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2024-05-23

The sale of homes to international clients grew by 13% in 2023, with more than 600 Aedas Homes homes purchased by foreigners for more than 340 million euros, according to a study published by the developer. With regard to the type of buyer, the report shows that this corresponds to a couple in their 50s from Central and Western Europe who buy a three-bedroom property with south orientation and a surface area of around 96 m2, mainly located on the Costa del Sol and Levante. However, over the past year, the area of Tenerife South has gained prominence, becoming the "new fashionable residential destination" for foreigners and one of the developer's most important locations in terms of transaction volume. The five leading provinces in this respect were Malaga, with 29.3% of Aedas Homes sales to foreigners; Alicante (26.2%), Valencia (10%), Madrid (9.7%) and Santa Cruz de Tenerife (6.4%). In terms of the economic and financial profile, the "resilience and solvency" of this buyer is once again evident, who access properties with an average price of close to 500,000 euros and who finance on average only 27.9% of the price of the property.

2024-01-08

Last year investment was around 9 billion, but consultants estimate that it could reach 10 billion next year. Real estate investment has not been at its best during 2023. The rise in interest rates caused a hurricane in the sector, which did not end up setting a price for the assets, with the value claims differing between buyers and sellers. Different sources point out that, over the past year, investment fell by between 40% and 50%, compared to 2022, which exceeded 16,000 million euros in a record year. With the figures yet to be finalised, the different consultancy firms make their estimates. "The volume of investment in 2023 will be between 9 and 9.2 billion. Although the 50% drop is very significant, Spain has weathered the storm well because in other Eurozone markets it has fallen by up to 70%". Although most firms do not dare to make forecasts about what will happen in 2024, there is more optimism than before, especially for the second half of the year. "Investor activity is expected to start picking up significantly in the first few months of 2024, which could be reflected in positive figures from the second half of the year onwards. If this scenario plays out, we can expect investment to close next year 25% higher than in 2023".

2023-05-29

A bleak outlook for the real estate market in the Canary Islands, whether we are talking about rents or mortgaged properties. Our autonomous community closed 2022 with the most expensive rental price in its history, reaching 11.26 euros per square metre, while in the case of the province of Santa Cruz de Tenerife, also at an all-time high, it stands at 10.80 euros. On the islands, the situation is also clearly affected by the arrival of foreigners looking for a long stay, as well as digital nomads, who act as a factor that distorts market prices. A situation that could continue in the coming months of 2023. The reasons are varied, but they are partly due to the fact that the Euribor has increased so much that those buyers who wanted to buy, will not be able to do so, and this client will move to rent, so the higher the demand, the higher the price will continue to rise because there is not enough supply in the market.

2023-01-16

The escalation of prices in the archipelago did not seem to have a limit. However, in the coming months they could decrease both in the purchase of housing and in rentals, which in the first half of this year increased by 7.5% and 5.5% respectively. Currently the current situation of the real estate market in the islands is like "an oasis", where the seller "can set more or less the price he wants" and the buyer benefit from the current mortgage conditions. In the second-hand market, the Canary Islands is below the national average in terms of dynamism: 2.35 homes are sold for every 100 existing homes compared to 2.4 for the country as a whole. Some exceptions: Adeje keeps it double with 4.8 Aaron with 3 Probably the scenario "will change in the coming months" and the market will get "tougher" as interest rates rise and financial institutions are stricter, which will end up leading to a drop in prices. In this situation, if sellers "do not react quickly" and agree to review the prices at which they put their properties on the market, "there may be some surprise." At the moment there is a 19% overvaluation of the offer by individuals, that is, they ask for prices above the real market value. Although the negotiation margin has also increased, which in the case of Tenerife is 12% of the initial market price. At the beginning of 2020 it was 4.5%. It is estimated that investors have more and more weight in purchase and sale operations. On the one hand, because their negotiation margin will be greater, and on the other, because in the Canary Islands a rise in rates of one or two points "would not be as noticeable" as in cities like Madrid or Barcelona, where the price of housing is much higher. higher, so that the islands could become an investment niche. The purchase of a home as an investment currently represents 27% of the operations in Tenerife, in which the payment method is cash in 80.8% of the cases. If first or second home purchases are included in this statistic, payment in cash stands at 51.5%. The greater preponderance of investors could be "good news" for the rental market, since the majority buy and then rent, and that is that one of the main tensions in the rise in prices is the shortage of supply.

2022-08-17

Building plots can be built if the relevant urban transformation works are undertaken. If you want to build a house to your liking, the first thing you need is the land. Depending on its classification, you will be able to build or not. In this article, we explain the particularities of urbanizable land and how much it costs to develop them. Land classification The plots are classified into three types of soil: urban (can be built), developable (it can be built if the relevant works are undertaken) rustic (as a general rule, houses cannot be built) Depending on its classification, the price fluctuates wildly. How much does a building plot cost? Because a house cannot be built directly on developable land, its price is lower than that of urban land, on which it can be built, since they have the necessary infrastructure for it. In the same way, developable land is more expensive than rustic or non-developable land (the most restrictive, in terms of building). The price of a building plot depends on: Location: The closer it is to the city, the more expensive it will be. As with houses, if the land is in the big capitals, its value will increase. Plot area: The larger the plot, the higher the price. Building capacity: Depending on the plot and the municipality to which it corresponds, so many m2 can be built. The more acreage allowed to build, the higher the price. Orography: Not all terrains are the same. Some are slanted or more complex than others. The greater the difficulty, the lower the value and the more spending on conditioning. Who can develop an urbanizable land? Depending on how the partial plan is managed (compensation, cooperation, expropriation), the process can be carried out by a public administration, a private entity, normally a specialist in urbanization, or through mixed public-private management. How to develop an urbanizable land? The process with which developable land is converted to urban land is a complex urban planning process in which many administrations participate. The urban figure to do it is a partial plan, which goes through planning by the city council and by numerous regional delegations such as environment, hydrographic confederation and others. Once approved, the urbanization actions are undertaken through an urbanization project and, after receipt of the works by the town hall, the resulting plots are already urban land plots suitable for building. This basically consists of building streets, sidewalks and, above all, bringing water, electricity and sanitation supplies to all the plots, although there are cases in which the sanitation is not carried out but is left to the future, since depending on the conditions of the plots it may be very expensive, in those cases each plot will have its own septic tank. What is needed to develop a land? To develop urbanizable land, a planning figure (partial plan) must be drawn up, and after its approval, a project, which is the urbanization project. It is carried out by architects, supported by multidisciplinary teams of traffic experts, environmental engineers, etc. How much does it cost to develop an urbanizable land? It is very difficult to set an average price per m2 because it depends on the size of the land, the orography, the distance to infrastructure, etc. Let's look at an example for a building land project. The surface area is 38,709 m2 and the building area for tertiary use is 20,000 m2. Budget to develop developable land for tertiary use Budget to develop developable land for tertiary use Detailed study of the area of the plot €11,000.00 Reparcelling Project €4,500.00 Urbanization Project €14,000.00 Electrical project (Engineering) €4,000.00 Urbanization Works Management (Architect) €6,000.00 Traffic and Mobility Study (Architect) €4,000.00 Total €43,500.00 Obviously, the plots for a home are usually much smaller, so the price will be significantly lower. Who pays the urbanization expenses? Urbanization expenses are paid by the person or entity that owns the plot whose land classification is to be changed. In addition, you have to give 10% of the use to the town hall. What are the urbanization expenses? Urbanization expenses are those intended to provide the land with the infrastructure to make it developable. For example, sewage, lighting, asphalt, sanitation, etc. What is the difference between urban and urbanizable? The difference lies in the fact that it is possible to build on urban land, since it has the infrastructure (water, electricity, sewage, etc.) and the necessary licenses for it. On the other hand, in the urbanizable it can only be built once the pertinent urban transformation actions are carried out that classify it as urban.

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