Spain’s Most Expensive Homes are Located on c/Serrano & Paseo de Gràcia

1 March 2018 – Expansión

Two realities in the housing market / The recovery in prices with respect to 2008 is leaving disparate scenes. The gap between the most expensive area of Madrid, on Calle Serrano, and the most affordable district, San Cristóbal, amounts to 61 percentage points.

In the heart of Madrid, on Calle Serrano, a 90 m2 apartment costs around €857,700 (€9,530/m2) on average, 5% less than in 2008. Meanwhile, 16 kilometres south of the Golden Mile, in San Cristóbal, those same 90 m2 cost around €78,300 (€870/m2), 66% cheaper than during the years of the real estate boom. This situation is repeated right across the country, where, in many cases, the housing market is experiencing two realities in the same city. “The current housing market in Spain is certifying the recovery of house sales and reflects that there is still scope to acquire homes at much lower prices than 10 years ago”, said José María Basañez, President of TecniTasa.

Despite the high degree of activity in the sector at the moment, with increases of around 5%, it is not uncommon for people to buy a home now for less than it would have cost in 2008. In 2017, house prices were 35% below the peaks of the real estate boom, according to a Report about housing Maximums and Minimums prepared by the appraisal company TecniTasa. The situation changes as you approach the hot spots of the main capitals. The difference between the most expensive and most affordable areas of Madrid is 61 percentage points, of Barcelona is 38 points and of Sevilla is 54 points. The most affordable homes in the Andalucían capital are found in the areas of Amate/ Pino Montano/Macarena Norte and Bellavista (€990/m2), nevertheless, it is one of the few areas where prices are higher than they were a decade ago (up by 24%). It is followed by La Rambla de Pedro Lezcano in Telde (Las Palmas) where prices have risen by 9.7%; the centre of Orense (5.7%); Las Gándaras (Lugo), where prices have risen by 4.4%, and the historic centre of Toledo (1%).

The fact that the most luxurious homes are still 30% cheaper than they were in 2008, on average – on c/Serrano and Paseo de Gràcia, they exceed €9,000/m2 – and the most affordable homes are still 40% lower – in El Pilar de la Estación (Toledo) and Barrio Guinea (Castellón), they cost around €400/m2 – “is one element to take into consideration when making a purchase decision”, explain sources at the appraisal company.

Original story: Expansión (by I. Benedito)

Translation: Carmel Drake

26 Spanish Real Estate Experts Share Their Predictions for 2018

6 January 2018 – Expansión

House prices will rise by more than 5% on average this year, with increases of more than 10% in the large cities. These gains will happen in a context of great dynamism in the market, in which house sales will grow by more than 10% to exceed 550,000 transactions. Rental prices will also continue to rise.

Those are just some of the predictions made by 26 real estate experts for Expansión.

Aguirre Newman: “House prices will grow by more than 10% in Madrid and Barcelona”.

“In our opinion, house prices are going to continue to rise in 2018, reaching average growth rates of 6%-7%”, says Juan Riestra (pictured above, top row, second from left), Director of the Residential Area at Aguirre Newman. “In Madrid, Barcelona and the coastal cities, we expect to see double-digit growth, driven by the supply of new homes that the property developers have announced, which will result in an even more intense increase in prices than seen in 2017 since new build home are typically more expensive than second-hand properties”, he adds (…).

Fotocasa: “New build homes will have a higher profile in 2018”.

“New build homes will have a higher profile in 2018, as we have already seen during the last quarter of 2017. And that, combined with the return of confidence to the housing market, will continue to push prices up if the economic context is maintained and the situation in Cataluña is resolved”, says Beatriz Toribio (pictured above, bottom row, second from left), from Fotocasa, who thinks that this effect will drive up house prices by more than 5%, but not reaching double-digits (…).

Universitat Pompreu Fabra: “Everything depends on the situation in Cataluña”.

“The upward momentum in the market will be accentuated in 2018 due to the improvement in the new build market since the homes that started to be built two years ago are now being sold”, said José García Montalvo (pictured above, top row, second from right), Professor of Economics at the Universitat Pompeu Fabra. “The major change is that new homes now account for 20% of the market, whilst before they represented 60%” (…). But “everything depends on the political uncertainty in Cataluña” (…).

Arcano: “Demand for investment in housing will continue to grow”.

“There is still a very significant imbalance in terms of demand, spurred on by the ECB’s policy and labour improvement, and a supply that is still restricted by the very low level of new house starts. Moreover, demand for housing as an investment will continue to grow. In this context, prices will rise by more than 5%”, says Ignacio de la Torre, Chief Economist at Arcano (…).

Notaries’ Centre for Statistical Information: “We expect house prices to increase by more than 5%”.

“On the basis of our analysis of the available information, we expect house prices to grow by between 5% and 10% in 2018 (…). Although we expect the housing stock to increase, due to greater investment and employment in construction in recent months, which may lead to price rises being contained, we also expect an increase in demand, given the dynamism of economic activity and the behaviour observed in the labour market”, says Milagros Avedillo, at the Notaries’ Centre for Statistical Information. In her opinion, the growth in mortgage loans will be single-digit.

Asprima: “Very few new homes will be built”.

“I don’t think that the volume of transactions will increase by more than 10% and the forecast for price growth will be below 5%”, says Carolina Roca, Vice-President of Asprima. “The most important macro-factor is income”, she laments. Therefore, prices cannot rise by much, in her opinion, although they will increase in certain areas. “New builds will recover in 2018, but not by much (…)”.

Tinsa: “The reduction in the unemployment rate will boost the market”.

“The residential market will record moderate price growth in 2018 (of between 3% and 4%), similar to that seen in 2017, with different speeds, depending on the region”, says Pedro Soria (pictured above, bottom row, second from right), Commercial Director at the appraisal company Tinsa. “The recovery will expand to more areas; the large capitals will continue to be the drivers, although the rate of growth will soften”, he adds. “The reduction in the unemployment rate and continuing investor interest, due to the prolongation of the low-interest rates, will increase house sales by between 10% and 15% (…).

Sociedad de Tasación: “New house prices will rise by 5.4%”.

“Applying our predictive model to the data from the Ministry of Development, we estimate that 14.1% more house sales will be completed in 2018 than in 2017 (…)”, says Consuelo Villanueva (pictured above, top row, far left), Director of Institutions and Key Accounts at Sociedad de Tasación. “The result (…) indicates growth of 5.4% in the price of new homes under construction for the average of provincial capitals in 2018 (…)”.

Gesvalt: “Mortgage lending will rise by around 15%”.

“According to the forecasts at Gesvalt, we predict moderate growth in second-hand house prices of around 5% at the national level, although there will be notable differences between provinces”, says Sandra Daza (pictured above, bottom row, far right), Director General at Gesvalt. (…). And by how much will mortgage lending grow? “By around 15% and there will be a slight increase in the number of mortgages that exceed 80% of the total property value”.

Foundation of Real Estate Research: “The political uncertainty will weigh down on Barcelona”.

The President of the Foundation of Real Estate Research, Julio Gil, believes that house prices will rise by “between 0% and 5% in 2018. “We will move to a three-speed market”, he thinks, referring to consolidated areas, cities in recovery and provinces with a surplus supply and/or limited demand. “And I think that Barcelona will perform less well than Madrid, weighed down by the political uncertainty”, he adds (…).

Pisos.com. “Mortgage lending will rise by more than 10% for the fourth consecutive year”.

According to Ferran Font, Head of Research at Pisos.com (…) “Historically low interest rates and the decrease in unemployment mean that we expect mortgage lending to grow at double-digit rates in 2018, like it has done for the last three years”.

General Council of Real Estate Agents: “The rise in rents will lead to tension in sales prices”.

“House prices will grow by around 5% in 2018, driven more by the refuge effect of savings than by objective economic variables”, says the President of the General Council of Real Estate Agents, Diego Galiano. “Savings are not being rewards and housing is recovering a certain degree of stability and offering good prospects for investors (…)”.

TecniTasa: “Prices will grow by around 5%”.

“On average in Spain, we estimate price growth of around 5%, but we highlight that that figure represents an average of a very heterogeneous market, by area and asset class. In some regions and for certain types of high-end homes, the increase will amount to between 5% and 10%, and may even exceed 10% (for example, in the Balearic Islands). Whilst in small towns and for cheaper homes, prices are barely expected to rise at all in 2018”, says José María Basáñez, President of TecniTasa (…).

Civislend: “The mortgage war will intensify”.

“The growth that we will see in terms of mortgage lending is going to continue to reflect double-digit rates and the war in terms of granting loans by financial institutions is going to intensify”, says Manuel Gandarias, Director and Founder of the real estate crowdlending platform Civislend (…).

Acuña & Asociados: “80% of sales will be made in 400 towns”.

“Given the current situation, the expected growth in prices at the national level for 2018 will amount to around 5.5%”, forecasts Luis Rodríguez de Acuña. However, “demand for housing is not behaving in a homogenous way across the country, and transactions are only being recorded in 1,300 of Spain’s 8,125 municipalities”. In other words, in one out of every six. And 80% of transactions “are being closed in just 400 municipalities (…)”. (…).

CBRE: “The sale of new homes will continue to gain weight”.

The value of homes will increase “by around 5% YoY at the national level, with higher rises (between 7% and 10%) in certain markets such as Madrid, Valencia, Málaga and the Balearic Islands”, predicts Samuel Población (pictured above, top row, far right), National Director of Residential and Land at CBRE (…). “Sales of new build homes are going to increase their relative weight (with respect to second-hand homes) as a result of the recovery in construction output; nevertheless, the recovery will not have an immediate impact on transaction volumes given the time lag associated with new build developments”, he says.

BDO: The land market is preventing soaring construction output”.

“We are facing a very favourable macro context (GDP and employment, above all) and therefore, an upwards cycle is likely, which will have different regional rates”, explains Alberto Prieto, at BDO. (…). “The launch of new build projects by the new large players will start to be felt in 2018, and then more intensely in 2019”, he adds. “The situation in the land market makes it unfeasible for the volume of new build homes to soar for the time being”, he says.

Foro Consultores Inmobiliarios: “Fixed-rate mortgages will play an important role”.

Carlos Smerdou, CEO at Foro Consultores, believes that “new build homes will drive the market and that recent land transactions indicate that the trend in terms of prices will be upward, of between 5% and 10%” (…). In terms of fixed-rate mortgages, “they will play an important role”, despite the fact that “interest rates are forecast to remain negative”.

MAR Real Estate: “Banks are still reluctant to grant the necessary financing”.

Rosario Martín Jerónimo, representative of MAR Real Estate in Marbella, believes that house prices will grow by more than 5% in Spain this year, on average (…). Nevertheless, she does not think that sales or mortgage lending will be as high in 2018 as they were in 2017 and that the growth rates will remain below 10% in both cases. “Buyers are willing but the financial institutions are still very reluctant to grant the necessary financing”, she explains. “Many property developers are completely financing their projects using money from private investors/buyers, without any support from the bank”, she says (…).

uDA (urban Data Analytics); “Prices will rise by more than 10% in the large cities”.

“House prices will rise by around 6.9% in 2018, although the behaviour will be tremendously heterogeneous”, warns Carlos Olmos, Director of urban Data Analytics. In other words, there will be “some large cities with growth rates of more than 10% and many other capitals with small decreases” (…).

Gonzalo Bernardos, Professor of Economic: “House prices will rise by 11% and sales volumes by 23%”.

“I think that house prices will rise by 11%”, says Gonzalo Bernardos, Director of the Real Estate Masters at the Universidad de Barcelona (…). Moreover, in macroeconomic terms, it is the best scenario for the residential market: high (economic) growth (around 3%), the creation of employment, scarce new build supply (new build permits will amount to 125,000 in 2018), very low interest rates and bank willingness to grant mortgages”. “House sales will rise by around 23% and mortgage lending will increase by 17%”.

Irea: “House prices will rise by more than 7% in consolidated markets”.

Mikel Echavarren (pictured above, bottom row, far left), CEO of the real estate consultancy and advisory firm Irea, forecasts that house prices will rise by between 5% and 10% in 2018 with respect to 2017. “In consolidated markets, the increases will be closer to 7%”. (…). In the mortgage market (…), “in theory, financing conditions will continue to be very beneficial for buyers and property developers”, he adds.

College of Registrars: “Mortgage lending will grow by around 20%”.

The registrars believe that house prices will rise by less than 5%. “Taking into account our data and the slowdown that is already being seen in Cataluña, which accounts for approximately 17%-18% of the Spanish housing market (…), we think that it will be hard to exceed a growth rate of 5% in 2018”, explains Fernando Acedo Rico, Director of Institutional Relations at the College of Registrars. (…). Something similar will happen with mortgage lending, which “will continue to grow at around 20%”.

Idealista.com: “Madrid will drive the price rises”.

According to Fernando Encinar, Head of Research at the real estate portal Idealista, house prices will rise by less than 5%. (…). “There will be cities that will experience a more acute recovery, such as Málaga, Valencia, Sevilla and the islands. But I think that Madrid is going to be the real driver, with even more accelerated price growth”. Why? “The Spanish capital is gobbling up talent and investment, and demand there indicates that prices are going to continue to rise. There is minimal stock left in Madrid (…)”.

Instituto de Práctica Empresarial: “In 2018, 550,000 homes will be sold in Spain”.

According to the Director of the Real Estate Chair of the Instituto de Práctica Empresarial, house prices will rise by 6.1% in 2018 (…). In Spain, 550,374 homes will be sold, which represents 14.5% more than in 2017, despite the sluggishness that may be seen in Cataluña.

Invermax: “Tourist areas may see price rises of 10%”.

Jesús Martí, Real Estate Analyst at Invermax, thinks that “house prices will grow by another 5%, with this average varying between the large cities and the traditionally touristy coastal areas, where they may rise by 10%”. “It is still a good time to buy a home, especially for investors”, he adds (…).

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Spain’s Rental Market Is Thriving, Boosted By Buy-To-Let

9 January 2016 – Expansión

Thanks to strong investor appetite / The high profitability of residential investments has increased expectations in the rental market, given that it is the option now chosen by 21% of Spaniards. Experts forecast rental price rises of more than 5%.

The rental market closed 2016 with price rises of 6.7%, but in many large cities, the increases were in the double digits. The difficulties facing young people when it comes to affording a home, the emergence onto the market of hundreds of thousands of homes that were empty and the high returns of real estate investments have increased expectations for this residential option, once forgotten in Spain and which is now the alternative chosen by 21% of Spaniards.

This year, “given that interest rates are not expected to rise in Europe over the medium term, housing will remain attractive as an investment asset”, said Jorge Ripoll, Director of Research at Tinsa. “Speculative demand will push more and more savers towards the sector”, predicts Miguel Cardoso, Chief Economist for Spain at BBVA Research.

In this context, the consensus of the panel of real estate experts consulted by Expansión is that the rental boom will not only continue during 2017, but that the rises may even be larger, especially in the large cities. Julián Cabanillas, CEO at Servihabitat, highlighted that his forecasts indicate an average YoY growth in rental prices “of more than 10%”.

The increase in prices will be “particularly noteworthy in the large cities, whose weight over the national average is also more significant”, added Cabanillas, who warned that: “If prices continue to rise in the double digits, many households will be priced out of the market, particularly those formed by young people”.

The President of Tecnitasa

José María Basañez points out that “during the last few months of 2016, the rental market in Spain was more robust than the market for house sales”, a trend that will continue into 2017, in his opinion. “Therefore, we may well see price rises of more than 5%, on average”. (…).

Other analysts, such as Julio Gil, Chairman of the Foundation of Real Estate Studies, and José García Montalvo, Professor of Economics at the Pompeu Fabra University, think that the rental price rises will be more moderate. Nevertheless, like in the case of house prices, “there will be areas where rental prices will grow more quickly (such as in Madrid, Barcelona, the Canary Islands and the Balearic Islands)”, said Montalvo.

“The rental market is here to stay in Spain. We are seeing a change in mentality, with more and more people convinced that it is the way forward”, says Beatriz Toribio, Director of Research at Fotocasa.

House prices are also rising

Finally, it is worth noting that two new phenomena are being seen in the rental market. On the one hand, rental prices are rising and the volume of house sales are increasing, as Jaime Cabrero, President of the Real Estate Agents’ Association in Madrid, explains. On the other hand, the rise in rentals is making house purchases more expensive, according to Juan Fernández Aceytuno, Director General at Sociedad de Tasación: “The rental market is causing house prices to rise because there are increasingly more investors who are buying properties to rent”. “The high returns offered on buy to let properties are behind the tensions in terms of prices that we have been seeing and will continue to see in 2017”, adds Toribio.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

TecniTasa: Spain’s Most Expensive Homes Cost €10,000/m2+

21 November 2016 – Expansión

(…). The latest report from the appraisal company TecniTasa reveals some surprising, and some traditional, conclusions about Spain’s real estate market. For example, Calle Serrano in Madrid is still the most exclusive in the country, with a maximum price of €10,246/m2. In other words, a 100 m2 flat on that street can cost more than €1 million.

Barcelona is the second ranked city for the most expensive housing per m2. The maximum appraisal value per m2 in the Cataluñan capital amounts to €8,957/m2 on Paseo de Gracia. That represents an increase of 6% compared to 2015, but is 12.6% less than the most expensive homes on the Madrilenian Calle Serrano, whose marginal price depreciated by 6% this year, even though the average price in the neighbourhood of Salamanca continued to rise.

It is worth remembering that TecniTasa does not measure the average price of luxury homes in cities, but rather the maximum price in the most expensive areas.

San Sebastián is placed third in the ranking, at €6,820/m2, for homes the area between Avenida Libertad, Boulevard, Plaza Guipúzcoa and Calle Hernani, in the city centre and very close to the La Concha beach. That price is 11% higher than in 2015.

Puerto Banús, in Marbella (Málaga), is the fourth most expensive area. A 100 m2 home in this exclusive enclave on the Costa del Sol can cost up to €555,900. It is followed by Bilbao (€5,500/m2, on Plaza de Euskadi), Santander (€5,359/m2, in El Sardinero), Pamplona (€5,048/m2, on Paseo Sarasate) and Las Palmas de Gran Canaria, where a beachfront apartment on Las Canteras beach can cost €4,561/m2.

“House prices are mainly rising in the cities in the north and east, as well as on the islands. We expect that these increases will spread and consolidate in the rest of Spain, as a result of the greater political stability afforded by the formation of the Government and the overall improvement in the economy”, said José María Basáñez, Chairman of TecniTasa. (…).

By autonomous region

In Andalucía, it is noteworthy that luxury homes in Marbella, as well as in Cádiz (€4,545/m2, on the Paseo Marítimo) and Málaga (€4,200/m2, in La Malagueta) are more expensive than in the capital, Sevilla (€4,141/m2, in the area around the cathedral). It is also worth highlighting that the most expensive homes in Jerez saw price increases of 8%.

Meanwhile, the most expensive street in Palma de Mallorca, the Paseo Marítimo, saw an increase of 5%, to €3,276/m2. (…).

In Castilla y León, significant decreases were recorded in Burgos – with a decrease in maximum prices of 8%, to €2,186/m2 -, as well as in Palencia (-3%) and Valladolid, where the most expensive street saw a price decrease of 3% to €4,559/m2, although it is still the most expensive capital in the autonomous region.

TecniTasa’s report also highlights the most affordable areas in each province. Talavera de la Reina (Toledo) is the cheapest, at €317/m2. It was followed by Castellón (€363/m2), Huesca (€392/m2), Elche (Alicante, €399/m2), all with streets where the house price per m2 falls below the psychological barrier of €400/m2. (…).

The highest increase was recorded in Zamora, where minimum prices rose by 20% with respect to 2015, to reach €944/m2 in the Pinilla and San Ramón area. Minmum prices in Madrid rose by 16% with respect to last year, to reach €723/m2 in San Cristóbal de los Ángeles. (…). In Barcelona, the cheapest homes are located in Ciutat Meridiana, at €1,143/m2.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Overseas Funds Are Behind Madrid’s New Luxury Homes

12 April 2016 – El Confidencial

British, German, Luxembourg, American…international investment funds are behind the majority of the super-luxury residential projects currently underway in the centre of Madrid. Foreign capital has established a strong foothold in the Madrilenian residential market, to become an undisputed protagonist of major land purchases – examples include InmoGlacier and Aquila Capital’s purchase of Parque Ingenieros in Villaverde from Sepes –, corporate operations – Lone Star’s purchase of Neinor, the real estate arm of Kutxabank –, and housing developments, which has become a great luxury product over the last year. (…)

The well-known firm Pimco (USA), which is leading the iconic Juan Bravo 3 project together with Lar España – which has just managed to record a 7% valuation increase – has been joined by names such as Eurostone (Luxembourg), Patrizia Inmobilien (Germany) and UK & European Investment (UK), which regard the luxury residential segment as a goldmine in light of the resurgence of the real estate market in Spain.

Between them over the next few months, they will put more than a hundred high quality homes on the market, in the most exclusive neighbourhoods of the capital, where the supply of new homes for sale is very scarce. (…).

Luxury homes in EFE’s former headquarters

The trickle of operations has been constant in recent months. The latest, closed just a few days ago, was Eurostone’s purchase of EFE’s former headquarters on Calle Espronceda 32-34 from BBVA. The fund plans to develop a residential project on the site, containing 46 luxury homes with up to four bedrooms, terraces, gardens, a swimming pool, gym and almost 230 parking spaces. Eurostone is working with Mina Inmobiliaria on this project (…).

And that is not the fund’s only project of this kind – i.e. with a good location and high quality -. Eurostone is also managing…the property located on Calle Génova 7 (pictured above), right on Plaza de Alonso Martínez, in the exclusive neighbourhood of Almagro.

Meanwhile, Mina Inmobiliaria has several super-luxury projects underway in the capital, not only with Eurostone, but also with AKM Real Estate, funded by Spanish capital, constituted at the end of 2014 with the aim of acquiring residential properties in Madrid and Barcelona.

One of the most striking developments is on Calle Menéndez Pelayo, 41, opposite El Retiro park – acquired for €12.6 million -. A renovation project where more than twenty homes will be constructed with an average price that will range between €7,000/m2 and €8,000/m2. Other buildings are also being renovated on Calle Modesto Lafuente, 18, Calle Barquillo, 11 and Calle García de Paredes.

Another actor to have emerged onto the scene in recent months is the German firm Patrizia Inmobilien. At the beginning of February, it purchased the building located on Calle Claudio Coello 108 for €22 million from Lar España and Pimco. It plans to construct 14 luxury homes there, measuring around 300m2, with two or three parking spaces per home. According to a recent report compiled by the appraisal company TecniTasa, the market value of those homes may reach €10,900/m2.

Juan Bravo 3 – Pimco and Lar’s flagship project

This building is located just 50 metres away from what will undoubtedly be the flagship project of the high-end market in the capital, Juan Bravo 3, which has been renamed Lagasca 99. (…).

For the time being, no details have been revealed about the project in terms of the number of homes and prices. Nevertheless, several sources indicate that around fifty homes will be constructed on the 2,250 m2 site, measuring between 250m2 and 450m2 each, and prices are likely to reach €10,000/m2, on average, with the most affordable homes costing around €8,000/m2 and the most expensive costing around €14,000/m2.

Just a kilometre away, in Plaza San Juan de la Cruz, next to Nuevos Ministerios, another project will be constructed over the next few months. This is the former tenement building that Pontegadea, the investment arm of Amancio Ortega, sold a few months ago to the Catalan property developer Uniq, which specialises in the development of luxury homes.

According to sources, Uniq will construct 41 homes, in other words, it will be responsible for the development of the project, but another company, the British fund UK & European Investment, put up the capital to close the deal, which amounted to €20 million. (…).

Original story: El Confidencial (by Elena Sanz)

Translation: Carmel Drake

Patrizia Acquires Claudio Coello 108 For €22M

3 February 2016 – El Confidencial

Yesterday (Tuesday), the German fund Patrizia Inmobilien completed the purchase of a residential building on Claudio Coello, 108 for €22 million, from Grupo Lar and Pimco, according to sources close to the deal.

Specifically, the property, which is currently vacant, has a surface area of 5,318 m2 and previously formed part of the operation to purchase Juan Bravo, 3. In fact, the building is located just a few metres from that plot, which houses one of the most highly anticipated luxury developments in the capital. The building acquired yesterday will be converted into 14 luxury homes, measuring 300 m2 each, with two or three parking spaces per flat.

According to the latest report prepared by TecniTasa, these homes could have a market value of around €10,900/m2. Patrizia Inmobilien will undertake a complete renovation of the property, which will require an additional investment of €7.5 million – equivalent to around €1,500 per m2 – and the company expects the building work to take 18 months.

Patrizia is one of the largest investment funds in Europe, with a presence in 14 countries and total funds under management of €18,000 million. 40% of its portfolio is invested in residential assets, equivalent to approximately €8,000 million.

The fund arrived in Spain last year, led by Borja Goday, the head of Patrizia in Spain, and the former CEO of Sotogrande, with the intention of investing €1,000 million in the Spanish market. It closed its first operation in July last year with the purchase of the H&M store in Málaga from the Nergosa group and it raised its profile further by participating in the bid for Torre Espacio.

With this operation, the fund becomes one of the new players in the luxury residential market in the capital and demonstrates its strong commitment to the real estate recovery in Spain, given its conservative profile, in comparison with the speculative capital that has entered the market in recent years.

BDO has advised the vendor, whilst the firms CMS Albiñana and MMM have advised the purchaser.

Original story: El Confidencial (by R. Ugalde and E. Sanz)

Translation: Carmel Drake

Calle Serrano: The Most Expensive Street In Spain

4 March 2015 – Cinco Días

Tenants now pay rents of €32 per square metre on the exclusive Madrileñian shopping street

The most expensive rents in Spain are paid on Calle Serrano in Madrid (€32 per square metre), followed by the Paseo de Gracia in Barcelona (€29 per square metre).

According to a study conducted by TecniTasa, after these iconic streets in Madrid and Barcelona, the next most expensive rents in Spain are paid in Pamplona, where tenants are charged more than €25 per square metre.

Rental costs in Santander, Marbella and Cádiz now exceed €17 per square metre, and so these cities replace La Coruña, San Sebastián and Bilbao in the list of most expensive rental prices.

By contrast, the report indicates that the lowest rents are paid in the cities of Castellón, Elche, Huelva, Almería, Granada and Torrent, in Valencia, where the cost per square metre amounts to less than €2 per month.

The study concludes that house rental prices are continuing their downward trend in Spain, however these decreases are more significant in the more expensive areas, whilst the prices in the cheapest neighbourhoods are showing slight increases in some cities.

Rental housing on one of the iconic streets of cities such as Madrid, Barcelona, Pamplona, La Coruña, San Sebastián and Bilbao costs more than €2,000 per month.

This data contrasts with the values charged in the cheapest neighbourhoods of Alicante, Elche, Almería, Castellón, Granada, Huelva and Torrent, where it is still possible to rent a home for less than €200 per month.

Original story: Cinco Días

Translation: Carmel Drake