The Sale Of Homes Soars By 11.1% In 2015 On The Second-Hand Market

10 February 2016 – El Economista (Europa Press)

Second-hand home transactions increase by 37.2% in the year, reaching their highest level since 2007.

Home sales increased by 11.1% in 2015 with respect to the previous year, up to a total of 354,132 transactions, its highest level since 2011, the National Statistics Institute (INE) reported last Wednesday.

The second-hand market has been the driving force behind this annual growth, the second one produced after the home sales increase by 2% in 2014.

In the period of crisis, the worst year for housing transactions were 2009 and 2008, in which these transactions plummeted by 25.1% and 28.8%, respectively. In 2012 and 2011, double-digit declines were still taking place (-11.5% and -18.1%), while in 2013 the decline slowed to 1.9% due to the end of tax benefits for housing purchase.

Home sales hit the accelerator in 2015 in a context of low prices, although experts believe that the correction reached its lowest level last year and will moderately rise.

The recovery in home sales in 2015 was due to the growth experienced in second-hand home transactions, which rocketed by 37.2%, reaching 276,300 transactions, the highest figure since 2007. By contrast, transactions on new homes fell 33.7% last year, reaching just 77,865, the lowest volume of the series.

89.8% of homes transferred by merchanting last year were non-subsidized and 10.2% were subsidized. In total, the sale of non-subsidized homes increased by 11.1% in 2015, while subsidized home transactions increased by 10.8% reaching 36,077 transactions, after several years of decline.

Andalucía, ahead of housing sales

In 2015, the highest number of home sales per 100,000 inhabitants took place in Valencia (1,322) and the Balearic Islands (1,177).

Andalusia was the region performing the highest number of transactions during last year reaching 70,739, followed by Catalonia (54,571), Region of Valencia (51,788) and Madrid (50,373).

The regions that performed a lower number of sales were La Rioja (2,561), Castilla y León (4,298 transactions) and Navarra (4,313).

In relative values, home sales rose in all regions in 2015, except for Navarra, where they decreased by 1.7%. The regions where these transactions increased the most were the Basque Country (+ 17.2%) and Aragón (+ 16.6%).

Total properties transferred in 2015 increase by 4.6%

Adding the urban and rural properties (homes and other urban nature properties), the properties transferred in 2015 reached 1,634,670, an increase of 4.6% over the previous year, thus returning to positive figures after having fallen by 4.5% in 2014.

Properties transferred by merchanting increased by 8.1% with respect to 2014, while donations increased by 2%, exchange transactions fell by 9.2%, and those transmitted by inheritance advanced by 6.6%.

According to the INE, the number of rural property sales increased by 6.5% in 2015, reaching a total of 126,470 transactions, thus adding its fifth consecutive year of increase, while urban property sales increased by 8.4%, reaching 627,128 transactions.

In the last month of 2015, home sales increased by 6.8% with reference to December 2014, reaching 27,625 transactions and lowering by nearly seven points the 13.7% year-on-year increase registered in November. With the rise in December, home sales accumulates 16 consecutive months of year-on-year increases.

In month-on-month rates (December 2015 compared to November of the same year), home sales fell by 3.9%, compared with increases of 1.6% and 2.4% recorded in December 2013 and 2014, respectively.

Original story: El Economista (Europa Press)

Translation: Aura Ree

1 Million m2 Of Logistics Space Was Leased In 2015

3 February 2016 – Mis Naves

This increase was driven primarily by Barcelona, according to the consultancy firms CBRE and Aguirre Newman based on their respective Market Reports.

Around 1 million m2 of logistics space was leased in Spain in 2015, showing further evidence of the improvement in the sector thanks to the recovery in consumption, according to data published by CBRE.

The report from the consultancy firm confirms that 378,000m2 of space was contracted in Madrid, in line with the figures seen in 2014, but that expectations for future growth are high, thanks to several projects that are underway and due to be completed this year, including those in Cabanillas del Campo and Getafe.

In Barcelona, according to the Logistics Market Monitor report published by Aguirre Newman, 549,894m2 of space was leased in 2015, which represents an increase of 76% compared with the previous year and a historical maximum. During the fourth quarter of the year, 51,959 m2 of space was leased in eight operations in Barcelona, and the largest six deals accounted for 75% of the total surface area leased.

Moreover, 40,000m2 of space was leased in the cities of Zaragoza and Valencia, respectively, according to CBRE’s report. Those two markets, together with Madrid, Barcelona and Andalucía accounted for the vast majority of logistics transactions in Spain last year.

According to Alberto Larrazábal, Director of Logistics and Industry at CBRE Spain, “the increase in ecommerce will be a key factor boosting the sector in 2016. The lack of large platforms, those measuring more than 25,000 m2, will drive new projects, whereby consolidating the growth of the sector in 2016”.

Original story: Mis Naves

Translation: Carmel Drake

Anida Sells Office Building In Valencia To Family Office

29 January 2016 – Misoficinas.es

The real estate consultancy firms Catella and CBRE have advised a family office and Anida Inmobiliaria BBVA on the purchase and sale (respectively) of an office building on Calle Alfahuir, 45 in Valencia. This modern asset is located in one of the most dynamic business areas in the city. It is currently leased to several prestigious clients, including Fujitsu and Sage, amongst others.

The building has a total surface area of 8,000 m2, with a gross leasable area of 5,305 m2 spread over nine floors. It is well connected to the city centre by public transport (metro and bus).

According to Belén Díaz, Director of the Capital Markets Department at Catella, “this transaction reflects the shortage of products with attractive returns in the office markets in Madrid and Barcelona, which means that investors are now looking for opportunities in other locations, such as in Valencia, Bilbao, Sevilla and Málaga”.

According to Víctor Gregori, Director of Agency & Business Development at CBRE Valencia: “The real estate market in Valencia experienced a very positive year in 2015 and all indications are that 2016 will continue along the same path, with operations such as this one, involving domestic and international investors seeking attractive returns”.

Original story: Misoficinas.es

Translation: Carmel Drake

The Stock Of New Homes Will Fall By 29% In 2015

9 February 2015 – Expansión

The over-supply of properties is decreasing / The number of unsold new homes will decrease from 662,761 in 2014 to 469,700 in 2015.

The puncture in the paroxysm of greed that was the real estate bubble, left a never-ending mummified trail, a sea of properties strewn haphazardly across the country and without exception. In 2008, when the economy crashed, a squirrel could have crossed Spain from Tarifa to Cadaqués jumping from empty home to empty home. Not anymore. Or not through so many empty new homes at least. The stock of new residential property for sale is decreasing significantly, although in absolute terms the number is still high.

That is the view of the 21st Edition of the Real Estate Heart Rate Monitor (XXI edición del Pulsímetro Inmobiliario) published by the Institute of Business Practices (el Instituto de Práctica Empresarial or IPE). The surplus of homes declined in 2014, for the fourth consecutive year, from 777,000 in 2013 to 662,761. In other words, by approx. 115,000 homes or 14.7% of the total.

Furthermore, the decrease will be even greater in 2015. According to the IPE’s forecasts, the figure will drop down to 469,708 residential properties this year, i.e. 29.7% fewer than in 2014. In other words, almost one third of the stock will have vanished in just 12 months. As many as 193,000 homes.

The over-supply of homes reached its peak in 2010, when the developments that had been started in 2008 were completed – residential construction is a process that tends to take around two years. In 2010, the surplus stock amounted to 931,615 homes, slightly less than twice the number of new, empty homes that will be on the market in 10 months time in Spain (note, stock does not include second-hand homes).

Once again in 2014, Valencia was the autonomous region with the highest number of phantom residential properties and the only one to have more than 100,000. This region, which is heavily influenced by coastal second homes, closed 2014 with a stock of 163,098 units, which will decrease by 27.5% in 2015, down to 118,196, according to the forecasts released by MAR Real Estate and the IPE. Valencia accounts for no less than one in four of all surplus properties, i.e. 25% of the total.

It is followed by Castilla-La Mancha, an unequivocal symbol of the legacy of the years of over-heating, which is expected to have 72,944 homes by December (2015), down 13.6% from a year earlier.

The third autonomous region is Andalucía, which is expected to have 59,563 empty homes by the end of the year, i.e. 41% fewer than in 2014 – not for nothing, the Costa del Sol is beginning to recover. These three regions alone account for 54% of the total stock.

Experts predict that the highest reductions in the over-supply of property will take place in the Community of Madrid and Cataluña, where they expect the figures to decrease by half, i.e. from 27,618 to 13,809 in the case of the former; and from 25,353 to 12,676 in the case of the latter.

New homes are already being built in Madrid and Barcelona because some areas have been left with very little stock”, says José Antonio Pérez, Director of Real Estate at IPE. However, there are other provinces, especially those in the East “with a large quantity of homes that are going to be hard to sell”, due to the vast number of properties that are suffering from a double hangover: that of the bubble and that of the nearby sea”.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Demand For Holiday Rentals Grows By 25%

20 January 2015 – El Mundo

Requests in inland areas, such as Madrid, recorded an increase of 35%.

Andalucía is the region that accounted for the highest percentage of requests, with 31%.

The analysis reveals that visitors to Spain prefer to holiday in the sun and on the beach.

HomeAway, the online platform for holiday rentals, which has more than one million listings in 190 countries, has published its annual report for 2014. It shows that demand for holiday rentals in Spain increased by 25% with respect to 2013.

According to the analysis, visitors prefer to holiday in the sun and on the beach, although the regions in the North and Centre of the country experienced the highest increases in 2014. Galicia, Asturias, Cantabria, the Pais Vasco and Navarra, despite accounting for an average of 2% of requests in 2014, experienced an average growth rate of 60% with respect to 2013. Of those, it was Navarra that experienced the highest increase in demand for holiday rentals, with a rise of 96% on the previous year.

Meanwhile, requests in inland regions, such as Madrid grew by 35%, and Castilla-La Mancha and Castilla y Leon recorded increases in requests of 127% and 105%, respectively, becoming the regions with the highest increases in demand in 2014. For their part, Extremadura and Aragón recorded increases of 86% and 83%, respectively, to also place them amongst the leading regions by number of requests.

The autonomous regions of Andalucía, Cataluña, Valencia, the Balearic Islands and the Canary Islands accounted for 80% of total demand during 2014, and Andalucía was the region that recorded the greatest percentage of all requests (31%). Of these traditionally popular regions, the Balearic Islands led the increase in requests, up 41% compared with 2013, followed by Valencia (19%).

France (40%), the UK (19%) and Italy (13%) are the three European countries that accounted for the majority of the demand for holiday rentals in Spain, together accounting for more than 70%.

In terms of the percentage growth with respect to 2013, the most notable increases in the number of requests came from Portugal (77%), followed by Italy (32%) and beyond the European continent, the United States (27%). Despite being two of the main markets from which tourists to Spain originate, demand from the French and British for holiday rentals increased by just 4% and 3%, respectively. The number of holiday rental requests from the Swiss also increased by 3%, placing Northern Europe as the new focus of interest from which visitors come to our country.

Meanwhile, Germany, which continues to be one of the top five countries for requests, accounting for 19% of requests in 2014, grew by 9% compared to 2013.

Original story: El Mundo

Translation: Carmel Drake

Edival Files For Bankruptcy

20 January 2015 – El País

The company failed to reach an agreement with its creditors.

The real estate company Edival, which became one of the leading companies in the sector in Valencia, has filed for bankruptcy. Mercantile Court No. 2 in Valencia passed the bankruptcy order, which had been requested by the company after it failed to reach an agreement with its creditors.

Edival, led by Manual Puchades until his death, when he was succeeded by his sister, Teresa, had managed to weather seven very difficult years for the real estate market without resorting to bankruptcy, but that has now become inevitable.

Going forward, the company will be managed by an insolvency administrator, and creditors have one month to submit their claims for inclusion on the list under bankruptcy law.

The company, which had an important presence in other regions besides Valencia, including Murcia and Madrid, promoted numerous social housing developments and recorded huge results in the years of the construction boom.

In 2006, for example, it recorded a turnover of €144 million and profits of €22.6 million, an increase of 39% on the previous year. When the crisis hit, however, Edival had bank debt amounting to almost €500 million, which it has failed to assimilate on its own.

Original story: El Páis (by Ignacio Zafra)

Translation: Carmel Drake