US Construction Firm Promises to Build Thousands of Home in Spain

US Construction Firm Promises to Build Thousands of Home in Spain

Seems like lots of countries are coming to invest and

build in Spain once again the carinas are arriving.

A lot of time and thought goes into every decision made by a major Wall Street investment firm. This is why many will welcome the news that Lone Star Funds – which began investing in the construction sector of Spain back in 2015 – have promised to increase their Spanish house building over the next few years.

This private equity-backed investment firm built 2,000 homes across 2016, and are pledging to build over 3,200 homes each year leading up to 2020; which says a lot about the way the Spanish property market has matured.

In the years between 2009 and 2016, bank lending to the Spanish real estate industry dropped 65%. This brought the construction industry of Spain to the point where any large-scale construction project would need significant private backing to succeed.

This meant that many Spanish developers were left out in the cold, hoping to receive more money from the bank or the government. Analysts say that US firms are a breed unto themselves, though.

Fernando Rodriguez, the general director of R.R. de Acuña& Asociados, a Madrid real estate firm, says that Lone Star uses an Anglo-Saxon model; meaning that they research every little detail and won’t build property in a place where demand won’t exist for the next two years at least. This approach is just what is needed by the sector, which was damaged by the Spanish method of just building whatever, whenever, and wherever. Spanish developers would just build as many houses as they wanted, which is a bad strategy.

There were around 675,000 new homes built in Spain each year between 1997 and 2006. The result was that around a million-and-a-half properties were left empty or not even finished during the crash. Most of these homes have found an owner now, but many of them are likely never going to be sold. They were built for urbanisations and towns that were never completed. Only 39,890 new homes were built in the country during 2015.

Even so, there’s now a lack of new properties in the most popular areas of Spain such as Madrid, Barcelona, and the Costa del Sol. There isn’t enough of a supply to keep up with the demand in these areas. Market analysts say that the plans Lone Star have to build a select number of houses in select areas shows that they have definitely done their research.

The wider Spanish property market – including resales – grew by over 13% last year. It’s expected that the growth will continue in the double digits for 2017 as the market continues to “normalise” and reach levels unseen since the boom period between 2007 and 2008.

Construction industry in Spain witnesses a boom as Brits are on a buying spree in Costa del Sol

Construction industry in Spain witnesses a boom as Brits are on a buying spree in Costa del Sol

Not only are the Spanish footballers preparing for a hectic summer ahead. Joining them are magnates from the construction industry, as the signs towards the start of 2016 show a bright year ahead for the industry. As per the statistics released by the Ministry of Public Works, the total number of licenses for new Off-plan homes in Spain for Q1 was 16,782.

Off-Plan property sales are on the up and booming once again

There was a significant increase of 57.1% compared to the previous year and this was the best growth recorded ever since 2011. The main reason for this boom in the construction of residential properties can be attributed to the large number of foreign buyers interested in the Spanish real estate. Even now, the demand from foreign investors is only growing and natives of different European countries have continued investing.

Taylor Wimpey Espana, a popular homebuilder in Spain, released statistics of the total YTD sales in April 2016 and it has shown a growth compared to the previous year. The total number of British buyers increased by a whopping 48%. This is mainly because a large number of Brits are keen to buy a property in Spain and Costa del Sol is highly popular, with the majority of them planning to buy a property in the same region.

The Sales and Marketing Director of Taylor Wimpey Espana, Marc Pritchard, sees a bright future ahead for the housing industry of Costa del Sol. When asked about his opinion, he said:

“Construction within Spain’s residential sector is rising once more, as the demand from overseas buyers continues to strengthen the market. The Costa del Sol has always been a prevalent destination for Spanish holiday homes and is fast becoming the favorite once again amongst British second homeowners. As British buyers choosing Spain’s southern coastline increases, so too does the optimism surrounding the market and we would expect this positive trajectory to continue throughout the rest of the year.”

Taylor Wimpey Espana has recently developed an architectural marvel named La Floresta Sur, in the skyline of Costa del Sol. It is developed in the midst of a UNESCO reserve and it is constructed in the village of Elviria, which is close to the beach and enjoys a proximity to Marbella and Malaga.

The property is developed based on a Mediterranean style and the prices start from just €202,000 +VAT, which has configurations in 2, 3 bedroom apartments along with Italian styled penthouses with silestone worktops, thermal and acoustic insulation and central air conditioning as a part of the deal. Also, when you look out from this property, you will see an amazing view of oak and pine forest in the horizon extending into the sea and it also has two swimming pools, private parking and wonderful landscaping as a part of the project.

The development of Phase 4 is to be completed in the summer and the rest of the units are up for sale with a launch offer. They have enabled houses with fully equipped kitchens, shower area and furnishings as well which will be inclusive with the sale price.

This is one pristine property where you will get to enjoy the beautiful view along with the best possible golf courses in Costa del Sol, such as the La Cala Golf Resort and Santa Maria Golf, along with a direct access to El Soto Golf Club and a stone’s throw away from Nikki Beach Club.

Spanish construction industry Reaches Five Year High Thank to British Second Home Buyers

Spanish construction industry Reaches Five Year High Thank to British Second Home Buyers

Buying property off plan is coming back into fashion as the

demand is returning

Almost half of the Brits buying second homes find themselves drawn to the sun, sea and sand of the Costa del Sol. So much so that a study has shown the number of new builds being approved in Spain has hit a five year high.

The Ministry of Public Works published figures showing that new home licenses in Spain has gone up by 57.1%. This led to a total number of 16,782 new build licenses approved in the first three months of 2016, an increase over last year and the best quarterly result seen since 2011.

The study says that the reason behind the boom in residential construction has been caused because overseas buyers are coming back to the Spanish market once more. Demand from overseas buyers for Spanish properties is on the rise, with a lot of that demand coming from neighbouring European countries.

The leading homebuilder in Spain, Taylor Wimpey España says that the total number of sales so far this year is up compared to last year, with an increase in British buyers of 48%.

With more Brits looking to make their place in the Spanish sun the Costa del Sol has become the most popular choice. Nearly half of these foreign buyers are choosing to purchase property in the region.

The sales and marketing director for Taylor Wimpey España, Marc Pritchard, believes that this summer will be just as scorching for the real estate sector with momentum continuing to build in the market.

He says that construction in Spain is on the rise as the foreign demand is strengthening the real estate market as a whole.

The Costa del Sol has always been the region of choice for Spanish holiday homes and it is taking up that role once more with British people making it their location of choice for second homes.

With British buyers choosing the southern coast of Spain for their homes the optimism the Spanish people feel towards the market increases. It’s expected that these positive trends will continue on for the rest of the year.