Aedas Homes, the developer controlled by the Castlelake fund, has a portfolio of 46 projects in Catalonia, with more than 3,000 homes and an investment of more than 900 million euros, according to the territorial director, David Gómez.
The promoter, Gómez recalled, began its journey in Catalonia, where it delivered the first promotion, in December 2018, in Vilanova i la Geltrú, and now the community accounts for about 15% of its activity in the State as a whole. “Catalonia for us is a strategic place. But it is difficult to get land,” she acknowledged. The firm now operates in 12 municipalities in Catalonia: ten in the Barcelona and Cambrils and Girona areas.
Since its first development in Vilanova, Aedas Homes has already completed 26 developments, with a total of 1,623 homes, of which it only has 32 pending sale (2%). “We work without stock. With the rise in interest rates, the sales period has been lengthened: normally we finished the work with only 10% of the apartments unsold and now there are approximately 15%. But when the apartment is finished and the client can see it, instead of buying off-plan, sales skyrocket. There is a segment of the public that highly values ??being able to buy and enjoy the apartment immediately.”
Aedas Homes has 1,163 homes under construction, in 18 developments. The most notable are in La Sagrera (116 homes), two in Vilanova y la Geltrú (166 homes), in Badalona (80) and in L’Hopitalet de Llobregat (50). “We do promotions of an average of 60 apartments,” he said. The average price of the firm’s homes in Catalonia, with annexes, is 367,000 euros. “Very little new construction is being built, especially in Barcelona and there is a lot of demand.”
Gómez highlighted that the price of the company’s homes is pressured by the increase in the cost of construction (more than 1,400 euros/m² usable) but above all by the cost of land, which can cost more than 2,000 euros/m² in areas of Sant Cugat, although it drops to around 400 euros/m² in areas near Barcelona such as Terrassa. “Land is not generated: we are consuming what was generated in the previous boom. That is why the prices are very high,” he acknowledged.
The other factor that makes the works more expensive is the slowness of the administrative procedures. “It takes us on average 16 months to have all the permits for a final land. Then 20 months of construction and another 3 more months to legalize the end of the work.” In total, 36 months on average “which in the current situation of high interest rates increases the financial cost,” he acknowledges.
