number of house sales recorded an increase of 26.6% in January compared with the same month in 2015, with 27,568 operations, although that variation moves up to 28% if we consider the series corrected for seasonal effects, according to statistics prepared by the General Council of Notaries.

The annual increase in the number of sales was driven by an expansion in the sale of apartments (+27.7%), the increase in the sale of single-family homes (+22.6%) and the sale of other properties (+22% YoY).

In the case of apartments, the sale of unsubsidised homes experienced a 28.2% increase with respect to January 2015. Within this segment, the sale of second-hand flats rose by 32.8%, which contrasted with the 3.8% decrease experienced by the sale of new apartments.

In terms of average prices, the price per square metre of the homes purchased in January amounted to €1,303/m2, which reflects a YoY increase of 2%, due both to the increase in the price per square metre of apartments (+1.5%), as well as the rise in the price of single-family homes (+4.5%). In terms of flats, the price per square metre of second-hand properties amounted to €1,405/m2 (+2.1%) compared with €1,732/m2 (+1.2%) for new homes.

Meanwhile, there were 6,590 operations involving other properties during the first month of the year, which represents a YoY increase of 22%. Of those operations, 38.6% related to plots of land. The average price per square metre of those transactions amounted to €243/2 (up by +34.6% YoY).

In light of this data, the General Council of Notaries believes that the Spanish real estate market is continuing its recovery, which is also being reflected in the evolution of the mortgage market for the acquisition of homes. (…).

Original story: Expansión

Translation: Carmel Drake

Unemployment Rose By 26,000 In Sept To 4.1M

5 October 2015 – Expansión

The unemployment rate always increases at the end of the summer following the end of the holiday period as the abundance of temporary jobs linked to the tourism sector comes to an end. Other sub-sectors also tend to be hit, for example, catering, trade and leisure activities.

And that is exactly what happened last month (September). For this reason, the number of unemployed people registered at the Public Employment Service increased by 26,087. However, if we discount the effects of seasonality, the number of people on the dole actually decreased by 9,746 people.

In any case, the increase in the unemployment figure is in line with the previous two years. Unemployment grew by 19,720 people in September 2014 and by 25,572 people in the same month in 2013.

It could be said that with the economic recovery, the evolution of unemployment in September is tending to become more normal. During the economic crisis, unemployment rose by 95,000 people during that period.

It also true that, according to the Bank of Spain, QoQ economic growth weakened by 0.2 p.p. between July and September. GDP increased by 0.8% in Q3, compared with 1% in the second quarter of the year. This was due primarily to the impact of the crisis in China and Brasil on the global economy. Nevertheless, activity in Spain is also suffering from the moderation in household spending and residential investment.

For these reasons, the YoY rate of reduction in unemployment has fallen below 8% once again, after exceeding that threshold in July. Thus, in absolute terms, unemployment decreased by 353,808 people in September, i.e. by 7.95% in relative terms. The total number of unemployed people stands at 4,094,042. A (low) level not seen for five years – since 2010. (…).

By sector, unemployment in the construction sector has now recorded 35 consecutive months of decreases. (…).

Original story: Expansión (by M. Valverde)

Translation: Carmel Drake