Most of the country's economy is based on construction and development. In the past, this segment in the past has been very profitable and has been developing in strides, but what is happening today?
This article covers the process of building real estate in Spain. It affects the development of both large-scale and small-scale projects.
Property development has two interrelated meanings.
This may be the process of creating a new property — a house, a hotel, a factory, etc. There may be development of land ownership - in this case, it may be either previously undeveloped land (green fields of land) or land that was previously used for some other purpose.
TYPES OF PROPERTY IN SPAIN
There are several types, each of which has a unique purpose and utility. Main categories:
- land;
- housing stock;
- a commercial;
- industrial fund.
For those who want to understand how the industry works and what each of the main categories represents, the explanations below will provide useful guidance.
LAND
The land is the base for all types. It usually refers to undeveloped property. Developers acquire land and combine it with other objects and rezon it so that they can increase the density and increase the value of the object.
HOUSING STOCK
Consists of housing for individuals and households. This is the most common type and asset class with which most people are familiar. Residential funds have private houses, apartments, condominiums, townhouses, etc.
COMMERCIAL REAL ESTATE
Commercial property refers to the soil and buildings that are used by enterprises to carry out their activities. Examples: shopping centers, individual stores, office buildings, parking lots, medical centers and hotels.
INDUSTRIAL FUND
Under industrial real estate refers to land and buildings that are used by industrial enterprises. These are factories, mechanical production facilities, logistics and warehousing.
THE DEVELOPMENT OF LARGE-SCALE CONSTRUCTION
Determination of opportunity
Opportunities to improve the industry are abundant throughout the world, but in order to determine which one will be in accordance with your requirements, you first need to know what is available on the market.
Already, the majority of successful development companies have expanded new areas. However, this means that you have to be even more careful when choosing a design project and spend much more time and money on the due diligence process.
Chronicle
After more than seven years, Spanish construction companies are beginning to show signs of recovery. In 2018, for the first time since 2011, the six leading players in the country saw an increase in total revenue, as well as market capitalization, according to the latest construction report by European powers (Epoc 2015).
Spain still ranks second in terms of total revenue: six companies ranked second and 28th out of 50. Sales of the big six were 64.9 billion euros. In 2018, growth was 3%, and their total capitalization rose to 32.6 billion euros, which is 6% more than in the previous year.
In general, Spanish construction companies gave way to their European competitors, whose revenues grew by an average of 5%, while the value of shares rose by 21%. This increase was mainly due to the British construction companies and the growth of the pound against the euro, but the Spanish and Italian companies.
After a downturn in the construction industry in 2008, investment in the sector has grown steadily since 2014, and this trend is expected to continue throughout this year (2.4%), an increase of 3.1% in 2018. Consequently, the construction segment tends to grow and develop.
OVERVIEW OF THE SITUATION BY REGION
Madrid, Tetouan
On the periphery of the central part of Madrid, Tetouan has long been associated with the fact that it is the epicenter of the city’s international immigration, making it one of the most “exotic” districts of the capital of Spain. Despite the fact that Tetouan was traditionally considered the territory of the working class, he recently received preferences for landscaping and development. This area is a tempting offer, combining its centricity and relatively reasonable prices.
Valencia
There are locations in the city where you can still buy real estate at reasonable prices, especially in Calle Felix Pisqueta and Calle Colon, where prices start from about 2,500 euros per square meter. It is rumored that Calle Colón - the most important commercial thoroughfare in Valencia - will be pedestrian, which means that real estate will be in great demand in the area.
Costa del Sol
Estepona and Mijas Costa are areas that are worth paying attention to because they develop the most modern construction in Spain. In Marbella, property recovery is still suffering, due to the fact that the 2010 city plan was rejected by the Supreme Court of Madrid in early 2017. Much of the impetus received in previous years in terms of recovery has decreased as demand and interest have changed to nearby cities, such as Benahavis, Estepona and Mijas Costa. These cities have no problems with planning licenses and are interested in attracting investments. Estepona and Mijas Costa are less consolidated and therefore have more “virgin” lands, which are reserved for construction. As a result, most of the new projects currently underway on the Costa del Sol are located in these areas, as well as in Benahavis and Benalmadena. These areas are also more family-friendly and ideal for those who want to avoid unnecessary noise.
Coast of Barcelona
In the coastal areas of Barcelona, there has been an increase in recent months, especially in such as Diagonal Mar and Badalona. They are expanding and attracting interest from buyers, especially foreigners. For example, one of the developers offers an urban atmosphere with a beach lifestyle. The house is located just 5 minutes by car or tram to the city center. Within minutes, residents can walk to its long sandy beaches, restaurants, and popular shopping centers.
MORE ABOUT BUILDING
In the Basque country, the rules regarding the development of your existing property are a bit complicated, since they mainly depend on the legislation and the general planning of the municipality. Each municipality has different requirements.
In theory, any extension of your property, however small, is considered a modification of this property and requires permission from the municipality. Regardless whether you want to add an extra bedroom or want to build a pool or terrace.
In most cases, it is quite easy to obtain permission to build an extension, provided that no part of the extension is closer than a certain number of meters to the edge of your property, and provided that no more than a certain percentage of the surface occupies the area of construction on your land . These rules vary from region to region.
It will be more difficult if you want to modify the apartment. This requires the consent of the municipality and the Owners Association (comunidad de propietarios) in an apartment building.
Of course, almost none of the items related to large-scale or even small-scale development are applicable in the event of changes in your existing property. The main exception is that you intend to make changes in order to sell the property.
CONCLUSION
A decade later, during which the real estate market stood in place, the construction business moved from its place, investment flows began, new technologies and architectural concepts were added. There seems to be good room for improvement for both large and small builders.
The government and its various municipalities are determined to ensure that development takes place only under strict control, and therefore they have used the last ten years to tighten their regulatory procedures. This is necessary to ensure that the development being carried out is of good quality and structured in such a way that it is legally safe for consumers. Therefore, it is recommended that you pay much more attention to the legal regulation of the industry than before.>