2015: A variable year. For Amat Immobiliaris this 2015 has been a very variable year related to the behavior of the housing market. It has been a year where months of good activity have been alternated with months of scarce activity. A year where there have lived positive signs in the market such as the generalized recovery of the financing and, at the same time, negative signs as recovery expectations with reference to the activity as well as no realistic prices and unreal growth of new agencies â€“ a lot of them little serious and unprofessional. A year with a lack of good products for sale and for rent combined with high quality brand new promotions in Barcelona and surroundings.
SEMESTER Document prepared by:
GuifrĂŠ Homedes Amat @guifre77 2
For rent Amat Immobiliaris Data The rent market has had a positive behavior related to rent, rotation…The handicap is the lack of competitive stock in the market in Barcelona and residential surroundings as well as for sale products. The number of renting contacts in 2015 in Barcelona city has increased 13%, in Sant Just Desvern it has been the same that the last year and in Sant Cugat del Vallès it has decreased. In this case, we has foreseen it due to we finalized to commercialize an important number of properties already completely occupied.
The average of rent revenue of 2015 has been superior to the average revenue of 2014 for all the offices of Amat Immobiliaris. This fact does not indicate that the increase is generalized everywhere, although it is already the second consecutive year where a progress is observed. As there is seen in the historical series, there is a clear recovery in 2014 for all our offices. The strip from 600-800 €/month is where it have been more activity and it also has been consolidated, followed by the strip of 1.000-1.500 €/month and the <600 €/month whereas in the last 3 years the dominant strip has been that last one. It is also necessary to noticed the significant increased of contracts over 2.500 €/month.
500 2004 2005 2006 2007 2008 2009 2010 2011 0
Investors and owners that want to rent a property the ideal setting is the apartment of 65-95 aq. m constructed with 2-3 rooms and a market price between 750 and 1.000 € / month. The demand is concentrated in this setting and in the most central areas.
2012 2013 2014 2015
For rent properties rotation Amat Immobiliaris Data The average rotation of the real estate for rent has been reduced for the second year in a row. In 2015 the average time to rent an apartment in our offices has been 2 months and less than a week to rent an apartment in the lowest price range and located in central places.
Amat tenant Profile Requested surfaces
Number of bedrooms Requested 1
21% 95-120 m2 < 65 m2
21% 73% 17%
< 2 MONTHS
< 600 22% 600-800 27% 800-1.000 9% 1.000-1.500 21% 1.500-2.500 8% >2.500 4%
> 3 MONTHS
Sales Repercution Prices Amat Immobiliaris Data
Range of properties for sale Amat Immobiliaris Data
The average sales price impact has been different depending on the area:
In the distribution of the second-hand sales and new construction, there has been a change of direction in this aspect, especially in the residential area in the surroundings of Barcelona. In 2015 our sales were approximately 50% between second hand and brand new construction. It has been a year where off plan sales has recovered significantly, and we hope that 2016 will already be a significant year both in Barcelona and its surroundings.
· In the residential area surrounding Barcelona city (Metropolitan Area: Sant Cugat, Sant Just Desvern, etc.) this 2015 has experienced a recovery in terms of the average in sales impact. In Sant Just it has grown 30% and in Sant Cugat 11%. This data should be taken with caution because in both cases it is influenced by new high level brand new promotions which imply a high impact of sales.
Foreign customer is also inclined to buy off plane when it previously was unusual, probably because of the lack of options.
What is very different is how it arises and who acquires brand new developments related to its location, in Barcelona city or its surroundings. In the city of Barcelona much of the brand new developments sold by Amat have been acquired by foreign people, although some new projects in the city have also had national purchasers. Instead of that, in the surroundings the usual buyer of brand new construction is the national buyer and, with few exceptions, very focused on lower-middle range of price.
< 300.000 €
· In the city of Barcelona this analysis has to be done in two senses, by neighborhoods and differentiating brand new developments and second hand. In this last case, we could say that in our influence area - Sarrià - Sant Gervasi, Eixample, Les Corts, Gràcia and Diagonal Mar neighborhoods- prices of second hand properties have remained stable compared to 2014, those are even a little below. In contrast, brand new developments put on the market and sold during this 2015 marked high impact prices. For example, between 4,000 and 5,000 € / sq. m. built in areas such as Les Corts, Gràcia and Poble Sec. Almost 7,000 €/sq. m. in Sarrià - Sant Gervasi and between 7,000 and 8,000 €/sq. m. on average in the Eixample.
> 900.001 €
750.001 - 900.000 €
60.001 - 750.000 €
450.001 - 60.000 €
300.001 - 450.000 €
The low prices’ range continues to dominate the number of operations performed. The sales in medium range, between 600,000€ and 750,000€, improve gradually which in our case was the dominant before 2007. This improvement has been very focused in brand new developments in Barcelona’ surroundings.
· The average price of sale operations has remained stable regarded to 2014. · The higher price has been sold in the center of Eixample and the higher repercussion has been in Diagonal Mar (10.700 €/ sq.m.). · The number of operations with properties valuated over 1 M€ has been the same than 2014. 2015 could be resumed as a year with a fluctuating demand, lack of stock and high new competence.
MARKET REPORT - 2nd semester 2015 - Amat.
Rotation of For Sale Properties Amat Immobiliaris Data
Customer Profile Amat Immobiliaris Data
The average rotation in 2015 has been of 6 months, less than the previous year. This figure of this year is already very reliable since it is little affected by the bran new developments that had taken many years to sell during the crisis.
During 2015 the presence of foreign buyers has been remained, as happened last year, mainly in Barcelona city.
In summary, nice properties, well-located with competitive prices, are sold in less than one moth.
In our case foreign buyers have always dominated the higher price range, although during this 2015 they have also purchased homes in a relatively low price, but with high impact. It tends to be new homes in the most modern areas of the city.
However, it is noteworthy that this parameter is always linked to the correct market price of the property. In determined areas with little stock and significant demand, it has been a considerable number of sales in less than a week.
The predominant nationalities of our foreign buyers in 2015 have been: Arab countries (basically Egypt and Middle East countries), Europe (including UK buyers), South America (Argentina and Chile) and Asia (mainly China). Foreigners dominate the highest price range, as in previous years. Nevertheless, they also bet for low price apartments but of high impact. 80% of all the Amat group sales have been made by domestic buyers, that represents a 70% of generated volume, and if we look in detail to our Barcelona Office, its generated volume is reduced to 41%. On the other hand, the foreign buyer represents a completely inverse percentage, where 13% of sales operations of the Amat group have been performed by our 4 main foreign buyers group (Europe, Africa, Middle East and South America) being 24% by generated volume and, in our Barcelona Office, it reaches 51%.
1% 2% 3%
2,3% 4% 1,5% 2,4%
1% 2% 2% 4%
Volume Sales Transactions
Number of Sales Transactions
It is consolidated the fact national buyer dominates purchases, something that had been diluted in our case during the years of deeper crisis. Nevertheless, at the moment he is not a young buyer as he was before the crisis, the profile of our current buying client is primarily a family, with 2 children, between 40 and 50 years old, and with high socioeconomic level: Manager, Businessman or Liberal Professional. Young people are focused in the rent and it is not even further on that they become a potential purchaser.
SPAIN RUSSIA + UKR NORTH AFRICA MIDDLE EAST EUROPA CENTRAL AMERICA SOUTH AMERICA ASIA
Financing improves: 65% of operations performed in 2015 have been financed with mortgage. Meaning 10 points more than in 2014.
MARKET REPORT - 2 semester 2015 - Amat. nd
It continues timidly the effects of a movement of buyers in the area of Sant Cugat coming from Barcelona city. This effect was significant between 1995 and 2006, when high prices in Barcelona City “pushed” demand to nearby residential areas. We believe this increasingly effect will be more accused as the “dual market” of Barcelona - where many brand new central developments are intended for foreign buyers- will make the purchaser of Barcelona that can not afford these prices to buy in the outskirts or directly in the metropolitan area populations such as: Badalona, Hospitalet de Llobregat, Sant Just Desvern , Sant Feliu de Llobregat, Esplugues de Llobregat and Sant Cugat. The reasons for purchasing have changed a little compared to 2014. In the case of foreigners it often is linked to its origin. Buyers in the Middle East and Asia are mainly investors whereas other areas seek primarily a 2th residence. On the contrary of 2014, in the Internal Market more than 60% are 1th residence and the rest are more focused on investment.
AMAT BUYER PROFILE ORIGIN OF THE BUYER AMAT GROUP
14% > 60 years
20% 50-60 years
25% 30-40 years
BUYER AGE on-line
41% 40-50 years 35%
13% ORIGIN contact
businessmen Leadership LIBERAL PROFESSIONAL
33% 18% 20%
high level professional
How do we see 2016? Just a year ago we asked ourselves the same question. At that time we anticipated some market behaviors that have been fulfilled and others failed in the same way. In the environment where we work normally, this year will be a year with the placing on the market of a significant amount of new product and we will need to see how the demand focuses on these projects and / or consolidates a further improvement in the market, without the fluctuations of 2015. On the other hand, we believe that second hand properties will continue have scarcely product and poorly managed, due to the great amount of competition in the sector. There will be an important exercise of awareness by the owners about the actual market price since the inputs they receive are based on expectations that are clearly above the market. The lack of transparency in the sector’s data and the malpractice of many market participants generate in most of the cases an opinion in improving prices away from the reality. We also anticipate that the good conditions of funding will continue in 2016. In rentals we anticipate a year of a lot of activity, also with little interesting product on the market. It is likely to continue the improvement of incomes, but more moderately than in 2015.
Sant Cugat del Vallès
· It will remain an absolutely dual market with different behaviors between the foreign market and the internal one.
· It will be a year where probably will be released very new product. We anticipate that internal demand will be the main purchases of this product. It is likely that many buyers are from Sant Cugat, but we anticipate a migration from Barcelona city to Sant Cugat. It will be people who mainly cannot access housing by its prices in the city of Barcelona.
· The market of foreign purchasers will continue active and hogging the purchases in new projects located in central areas or those relatively close to the sea. We do not expect changes in the origin of foreign buyers, although this is closely linked to the economy, politics and global stability. We anticipate that customers in Europe, Middle East, Asia and North Africa will continue to dominate shopping.
· Because of the characteristics of the area there is a certain segment of foreign buyer, mainly of Luxury, which can find the property seeked - mainly housesin Sant Cugat.
· We hope the consolidation of the domestic demand. Step by step there are some projects in most peripheral neighborhoods of the city that will output to this demand. In general the bulk of demand will focus on medium-low price range.
Sant Just Desvern and surroundings · We have a similar forecast than Sant Cugat for San Just and surroundings. In Sant Just Desvern is expected to start marketing an important and large new housing project which we hope to consolidate the domestic demand. As well as in Sant Cugat, we believe there will be a migration from Barcelona city to these projects of Sant Just Desvern.
· The new stock will improve and will be dominated by projects mainly designed for foreign buyers with a high market impact. · In the city of Barcelona the Municipal Government messages can generate uncertainty since many times information are easy to publish without thinking of the immediate consequences in the rent market. As usual, the Administration is lack of understanding on the sector’s data.
· International demand in Sant Just, for rent and for sale, has always been closely linked to the International Schools in the area, and always much focused in high standing homes.
MARKET REPORT - 2 semester 2015 - Amat. nd
Local expertise with international projection.
Barcelona. Balmes, 345 · Sant Cugat del Vallès. Rambla Can Mora, 10 · Valldoreix. Plaça Can Cadena, 2 · Sant Just Desvern. Bonavista, 63-65
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