Residential developer Habitat Inmobiliaria has closed a deal to acquire two plots of land in Vigo, in the Arenal and San Roque districts, to develop two residential projects with a total investment of €30 million.
The Arenal site, where the community called Habitat Areal is going to be built, is located in the waterfront heart of the city of Vigo. About 50 homes will spread over the area of 6,900 square meters. The project is expected to attract over €17 million worth of investments.
The other community called Habitat O Pazo will be constructed in San Roque. It is located close to the center of Vigo, next to the City of Justice of Vigo, a judicial administrative complex that is being built, and in proximity to Plaza de España. About 13 million euros will be poured into the community of about 70 homes that will spread over the area of more than 6,600 square meters.
Vigo has relatively old housing units, according to real estate platform Brainsre. Most of the properties were built between the 1970s and 1980s and during the period of 1990 and 2010. Between 2014 and 2017, just over 550 new properties were added to the market.
The suspension of construction led to a housing supply shortage, making buyers turn to existing homes. According to Brainsre, there were about 600 transactions per quarter.
The difference between the square meter price for existing and new homes is almost 40%, according to figures for the fourth quarter of 2020.