Excem to Promote 5,000 Luxury Homes in the Costa del Sol & Murcia

21 November 2018 – Eje Prime

Excem is increasing its commitment to the luxury residential sector. The company owned by the Hatchwell family has set itself the objective of promoting 5,000 luxury homes on the Costa del Sol and Murcia, within the context of the development of its LOV Real Estate division. To launch these homes, which will follow in the footsteps of a development on Calle Fuencarral in Madrid, Excem has created the brand Solomon Homes.

Excem’s plans with LOV Real Estate involve starting to promote its entire land bank in 2019. The first projects to be commercialised in the south include four promotions in Condado de Alhama, one of the best resorts on the Costa Cálida. In that complex, LOV has already started work on the construction of Villa Primavera, Villa Amapola and Villa Atardecer, as well as Edificio Poniente. The company plans to hand over those homes next summer.

Further south, on the Costa del Sol, the property developer is finalising the signing of several projects with “the same model of avant-garde and unique architecture” in the area, on the fashionable coastline of the Spanish residential market. The company expects to achieve a return of more than 20% in each of its projects.

The starting point for luxury

Nevertheless, Excem’s starting point with LOV Real Estate will be a 25-home development on Calle Fuencarral in Madrid. The group’s first development will involve an investment of €14 million and will be located at number 142 of the Madrilenian street, right in the heart of the Spanish capital.

The company has already started work and its pre-sales amount to 80% with just four homes left to market. The buyers include investors and architects, explain sources at Excem (…).

The property developer plans to handover those homes, which will have between one and three bedrooms, before the end of 2019. The homes will have surface areas ranging from 55 m2 to 175 m2, and prices starting at €400,000, and going up to €1.5 million (…).

Excem: true to its roadmap 

The last investment vehicle launched by Excem Real Estate, the real estate division of the Excem Group, was Siwork, specialising in co-working and for which the group has partnered with WeWork, as Eje Prime revealed. With Excem Capital Partners Siwork, the group stays true to its roadmap: to be present in the Spanish real estate sector with three Socimis, diversified by type of asset and focused on millennial clients.

The first of the three companies launched by the Israeli family in Spain was Excem Capital Partners Sociedad de Inversión Residencial. Specialising in rental housing aimed at millennials, the company debuted on the Alternative Investment Market (MAB) in July worth €17 million. Currently, the company owns 28 assets in Spain and has several shareholders ranging from private investors to business people and family offices.

Besides Excem Capital Partners Sociedad de Inversión Residencial, the Hatchwell family also operates in the Spanish real estate sector with Situr, a firm specialising in tourist properties such as apartments and hostels. The investment target for this second Socimi is approximately €250 million between now and the rest of 2018. The company has set itself the objective of having 3,500 beds in a dozen buildings, located primarily in Madrid and Barcelona, as well as in other tourist cities around the country.

With the activation of Siwork, the plans for this new company involve carrying out an investment of €200 million to acquire a dozen buildings in Spain’s main cities.

The Hatchwell family’s links with the real estate world date back to the beginning of the 1970s, when Mauricio Hatchwell Toledano founded the group, specialising first in cement and later in technology and real estate. Nowadays, the company is led by his children David, Philip and Kareen Hatchwell Altaras.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Sharp Fall in House Purchases by Brits in Alicante due to Brexit

29 December 2017 – El Boletín

A survey of real estate professionals conducted by the College of Real Estate Agents (API) of Alicante reveals that Brexit is having a significant effect on the real estate market in the region. The research indicates that many areas in the province, in particular along the coast, have experienced a notable decrease in the volume of house sales to British buyers in 2017 and that this trend is forecast to intensify in 2018.

The API College of Alicante points out that “traditionally, Brits have represented one of the largest groups of house buyers in Alicante, the province where the most homes and apartments are sold to foreigners in all of Spain”. Some of the Real Estate Agents are certain that 2017 has seen the lowest volume of sales to British citizens in decades”, although the situation is not being replicated with other overseas buyers.

Moreover, API’s research also shows that the decrease in sales to British citizens does not necessarily mean a reduction in the volume of purchases by foreigners, given that the gap being left by the Brits is being covered by foreigners from other countries. The report indicates that Belgians, Dutch, French, Norwegians, Germans and Russians will be the most active house buyers in 2018. People from up to 125 different countries are now buying homes in the province of Alicante.

Moreover, Brexit is not only affecting house purchases, it is also being felt in that more and more British citizens are putting their properties up for sale in the province of Alicante. In summary, more than 90% of the Real Estate Agents that work with foreigners have already felt the effects of Brexit on their operations and are convinced that the trend may yet intensify further during the course of next year.

Prices on the rise

Another conclusion from this study is that “nine out of every ten APIs interviewed are convinced that house prices in the province of Alicante will continue to rise in 2018, with increases that could range between 3% and 10%, depending on the area and type of home”. The average forecast increase in house prices amounts to around 5% in the province of Alicante as a whole.

The Real Estate Agents are also convinced that, after a year marked by the recovery of the sector, 2018 is going to be a year in which house purchases will continue to rise. “The second-hand market is going to continue to perform well, but 2018 will probably be the year in which new builds start to take off again, in towns where there is still land available”, explained Marife Esteso, President of the API College of Alicante.

In 2018, the worrying upward trend in the rental market is also expected to continue, where the gap between high demand and scarce supply, together with the diversion of homes to holiday lets, means that prices are going to keep rising. In this sense, many real estate agents indicate that the rise in holiday rentals is being driven not only by the higher returns on offer but also because holiday lets allow owners to avoid the problems of non-payment and property damage that are typically caused by long-term tenants.

Original story: El Boletín (by E.B.)

Translation: Carmel Drake

Why Are Spain’s House Price Rises Concentrated Is So Few Regions?

11 September 2017 – Cinco Días

It is becoming increasingly more apparent, with the statistics on the table, that when we talk about the recovery of the real estate market, in reality, we are referring to just a few markets. The Index of House Prices (IPV) published on Friday by Spain’s National Institute of Statistics (INE) shows this very clearly.

The study, which INE prepared using data provided by the notaries, concludes that house prices rose by 5.6% on average during the second quarter of this year compared to the same period last year. In this way, in isolation, it seems that rather than recovering, the market is heading directly towards another bubble, given that the aforementioned figure is no more and no less than three and a half times the level of inflation (which amounted to 1.6% in August). Nevertheless, an analysis of the figure by regions shows that the gulf between what is happening in one region and what is happening in others is persisting and even intensifying in some cases.

Madrid led the ranking of real estate price rises for another quarter. Homes in the region rose by 10.9% per annum on average during Q2, compared to 10.6% p.a. the previous period. In this way, price increases consolidated and even accelerated by three decimal points, the same increased recorded by the national average, which rose from 5.3% in Q1 to 5.6% in Q2.

The second region with the highest price rises was again Cataluña, where the recovery accelerated by even more (five decimal points) up from 8.8% to 9.3%. And the podium of the top three regions where house prices are rising the fastest was completed by the Balearic Islands, where the increase rose by almost two percentage points to 7.4% in Q2, up from 5.5% in Q1.

Beyond those three autonomous regions (…), the truth is that the price rises are proving a lot more moderate. In fourth place is País Vasco, where prices rose by 4.5% on average in Q2, followed by Cantabria, at 4.1%.

These increases contrast significantly with, for example, the 2.4% recorded in Andalucía, a region with a high proportion of tourist housing, and the Community of Valencia, where house prices rose just above the rate of inflation, by 1.8% p.a. in Q2, i.e. by one tenth less than the previous quarter.

In Castilla-La Mancha, Extremadura and Murcia, house prices rose by less than 1%. And Asturias was the only autonomous region where house prices decreased, by 0.3%, in Q2, after rising by 1.4% in the previous quarter.

How come the national average is 5.6% then? Essentially, due to the greater weight that the transactions undertaken in those regions that have the most expensive homes.

New builds

Another phenomenon that INE highlighted in its explanatory note that accompanied the data is the different behaviour in terms of the prices of new homes and second-hand properties. The first saw their prices increase by one percentage point less (4.4% in Q2 compared to 5.5% in Q1). The reason for that deceleration is that increasingly more developments are being started in places where companies are detecting that more demand exists. And since the supply is increasing, so the price rises are, logically, more moderate.

By contrast, in the case of second-hand homes, the recovery in prices remained above 5% p.a. for another quarter and accelerated to increase by 5.8% on average in Q2 compared to 5.3% in Q1.

In this way, house prices have now recorded thirteen consecutive quarters of increases, in other words, they have been rising for just over three years. However, according to various studies, they are still more than 40% below the maximum prices recorded between the end of 2007 and the beginning of 2008. (…).

In terms of the future, Moody’s estimated recently that house prices will continue to rise by around 5% p.a. until 2019 (…).

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake