Singular Bank | Neinor Homes and the investment firm Stoneshield Capital, one of its main shareholders, have decided to establish a joint venture to capitalise on the growing demand for luxury housing on the Spanish coast. Stoneshield will control 70% of the project and both companies will make an initial investment of €150 million to develop 262 homes in Marbella. This will be Neinor’s first project in the premium segment and will also include a private club and various exclusive facilities.
The Spanish property market is experiencing strong growth driven by a shortage of new-build properties and by the rise in demand for high-end homes in cities and coastal areas, particularly from foreign investors. House prices have reached record highs, with an 18% year-on-year increase in February to €2,673 per square metre, whilst in Marbella they are also at record levels.
Neinor, like other European developers, is confident that the geopolitical context, particularly the war in Iran, will encourage the inflow of capital from Middle Eastern investors seeking to diversify into Europe. The company acknowledges that inflation in construction costs remains a challenge, although it notes that it is implementing measures to manage this with the support of government programmes.
