If you are thinking about buying a new apartment, you are probably curious about the largest developers in Spain. In this article, we will introduce you to the largest companies with the best reputation in the Spanish real estate market, as well as offer advice on the right choice of a reliable developer.
- Best construction companies in 2021
- Top-10 construction companies in Spain
- Basic recommendations for selecting a developer in Spain
- We help to choose an apartment
In 2021, Spain is planning to complete 80 000 new properties. However, the National Institute of Statistics estimates that 120 000 new properties are required per year to meet demand, while the Spanish Association of Developers and Builders estimates that between 120 000 and 150 000 properties must be built each year to meet housing demand by 2030. However, all of these estimates will be adjusted in response to the health crisis caused by the coronavirus.
It is difficult to achieve such rates of production, but in Spain one can distinguish Spanish construction companies, "supplying" housing to the real estate market for thousands of people.
10 large construction companies operating in Spain:
- The developer Vía Célere, founded in 2007 by Juan Antonio Gomez-Pinton, concentrates the largest number of new properties. In 2020, 1 933 objects were commissioned, which is 55% more than in 2019 (despite the pandemic). Most of the activity is concentrated in Madrid, although projects are also being developed in Malaga, Barcelona, Seville, Valladolid and A Coruña. It has at its disposal a land bank for construction with 23 000 properties, 2 825 are under construction and over 4 100 are for sale. Via Célere is owned by the American foundation Värde Partners. It aims to maintain a high pace of construction this year.
- Neinor Homes entered into a merger agreement with Quabit to create a large company with a land bank of 16 000 properties. Neinor properties are located in Madrid, Catalonia, the Balearic Islands, the Basque Country, Andalusia and the Valencian Community. Neinor completed 1 700 housing units last year and is planning to build 2 400 units this year.
- Quabit. The current portfolio consists of 50 properties with a total of 4 245 apartments in various stages of implementation. It has merged with Neinor Homes.
- Aedas Homes has over 140 properties under construction in Madrid, Alicante, Barcelona, Granada, Malaga, Mallorca, Pontevedra, Seville, Tarragona, Valladolid, Valencia and Zaragoza, over 7 000 properties and a land bank for the construction of 15 000 units. Aedas Homes is controlled by the Castlelake Foundation. The company, led by David Martinez, is planning to complete 2 400 properties in 2021.
- Metrovacesa has a large land bank for 36 000 properties, as well as properties in 31 northern provinces, Catalonia, the Balearic Islands, Levante and Andalusia. The company currently has 5 406 properties, 88 are at the stage of commercialization and another 3 639 are under construction. Metrovacesa is planning to complete 4 000 objects in 2021.
- Kronos Homes ranks fifth in the ranking of developers. Founded in 2014 by Said Hedjal and several European and American investors, the company has twenty properties in Madrid, Barcelona, Tarragona, Valencia, Malaga, Seville, Cadiz, Alicante, Valladolid and Cordoba. Notable projects include the 29-storey Ikon tower in Valencia with 203 apartments.
- Amenabar has 3 500 units in approximately 60 objects. The company appeared in the 80s in the Basque Country, headed by Luis Amenabar and is a family business without the participation of large funds. The main housing markets in the community are Madrid, Barcelona, Malaga, Navarra and La Rioja. In 2020, it commissioned 1 706 objects and is planning to commission about 1 250 units this year.
- The developer Pryconsa is one of the longest-lived real estate companies with a headquarters in Madrid. In its business plan for 2020-2022, it is planning to commission more than 4 100 houses. In addition, Pryconsa closed its first Build to rent operation with new partner Cogein in October.
- Habitat has 4 000 properties spread across 41 residential properties and a land bank for construction of 13 000 units. Habitat will build 1 000 facilities in 2021. The company, led by Jose Carlos Saz, has launched an ambitious construction growth plan after entering the US-based investment fund Bain Capital.
- Acciona has 2 000 properties in Alicante, Barcelona, Cadiz, Canary Islands, Cantabria, Girona, Huelva, Lleida, Madrid, Malaga, Navarra, Seville, Tarragona, Valencia, Vizcaya and Zaragoza.
- Insur has 2 014 projects, 731 of which are already under construction, 632 have been sold and 397 have been completed. It has thirteen properties in Andalusia, five in Madrid, one in Cáceres and one in Granada.
Most of the housing offers in new buildings from large developers are concentrated in Madrid (22.4%), followed by Malaga (mainly on the Costa del Sol) and Barcelona. 70% of new buildings in Spain are located in Valencia, Seville and Vizcaya.
Decision from whom to buy property in Spain is not always easy. But if you follow the tips we offer below, it will be much easier to choose a professional and reliable developer.
As you already know, the purchase of an apartment in a new building is made directly between the buyer and the developer. When buying an apartment in a finished building, there are fewer questions than when making an equity participation agreement. In the latter case, we are faced with doubts in relation to the developer and the project being developed: whether the company will be professional, whether the work will be completed on time, whether the guarantees provided by law will be offered, and so on.
Tips to help you choose a reputable property developer
Here are some guidelines to help you choose who to buy your property from.
1. Company rating
It is necessary to study the history and credibility of the company in the real estate market, analyze previous completed projects, and, most importantly, read customer reviews. Nowadays, thanks to the Internet, it is easy to get access to useful information to find out the level of trust and solvency of the developer.
Talk to the new owners about how the whole process of buying and selling an apartment went through.
2. Availability of all necessary documents and permits
As a potential buyer, you should check that all legal aspects are in order:
- the developer's right to own the building plot,
- licenses required to start construction,
- information related to the developer (company name, place of registration, etc.).
3. Demo apartment
A demo apartment is practically the only real element that will help you make the right decision. The demo apartment gives an idea of what the housing will look like after completion of the work. You can see the layout, area, materials used in it, etc.
Another selling tool that has gained popularity in recent years is virtual reality: it allows you to customize the parameters of real estate to your liking and see the end result.
4. Personal needs come first
Choosing a reputable developer is not just a bet on a reliable and prestigious company that will not create problems in the future. You must also consider your personal needs: the developer must have projects in the area of interest to you. Look for promoters who meet your requirements.
For example, if you are planning to make changes to the original floor design in an apartment, make sure the developer you choose gives permission and offers a wide range of options. Some developers offer several alternatives regarding wall colors, floor types, or kitchen and bathroom distribution. Making these changes during property construction phase will cost less.
5. Attention to after-sales service
Buying an apartment does not end the moment you are handed the keys. Therefore, it is very important that the developer offers an after-sales service that will help eliminate any deficiencies (finishing defects, etc.) or carry out certain necessary formalities before moving to a new apartment. Some developers have a customer support team that is responsible for water, electricity and gas, or property insurance.
Other developers go further and can offer interior design services, finding the best financing conditions for real estate purchase.
6. Legal formalities are under control
The die is thrown! You have already found a serious developer who meets all your requirements. However, there is one final step left before you say the final yes and sign the contract.
Before signing the contract, make sure that the developer has fulfilled all their obligations. Study all documentation and sales contract carefully: they must indicate the final price including VAT, payment method and the due date. In addition, a provision should be included establishing a penalty for delays in the delivery of real estate or refunds of amounts paid, including interest and taxes. It is advisable that the contract spells out the terms of insurance or bank guarantee of the developer for possible subsequent compensation.
In addition, when renting an apartment, the developer is obliged to provide the buyer with the following documentation:
- work completion certificate,
- homeowners' cooperative by-law,
- conformity declaration,
- insurance against hidden defects,
- energy efficiency certificate,
- water supply and lighting documentation,
- detailed technical passport of the dwelling,
- apartment layout,
- permission to move in.
We hope that all of these tips will help you select prestigious real estate developer and buy apartment in new building in Spain.
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