20% return on real estate investment on the Costa del Sol

El proyecto Huertos 70 de Urbanitae brindó a los inversores una rentabilidad inmobiliaria del 20%.

20% return on real estate investment on the Costa del Sol

The Costa del Sol is a highly sought-after tourist destination and, consequently, also has great appeal among real estate investors. A prime example of this success is the Huertos 70 Project, a residential development in Nerja, province of Málaga. Located near Playa de Carabeillo, the development is set in a unique location, right in the town center and just 700 meters from the famous Balcón de Europa viewpoint.

The project, trusted by a total of 234 investors, was launched in February 2021 and involved the development of a building comprising 17 apartments with 1 to 3 bedrooms, 39 parking spaces, and 7 storage rooms.

Leading the project was Eurogest Nerja Project Managers, a company linked to Grupo ADU and created exclusively for this development. Grupo ADU, specialized in housing development and cooperative management, was making its debut as a developer on Urbanitae’s platform, and after these positive results, it has once again placed its trust in our platform.

The association of the developer with Urbanitae’s investors materialized in a fixed-rate loan worth €800,000 for the execution of the project. The land was already owned by the developer, and this capital was used to pay off the mortgage burden on it.

Profitability: from 15% to 19.8%

The estimated term was 18 months, but it was delayed almost three months due to extended administrative processes with the project’s service providers. Nonetheless, the return for Urbanitae investors increased from the initially estimated 15% to 19.8%, with an increase of nearly five percentage points. The IRR also improved by one point, starting from 10% and finally reaching 11%.

Keys to success

– The construction was financed with the developer’s own funds, part of the loan from Urbanitae investors, and the amounts paid on account by 11 of its buyers.

– The development had 95% pre-sales (16 of the 17 apartments were already sold, as well as 31 of the 39 parking spaces and all 7 storage rooms).

– The project already had a building permit.

Huertos 70 is another example that new forms of alternative financing, including crowdfunding, are increasingly becoming a viable option. These methods provide all types of developers with quick liquidity, allowing them to continue their projects.

If you also want to invest with the best developers, you can find out about all the projects currently under review on our platform. If you don’t want to miss new investment opportunities, be sure to register. You can also contact us via email at contacto@urbanitae.com or by phone at 911 23 25 22.

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