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THE CONSOLIDATION. 2018 represents the year where growth moderates or, practically, disappears. We had already been saying a couple of years ago that this fact, by itself, was advisable to happen because, otherwise, the market would not be sustainable. This moderation has been very clear in the city of Barcelona throughout 2018. In contrast, in the surroundings of Barcelona is still in the upward curve of the market. We could say, in a generalized way, that both rental and resale markets in Barcelona city have peaked and, in 2019, we will see how they are positioning themselves. In general, the market offer has remained low, but there are already indicators that show a change of trend in this regard, and already at the end of the year we have seen how the Offer has recovered in some areas. We believe that this will be one of the most significant facts of 2019. This 2018 has also been a year where accessibility to housing has been the focus of social, political and media attention- and we agree with that- but we demand much more debate in this regard, since the few measures have been taken without taking into account professional advice by the agents of the sector and, in some cases, have been taking in a short time, which is totally incomprehensible when we talk about such an important issue such as housing. In summary, this 2018 has been much like the previous year, and if we consider 2017 as a very good year, 2018 has also been like this. The key to the future will be finding that level of market sustainability.

Made by:

GuifrĂŠ Homedes Amat @guifre77


This 2018 we have also detected an increase in resignations, which means tenants finish the contract before its ending. It must be said that two main reasons for not meeting the contract time are significant. The first reason has been the purchase of housing and, the second, the fact of returning to the family home.

RENT – Contracts and prices Amat Immobiliaris Data In 2018 we were still in a very low rental offer environment, this made it difficult to make more Contracts than in 2017. As you can see in the evolution of recent years, we have stayed at a similar level the last 4 years, but 11% below 2017.

We are confident that the purchase of housing will be one of the great reasons that will stimulate the rental market in 2019 by significantly changing the available offer.

In the last report, we already said that to understand the rental market context it is also important to look at the renovations that are made annually and, above all, in a legal environment where contracts are very short and generate many renovations. As you can see, its importance is significant. Noteworthy data of Renewals in 2018:

As can be seen in the evolution of the rental income impact, according to our areas of influence and evolution has been different in Barcelona city compared to the Metropolitan Area. In Barcelona, ​​on average, we have already seen how the average impact of rent has remained on a downward trend. In contrast, in the city outskirts, the trend has been clearly upwards. As you can see in the map of the main districts where we work, in almost all of them trend has been downward. In some cases it does not have to mean a market trend but, for example, in l’Eixample in 2017 we concentrate the rental offer of new construction in a significant way and, evidently, when a house is new the rent is higher. In general, in 2018 we have had less offer of Brand New development rent in the city of Barcelona.

We have renewed 75% of all the Contracts ended in 2018, a slightly lower value than in 2017. The average Rent increase of Renovations was 13%, slightly higher than the increase we had in 2017. RENT- Number of contracts and renewals

2013

2014

Operations+Renewals

2015

2016

It may also seem that, depending on which more modest districts of Barcelona, ​​the impact of rental income is higher than in other districts such as the Zona Alta, but this is due to the fact that houses are larger and, therefore, the impact is lower, but in monthly rent it is clearly above the rest of neighbourhoods.

Trend

2017

2018

rental price repercurssion in BARCELONA

Data in €/sqm/month

HORTA GUINARDÓ

SARRIÀ ST. GERVASI

15,07

NOU BARRIS

GRÀCIA

14,01 14,51 LES CORTS

12,50 ST. ANDREU

13,35 EIXAMPLE SANTS MONTJUÏC

14,05

14,31 ST. MARTÍ

13,16

CIUTAT VELLA

11,04

Prices of rental repercussion Barcelona

Sant Cugat

Sant Just Desvern 13,94

14 13,32 12 11,04 10

8 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

MARKET REPORT

Operations

2012

584

3


In absolute income, in all our areas, the average income has been above € 1000 / month for the second consecutive year. In some cases, this average value has decreased compared to the previous year, but even so, we are located at very high levels.

For three years now, it is very clearly that there has been a shift in the price zone where we have made the most contracts. This 2018 more than 50% of new contracts that we have made have been with rents higher than 1000 € / month. In order to see the change, 3 years ago 49% of new contracts we made were € 800 / month or less.

Average rental price by housing typology Flat

Barcelona

Flat

House

Sant Cugat

Flat

House

Sant Just

% Rental contracts by segment of price

4.000

2013

2014

2015

2016

2017

2018

3.488 35%

3.000

30% 25% 2.000

1.979 1.294 1.132 1.018

1.000

20% 15% 10%

€/month

0

2010

2011

2012

2013

2014

2015

2016

2017

5% 0

2018

< - 600

601 - 800

801 - 1.000

1.001 - 1.500

1.501 - 2.500

2.501 - >

RENT- Housing typology Amat Immobiliaris Data The most rented type of flat during 2018 has 3 rooms, between 65 and 95 sqm built and Energy Rating E.

rented housing by typology

13% 28%

>120 SQM

> 3 Months

PRICE RANGES

rotation

21%

2-3 Months

> 2.500

66%

<65 SQM

800-600

17% 14%

< 600

41%

5% housing

42% housing

10% housing

10% housing

4% housing

19% housing

15%

MARKET REPORT

2 BEDS.

21%

3 BEDS.

40%

4 BEDS.

24%

Number of bedrooms Requested

It should be noted that, although most rented homes still have Energy Rating E or worse, homes of type A, B and C have improved slightly upwards. This trend will continue in 2019 as we will have a significant offer of Brand New development for rent, these homes are rated A or B.

4

4% 16% 35% 20% 17% 8%

65-95 SQM 1 BEDS.

requested SURFICES

1.500-1.000 1.000-800

< 2 Months 95-120 SQM

2.500-1.500

€/month

Even so, we continue to stress that the Energy Efficiency Certificate is not considered useful information or starting point for the improvement of a home, but is considered a pure administrative procedure. We hope that, step by step, it will be acquiring a social conscience and will end up being a decisive and influential factor when deciding to rent or buy a housing. House rotation continues to be very high. More than 60% of homes rented in 2018 have come out in less than two months of commercialization. This trend continues for years and is totally related to the lack of offer. Looking ahead to 2019 and foreseeing changes in the offer, rotation could be extended and houses were be longer on the market before being

10% housing

energy certificate

rented. As we always say, it will depend on the starting income in the commercialization: if it is at market level, it will continue to be rented with little time to market. It should always be borne in mind that this time also depends on the absolute rental value: at higher rental ranges, real estate has more time to market. On average, rental houses located in the range of less than € 600 / month have been rented in 0.4 months, and the range of more than € 2,500 / month, in 3.25 months.

RENT – Tenants’ profile Amat Immobiliaris Data For the second year in a row, we analyzed the tenants’ profile we had during the year. As you can see in the infographic, on average 41% of the tenants are under 40 and 39% between 40 and 50 years old. In 2017 we had on


average a much higher percentage of tenants under 40, this is influenced by Age Contracts the area where we make more rental contracts. If we observe in Sant Cugat < 40 41 % del Vallés, only 25% of tenants are less 40-50 39 % than 40 years old, and 50% are betwe50-60 16 % en 40 and 50 years old. On the other hand, in the city of Barcelona 72% of 60 < 4% the tenants are under 40 years old and 14% are between 40 and 50 years old.

tenants

In all areas, the highest age ranges remain fairly stable and are very few in the rental market. In reference to the economic effort made by tenants regarding the rent of a home, this 2018 we have placed on average between 35% and 40%. It really is a very high effort rate.

RENT – Index of Prices Amat Immobiliaris Data Since its publication, we have tried to analyze where we are located in real income with respect to the Rental Price Index published by the Generalitat de Catalunya. For us, the index is an important reference to take into account when selling a property for rent. In 2018 we have been almost all year in between the Upper Range and the index itself. Analyzing case by case, cases where we have placed ourselves outside the index, 86% were new housing rentals. That is why we believe that the index works very well and that the Administration should make efforts to put it in value among professionals working with rental properties. Real Price trend Vs Índex of RENT

One of our projects started in Amat Inmobiliaris has been the launch of Greendex. This project is run by a Catalan company called STARLAB. The Greendex is a green index, which indicates the amount of green areas surrounding all the properties that we market in the city of Barcelona. The index is complemented by the GreenMAP, which indicates the quality of this green areas surrounding the property. This is only the start of a project with which we hope to be able to establish an additional information criterion for our clients with very important information, health information and quality of life in a housing environment. We believe that this will be a decisive factor for next generations.

25,0

It is the indication of green areas surrounding the housing.

18,75

It is the visualization system on our website

12,50

6,25

Tendència real Real tendency Real Real

Tend.Top Índex superior Tend index Índex superior Top index

Tend. Índex Tend. Índex inferior Tend index Tend Lower index Índex Índexindex inferior Index Lower

RENT – Offer Amat Immobiliaris Data

HIGH GREEN SURROUNDING

LESS GREEN SURROUNDING

In various paragraphs of the Report we have mentioned that we foresee important changes in the offer.

MARKET REPORT

We hope to find these changes in 2019, but already in 2018 it has meant a turning point in this sense and we have touched minimum in offer. Throughout the year we have noticed a little but constant recovery of the average offer of rental properties. Rental offer

5 2012

2013

2014

2015

2016

2017

Just as a reference in some areas where we work, in 2019 we are planning to have offer in one or two projects, which represents 71% of all we rent in 2018.

2018

Image of the GreeMap on our website


FOR SALE – Global data Amat Immobiliaris Data

RESALE– Prices Amat Immobiliaris Data

We started by analyzing globally all sales made by Amat Immobiliaris in 2018 and, later on, we will differentiate between Resale and Brand New to see prices, buyers and types of properties sold.

As we said last year, more often there is a clear convergence to € 400,000 as a price in the great majority of sales. Related to that value, this year there have been a few fluctuations. The difference lies in the fact that the percentage of operations in this region has represented 52% of total operations. In proportion, the highest ranges have been kept in steady percentages in the last three years, and the lowest price (operations of maximum € 300,000), is the one that has receding compared to 2017.

In 2018, globally, we have made fewer operations than in 2018, the difference has been exclusively in Brand New developments. We have made 9% less operations in Brand New development, which is influenced by having been a year of dead end between ending of commercialization of some projects and the beginning of others. In Resale sector are exactly the same as in 2017.

Average price of resale sales (M€) Barcelona

Sant Cugat

Sant Just

Number of SALES operations Barcelona

Sant Cugat

Sant Just

431.000 427.000 365.000

2012

2013

2014

2015

2016

2017

2018

% SALES operation of resale market by price range 45% 2013

40%

2014

2015

2016

2017

2018

35% 30% 2012

2013

2014

2015

2016

2017

2018

25% 20%

But even having fewer sales in number of operations, the total volume of sales has grown by 5% over the previous year. This volume growth was basically seen in the Resale market and it is due to the growth in the percentage of operations made in the range of 300,000 to 450,000 €.

Sant Cugat

5% 0 ------- < 300.000€

300.001€ 450.000€

450.001€ 600.000€

600.001€ 750.000€

750.001€ 900.000€

900.001€ < -------

The quarterly evolution of Resales’ repercussion prices in the areas where we work continues to show an upward trend, although the behaviour has been different according to each area.

SALES turnover volume (M€) Barcelona

15% 10%

Sant Just

MARKET REPORT

In Barcelona, the trend continues to rise although there are districts where it has grown, and in others it has dropped. This fact is conditioned by the offer and sales that we have been able to make during 2018 in each district. In 2018, we have maintained the city average at € 4,400 / sqm. The 2018 maximum was € 6,700 / sqm in the area of ​​Pedralbes. In the graphs of the city you can see the last years’ evolution and the value of the impact of 2018.

6

2012

2013

2014

2015

2016

2017

2018

In Sant Cugat del Vallès the upward trend continues, where it is still significantly pronounced. Compared with 2017, this last year the average impact has been 14% higher. The range of repercussions has been compressed a lot compared to other years, all of them around € 4,000 / sqm. The maximum of 2018 has been € 5,600 / sqm in Sant Cugat center In Sant Just Desvern and its surroundings, the upward trend has also been maintained, but this is where it is more moderate: it has been 5%. The average impact of 2018 was € 3,200 / sqm, with a maximum in Sant Just Desvern of € 5,200 / sqm. In other surrounding towns, the average impact was € 2,700 / sqm. In Esplugues de Llobregat, Sant Feliu de Llobregat has been € 2,400 / sqm and Sant Joan Despí has ​​ been € 3,000 / sqm.


repercussion resale price in barcelona HORTA GUINARDÓ

SARRIÀ ST. GERVASI

€/m2

GRÀCIA

4.478

LES CORTS

NOU BARRIS

4.943

€/m2

5.470 €/m

2

3.823

ST. ANDREU

3.000 €/m

2

€/m2

4.203 €/m

EIXAMPLE

ST. MARTÍ Diagonal Mar

SANTS MONTJUÏC

5.104

CIUTATVELLA

3.142

4.545 €/m2

€/m2

Average repercussion of resale housing

2

€/m2

M€/sqm

BCN

8

STC

STJ

7 6 5 4 3 2 1

1T

2T 3T 2014

4T

1T

2T 3T 2014

4T

1T

2T 3T 2015

4T

1T

2T 3T 2016

4T

1T

2T 3T 2017

4T

1T

2T 3T 2018

4T

RESALE HOUSING FOR SALE – Properties typology Amat Immobiliaris Data The graph shows the typology of resale properties that we sold in 2018. This 2018 the best-selling properties have been distributed in flats of less than 90sqm and flats of 90120sqm equally, with 3 rooms mostly and Energy Rating E.

As in the rental market, resale properties sold have a very low Energy Rating, the great majority E or less. Nowadays it is not a variable that is taken too much into account in the resale market.

resale housing by typology 18% >180 SQM

24% 120-180 SQM

29% <90 SQM requested SURFICES

37% 39%

29%

4 BEDS.

3 BEDS.

PRICE RANGES 900 <

M/€

900-750

2% 1%

750-600

4%

600-450

7%

450-300

52%

< 300

34%

energy certificate 90-120 SQM

8% 3%

2 BEDS.

Number of bedrooms Requested

1 BED.

0% HOUSING

50% HOUSING

0% HOUSING

13% HOUSING

3% HOUSING

26% HOUSING

8% HOUSING

MARKET REPORT

13%

>4 BEDS.

7


RESALE HOUSING FOR SALE – Buyers’ profile Amat Immobiliaris Data The most characteristic aspects of the buyers that we have had in each area are the following:: Investors are still more present in Barcelona than in other areas.

Overall, the percentage of financed operations has grown.

In Sant Cugat del Vallès is where the middle age buyer dominates, a fact that is repeated year after year, and in Barcelona city is where we have had more young buyers this year.

In 2018 we have clearly sold to fewer foreigners in the Barcelona office.

resale buyers’ profile

46%

barcelona

EmploYEES

businessmen

20%

15%

14%

11%

>60 years

50-60 years

investor

11%

23%

public employees

9%

69%

51%

40-50 years

<40 years BUYER AGE

retired

operations financed

NATIONALS EUROPA NORTH AFRICA AMERICA

86% 8% FINANCEMENT

EmploYEES

39%

39%

66%

27%

50-60 years

retired

sant just

40-50 years

<40 years BUYER AGE

60%

10%

NATIONALS

AMÉRICA

97%

3%

ORIGIN OF THE BUYER

HIGH LEVEL PROFESSIONAL

EmploYEES

22%

41%

public employees

FINANCEMENT

MARKET REPORT

10%

>60 years

12%

operations financed

8

5% 5%

investor

businessmen

3%

ORIGIN OF THE BUYER

HIGH LEVEL PROFESSIONAL

Sant cugat

3%

retired

9%

25%

>60 years

50-60 years

businessmen

30%

53%

28%

38%

40-50 years

<40 years BUYER AGE

operations financed

NATIONALS

AMERICA

97% 3% FINANCEMENT

HIGH LEVEL PROFESSIONAL

ORIGIN OF THE BUYER


BRAND NEW HOUSING FOR SALE - Prices Amat Immobiliaris Data In Sant Cugat del Vallés, Badalona and Mataró has been a variation of less than 1%. In Sant Just Desvern, Hospitalet de Llobregat and Masnou it has been less than 3%.

The Brand New housing market has continued very active in 2018 but perhaps the most evident difference compared to 2017 has been the evolution of prices in projects commercialized during 2018. One year ago the upward evolution of prices was very clear, however this 2018 has been much more moderate and, in some cases, there has been no increase.

Sales trend have also dropped a bit, but it is still important. On average this 2018 we have sold 7 Brand New properties per month. It is likely that these high sales rates could have been maintained due to price moderation throughout the year.

On the map it has been possible to see the average impact in all the points of sale where we sell Brand New housing.

brand new housing repercussion in barcelona VALLÈS OCCIDENTAL

MARESME

VALLÈS ORIENTAL

MATARÓ 3.518€/sqmSANT

CUGAT

EL MASNOU BADALONA RC RCELONÈS È

3.307€/sqm

ALT PENEDÈS

2.231€/sqm

2957€/sqm

2.785€/sqm Amat office

SANT JUST

3.149€/sqm

L’HOSPITALET BAIX LLOBREGAT

GARRAF

6.270 €/sqm 5.966 €/sqm 6.150 €/sqm 4.864 €/sqm 2018

3.923 €/sqm 3.237 €/sqm 2.874 €/sqm 2.463 €/sqm

SARRIÀ ST. GERVASI

LES CORTS 2017 2016 2015 2014

6.173 €/sqm 5.479 €/sqm 7.044 €/sqm 4.174 €/sqm

HORTA GUINARDÓ GRÀCIA

2017 2016 2015 2014

3.932 €/sqm

NOU BARRIS

ST. ANDREU

EIXAMPLE SANTS MONTJUÏC

CIUTAT VELLA

ST. MARTÍ Diagonal Mar

2018 2017

4.019 €/sqm 4.219 €/sqm

MARKET REPORT

2017 2016 2015 2014

9 2017 2016

Data in €/sqm

4.926 €/sqm 5.785 €/sqm


BRAND NEW HOUSING SALES Housing typology Amat Immobiliaris Data

have 3 rooms, between 90 sqm and 120 sqm built and 85% have a terrace. Like last year, if we look at the Energy Certification, there is a big difference with the Resale market: in Brand New Construction 100% of the commercialized properties are A or B.

The type of Brand New Housing that we have most traded keeps the constant of previous years, there are very few variations. The vast majority of apartments

brand new housing sold by typology 5% 120-180 SQM

>180 SQM

15% 51%

29%

90-120 SQM

< 90 SQM

2% 22 % 57 % 17 % 2%

> 4 ROOMS

26 % HOUSING

4 ROOMS

74 % HOUSING

3 ROOMS

0 % HOUSING

0 % HOUSING 0 % HOUSING

2 ROOMS

0 % HOUSING

1 ROOM

0 % HOUSING

energy certificate

Number of bedrooms Requested

requested

BRAND NEW HOUSING SALES – Buyers’ profile Amat Immobiliaris Data As every year, we highlight differences between both the Brand New and the resale buyer: The buyers’ profile is much younger, 48% are under 40 years old. The percentage of buyers who intend to finance is higher than those who finance Resale properties and, in addition, with respect to the same buyers of Brand New housing last year, there are significantly more intended to finance this year.

buyer profile BRAND NEW PROPERTIES

Many of the buyers come from the rental market and it is their first access to the Property. As we said last year, depending on the location of the brand new development the buyers’ origin is different: In L’Hospitalet, Badalona and Mataró, buyers come from the most immediate environment; however, in Sant Cugat del Valles, Sant Just Desvern and Masnou, there is a very significant part of buyers coming from Barcelona city.

53% EmploYEES

public employees

87%

15%

Planned operations to be financed

48%

<40 years BUYER AGE

HIGH LEVEL PROFESSIONAL

It is important to know the effort made by a family in order to buy a property. The official statistics of the Bank of Spain show that it has grown for the third consecutive year; if in 2016 there were at 6.7 years of Annual Gross Income per household, in the third quarter of 2018 it is already settled at 7.4 years. In 2018 the Amat Immobiliaris data stands at 6.89 years, lower than the previous year. Even if it is not a direct consequence, the fact that this year the variation of prices has been the minimum in the projects that we commercialized this 2018 helps to not worsen this data. Anyhow, it is worrying that at the state level this data continues to rise year after year.

investor

NATIONALS

AMERICA

EUROPA

AFRICA

93%

3%

3%

1%

ORIGIN OF THE BUYER

Housing price/Gross annual income by household Font: Banc d’Espanya, indicadors del mercat de la vivenda

8

7,4 anys

6

4

2

0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FINANCEMENT MARKET REPORT

50-60 years

40-50 years

4%

10

12%

7% 6% retired >60 years 5% freelancer 33%

17%

businessmen


AMAT LUXURY Amat Immobiliaris Data This 2018 has been a very inconsistent year for us in the Luxury Real Estate market and we could not find clear reasons why. Both in the city of Barcelona and in its surroundings, we have not carried out operations on a regular basis, either in Sale or Rent. The number of foreigners who bought to us this 2018 has been significantly lower and, in our case, the high-end market of this 2018 has been dominated by local buyers. This is one thing should be highlighted because it has been different from previous years.

There is a most to highlight that in Barcelona city we recovered again Pedralbes as an area where we have done many operations and where have seen the higher impact of this 2018.

We forecast a continuity in the results of 2018, but with some changes that it is important to mention. To start with, there are going to be changes in the offer, especially in the rent market, where we forecast a significant offer increase in some areas which should be reflected in the behaviour of Prices. We also believe that the For Sale offer will change but it is more related to expectations. In

LD

reality, it would be more aligned than the volume of offer. In Brand New housing, its continuity must be seen. In 2019 we closed many more projects than those we opened, so it is not clear how the Offer will continue. We forecast stability in terms of prices and selling rates. In general, there are two possibilities in terms of buyersâ&#x20AC;&#x2122; capacity: it remains stable or reduced.

MARKET REPORT

WHICH IS THE FORECAST FOR 2019?

SO

LD SO

SO

LD

R

R

EN

EN

TE

TE

D

D

In the surroundings of Barcelona the most active market has been the sale of lands to build single-family houses. This is a very specific market and in which we consider ourselves

very expert in the surroundings of Sant Just Desvern and Sant Cugat del VallĂŠs. Self-promotion allows customers to build sustainable housing and other energy benefits. It also allows to housing personalization and to find offer in places where perhaps there is not any. Nowadays with modern constructive methods, construction times are quite fast. This allows us to give a global advice in urban planning with the professional advice of architects, offer our market knowledge and to bring creativity to the projects.

11


C LO S E TO P E O P L E . T E C H O N O L G I C A L A DVA N C E D

Barcelona · Via Augusta, 3 · Sant Cugat del Vallès · Av Rius i Taulet, 17 · Sant Just Desvern · Bonavista, 63

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Profile for Amat Immobiliaris

Real Estate Market Report MR-2018  

We analyze the situation of the real estate market in 2018 THE CONSOLIDATION. 2018 represents the year where growth moderates or, practicall...

Real Estate Market Report MR-2018  

We analyze the situation of the real estate market in 2018 THE CONSOLIDATION. 2018 represents the year where growth moderates or, practicall...