Congress Approves the New Rental Act

3 April 2019 – Eje Prime

On Wednesday, Congress approved the decree law containing the latest measures to regulate the rental market. The PSOE, Unidos Podemos, Esquerra Republicana, PDeCat, PNV, Compromís and EH-Bildu all voted in favour of the law; the PP and Ciudadanos voted against it; and the UPN abstained.

The decree containing the urgent rental measures entered into force on 6 March after being approved by the Council of Ministers. The law limits increases in rental prices to the rise in the Consumer Price Index (CPI) and extends the duration of contracts from three to five years, amongst other measures.

The bill also grants town halls and autonomous communities the power to decide their own housing policies in accordance with their respective fiscal frameworks.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

TM Grupo Inmobiliario to Invest €307M in a New Project in Murcia

25 February 2019 – Alimarket

TM Grupo Inmobiliaria has just added a new project to its portfolio in Murcia, which is going to be located in Águilas and which will be constructed over the next ten years.

In this way, last Thursday 21 February, the firm presented the urban plan know as the Partial Plan SUNP-II Costa Playa de la Cola alongside the Town Hall of Águilas. The project will involve an investment of €307 million, as well as the creation of 5,133 jobs over the ten years that its execution is expected to take place. Present at the event were Mari Carmen Moreno, mayor of Águilas (pictured above, second from left); Tomás Consentino, councillor for Town Planning (pictured above, second from right); Cristóbal Ruiz, Director of Development at TM Grupo Inmobiliario (pictured above, far left); and Agustín Rodríguez, architect of the project (pictured above, far right).

The Partial Plan SUNP-II Costa Playa de la Cola in numbers

Specifically, the future development, which will be similar to Mar de Pulpí in San Juan de los Terreros (Almería) forecasts the construction of 2,313 tourist homes in total, and also reserves one plot for hotel use. Moreover, and with the aim of becoming an example of sustainable development, the project will dedicate 270,000 m2 to a public natural park, which will include more than 7km of scenic routes along natural paths with lookouts and picnic areas. It will also have 130,000 m2 of public parks and gardens (…).

Grupo TM Inmobiliario, which has set itself the objective of handing over 4,000 homes between 2018 and 2020, is also present in the hotel segment (…) and recorded sales of €222.53 million in 2017, up by 45.8%.

Original story: Alimarket (by Mónica de la Fuente)

Translation: Carmel Drake

The Plans Progress for Málaga’s La Térmica Site

9 January 2018 – Málaga Hoy

The real estate operation that is going to transform the plot of land that used to house the thermal power plant in Málaga capital is advancing through all of the administrative procedures that need to be resolved for the organisation of the 874 homes, office buildings, hotel and retail spaces that are being planned for one of the most strategic blocks of land in the city.

So much so that sources close to the initiative, boosted by the international investment fund Ginkgo, have reported that the final proposal for the Special Plan for the Internal Renovation (Peri), the document that will form the basis of the future development, has already been sent to the Urban Planning Department.

That is a critical step after the previous plans were blocked by the courts. Even before receiving a definitive legal ruling, the property developer, which shares ownership of almost half of the urban development of the sector with Espacio (the other half is in the hands of the Town Hall), opted to activate a comprehensive review of Peri, in an attempt to accelerate the process.

Once in the hands of the municipal technicians, the Town Hall will have to validate the proposed plans initially, before subsequently opening up the analysis to a series of sector bodies, such as the General Directorate of Coasts, Civil Aviation, the Environment, amongst others.

The design of the buildings was awarded by Ginkgo to the French architecture studio Francois Leclercq. Unlike the model for the towers that are going to be constructed on an adjoining plot (…), the vision proposed by the French designers involves low-rise properties and a sustainable model in terms of the environment.

The studio itself highlights the strategic value of the space on which the buildings will be constructed, describing it as “an area that is in full mutation and which is marked by an industrial past”, which is reflected in the maintenance of the chimney (…).

Original story: Málaga Hoy (by Sebastián Sánchez)

Translation: Carmel Drake

Spain’s CNMC Takes Madrid, Bilbao & San Sebastián to Court Over Anti-Airbnb Legislation

7 August 2018 – El País

The competition authorities are cracking down on the attempt by some of Spain’s large Town Halls to regulate the boom in tourist apartments, created by Airbnb and its competitors, which many blame for contributing to an increase in residential rental prices and the expulsion of the most underprivileged from the centre of Spain’s cities. The National Markets and Competition Commission (CNMC) announced on Tuesday that it is going to challenge the urban planning rules approved recently in Madrid, Bilbao and San Sebastián on the basis that they violate “competition” and harm consumers and users. Other rules, not yet in force, in Barcelona and Valencia, could also be targetted by the CNMC, warn sources at the agency.

Imposing a compulsory licence on those who rent their homes to tourists. Limiting the types of properties that may be leased for short periods. They are some of the measures introduced by the Town Halls that the CNMC is now challenging. And the battle doesn’t stop there. New rules that other cities decide to approve may also clash with the opinion of the market regulator, which is now sending the cases of Madrid, Bilbao and San Sebastián to the High Court of their respective autonomous regions. They will have to decide whether to admit the appeals and overturn, in part or in whole, the municipal regulations.

The body chaired by José María Marín Quemada said that it has sent a request to the three municipalities to provide explanations regarding the “need and proportionality” of the restrictions or, failing that, for those restrictions to be annulled. In the absence of a satisfactory response, the CNMC will resort to the courts through a contentious-administrative appeal. The informal talks held so far have made very clear the gulf that separates the independent body from the Town Halls.

In its note, the CNMC details the different regulations that are, in its opinion, deserving of appeal for being measures with “restrictive effects on competition”. Madrid requires a licence for the rental of tourist apartments and homes. The municipality also establishes a period of one year, extendable for one more, before new licences can be granted in areas such as the Centro district. According to the recently approved legislation, the rental of tourist apartments that do not have an independent entrance will be prohibited, which represents 95% of the homes in the city centre.

In both Bilbao and San Sebastián, the regulations limit tourist apartments to ground and first floors only, unless they have independent access from the street. In Bilbao, moreover, tourist apartments need to be authorised and registered; and in San Sebastián new tourist apartments are prohibited in certain parts of the centre.

Higher prices

The Competition authority believes that, with their decisions, the municipal teams in Madrid, Bilbao and San Sebastián “are impeding the entry of new operators and consolidating the position of the existing suppliers of tourist accommodation”. The body has announced that these measures will lead to “higher prices in terms of tourist accommodation” and lower quality, investment and innovation in tourist accommodation in those three cities (…).

The affected municipalities reacted quickly, stating that they will defend their regulations in the courts. The Town Hall of Madrid, governed by Manuela Carmena (Ahora Madrid) said that it wants to combine the defence of tourism with the rights of “citizens in our neighbourhoods”, according to Julio Núñez. “Our objective is introduce regulation that protects the residential use of land and favours competition in a sector where hostels and hotels already operate”, add sources at the Urban Planning Department (…).

Original story: El País (by Luis Doncel)

Translation: Carmel Drake

Ministry of Development: Spain Signed 60,000 New Home Permits in 2017

5 June 2018 – Eje Prime

Spain is still a long way from the dizzy heights of 2006, but its stock of housing is gradually recovering the colour it lost during the decade when the sun shone very little over the new build sector. Last year, 60,888 municipal licences were signed for the construction of new homes, which represents almost twice as many as the 31,213 permits that were granted five years ago, according to data from the Ministry of Development.

Moreover, in YoY terms, the increase in the number of licences for the construction of residential buildings was 6.5%, with even greater rises in certain autonomous regions, such as Cataluña, where the increase to November exceeded 50%.

Nevertheless, the region where most new homes are being built, Madrid, recorded a slight decline in 2017. Following a significant increase in the number of licences during the beginning of the new economic cycle, last year, that market for the construction of new homes lost speed with a decrease of 4.4%.

In total, in the Spanish capital and its surrounding area, 14,018 licences were signed last year for residential construction, a figure that doubles the number recorded in 2016, but which represents a decrease of more than 650 homes at a time when there is great demand from Spanish and international investors.

The recovery of the Madrilenian residential market is clearly understood in the increase in the number of licences for the construction of new homes experienced first between 2013 and 2015, and, more importantly, during 2016. Five years ago, 6,134 permits were signed in the central region, in an annus horribilis that followed a 2012 in which Madrid approved 17,000 licences. After that, 24 months of stabilisation in the segment with the registration of between 7,000 and 8,000 licences (in total) for new homes, proceeded a 2016 that doubled the figures with 7,500 administrative signings of contracts for residential development.

The shortage of land and the obstacles imposed by Town Halls such as Madrid’s (…) have led to a fall that is heating up the market and generating problems for the whole sector. Other autonomous regions, such as  Navarra, Aragón, Asturias and Murcia also recorded decreases in 2017, going against the tide (…) and once again showing signs that Spain is moving at two speeds in the residential sector.

Significant increases on the Mediterranean Coast 

The Mediterranean coast is proving to be the engine for new housing in Spain. Regions such as Cataluña, the Community of Valencia, the Balearic Islands and the Málagan section of the Costa del Sol are registering significant growth figures in terms of the number of licences granted for the construction of housing.

Cataluña is on a roll with the construction of homes, with an increase of 50% during the first ten months of last year. To November, 9,815 licences were signed and sources in the sector have said to Eje Prime that the forecast for the end of the year was 12,100 permits, up by 35% compared to 2016 (…).

Heading south, the Community of Valencia has developed in a similar way to the Catalan market over the last five years. It doubled its annual figures between 2013 and 2017, from 3,142 permits to 6,588, but the greatest increase came in 2016. In just twelve months, the Mediterranean region increased the number of licences from 4,712 to 6,540, up by 39%.

The markets in the Balearic Islands and Andalucía, where the Costa del Sol plays a prominent role, have also shown clear signs of improvement in recent years. On the islands, permits for new build almost tripled between 2015 and 2017 from 826 to 2,391 (…).

Meanwhile, in Andalucía, although the growth percentage was similar, the increase was calculated on a larger volume of homes. As one of the areas with the highest demand for new home permits, the region (…) closed 2017 with 12,363 licences. Just five years earlier, that figure barely exceeded 5,000 (…).

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

Viqueira Buys Plot in Vigo on which to Build 130 Homes

20 March 2018 – Inmodiario

Viqueira has recently acquired a plot for the construction of 130 homes in PERI IV-09, known as “Baixada de San Roque”. The surface area of the plot measures 1,508 m2 and a 10-storey tower, comprising 2-, 3- and 4-bedroom homes, is going to be built on the site.

Specifically, the plot is located on Rúa Morcego, in a new urbanisation that has been completed and approved by the Town Hall, and which has green space alongside it.

This new acquisition by the company forms part of its strategic plan for 2015-2020 through which Viqueira is planning a number of investments in Galicia and the Canary Islands, and which represents the start of the most important residential real estate project in Vigo.

It is not the first time that Viqueira has carried out a residential project in the San Roque area, in fact, the Vigo-based construction company has built more than 400 homes in the region, the most recent and iconic of which was the “Plaza de las Palmeras” project, undertaken by the company in the 1990s.

The company is already working on the building plans and hopes to be in possession of the construction licence by the end of the summer when it expects to start marketing the development (…).

Original story: Inmodiario

Translation: Carmel Drake

‘Valencia Parque Central’ Hopes to Raise €300M From Sale of Buildable Public Plots

22 February 2018 – Eje Prime

Valencia’s public institutions want to recover some of the investment that they are making in Parque Central. The company that is promoting the development, which is owned by the Government of Spain (50%), the Generalitat Valenciana (25%) and the Town Hall of Valencia (25%), hope to raise €300 million from the sale of the buildable public plots in this area. Those proceeds would cover 15% of the total cost of the building work, which has an approximate cost of €2 billion.

According to explanations provided by the Town Hall, the intention of the company is to propose a first public auction of the land to the Board of Directors. The Director-General of Valencia Parque Central, Salvador Martínez, has explained that “they will study two formal questions: the specifications that regulate the sales process and the sales strategy”, according to Valencia Plaza.

The work that needs to be carried out in the Russafa and Malilla areas will bring with them the largest urban planning operation underway in Valencia. This is a railway and urban project, in which, in addition to placing the railway underground and building a new train station, the city will benefit from a new green space with a park spanning 230,000 m2. The company’s forecasts suggest that the garden will be inaugurated in June.

Original story: Eje Prime

Translation: Carmel Drake

Sevilla’s Population Will Exceed 700,000 Again Thanks To Aedas Homes

8 November 2017 – Sevilla ABC

The new neighbourhood of Hacienda del Rosario, in the east of Sevilla, will raise the census of the city above 700,000 inhabitants once again, thanks to the investment being made by Aedas Homes, which has rescued more than 33,000 m2 of developable land next to the Parsi industrial estate that had been blocked since the start of the crisis. As El Confidencial revealed in February, the Town Hall managed to free up this land, which had been left for dead since the property developer Gabrial Rojas gave up on its construction, and granted all of the permits necessary for Aedas to carry out the construction of a complex comprising 1,047 homes, divided into seven urbanisations. This project had been one of the city council’s priorities since Juan Ignacio Zoido took office and in the end, thanks to the investment from this business group in which the US fund Castlelake holds a stake, it will go ahead, to fulfil the urban development plan designed by the Town Hall, which is seeking to continue to grow the city to the east, the most populated area of the Andalucían capital.

The construction of the first phase is already quite advanced and, according to reports from Aedas, the properties are being sold a quite a fast rate. So much so that they have now started to sell the second phase. The intention is that the new neighbourhood will be completed in its entirety over the next three years.

The Jardines Hacienda Rosario residential complex covers the area from the Parsi industrial estate to the Decathlon in Alcalá de Guadaíra (…). One of its key features is its common areas. In fact, the proposal of Aedas Homes is to build a park measuring 33,000 m2 in private free spaces, as well as a social club, a children’s play area, sports courts, padel courts, a swimming pool for children and another one for adults.

In total, seven buildings are going to be constructed in successive phases with these characteristics, which means that, by the end of the process, there will be 4,000 additional residents in the area (…).

Construction of the first phase of Jardines Hacienda Rosario has been awarded to the construction firm San José and Banco Santander is the entity that is financing the development for the construction of these multi-family homes, measuring between 96 m2 and 125 m5 each. The total investment amounts to €100 million.

The price of the homes will range between €115,000 and €130,000 (…). Moreover, the Town Hall also plans to build 802 social housing properties on the site, which will make La Hacienda del Rosario one of the city’s largest neighbourhoods, with almost 2,000 properties, occupying a total surface area of 460,000 m (…).

All of this should be considered in the context that next to Hacienda del Rosario, other developments are also being built at the moment, such as Hacienda San Antonio and Residencial La Plata (…).

According to the most recent official data from INE, the city of Sevilla currently has 690,566 inhabitants, although the Town Hall elevates that figure to 698,690 (…). If Sevilla were to have more than 700,000 inhabitants once again, the revenues it receives from the State would increase substantially (…).

Original story: Sevilla ABC (by Alberto García Reyes)

Translation: Carmel Drake

Colau Buys Residential Building From Renta Corporación For Social Housing

23 October 2017 – Expansión

Ada Colau is pushing ahead with her mission to recover residential buildings for the citizens of Barcelona. Her most recent battle has seen her conquer Renta Corporación, one of the traditional real estate companies dedicated to the purchase of old buildings in El Eixample and the subsequent rescission of contracts with tenants, with the aim of renovating and selling the properties. The Town Hall has exerted its right of first refusal for the building located at number 394 on Calle Còrsega in Barcelona, between Bruc and Girona, for which it has paid €5.85 million.

For its purchase of the building, Ada Colau’s Government has argued that the operation comes in response to “extraordinary and urgent measures to mobilise homes resulting from mortgage foreclosure processes”, together with “measures to protect the right to housing for people at risk of social exclusion”.

The Town Hall’s intention is to hand over the building, free of charges, to Patronat Municipal d’Habitatge so that it can be used as homes for social purposes.

The right of first refusal and withdrawal is a practice included in the Housing Law that the Parlament approved in 2007, although its use had been rare until now. It received a boost following the election of Ada Colau as mayor of the Catalan capital in June 2015.

The most recent balance reported by the municipal government includes the first year and a half of the mandate. In that regard, the Town Hall applied the right of first refusal and withdrawal in 87 of the 154 homes that it acquired.

Those figures have increased this year with several operations in that vein. The most significant deals have taken place at number 7, 9 and 11 on Calle Lancaster and number 37 on Calle Leiva.

In the first case, the Town Hall spent €5.65 million buying 41 homes spread over three blocks. In the second case, it paid €2.75 million to Anida – a subsidiary of BBVA – to avoid the sale of the block to a fund.

The municipal government also exercised its right of first refusal and withdrawal this summer to buy three plots of land on the former La Escocesa factory premises, in Poblenou, for €10.11 million. The hundreds of luxury homes that were planned for those plots are no longer going to be built, with social housing properties and facilities now planned for the site instead.

The housing plan that the plenary approved at the beginning of the year includes modalities that go beyond constructing new blocks for rent-protected and social housing homes. They include continuing with the acquisition of homes from financial institutions or their transfer for a period of time, buying blocks in neighbourhoods where the urban fabric is consolidated – such as in Calle Còrsega – and exploring co-housing: the transfer of homes at below-market prices for between 50 and 100 years.

Original story: Expansión (by M. Anglés and D. Casals)

Translation: Carmel Drake

Madrid’s Most Indebted Town To Pay €3M More Due To Fraudulent Ex-Mayor

20 October 2017 – El Confidencial

The political legacy of Baltasar Santos (pictured below), who served as the mayor of Navalcarnero for 20 years (between 1995 and 2015), is still taking its toll on the public coffers. According to the Ministry of Finance, Navalcarnero is the most indebted town in the Community of Madrid (and number 24 in the ranking for the whole of Spain). Each one of its 27,000 residents owed more than €3,700 as at the end of 2016. Then, the tax authority based its calculation of financial debt of €101 million, although the current Government estimates that the figure is more like €230 million. And that amount is expected to increase gradually due to the steady trickle of legal rulings that are going to be made against the previous Town Hall due to mismanagement by the former PP-party mayor.

The most recent ruling, issued by the Provincial Court of Madrid on 28 September, ordered the Town Hall to pay €2.8 million (plus legal interest) to around fifteen local residents and companies because the local Government, led then by Santos, sold them land that was not actually owned by the Town Hall (…).

This is the first ruling of its kind, but José Luis Adell, the current (socialist) mayor, expects that more will follow, unfortunately, against the Town Hall due to the “disastrous management by Santos” (…). We estimate that we are going to pay around €70 million in relation to these types of rulings, which will increase the municipal debt to €300 million (…).

Nobody knows where Baltasar Santos is now. He was expelled from the PP in 2015, after hiding from the party that he had been charged for several legal misdemeanours. Santos participated in the municipal elections that year with another political party, URCI (…) but resigned just a few months later, in October 2015, just like he had done previously. Nobody has replaced him. The Town Hall has created an investigation committee to analyse his management. Moreover, it has engaged legal counsel so that all of the irregularities that have been detected can be brought to justice and it has asked the Chamber of Accountants to audit Navalcarnero’s accounts for the financial years from 2007 until 2015.

Original story: El Confidencial (by David Fernández)

Translation: Carmel Drake