Name: the real estate development market
Brand: Businesscoot
Availability: InStock

Summary

As of 2020, the Spanish real estate market has seen a mixed pattern of recovery post the economic downturn of the previous decade, with demand driven by second-hand housing transactions rather than new real estate development. Despite the market's growth, the Spanish real estate sector shares a concern over the possibility of a new bubble forming. Sales of housing witnessed a downturn in 2019 with a decline of -2.2% in the period January-August compared to 2018, breaking a five-year growth streak. However, this slowdown is counterbalanced by falling credit rates, which could stimulate the market due to more attractive financing conditions. The tourism boom has spurred demand for seasonal rentals and purchases, particularly by foreigners, who accounted for 12.6% of the national total with a 7.8% increase from the previous year, especially targeting regions like Valencia, Catalonia, and the Balearic Islands. Regional disparities in affordability affect access to homeownership, with indices in La Rioja, Murcia, and Aragón indicating higher affordability, compared to the Balearic Islands, Catalonia, and Madrid. Construction activity has modestly picked up from its crisis-era lull, but the supply-demand mismatch persists with a significant stock of unsold new homes. The property price recovery lost steam, with regional differences marking stark contrasts in real estate values. Key players like Metrovacesa, Neinor Homes, and AEDAS Homes have been active, focusing on delivering thousands of housing units in the coming years, with many property developers going public and attracting international investment funds eyeing robust profit margins. New legislative changes such as the Ley Hipotecaria of 2019 aim to protect consumers and alter the real estate landscape by imposing stricter solvency checks and shifting some cost burdens from clients to lending banks. The real estate development market continues to navigate through consolidation, the incursion of web giants like Amazon trialing property listings, and the adoption of alternative financing methods as traditional banking support wanes. Overall, while the Spanish real estate market is poised for growth, its stability hinges on striking a balance between supply and demand, adapting to regulatory changes, and leveraging innovative financing and online platforms..### Trends in Spanish Real Estate Market Demand: Resilience and Diversification Spain's real estate market has weathered storms, notably the early 21st-century crises, which included a debilitating real estate bubble. However, since 2015, we've witnessed rebirth and dynamism, characterized by surging sales and value. Interestingly, the second-hand property market is significantly outpacing new development, with sales figures showing that the number of transactions leaped from around 80,000 to approximately 135,000 within a span of four years. This points toward a demand that is robust, yet more inclined toward existing properties versus those that are newly developed. Despite this inclination, it's worth noting that the overall transactions in real estate have maintained a steady ascent except for a slight drop observed during 2019, hinting at a market reaching maturity after consistent growth since 2014. Mortgage rates play a pivotal role in shaping demand. Their decline has invigorated the interest of buyers with credit rates fueling the demand for lower borrowing costs. The financial environment remains conducive for real estate investment, spurring a positive impact on the market demand. The resiliency of the Spanish real estate market also gets reflected in its contribution to the country's GDP, having climbed to account for nearly 10% of the GDP with a substantial increase in gross value. Simultaneously, the uplift in real estate development activities signals a sector that's gaining momentum, with the number of companies registering a slight uptick between 15 and 20 million euros. On the flip side, while construction activity is experiencing revival signs post-crisis, there remains a persisting stock of unsold new homes that suggest a disconnect between the offer and the market demand. Still, the property prices, overall, have shown resilience, rallying to an index level of nearly 120, even though recent tremors indicate that the sustained rise in property prices may be waning. Amidst these dynamics, Spain remains an attractive destination for international buyers, with purchases by foreigners accounting for over 12% of the national total, nearly tripling since the late 2000s. This is propelled by the tourism sector and notably, the British, French, and Germans show contrasting preferences for different Spanish regions. Furthermore, the real estate accessibility index paints a diverse picture across different Autonomous Communities, suggesting that the ease of purchasing a home isn't uniform throughout the country. Regions like La Rioja, Murcia, and Aragón exhibit high accessibility indices, contrasting sharply.### The Principal Real Estate Developers Shaping Spain's Constructive Landscape The Spanish real estate market is a vibrant and dynamic environment marked by the presence of influential developers who play a pivotal role in the sector's resurgence following past economic recessions. These developers range from specialized homebuilders to subsidiaries of financial conglomerates, each contributing uniquely to the fabric of Spain's construction and property development landscape. **Neinor Homes** is recognized as one of the front-running specialists in real estate development. As a company that went public in early 2017, Neinor Homes distinguishes itself through its commitment to delivering high-quality housing to the Spanish market. Their robust portfolio and strategic vision have positioned them as a significant player with a notable pipeline of properties slated for completion over the coming years. **Metrovacesa** stands out as another key player, boasting an impressive track record and an expansive number of homes set for delivery within a similar timeframe. Their prominence in the market is bolstered by robust backing, with major Spanish banks like BBVA and Santander among their main shareholders. This financial powerhouse status affords them a considerable impact in shaping residential developments across the nation. **Aedas Homes**, owned by the American fund Castlelake, is not far behind in the ranks of dominant developers. With its strong foundation and strategic investment from an international fund, Aedas Homes exemplifies the international interest in the Spanish real estate sector, which promises high returns and a burgeoning market landscape. The banking and financial sector also has its representation in the property development playing field through entities like **Altamira**. With a substantial capital and a wide array of developments at their disposal, Altamira merges financial acumen with property expertise, creating a potent combination that leverages Spain’s real estate potential. **Solvia** is another development firm rooted in the financial world, which has solidified its presence with an array of property offerings that attract various market segments, from first-time homebuyers to seasoned investment veterans. Lastly, **Aliseda** is a heavyweight with an extensive portfolio that reflects the magnitude of its operations and its influence on the market trends and consumer choices within Spain's property sector. Beyond traditional developers, the market has also witnessed the unconventional entrance of digital giants like **Amazon**, which, although not a developer itself, has dabbled in the real estate sector by featuring properties on its platform. This innovative venture represents the potential of e-commerce crossover into property sales and showcases how traditional real estate activities are increasingly intertwining with digital marketplaces. As the

the real estate development market - Spain

Get all the information you need
to understand this market

Detailed content

Inforamtion

Number of pages : 30 pages
Format : Digital and PDF versions
Last update : 19/08/2020

Update Details

Summary and extracts

1 Market overview

2 Demand Analysis

3 Market structure

4 Analysis of the offer

5 Regulation

6 Positioning of the players

6.1 Segmentation

Altamira (Santander)
Solvia (Banco Sabadell)
ServiHabitat (La Caixa)
Aliseda (Banco Popular/Santander)
Neinor Homes
Metrovacesa
Testa Residencial
AEDAS Homes
MERLIN Properties
Avintia
Idealista
FotoCasa

All our studies are available online in PDF format

Take a look at an example of our research on another market!

Example online Example in PDF

Do you have a question about this study? +44 238 097 0676

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Altamira (Santander)

Solvia (Banco Sabadell)

ServiHabitat (La Caixa)

Aliseda (Banco Popular/Santander)

Neinor Homes

Metrovacesa

Testa Residencial

AEDAS Homes

MERLIN Properties

Avintia

Idealista

FotoCasa

Choosing this study means :

Access to more than 35 hours of work

Our studies are the result of over 35 hours of research and analysis. Using our studies allows you to devote more time and added value to your projects.

Benefit from 6 years' experience and over 1,500 industry reports already produced

Our expertise enables us to produce comprehensive studies in all sectors, including niche and emerging markets.

Our know-how and methodology enable us to produce reports that offer unique value for money.

Access to several thousand articles and paid-for data

Businesscoot has access to all the paid economic press as well as exclusive databases to carry out its market research (over 30,000 articles and private sources).

To enhance our research, our analysts also use web indicators (semrush, trends, etc.) to identify market trends and company strategies. (Consult our paying sources)

Guaranteed support after your purchase

A team dedicated to after-sales service, to guarantee you a high level of satisfaction. +44 238 097 0676

A digital format designed for our users

Not only do you have access to a PDF, but also to a digital version designed for our customers. This version gives you access to sources, data in Excel format and graphics. The content of the study can therefore be easily retrieved and adapted for your specific needs.

Our offers :

the real estate development market | Spain

€

5 reports pack (-15%) ES Spain

75.6 € ^{/ study}

378 € instead of 445 € -15%

5 reports at €75.6 excluding VAT per study to choose from our Spanish catalogue for 12 months
Save 15% on additional studies purchased
Choose to be refunded any unused credit at the end of the 12-month period (duration of the pack)

See the terms and conditions of the pack and the refund of unused credit.