Brainsre compiles below the weekly news highlights.
Residential – Sales in the luxury real estate market increase by 55% in 2022
- Luxury real estate market in Spain is growing, with a 55% increase in transactions of properties over 3 million euros in 2022 compared to 2021, doubling the percentage from 2019.
- Málaga, Balearic Islands, Madrid, and Barcelona are the main destinations for luxury buyers, with 85% of properties valued over 3 million euros located in these areas.
- Málaga leads the market with 2,500 luxury homes, followed by Balearic Islands with 3,300 properties. Madrid and Barcelona also attract luxury investments, with significant transaction numbers and average prices ranging from 4.7 to 5.3 million euros.
Residential – Habitat Inmobiliaria invests 31 million in the development of 69 homes in Seville
- Habitat Inmobiliaria has launched Habitat Itálica, a residential project located in the Triana district of Seville. The development, designed by Orfila 11 Arquitectos, replaces the iconic Torre Mapfre and consists of 69 units ranging from one to four bedrooms. It also features common areas with a pool, gym, and communal room.
- The launch of Habitat Itálica reinforces Habitat Inmobiliaria’s presence in the province of Seville, where they currently have around 900 ongoing housing projects. Joaquín Martín Rodríguez, the territorial manager of Western Andalusia for the company, expressed pride in promoting a project that offers a unique opportunity to live and enjoy the city of Seville.
- With an investment of 31 million euros, Habitat Inmobiliaria expects to generate approximately 170 direct and indirect jobs through this new development.
Retail – Local investment market to soar 120% by 2022
- The investment market in commercial properties in Spain increased by 120% in 2022, with the highest transaction volume of 742 million euros (excluding bank branches) in this segment, followed by supermarkets with over 657 million euros.
- In 2023, both segments, commercial properties and supermarkets, maintain a 27% share, but medium-sized retail spaces are gaining attention, accounting for 38% of the total transactions.
- Private investors continue to play a significant role in the investment volume in commercial properties, representing around 30%. Additionally, they have increased their presence in traditional retail and medium-sized retail beyond food-related activities, reaching a share of 15% and 23% respectively in the early months of 2023. Savills predicts that French, Belgian, German investors, and some national SOCIMIs will gain more participation in the supermarket and medium-sized retail segments, while value-add investment funds will show greater interest in shopping centers.
Hotels – Banca March creates joint venture with Meliá and buys 80% of three hotels
- La compañía de origen balear Banca March se ha hecho con una participación del 80% en la propiedad de tres activos hoteleros hasta ahora en manos de una entidad gestionada por el grupo Starwood Capital. Meliá Hotels International mantiene el 20% restante.
- El Sol Beach House Ibiza, que se reposicionará a la marca Meliá Hotels & Resorts, el Meliá Fuerteventura, que será objeto de un reposicionamiento hacia un segmento premium, y el Innside Fuerteventura, activo ya reposicionado, son los hoteles cuatro estrellas que hacen parte de esta transacción y que seguirán siendo operados por Meliá.
- Esta operación, que ha contado con la participación de Acron Beka como asesor financiero y Cuatrecasas y Gómez-Acebo como asesores legales, se enmarca en la estrategia de coinversión en economía real de la entidad financiera.
Hotels – Hotel investment in Spain remains solid in the first quarter of the year
- Hotel investment in Europe reached 4.1 billion euros in the first quarter of the year, with Spain ranking among the top three attractive countries for hotel investment.
- The notable deal of the year was the acquisition of Barcelona’s Sofía Hotel by Blasson Property and Axa IM for around 180 million euros.
- The resort sector has seen increased demand from investors due to strong leisure demand, long-term growth potential, and limited supply growth. Resorts accounted for 22% of total investment in the first quarter and 28% over the past 12 months, a significant increase compared to pre-COVID levels. Positive investor sentiment is supported by the strong recovery of the hotel industry, with a 13% higher RevPAR in Europe compared to 2019. Significant RevPAR growth was observed in several countries and cities.
Land – Habitat Inmobiliaria buys two plots of land in Murcia and Seville to develop more than 300 homes
- Habitat Inmobiliaria has acquired two plots of land, one in Murcia and another in Sevilla, totaling nearly 38,000 square meters of buildable area. The investment of 65 million euros will result in the development of over 300 homes.
- The plot in the southern area of Murcia, in the Infante Juan Manuel neighborhood, marks Habitat’s entry into the region. With an investment exceeding 37 million euros, the approximately 20,000 square meter plot will accommodate over 150 units.
- In the lower Aljarafe area near Sevilla and the Guadalquivir River, Habitat will invest 28 million euros to construct over 160 multifamily homes. The new plot covers an area of over 18,000 square meters.
Residential – CBRE IM buys a build to rent asset in Badalona from Culmia
- CBRE Investment Management has acquired the residential asset Badalona Port from the real estate developer Culmia in a build-to-rent arrangement.
- The project, purchased on behalf of one of CBRE IM’s investment funds, will offer 129 affordable apartments for young professionals, families, and seniors, with 5% of the units designated as social housing.
- Located in Badalona, within the metropolitan area of Barcelona, the development consists of two buildings with two, three, and four-bedroom apartments ranging from 78 to 182 square meters. The buildings feature a rooftop community pool, terraces, and commercial spaces, with a total gross interior area of 10,891 square meters, including 1,889 square meters for common areas and 1,378 square meters for commercial premises.
