Gestilar targets brisk growth and a sharper regional focus
Raul Guerrero envisions Gestilar joining the ranks of Spain’s major promoters in the coming year. The Madrid-based developer emerged amid the housing market rebound after the last real estate downturn. It plans to deliver 1,000 homes in 2024, a goal that will cap the year with more than 800 units already completed. “2023 and 2024 will be special and unique years”, Guerrero stated in an interview with Gestilar’s asset chief. The leadership describes an accelerated pace, aiming to deliver between 300 and 400 plots each year, while warning that keeping 1,000 homes annually is not a long-term baseline. Production is expected to normalize from 2025 onward.
Most of the homes slated for next year will be built for rental. Gestilar is known for its build-to-rent developments, a strategy increasingly common in modern real estate projects. The company plans to hand over two Getafe projects to the DWS management platform, following a 2021 sale agreement. The 121‑apartment project in Palma de Mallorca, transferred to Aberdeen’s fund management, is also on track, with a completion target in sight. In addition to these initiatives, Gestilar intends to deliver roughly 300 units across Madrid and Lisbon.
New investments in 2024
Looking ahead to 2024, the leadership, led by Javier García-Valcárcel, aims to expand its footprint in Galicia, focusing on the Barrio del Cura, Vigo’s largest urban project. A 92-home launch is planned in Portonovo near Sanxenxo, with another development to follow in the same town. The CEO underscored that a substantial portion of the year will concentrate on Galicia, while new projects are also anticipated in Lisbon and Madrid.
Gestilar’s land operations span several Spanish regions. The company confirmed ongoing evaluations in Madrid and Galicia where it already has a presence, and it remains open to opportunities in Catalonia, a market where past ventures have yielded favorable results. The plan also calls for continued activity in the Balearic Islands. After closing an entry into Córdoba in 2023, expansion toward Seville and the Costa del Sol in Andalusia remains a priority. The promoter plans to sustain a long-term land bank and pursue two to three additional years of project initiation.
Guerrero notes that Gestilar’s promotional strategy emphasizes public-private partnerships. Administrations have launched programs that transfer land to developers to build and rent housing below market price. Investor interest remains high, and it is hoped that Madrid, Catalonia, and Valencia will soon initiate competitive processes to allocate land for such schemes. The first quarter of 2024 is seen as a pivotal period, with a goal to participate in as many programs as possible. The build-to-rent segment, currently in a cooling phase due to higher interest rates, is expected to stabilize and contribute meaningfully to the company’s growth trajectory.
New subsidiaries
Two new entities were launched by Gestilar in recent months: Cooper and Homes from Gestilar. Cooper operates as a cooperative management vehicle, established toward the end of 2022 and fully functional in 2023. A project in ARPO, the new Pozuelo de Alarcón neighborhood, will create 5,500 homes. Guerrero stated that the cooperative was set up to deliver 126 protected apartments, which were very well received. Work will begin once ongoing urbanization works reach a suitable stage.
Homes by Gestilar represents a proptech venture focused on purchasing, renovating, and selling properties. Typical transactions involve properties valued between 300,000 and 500,000 euros. All activities of this subsidiary are funded with partners’ equity. The firm aims to buy, renovate, and sell nearly 100 homes annually and hopes to reach 250 to 300. These properties target middle-to-high-income buyers with solid liquidity, a factor less sensitive to rate hikes. The CEO highlighted that this area is more dynamic than traditional land development, with renovations taking roughly 130 to 140 days, while development cycles extend over two to three years.