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2013: A year of changes Presented by: Immaculada Amat Prepared by: Guifré Homedes Amat Nadia Massagué Amat

For Amat Immobiliaris 2013 was a year of changes in the sector.

Date: March 2014

also the domestic demand.

We have moved on from having a market of falling offer to a stabilised market and even one where we would dare to say that demand is beginning to turn upwards, and not only demand from foreign clients, but

Amat Immobiliaris is a family enterprise of the real estate sector, founded in 1948, with 65 years’ experience, managed today by the nd rd 2 and 3 generation of the family.

Joana Amat Amigó Nadia Massagué Amat Concepció Amigó Rius Martina Homedes Amat Immaculada Amat Amigó Guifré Homedes Amat

Amat Immobiliaris is a team of 66 professionals spread around four offices:  Barcelona  Sant Cugat del Vallès  Valldoreix  Sant Just Desvern

The three large Amat Immobiliaris business areas are:  Patrimonial: Property Administration, Administration of Property Owner's Associations, Refurbishment and Maintenance. 

Commercial: Standard, Amat Luxury Barcelona Real Estate, Barcelona Second Home (specialised in the Chinese market).



Consultant: Investments, Urban Development, Tax Advice, Legal Advice.

Find us

Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

Patrimonial. Commercial. Consultant. Tax MARKET REPORT – 2013

Sales Market - General Sector Data The stock of housing on sale in Catalonia at 2 September 2013 was 81,489 dwellings: 53% in the province of Barcelona, 23% in Tarragona, 18.5% in Gerona and 5.5% in Lerida.

Although Barcelona province accounts for half of the stock in Catalonia, when we compare it with the number of inhabitants, we find that Barcelona is precisely the province with the lowest figure, at under 8‰ (dwellings per 1,000 inhabitants).

HOUSING STOCK FOR SALE 2 September 2013 53%

23%

0% 25% 50% Barcelona Tarragona

18,5%

75% Girona

5,5%

100% Lleida

OFFER OF HOUSING FOR SALE per 1,000 inhabitants 20

19,9 10,1

7,8 0 Barcelona

Tarragona

Girona

Lleida

What’s more, if we focus our analysis on the province of Barcelona and its areas/crowns, we find

As in recent years the entry of new housing on the market has fallen drastically; in some areas the new housing stock has been virtually used up. that:     

in the city of Barcelona, the stock falls to 3‰ in the 1st crown (Metropolitan Area) the stock is 4‰ in the 2nd crown (Baix Llobregat, Vallès Occidental & Oriental) the stock is 6‰ in the 3rd crown the stock rises to 9‰ in the 4th crown of the province of Barcelona the stock reaches 12‰

In the 1st half of 2013 the housing stock remained virtually immobilised as a result of the increase in VAT (10% for new housing), whereas in the half year before (2nd half of 2012) the number of operations was much higher than expected, precisely because purchases were brought forward to avoid paying the announced difference in VAT. This effect had been absorbed by the 2nd half of 2013, so the market stabilised.

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Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

Patrimonial. Commercial. Consultant. Tax MARKET REPORT – 2013

Sale Repercussion Price – Amat Immobiliaris data According to data on operations closed, we find that the sales market in the past year

The average sale repercussion price has evolved differently by area.  In the residential area around the city of Barcelona (Sant Cugat del Vallès, Sant Just Desvern, etc.), it remained stable with practically no variation over 2012, which makes us believe that prices have been bottoming out for 2 years.  This trend has also been visible in the city of Barcelona in the districts we most work: Eixample, Sant Gervasi and Diagonal Mar.

6.000 €

2012

moved towards

an increase

2013

SALE REPERCUSSION PRICE €/m2

4.000 €

in activity. 2.000 €

0€ Sant Just Desvern

Sant Cugat del Vallès

Barcelona

In all cases, the fluctuations have been under 2% both up and down. The average price of the operations carried out has risen: In the city of Barcelona it was 11% higher, and in the residential area 3% more.

Types of building on Sale – Amat Immobiliaris data The total value of the properties sold by Amat Immobiliaris

In the residential area around the city of Barcelona, most of the transactions, 72%, were with second hand properties, unlike the previous year when 54% were with new housing. There have been different factors that have marked this change of tendency. In 2012 the rise in the rate of VAT encumbering new property was announced and as there was a large stock in certain areas, sales accelerated and the best items were sold.

in 2013 is 20% higher than

In the residential area (1st crown – Metropolitan Area) there was also an increase of over 10% in the sale of family and/or terraced houses over 2012.

in 2012. The number of transactions

VOLUME OF SALES OPERATIONS PER PRICE SEGMENT

In the city of Barcelona, the tendency was very similar between 2012 and 2013, in which 75% of the operations were with new housing.

2013

also grew in 2013 with respect to 2012.

This is largely explained by the volume of sales made to foreigners, who initially prefer to buy new buildings over second hand.

Find us

Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

Patrimonial. Commercial. Consultant. Tax MARKET REPORT – 2013

Rotation of properties on Sale – Amat Immobiliaris data In short, good pieces

The average rotation in 2013 was approximately 7 months, considerably lower than that we had in 2012.

well located and at competitive market prices sell in 1-2 months.

2012

2013

ROTATION IN MONTHS

9 6

However, this parameter always depends on the property having a correct market price.

3 0 Sant Just Desvern

Sant Cugat del Vallès

For instance, in 2012 we managed to put several properties that had been on the market for some time at market prices and they sold as a result, but this affected the average rotation of 2012, which was fairly high.

Profile of Purchase customer – Amat Immobiliaris data Segmented by

In 2013, foreign customers had a large impact on sales.

price bands, 74% of the

In all of the Amat Immobiliaris offices the growth in this was 40% over 2012, and in the office in the city of Barcelona, practically half of the sales were made to foreigners.

operations made of more than

ORIGIN OF BUYER CUSTOMER 2013

€500,000 were with foreign customers.

Catalonia 0%

Only 52% of the operations in 2013

were financed with a mortgage.

Russia

25%

North Africa 50%

Arabic countries 75%

America 100%

The predominating nationalities of foreign buyers in 2013 were: Russia and adjacent countries, and North Africa –basially Egypt-. Other nationalities include: Israel, United Kingdom, Mexico, Argentina, Switzerland, Norway, Qatar and Italy. The profile of our buyer customer is mainly:  family with an average 2 children,  between 40 and 50 years of age,  high socioeconomic level: Director, Businessman or Liberal Professional (Lawyer, Doctor...).

Find us

Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

Patrimonial. Commercial. Consultant. Tax MARKET REPORT – 2013

Rental Market – General Sector Data After 3 years of continuous renegotiation and falling prices in the city of Barcelona and the outlying residential area (1st and 2nd crown), prices have finally stopped moving and the average fall was 30% from the time the prices reached maximum. There is not actually rented housing stock as we might say; most of the buildings in Barcelona and the surrounding area are fully occupied. The publication of the new Urban Development Act in the spring of 2013 had no outstanding effect on the market.

Rental – Amat Immobiliaris data The number of rental contracts made in 2013 was 26% higher than the previous year.

300

2012

VOLUME OF RENTAL OPERATIONS

2013

200

The Rental Market has definitively

100

0 Sant Just Desvern

stabilised.

Sant Cugat de Vallès

Barcelona

The average rent was slightly lower than in 2012, specifically 3% down in the first half of the year, and then stabilised. 1.200 €

2012

AVERAGE RENT

2013

900 € 600 € 300 € 0€ Sant Just Desvern

Sant Cugat de Vallès

Barcelona

Rotation of Rented properties – Amat Immobiliaris data The average rotation of rented properties has increased from 4 months in 2012 to 5 months in 2013. Although we can say that this factor was influenced by a positive piece of information: in 2013 a significant increase was noted in the rental of premises, and as these had been on the market for a long time, the effect increased the average rotation.

Find us

Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

Patrimonial. Commercial. Consultant. Tax MARKET REPORT – 2013

Marketing We launched a new project at the end of 2013: BARCELONA SECOND HOME which represents our entry in the Chinese market. This was complemented by our participation in 2 fairs aimed at this market:  BARCELONA MEETING POINT in October  LUXURY PROPERTY SHOWCASE SHANGHAI in December. These actions have now begun to bear their first fruit in the 1st quarter of 2014.

Each day we improve our knowledge, we learn and

put into practice new marketing and sales techniques.

We have also strengthened our international relations with active participations at different congresses and meeting with real estate agents from all around. By maintaining, strengthening and expanding these relationships, we can: Extend the possibility of bringing in clients for the properties we market, and be reference agents in Barcelona for many other estate agencies around the world.

The number of visits to our website www.amatimmo.com increased by 18% in the last year: specifically the visits from Russia increased by 32%, from Switzerland by 22%, from Holland and Germany by 15% each.

WEB AUDIENCE

2010

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Barcelona Sant Cugat & Valldoreix Sant Just Desvern

(+34) 934.803.400 info@amatimmo.cat www.amatimmo.cat

2011

2012

2013