Did Reental predict the Volkswagen effect?

First the thing about the promenade of La Marina de Valencia And now the arrival of Volkswagen unto Sagunto? Even we ourselves are beginning to doubt our vision of the future. But, be that as it may, this is a huge one timeliness for the entire economy of the area, and of course, also for Reental and our investors.

The high demand that will emerge in the coming months is great news for tokenized properties in Sagunto-1, Sagunto-2 and Sagunto-3, which will be coveted by all the new jobs that the German firm's factory will generate.

The news

The German landing at Parc Sagunt Volkswagen not only is it a great innovation at the industrial level because of all the attraction that will be generated in the area by this news, but it also represents a great opportunity for many economic sectors, including real estate one of the most benefited. The mere incorporation of the automobile factory will generate some 3,000 direct jobs, to which some will also be added 12,000 indirect jobs, which, obviously, will result in a huge Demand for housing.

In fact, the consequences of the arrival of the automobile company could already be seen since the company announced its arrival in Sagunto And investment of 3,000 million euros, since the real estate market in Sagunto has accelerated both at the project level and in the presence of real estate operators.

According to the report of the Housing Observatory Chair of the Universitat Politècnica de València (UPV), during the second quarter of 2022, there has been evidence of growth in 25% In the number of promotions in Sagunto, which has led to an increase in 16.7% in the number of new works for sale. An increase that coincides with the period in which the German firm announced the decision to move to Sagunto in March of this year.

“It is true that there had been activity in the municipality since 2013, but what has been detected now, and after the announcement of Volkswagen, is that operators' search for land and opportunities has intensified,” explains Fernando Cos-Gayón, director of the Chair. “Many are now looking for opportunities because it will be in three years when the factory will be up and running and that start-up will coincide with the new real estate cycle,” he says.

There are currently several construction companies looking for land in the area, which still has bags pending development. And the Demand does not stop growing, so the future offer will be occupied by the great interest generated by the new infrastructure and the economic environment that it would generate.

Logistics on the rise

Obviously the logistics it also plays a fundamental role, not only in the Sagunt Park, but also in its entire environment. Phase two of the logistics hub will almost completely house the fleet of suppliers that the installation will need, so work is already under way on new expansions. In order for us to understand the magnitude of the new gigafactory, we must bear in mind that it will occupy close to one million square meters, which means 1/6 that Parc Sagunt II contemplates.

The Generalitat has taken this into account, so work is already under way on a third phase, which will have a million square meters and will be combined with the old expansions. This expansion has been under way for some time, but it has been accelerated by the attraction created by the arrival of the German company's battery plant.

“The increase in interest in logistics and industrial spaces was caused by the pull of Mercadona and other distribution monsters such as Tempe-Inditex. And now it continues with the entry of the 'gigafactory' of Volkswagen and the creation of a park of suppliers that will hog all the land of Sagunt II Park“, says Víctor Jiménez, director of Industrial & Logistics at Olivares Consultores.

“These turning points are attracting new regional and national actors related to the automotive sector. And this rebound comes at a time when there is no longer available land stock, and this lack of space is forcing us to promote the adaptation of old buildings with urban problems, such as the logistics platform built by Aldi,” he says.

In fact, a report by the real estate consultancy firm BNP Paribas Real Estate states that during the last quarter there has been a decrease in the amount of logistics space in Valencia that is still available. “The good time that demand is passing has contributed to the drop in the availability rate by 352 basis points, from 7.39% as of January 1 to 3.87% at the end of July,” they point out. Thus, in the first six months of the year, contracts reached 177,732 square meters, 18.7% more than in the same period in 2021.

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