Ministry of Development: House Prices Rose By 2.7% In Q3

23 November 2017 – ABC

The average price of private housing rose to €1,540/m2 during the third quarter of the year, up by 2.7% compared to the same period in 2016 and by 0.7% compared to the second quarter, according to data from the Ministry of Development.

This is the tenth consecutive quarter of annual house price increases in nominal terms. The increase of 2.7% is the highest since the start of the recovery. In real terms, after discounting inflation, private house prices rose by 1% in YoY terms in the third quarter. Prices have recovered by 5.8% since the minimums recorded during the third quarter of 2014.

Nevertheless, the average price in Q3 was still 26.7% below the maximum peaks reached during the first quarter of 2008.

House prices recorded twenty-six consecutive quarters of decreases in YoY terms from the end of 2008. In real terms, current prices are still 35.5% lower than the peaks of 2008.

The average price of social housing properties amounted to €1,130.80/m2 during the third quarter, up by 2% compared to the same period in 2016.

In QoQ terms, social housing prices fell by 0.3% compared to the second quarter.

Original story: ABC 

Translation: Carmel Drake

Operación Mesena: Santander & Metrovacesa Prepare to Fight the Residents

24 November 2017 – Voz Pópuli

BBVA and Operación Chamartín have some competition on their hands in the form of Operación Mesena. Banco Santander and Metrovacesa are working on two simultaneous real estate operations, which could completely change the neighbourhood of Hortaleza in Madrid, located in the northeast of the city. If the plans go ahead, the entities will star in one of the largest real estate development in the Spanish capital, alongside Chamartín and the Calderón.

The operation revolves around the former Ciudad Banesto and the adjoining plots of land (Colonia Banesto), which have been used as housing for employees and sports facilities for half a century. On the one hand, Metrovacesa – in which Santander holds a 70% stake and which is the owner of La Colonia – has launched a plan for all of the residents to leave their homes.

On the other hand, Santander is working to move the staff that it currently has working at Banesto’s former offices to Popular’s new headquarters. Once that plan has been fulfilled, the entities intend to reclassify the land from offices and sports facilities to urban use. The Town Hall of Manuela Carmena will play a key role. In the past, the Town Hall approved two operations by Banesto-Santander to build some houses and a development of luxury apartments.

Sources consulted at Metrovacesa and Santander note that the two projects are still up in the air and that they are independent of each other. Even so, they will happen at the same time and will be located next to each other. Moreover, the bank controls the real estate company, given that it holds 70% of the share capital, and BBVA also holds a stake, of almost 30%.

The operation has entered controversial territory given that the homes in the former Colonia Banesto are subsidised housing properties (VPO), which were granted to employees of the group who are now retired. Of the 160 families who originally resided there, just 39 remain. Most of them are retired and aged between 70 and 80 years.

In the last few days, those residents have received a letter from Metrovacesa Suelo y Promoción, notifying them of “the termination of their lease contracts and granting them a period, until 31 January 2018, to hand over their homes”, according to the letter to which this newspaper has had access.

The real estate company wants to negotiate with the residents who still live in Colonia Banesto one by one, to find them a suitable exit. The current tenants are not going to make it easy for the entities; they are now seeking advice through the Federation of Neighbourhood Associations and several law firms.

In this way, several dozen former employees of Banesto and mayor Carmena are preparing to deal with what could become one of the largest real estate fights since the outbreak of the crisis. After the planning phase, come the negotiations.

Original story: Voz Pópuli (by Jorge Zuloaga)

Translation: Carmel Drake

AGV: Almost One Third Of Madrid’s Citizens Think More New Homes Are Required

20 November 2017 – Observatorio Inmobiliario

Almost one third of Madrid’s citizens believe that there is not sufficient housing in the city to meets their needs in terms of prices and features. This perception increases as the respondents’ annual salary and age decrease. Similarly, more than half of future buyers believe that there is not sufficient supply to allow them to choose the most appropriate home and almost 45% think that more housing needs to be built. Those are some of the findings of a study conducted by the Association of Housing Managers (‘Asociación de Gestoras de Viviendas’ or AGV) amongst citizens of the capital, which reveals the needs of house buyers in the city of Madrid.

The people surveyed, of whom 3 out of 4 were buyers aged between 31 and 39, revealed that buying a home or apartment in a building is their preferred option. The vast majority confirmed that they would choose to buy a private home (rather than a subsidised property). In fact, almost 80% stated that they are most tempted by that type of home; 90.5% of them are aged 40 or over (86.3%), compared with the younger population, where only 56.7% said that they would be able to buy a private home.

The youngest people who do not own their current homes stated that they will invest less than €160,000 in the purchase of a home as they cannot afford more expensive properties. Moreover, only 11% of the respondents said that they would spend a maximum of €300,000 to buy a property in Madrid.

Price and location are the top priorities

Both price and location stood out as the main factors to take into account when it comes to buying a home. More than half of Madrilenians (63.4%) rank price as one of the most important considerations, along with the characteristics of the home. The study confirmed that price and the lack of help or tax incentives are the main obstacles preventing the majority of Madrileños from affording to buy a new home.

In terms of the housing market, potential future house buyers claim to be those who have planned their savings (29.6%), have good prospects in terms of employment (23.9%), and monthly earnings that allow them to afford the expense (35.7%). Of the latter, the population aged between 31 and 39 stands out, with annual earnings of more than €36,000.

Limited information and a sensation of complexity when accessing social housing

The survey confirmed the existence of a firm interest in social housing properties in the city of Madrid, even though only 30% of those surveyed said that they were informed about subsidised housing, and 61% consider that the application procedures are too complex. In fact, almost 60% of women and 63.3% of young people (under 30) consider that they will have to go down this route.

Juan José Perucho Rodríguez, President of AGV, declared that “we are facing a critical situation given that demand from citizens is clear and the situation is not adapting to reflect what is happening in Madrid. The construction of social housing properties is vital for citizens, who have seen their purchasing power diminish, to be able to afford to buy a home. In this sense, we think that starting to discuss the option of creating more homes is necessary to cover the needs of the citizens who demand them”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Andalucía Offers 800,000 Sq. Meters of Industrial and Residential Land for 2,625 Homes


07 August 2017

A total of 795,843 square meters, distributed in 749 plots of industrial, tertiary and endowment land, and a residential area with a capacity for 2,625 dwellings, in the large part subsidised housing, is the focus of a new auction launched by the Ministry of Development and Housing of the Andalusian Regional Government.

The offer, the third of the fiscal year, includes plots of land throughout the provinces of Andalusia and will remain open until October 9. The income generated by this activity is contributing, among other things, to address new investments in housing development that were affected by the impact of the economic crisis.

The call has two modalities: one destined for the sale of free residential (unsubidized housing), industrial, tertiary and endowment lands, as well as garages, commercial premises and storage rooms; and another one in which land allocated for the development of subsidised housing will be offered. The latter includes 103 plots, with a total of 101,328 square meters for 1,552 homes and a price of €24.3 million.

The plots of land are distributed over Andalusia’s eight provinces, although Cadiz and Granada are two that concentrate the largest areas, 25,181 square meters the first and 24,104 square meteres in the province of Granada. Córdoba will have 19,572 square meters and Seville 11,844 square meters.

Those taking part in the auction will not be able to bid above the fixed prices, but will compete by offering improvements to facilitate the access of the most disadvantaged groups to the homes that are eventually built on those lands.

In the public offer for the sale of industrial and residential plots of lands for unsubsidised housing there will be competition in the prices proposed by the bidders, so that the parcels will be awarded to the highest bids. The base prices of these lands total 41.2 million euros. In this modality, the auction will include 432 plots of industrial land, totalling 538,181 square meters. Jaén is still the province with the largest offer, 278 plots with 309,745 square meters, followed by Almería, with 122 plots and 131,661.

In the auction for unsubsidised housing, 214 plots with a base price of 35.7 million and a total of 156,334 square meters, with a capacity for 1,073 homes, are on offer. In this case, it is the province of Cadiz which is offering more land, with 106,061 square meters, although almost all that land, 100,071 square meters, is in Costa Ballena, Chipiona. Almería is offering 71 plots with a total of 16,407, while Jaén is contributing with 35 plots with 15,082. The auction also includes 234 garages, 113 commercial premises and eight storage rooms, with a total price of 19 million.

In addition, a public auction for the sale of free residential land owned by the autonomous community has been announced, which incorporates assets which are managed by the General Directorate of Patrimony of the Board to AVRA. 15 plots with a total area of ​​4,773 m2, capacity for 16 homes and a total price of 757,476 euros will be included in this offering.

This is the third land sale auction issued by the Ministry of Development and Housing, through the Housing and Rehabilitation Agency of Andalusia (AVRA), this year. In the previous ones, held in March and May, industrial, tertiary and residential capacity were sold with a total area of ​​56,323 square meters and an award amount of 8.6 million euros. The residential land has a capacity for 133 dwellings. At the end of the year another offer will be launched with which the sale program for the current year will be closed.

Since the Ministry of Housing Development adopted the decision to consider land management as one of the strategic lines of AVRA activity, 255,119 square meters of land have been sold, with capacity for 944 residential homes. These lots were raised 39.5 million euros.

Original Story: Inmodiário

Translation: Richard Turner


Andalucía’s Regional Gov’t Sells 2 Residential Plots For €10.3M

20 December 2016 – Es Andalucía

The latest offer from the Ministry of Development and Housing to sell off the industrial and residential plots launched by the Andalucían Agency for Housing and Renovations on 18 October, has ended with the sale of two plots of residential land, one on in Costa Bellena, Chipiona (Cádiz); and another through a purchase option in Camas (Sevilla).

Thus, in total, residential land amounting to €10.3 million and industrial plots with a sales value of €1.2 million have been awarded in the latest offer, according to reports from the Regional Government of Andalucía in a statement.

In terms of the site in Costa Ballena, a plot of land measuring 27,243 m2 with the capacity to build 131 homes has been sold for €6,893,227; and in Camas, the other site has been sold through a purchase option for a plot of land measuring 15,188 m2 as part of the Poeta Muñoz Sanromán Partial Plan, with capacity for 227 homes and a price of €3,456,029.

In this way, most of the residential plots sold are located in the province of Cádiz, in the town of Chipiona (…) which will equip the Regional Administration with the resources it needs to construct subsidised housing in the province of Cádiz.

Therefore, the sale of residential land in this final offer of the year, the fourth in 2016 and the fifth since the decision was taken to reactivate the sale of land at the beginning of the legislature, will allow 358 homes to be built in total in the towns of Chipiona and Camas. (…).

Original story: Es Andalucía

Translation: Carmel Drake

Ministry Of Development: House Sales Grew By 8.9% In Q3

14 December 2016 – ABC

House sales grew by 8.7% during the third quarter of the year, to 102,216 transactions, whereby reaching a seven-year historical quarterly maximum, not seen since the same period in 2009, according to data from the Ministry of Development.

The increase has been driven by sales of second-hand homes, which accounted for 90.1% (89,014) of house sales during Q3, up by 10% compared to the period between July and September 2015.

By contrast, the number of new home sales decreased by 5.7% during Q3, to 8,912 transactions, i.e. 9.9% of the total. House purchases by foreigners represented another driver of the growth in transactions, given that overseas buyers acquired 18,115 homes in Spain during this period, up by 7.3%, to account for 17.7% of all homes purchased.

Most of these homes were acquired by foreigners who are resident in the country – they purchased 17,296 homes, up by 10% compared to a year earlier. By contrast, the number of homes purchased by non-residents decreased by 31% to 819.

In terms of the behaviour of the market by autonomous region, decreases in house sales were recorded in just seven regions, led by Navarra, with a decrease of 14.3%, Murcia (-12.3%) and the Canary Islands (-10.6%).

At the other end of the spectrum, Asturias, Cataluña and Aragón were the regions where house sales grew by the most between July and September, with increases of 28.4%, 24.5% and 20.6%, respectively.

At the municipal level, Madrid was the city that recorded the most activity in terms of transactions in the residential market, with 6,816 operations in the third quarter alone, ahead of Barcelona (3,870 sales) and Valencia (1,926 operations).

In terms of subsidised housing, the number of sales also grew during the last quarter, albeit in a more moderate way (by 4.2%), to 4,290 transactions.

The Ministry of Development compiles these statistics based on data provided by the College of Notaries, which captures the number of house sales formalised by public deeds in notarial offices.

Original story: ABC

Translation: Carmel Drake

Pryconsa Buys 14 Plots In Valdebebas For €56.7M

23 December 2015 – El Confidencial

With just one week to go until year end, Madrid has witnessed one of the largest land operations ever seen in the capital. The veteran Madrilenian property developer, Pryconsa, has acquired 14 plots of land from the Valdebebas Compensation Board for €56.7 million, according to a statement by the Board itself. The plots have a buildable surface area of 92,000 m2 and between 900 and 1,000 social housing properties (VPPL) will be constructed there.

Pryconsa has paid approximately €600/m2 for the land, a price that is significantly below the price received by the Compensation Board (€800/m2) for one of the VPPL plots it put up for auction after the summer and which was awarded to the cooperative Esta Gestión 100, which is backed by the architect Enrique Taboada.

“Given that we are selling such a large batch of plots, it is normal to offer the buyer a discount on the price”, says Hernando de Soto, the Director of Business Development at the Valdebebas Compensation Board. “Half of the plots will be transferred in January and the other half will be transferred in a year’s time”. (…).

This operation involves the sale of the final residential land assets owned by the Compensation Board and uses up practically all of the land allocated to social housing in this urban development, since less than 5,000 m2 is left now. Moreover, following this transaction, only one third of the residential land in this area will remain available. The awarded plots are located next to one of the main squares in the new neighbourhood, alongside the planned shopping centre and JOYFE school, which will be built on land that also forms part of the Compensation Board’s assets and where construction is expected to start soon.

The Madrilenian property developer is one of the great survivors of the real estate crisis and is, moreover, one of the most solvent and least indebted companies in the sector. This position has enabled it to take on what is undoubtedly the largest land operation in recent years, using its own funds. (…).

Valdebebas, under the spotlight

Valdebebas is one of the most sought-after urban developments amongst managers, property developers and investment funds. In light of the scarcity of land in popular developments, such as Arroyo del Fresno, Montecarmelo, Sanchinarro and Las Tablas, this new neighbourhood in the North of Madrid, with its sizeable supply of land, has sparked a great deal of interest.

In fact, multiple land transactions have been closed in Valdebebas during the last year. At the beginning of September, for example, Amenabar Promociones Residenciales, another one of the most active players in recent years, submitted the highest bid for four of the residential use plots – private (unsubsidised) housing – in Parque Empresarial del Olivar, which had filed for bankruptcy. The developer acquired the plots of land for €45 million.

Another one of the plots was awarded to Premier España, which also recently acquired a plot for the construction of private (unsubsidised) housing from the Compensation Board. (…).

Valdebebas is an urban area measuring almost 11 million m2, located in the north east of the capital – between La Moraleja, el IFEMA, Sanchinarro and Barajas Terminal 4. (…). Land (covering a surface area of 1 million m2) is going to be developed there for use as offices and hotels, along with 13,500 homes.

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

La Caixa’s Social Housing Stock Comprises 30,000 Homes

19 August 2015 – Expansión

La Caixa’s stock of social housing comprises 30,047 homes, located all over Spain. The entity’s first initiatives in the social housing sphere began ten years ago, and according to the President of CaixaBank, Isidro Fainé (pictured above), it is a line of business that he expects will increase.

“Our commitment to social housing, which is a clear example of our commitment to people, has proliferated in recent years and will continue to strengthen”, he said.

Through its programs ‘Alquiler Solidario’, ‘Alquiler Social’ and ‘Vivienda Asequible’, La Caixa makes 27,420 homes available to groups with fewer resources.

The ‘Vivienda Asequible’ (‘Affordable Housing’) initiative was launched in 2005 and facilitates access to new homes for young people, elderly people and families, who all pay rent that is substantially below market prices.

The ‘Alquiler Solidario’ (‘Subsidised Rental’) and ‘Alquiler Social’ (‘Social Housing Rental’) plans, which were launched four years ago, are targeted at groups at risk of social exclusion. The ‘Obra Social’ (or ‘Social Works’ program) finances half of those rental contracts, which range between €150 and €500 per month.

Social Housing Fund

Meanwhile, CaixaBank has allocated 2,627 homes to the Social Housing Fund to date. Its supply exceeds the amount assigned to it by the central Government (1,085 homes) by 142%, according to a statement issued by the entity yesterday.

Original story: Expansión (by D. C.)

Translation: Carmel Drake

INE: House Sales Rise For 9th Consecutive Month

9 July 2015 – El Mundo

House sales are continuing to rise.

In May, for the ninth consecutive month, the number of transactions increased by 6% with respect to the same period in 2014, driven by the second-hand market, according to the National Institute of Statistics (Instituto Nacional de Estadística or INE). In total, 29,457 transactions were closed during the fifth month of the year.

With the recovery in May (which was three points lower than the variation in April (9.4%)), house sales recorded their ninth consecutive inter-annual increase, thanks exclusively to a 34.7% increase in the sale of second-hand homes, to 23,130 transactions. By contrast, the sale of new homes decreased by 40.4% with respect to May 2014, to 6,327 transactions. During the first five months of the year, house sales have accumulated an increase of 8.5%, with a 37.3% decrease in the sale of new homes and a 42.6% increase in the sale of second-hand homes.

If we look at the monthly data (May versus April), house sales rose by 8.1%; the lowest increase during that month for five years. Most of the homes sold, specifically 89.9%, were “free” (unsubsidised) homes. Sales of that type increased by 5.6% in inter-annual terms, to 26,455 transactions; during the same period, sales of “social housing” (subsidised) homes amounted to 3,002 – an increase of 9.7% with respect to May 2014.

Navarra experienced the largest increase

The largest increase in the number of house sales per 100,000 inhabitants was recorded in Valencia (116) and Navarra (98). In absolute terms, Andalucía led the house sale ranking, with 6,162 transactions, followed by Valencia (4,533), Cataluña (4,388) and Madrid (3,810).

In relative terms, by autonomous regions, the inter-annual rate of house sales increased the most in: Navarra (32.9%), País Vacco (19.3%) and Galicia (18.5%); whilst the largest decreases were recorded in the Canary Islands (-14%) and Castilla-La Mancha (-10.9%).

Original story: El Mundo

Translation: Carmel Drake

INE: House Sales Increased By 15.7% In December

10 February 2015 – Expansión

Sales of second hand homes drove overall house sales to increase by 2.2% in 2014, with respect to the previous year, to reach 319,389 transactions, resulting in a return to positive growth after three years of decline.

House sales rose by 2.2% in 2014 after three years of decline, thanks to a boost from second hand properties, according to the provisional data published today by the National Institute of Statistics (Instituto Nacional de Estadística or INE) regarding the Statistics on the Transfer of Property Rights (Estadística de Transmisiones de Derechoes de la Propiedad or ETDP).

The second hand market was the driver behind this annual growth, the first positive trend since 2010, when house sales grew by just over 6%. That year represented a respite for the real estate market, which had been hit hard by the economic downturn.

The increase in the sale of second hand homes was notable last year with a rise of 18.4%, to reach 199,943 transactions. By contrast, the number of new homes sold decreased by 16.9%, to amount to 119,446.

25,998 houses were sold in total in December, an increase of 15.7% on the same month last year – the fourth consecutive monthly increase – and 3.2% more than in November.

After three years of decline, house sales have returned to positive territory in the context of a strong price correction. In fact, since their peak in 2007, house prices in Spain have decreased by more than 40%.

During the crisis, the worst years for house sales were 2008 and 2009, when the number of transactions plummeted by 28.8% and 25.1%, respectively. Double-digit decreases were also recorded in 2011 and 2012 (-18.1% and -11.5%, respectively), however, the decline eased in 2013 to 1.9% as the tax relief for house purchases ended.

89.7% of homes sold last year were unsubsidised (free housing) and 10.3% were subsidised (protected). In total, sales of unsubsidised homes increased by 3.2% in 2014, whilst sales of subsidised homes decreased by 6.2%, a smaller decline than in previous periods.

Andalucía leads the ranking

By autonomous region, Andalucía recorded the highest number of house sales last year (64,349 transactions were closed there), followed by Cataluña (47,113), Valencia (46,678) and Madrid (44,231).

The autonomous regions that recorded the fewest number of transactions were La Rioja (2,263), Cantabria (3,917) and Navarra (4,403).

In relative terms, the number of house sales rose in eleven autonomous communities in 2014 and decreased in six. The regions that experienced the highest increases in terms of the number of transactions were the Balearic Islands (+18.5%) and Navarra (+13.9%), whilst the ones with the largest decreases were La Rioja (-25.1%) and Castilla-La Mancha (-12.6%).

Original story: Expansión (by )

Translation: Carmel Drake