The Madrid International Real Estate Exhibition (SIMA) is the place where, in the same pavilion, you can buy a flat in the center of the capital, an apartment on the coast, a condominium in the Caribbean or bet on camping with glamor. It is also the space in which to sign a mortgage, find out how Ikea furniture is made, buy the flooring for a terrace or the tiling in the bathroom and kitchen. And it is the space to find out what is breathed in the real estate sector, which this year points to optimism and investment expectations.
Why the housing law is not a bargain for the ‘squatters’
In this type of event, housing is mainly an asset on which to obtain profitability, despite the fact that the approval of the Housing Law has protected it for the first time in Spanish legislation as a right of citizenship. In fact, the Law is one of the topics discussed at this fair, but also the evolution of interest rates, the role of investors and promoters and how to get liquidity from the brick to complete the pension.
Housing is seen as an investment and as a good to which the laws of the market apply. “Supply is well below demand,” said Asís Colomina, Acciona’s director of Real Estate Promotion at a conference parallel to SIMA. An investor appetite that coexists with the need for more land on which to build. “There is no floor,” he pointed out. “News are coming out that the sector is suffering”, but “it survives, operations continue to be carried out”.
In that same talk there was talk of making a “akelarre” to guess what the real estate sector will be like in 10 years. In it, Javier Román, Diglo’s director of real estate assets, focused on the problem of young people to find a house. Diglo is the servicer of Banco Santander, that is, of the bank firm that is dedicated to the management of real estate portfolios, both real estate and loans. Román assured that the demand for flats by people between the ages of 25 and 35 reaches one million and that there is an affordable housing problem, because, in five years, only 40,000 properties have been built that meet that condition of being below the price market. For this reason, he pointed out the need to return to the Official Protection Housing (VPO) model.
“Now there are assets of living room long, medium, short stays, for the elderly, elderly with needs, residences for young students or young professionals”, listed Esther Escapa, head of the Iberia region at Axa Investment Managers, when talking about how the offer is increasingly focused to specific types of people. “In order for the assets to generate the money that they have to generate, more investment must be made,” she acknowledged.
In a previous conference, there was talk of a certain slowdown in the market, but not because the Housing Law is scaring away investors, but because of inflation and interest rates. “In new investments, in the last six months, we have seen a slowdown. The agreements that were [firmados] they have continued, but the new ones have been paralyzed”, assumed Alberto Delgado, general director of business of Aedas Homes. “We are at a time to seek stability in the cost of debt and construction. When we have clear numbers it will be easier for everyone”.
Law of “compulsory compliance”
This is the first real estate show to be held after the final approval in the Senate of the Housing Law, which is still pending its publication in the Official State Gazette (BOE), which will mark its entry into force. Something that will happen “this week”, according to what the Secretary of State for Transport, Mobility and the Urban Agenda, David Lucas, told the media during his visit to SIMA.
A Law that, according to what administrations governed by the Popular Party have declared on several occasions, they have no intention of applying in what they are not obliged to. “Within the scope of our powers and without breaking the law, but taking the decisions that legally correspond to us, we will not apply the measures that are provided for in that law and we will continue with a housing policy that gives priority to supply and that there may be homes for rent in the city of Madrid”, assured a few weeks ago the mayor of Madrid, José Luis Martínez Almeida.
“The Housing Law is mandatory, for everyone,” replied David Lucas. “It is true that the stressed areas are declared by the autonomous communities. They will have to explain to the citizens why they do not want to control rental prices where there are speculative movements, why they do not want to generate supply policies, affordable housing, and tax policies in those areas that are going to help owners.” .
He also stated that investors and promoters do not criticize the new legislation. “I have been excited about the 184,000 homes that we are promoting,” Lucas said. “What I have detected is that despite many doomsayers who say that the sector can enter a crisis, I see the sector in great health, with a great desire to build housing, with a great desire to build affordable and protective housing and with peace of mind given by Spanish legislation to be able to achieve it”. In this article, we break down where the 184,000 homes that the coalition government has promised to promote come from.
Cohousing, coliving, build-to-rent, glamping…
On the first day of SIMA, above all, real estate developments are seen that are either under development or about to be developed. Why is there more interest? Well, it is no different from other years, homes in Madrid, on the Levante coast and on the Andalusian coast”, a commercial from one of the promoters present at the fair explained to elDiario.es. Companies that, if apartments are reserved in this real estate show, offer discounts.
“Yes, this year there is talk of interest rates and financing conditions, but the desire to buy is no different from other if more. Well, except for those of the crisis”, qualifies a representative of another real estate agency. In this, SIMA is a concentration of proposals for houses of all types and locations. A lot of urban promotion, especially in Madrid; but also the aforementioned coasts of the East and South of the peninsula or in Asturias and Cantabria.
This year, too, many Anglo-Saxon expressions, such as mix use, cohousing, coliving, build to rent or glamping. The latter refers to the campsite with glamor, but not in Spain, but in Indonesia, in a real estate concept designed for digital nomads. It is not the only offer in other countries. Also, for example, properties in Punta Cana and Samaná (Dominican Republic) for just over 90,000 euros, villas in Barichara (Colombia); or single-family houses in the United States, where annual income of more than 10,000 euros is promised to those who buy to rent in Detroit or Cleveland.