Spain needs to balance its housing market so that the effort rate (the percentage of household income spent on housing) does not exceed 30%. In a scenario of structural housing deficit, concrete solutions are needed to encourage greater accessibility to the housing market.
Orion Rental, the first Canarian socimi of affordable housing which joined the Stock Exchange, needed to value a portfolio of 9 buildings in the Tenerife municipality of Granadilla de Abona with 315 subsidised housing units.
The socimi plans to refurbish the buildings that were left unfinished due to various circumstances and then lease the flats at affordable prices.
Valuation of dwellings in the Canary Islands
Orion needed the services of a reliable supplier with a presence in the Canary Islands market who could carry out the valuation of the nine residential buildings in the timeframe required by the operation.
Our local presence with our own office and knowledge of the market made it possible for us to successfully carry out the valuation of the 315-home portfolio. located in Granadilla de Abona, Santa Cruz de Tenerife, within the established deadlines. The development has been assessed for the rental of subsidised housing.
The valuation allowed Orion to advance its core strategy of rehabilitating existing real estate assets. and to provide a solution to the problem of the shortage of social housing.
At the same time, it contributes to the objective of satisfying the lack of accommodation for employees in the tourism sector of the archipelago, an activity that is essential for the economy and the well-being of Canarian society.
Orion Rental seeks to complete and rent unfinished housing developments in various municipalities, as well as to build new subsidised housing on land provided by public authorities.
In this way, the company prioritises the refurbishment of existing buildings rather than the construction of new ones, in order to reduce the environmental impact.
About Orion Rental Socimi
The socimi chaired by Víctor Martí Gilabert (founder and CEO of GMA, Atom Hoteles Socimi and Victoria Hotels and Resorts), incorporated in June 2023, began trading in November 2024 on the Portfolio Stock Exchange (Portfolio SE), a new generation stock exchange. Its investments are mainly financed by Canary Islands investors, with funds from the Reserve for Investments in the Canary Islands (RIC) endowed by Canary Islands companies and the self-employed.
We interviewed Enrique Guerra Suárez, Managing Director of Orion Rental Socimi, who is directly involved in the project:
1. Would you recommend carrying out a project of these characteristics with Gesvalt?
Of course they do, because of their professionalism and agility in carrying out the commissioned work, and this at a very reasonable cost.
2. Is there anything else you would like to point out about working with Gesvalt and the added value we bring?
The added value of Gesvalt has mainly been that of being one of the reference firms in the sector and, therefore, with the necessary solvency in the market.
Access to housing
Concern about access to housing has shot up to second place in the list of Spaniards' concerns, according to the CIS barometer published in June 2024.
According to a report by Atlas Real Estate Analytics in 2024, Spain requires some 3.5 million affordable homes in order to balance the housing market.
Of the total, the Canary Islands needs 34,000 properties to facilitate access to housing for its citizens (16,000 in the province of Las Palmas de Gran Canaria and 18,000 in Santa Cruz de Tenerife) if it is to meet the requirements of the 2023 Housing Law.
These figures are necessary so that no family is forced to exceed the 30% threshold of financial effort when renting or buying a house.
Gesvalt has become the Real Estate Advisor of reference for a large number of the socimis (Reits in English; SIGI in Portugal) consolidated in the market and for many that are in the process of being set up.