La Generalitat Resumes the Auction of Various Rental Homes in L’Hospitalet de Llobregat

12 June 2019 – El Confidencial

La Generalitat de Cataluña is resuming the public auction of a rental home portfolio for which it hopes to obtain proceeds €6.2 million, having applied a discount of 20% to the asking price last year (€7.7 million).

The assets in the portfolio are all located in L’Hospitalet de Llobregat (Barcelona) on Calle Ciencies 15-23, next to Plaza Europa and the Gran Vía 2 shopping centre. They comprise 16 homes, 2 commercial premises, 23 parking spaces with storerooms plus 3 terraced single-family homes located in the urbanisation behind that building on Calles Mileva Maric 33 and 49 and Hanna Arendt, 3. In total, the assets have a combined surface area of 2,448 m2 and are leased almost in their entirety, with just one home and the commercial premises vacant.

The assets are owned by Fira 2000, in which the Catalan government holds a 50%, alongside the Town Halls of Barcelona and L’Hospitalet de Llobregat.

The deadline for bids is 22 July and the online auction will be held on 29 July through Addmeet.  

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Insur to Build 136 More Homes on the Outskirts of Madrid

4 April 2019 – El Confidencial

The Sevillan based property developer Inmobiliaria del Sur (Insur) has reported that it is now working on the construction of 250 homes in the Community of Madrid.

In addition to the projects already announced in Boadilla del Monte and Valdemoro, the company chaired by Ricardo Pumar is now going to start work on a new development in Villaviciosa de Odón.

There, it is going to build two groups of 68 single-family homes, which will form part of a larger development known as Monte de la Villa, which will eventually contain 2,500 homes in total.

Original story: El Confidencial (by Carlos Pizá)

Translation/Summary: Carmel Drake

Ministry of Development: New Housing Permits Rose by 23.2% in October

29 December 2018 – El Economista

The permits authorised for new residential construction in Spain amounted to 83,882 units between January and October 2018, which represented an increase of 23.2% in comparison to the same period a year earlier (68,084 units).

According to data from the Ministry of Development, of the total number of permits approved, 66,032 were for flats in housing blocks (a YoY rise of 27.7%) and 17,831 were for single-family homes, up by 9%. Moreover, 19 permits were requested for other types of buildings.

The new build permits authorised are following a positive path so far in 2018, after four years on the rise to reach 80,876 units in total in 2017, which represented an increase of 26.1% compared to the previous year.

In the past, in 2016, permits rose by 28.9%, after increasing by 42.5% in 2015, which consolidated the recovery initiated in 2014, the year that broke seven consecutive years of decreases with a slight rise of 1.7%.

This real estate indicator reached a historical minimum in 2013 (34,288 units), a figure that represented a slump of 96% from the peak registered in 2006 with 865,561 permits.

Original story: El Economista

Translation: Carmel Drake

Metrovacesa to Invest €40M in the Construction of 180 New Homes in Córdoba

27 November 2018 – Eje Prime

Metrovacesa has already set up its first cranes in Córdoba. The Spanish property developer has started work on the Las Terrazas de Poniente Sur Residential complex, the first in a series of three projects that the company has underway in the city. In total, the real estate firm is going to build more than 180 homes, with an investment of €40 million in the capital of the Andalucian province.

The company is going to build 120 homes in its first development in Córdoba. On that site, located in the Parque Cruz Conde neighbourhood, the company is going to build flats with between one and five bedrooms, in a building comprising a ground floor and six upper floors. In the common areas, the development will have an outdoor swimming pool, a padel court, a garden and a children’s playground.

Metrovacesa’s commitment to the Andalucían city reflects the fact that Córdoba is “one of the Spanish cities with the highest demand for residential properties at the moment”, said the property developer in a statement.

Besides the Las Terrazas de Poniente Sur Residential development, the company is already marketing Villas de Alhakén, a development comprising 21 single-family homes in the El Brillante neighbourhood. Meanwhile, it is finalising matters to obtain the urban planning licence for Mirador de la Albaida, a residential development comprising forty homes, which will have views of the mountains in Córdoba.

Commitment to Andalucía 

The start of the work in Córdoba is strengthening Metrovacesa’s commitment to Andalucía, where 45% of the company’s land portfolio is located. In Eastern Andalucía alone, the property developer has land on which to build 6,000 homes, of which 4,000 units will be promoted along the Costa del Sol.

The objective of the property developer over the medium term is to generate revenues of €1 billion by 2020, and to increase that figure to €1.5 billion over the following years, according to sources speaking to EjePrime.

Original story: Eje Prime

Translation: Carmel Drake

Balearic Government Approves Construction of 500 New Homes in Palma’s Son Ferragut Urbanisation

17 October 2018 – Última Hora

On Wednesday, the Balearic Government will approve the construction of the urbanisation of Son Ferragut and will allow the development of 550 homes, as well as the opening of Salvador Hedilla park and of all the local roads. The urbanisation project was approved in 2002, but the economic crisis resulted in the suspension of the construction work in 2007 and it was not resumed again until 2014. During that time, there were some changes in ownership: the site went from being owned by Son Dameto Ibercor into the hands of Sa Nostra and is now owned by Sareb (the bad bank).

The Councillor for Town Planning, José Hila, explained that after the approval by the Government, the property developers will be notified about the agreement; next, the reception certificate will be signed and Cort will be able to take charge of the maintenance of the roads and amenities. Nevertheless, the councillor said that the maintenance of the green space will be performed by the conservation entity that is going to be constituted for that purpose, until 50% of the planned buildings have been constructed. Hila believes that the bad bank will have no problems selling this land and highlights the importance of increasing the stock of housing in Palma by 500 units. Nevertheless, he clarified that none of the homes will be public because the legislation did not require that in 2002.

The Son Ferragut plot spans 110,000 m2, of which 31,000 m2 may be used for new homes, with a buildability of 78,000 m2. The forecast is for 500 homes to be built, with one area for multi-family homes, comprising a ground floor and four above-ground storeys, and another area for single-family homes; a maximum of 1,646 people will be able to live on the site. The remaining 79,000 m2 will be decided into several plots, which may house different facilities: one for education (a plot has been ceded to the Government for a school), one for sport (there is a sports centre, which will be opened once the services are provided) and a free public green space spanning 10,000 m2.

Original story: Última Hora (by A. Mateos)

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

Ministry Of Development: Housing Permits Rose By 39% In 2015

29 January 2016 – Expansión

Permits for the construction of new homes are at a five-year high, but the figures are still tiny compared with their pre-crisis levels.

The number of permits requested for the construction of new homes soared by 39% last year, to around 48,600, according to official data published by the Ministry of Development for the 11 months to November.

In this way, requests for the construction of new homes recorded a second consecutive year of increases and reached a five-year high, not seen since 2011.

Between January and November, requests were made for 44,577 permits to construct homes, which represents an increase of 35% compared to the previous year.

If we assume that this rate of demand was maintained during the last month of the year (around 4,050 per month), then the total would have amounted to around 48,600 permits by year end.

Despite these figures reaching their highest levels for five years, they still fall a long way below the series maximum, recorded in 2006, just before the crisis when the sector was at the height of its boom and 865,561 permits were requested. To put this into context, the number of permits requested during the whole of last year was equivalent to the number requested in just one month in 2006.

During 2015, 69% of all permits requested related to the construction of new blocks of flats, with 33,900 units, representing a YoY increase of 45%.

The other permits requested last year related to single-family residences, with 14,700 requests in total, up by 27% compared with the previous year.

More renovations

Similarly, in 2015, the number of permits requested to renovate or restore homes increased by 14%, to reach 25,668.

By contrast, during the same period, the number of requests for home extensions decreased, albeit more moderately (by 3%), from 1,485 in 2014 to 1,428 in 2015.

Original story: Expansión

Translation: Carmel Drake

Notaries: House Sales Rose By 7.3% YoY In November

19 January 2016 – Expansión

According to statistics from the General Council of Notaries, 34,918 house sales were recorded in November, which represents an increase of 7.3% with respect to the same month one year before and means that sales have now recorded 18 months of uninterrupted growth.

Although the increase amounts to just 3.3% in the seasonally adjusted figures, the notaries highlight that the trend towards recovery is still maintained, even though the volume of transactions still falls “well below” the figures seen before the crisis.

By type of home, sales of apartments increased by 6.2% YoY in November, more than double the rise in October, driven by the sale of both free (unsubsidised) homes (+8.3%) and second-hand homes (+12.2%). New home sales continued to decrease (by -18.6%) for the tenth consecutive month.

In the same way, sales of single-family homes continued to grow in November (by +11.4%) to record nine consecutive months of double-digit increases.

In terms of prices, the average price per m2 of homes purchased in November amounted to €1,219/m2, which represents decrease of 1.1% in YoY terms, driven by reductions in the price of both flats (-0.6%) and single-family homes (0.8%). Within the flat segment, the price per m2 of second-hand homes dropped by -0.7% in YoY terms (to €1,320/m2), whilst new home prices recovered by 5.9% YoY (to €1,666/m2).

Mortgages are also on the rise

In terms of the mortgage market, the number of new mortgages granted increased by 7.3% YoY in November, to 25,681 operations, which represented the same (percentage) increase as the number of house sales. Nevertheless, that increase amounted to just 2.4% YoY in the seasonally adjusted series, the lowest rise in a year and a half.

Meanwhile, the average amount loaned amounted to €144,223, which represents an increase of 5.5% with respect to the same month one year earlier.

Loans granted to acquire properties have continued to increase at the highest rate. They rose by 17% YoY, to 16,404 new operations, to record 23 consecutive months of increases, driven by an increase in the number of mortgages granted to purchase homes (+16.7%) as well as to buy other properties (+21.3%).

Nevertheless, the significant growth in the number of operations was not reflected in the amount of average capital granted, which grew by 2.3% YoY in November. According to the notaries’ statistics, that was due to the decrease in the average amount loans to acquire homes (-1.5%), after 14 months of continuous increases; meanwhile, the average capital granted for the acquisition of other properties grew by 28.2%, in line with the increase in October.

Finally, the percentage of home purchases financed through mortgage loans amounted to 43.3%, and therefore continued its rising trend. For this type of purchase (i.e. with financing), the loan amount represented 77.6% (of the value of the property) on average, in line with the data registered in recent months.

Original story: Expansión

Translation: Carmel Drake

Ministry Of Development: Housing Permits Reach 5-Year High

30 December 2015 – Expansión

The number of permits requested to construct new homes shot up by 29.2% during the first ten months of the year compared with the same period last year, to amount to 39,871 certificates, according to data from the Ministry of Development.

If the same rate of permit requests has been maintained during the last two months of the year, 2015 will come to an end as the second year of consecutive increases and with the highest volume in five years, since 2011, when the number of certificates reached almost 48,000.

Demand for permits to construct new homes thus maintained the growth trend that it had been recording for months and which allowed it to close 2014 with the first increase (in the number of permits) since 2006. Nevertheless, it still falls a long way short of the record figures reached before the crisis.

For the time being, during the first ten months of the year, 70% of the permits requested related to the construction of new blocks of flats, with 27,827 units and a cumulative YoY increase of 32.8%.

The other authorisations requested related to single family residences, with 12,028 requests, i.e. 21.6% more than during the same period a year earlier.

The number of permits requested to renovate and restore homes also increased between January and October, by 12.9%, to amount to 21,474 requests.

By contrast, the number of requests to expand homes decreased during this period, by 12.2%, from 1,318 during the first ten months of 2014, to reach 1,156 during the same period this year.

Original story: Expansión

Translation: Carmel Drake

Notaries: House Sales Up By 8.4% In May & Prices Down By 2.5%

16 July 2015 – El Economista

According to data from the General Council of Notaries, 33,504 homes were sold in Spain in May 2015, representing an increase of 8.4% YoY.

Sources at the General Council of Notaries stressed that despite the fluctuations in the monthly figures, the trend reflects a recovery in sales.

By type of home, sales of flats increased by 8.1% YoY and sales of unsubsidised flats increased by 8.8% YoY. This increase in the number of flats sold was driven solely by a rise in sales of second-hand flats (up 14.5% YoY), since sales of new homes experienced a sharp decrease (-21.5% YoY). Meanwhile, sales of single family homes increased by 9.6%.

In terms of average prices, the price per square metre of homes purchased in May was €1,226, reflecting a decrease of 2.5% YoY. This decrease in the price per square metre of homes was driven by decreases in the price per square metre of both flats and single family homes, which decreased by -2.2% and -2.3%, respectively, YoY.

In the segment for flats, the price of second-hand properties averaged €1,339/m2 (-0.4% YoY) and the price of new homes equalled €1,505/m2 (-10% YoY).

Finally, 8,285 other properties were sold in May (+11.3%), of which 38.2% related to land or plots. The average price per square metre of those transactions amounted to €127/m2 (+37.9% YoY).

Meanwhile, the evolution of the mortgage market for the purchase of homes reflects the recovery observed in the real estate sector, registering an overall increase in the total debt balance.

Thus, 25,738 new mortgage loans were granted in May, which represents a YoY increase of 11.5%. The average amount loaned was €137,093, reflecting an increase of 7.7% YoY.

Original story: El Economista

Translation: Carmel Drake