Friday, September 18, 2020
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Large Real Estate Companies Strengthen Their Financing As Lending Conditions Get Tougher

Property developers such as Aedas, Quabit and Realia, as well as Socimis such as Colonial, have taken advantage of the break during the lockdown to negotiate new conditions with their financial entities, to maintain levels of indebtedness that were unprecedented in other crises.

Image from Morning Drew.

A crisis in the shape of a U, V or the Nike symbol would devastate the Spanish real estate sector, as it would many other international businesses and markets. However, while the nature of the recovery to pre-Covid levels remains unknown, that is not the case with one of the most negative consequences of the pandemic: the restrictions over credit.

According to a recent survey published by the Bank of Spain, financial institutions anticipate a tightening in the criteria for granting loans in all segments, despite the liquidity injection from the European Central Bank. And all of this, in a scenario of impoverishment in the wealth level of families and companies, which fell in the first quarter to €1.5 billion euros, coinciding with the start of the coronavirus pandemic.

Read the full article in Spanish.

B-Exclusives

How Covid is Affecting House Prices: Map of the Decreases by District

The coronavirus crisis is causing house price decreases of up to 70% in some municipalities in Castilla La-Mancha, the Community of Valencia and Andalucía.

Property Developers Launch Large Urbanisations Post-Pandemic

Between April and August, work began on 996 developments in Spain with the ten largest comprising 1,691 homes. Of those ten, which are located in Madrid, the Basque Country, the Community of Valencia and Andalucía, four are being built by Amenabar.

Fearless Despite the Crisis: Property Developers Start Work on More than 27,000 New Homes Since April

Between April and August, work began on a total of 996 developments and 27,882 homes in Spain, according to data from the real estate big data platform Brains RE, with Amenabar, Habitat and Aedas the most active players.

Madrid Backs Luxury Housing to Curb the “Suburb Effect” of the Pandemic

Moncloa and Chamberí overtake the neighbourhood of Salamanca as the districts with the most expensive new build homes in the capital, whilst in Moratalaz there are no new build homes on the market.

Latest news

Quabit Records Losses of €50 Million to June

The property developer recorded losses amounting to 37 million euros on the value of some land, which exacerbated its losses, despite delivering 410 homes during the first six months of 2020.

Room Mate Opens its First Apartment Building in Málaga

The property comprises nine exclusively-designed standard, superior and duplex apartments in the Be Mate division, including an impressive 114 square metre penthouse.

Premier Wins the First Post-Covid Land Auction from the Ministry of Defence

It fought off competition from the property developer Aedas Homes, with an offer of 12 million euros for the plot, which is located between Julián Camarillo and Avenida de Canillejas-Vicálvaro, in the Spanish capital.

More than 3 Million People in Spain are Regularly Working From Home, 3 x More Than a Year Ago

A total of 3.01 million people in Spain are working from home on a regular basis, which means that the figure registered in 2019 has increased by 3.2x, according to Randstad.