The Seville metropolitan region is experiencing a surge in construction and real estate development, with plans accounting for a significant share of the area’s economic activity. Presently, 34,000 homes are under construction, about 40 percent of which benefit from some form of public subsidy, and the capacity to house roughly 100,000 residents. The cumulative investment in this phase is valued at more than 5.5 billion euros.
This inaugural letter celebrated Seville City One Metropolis del Sur, a public-private initiative designed to attract investment to the Seville capital. The organizers aimed to draw foreign investment, real estate capital, and various industries, not merely for a single city but for the entire metropolitan expanse.
“Our model is distinctive and not easily replicated. If only the city of Seville is considered, the population is about 700,000, but the wider metropolitan area exceeds one and a half million. Besides the favorable climate, the city offers unmatched quality of life, a positive balance of payments, and strong export activity. It ranks as the third destination for overnight stays and five-star hotel occupancy, indicating immense potential to become a major metropolis in southern Europe”, remarked one of the organizers at the fair. José Ignacio Fernandez, a regional manager for Aedas Homes and a promoter of the event in Andalusia, spoke to attendees.
The regional manager of Insur for Western Andalusia, Zacarias Zulategui, highlighted Seville’s broader strengths. He noted the city’s cultural and recreational opportunities, complemented by a robust technology park, a growing aviation sector, and a thriving industrial and logistics base. Alongside large companies and ambitious projects, Seville also benefits from one of the youngest populations in Spain and a positive immigration balance. Yet, he emphasized, the city still needs its capital to complete the circle.
According to a report prepared by the fair’s organizers in collaboration with CaixaBank, the Seville metropolitan area already has favorable positioning to lead a future growth story for Southern Europe. CaixaBank urged the implementation of a visibility and fame strategy that would raise the city’s profile, attract investor interest, foster a sense of belonging, and facilitate fundraising efforts. [Citation: CaixaBank report on Seville’s metropolitan potential].
Capital attraction success stories
Inmobiliaria del Sur SA, listed on the stock exchange, stands as a notable success story in attracting capital to Andalusia. The company operates across three segments: land acquisition and development for housing, a promotional arm, and a property development arm. It is described as the largest office building operator from Madrid by industry observers. [Citation: market profile for Inmobiliaria del Sur SA].
Caralca Real Estate, promoted as a young but rapidly growing firm, operates in the south of Spain. General manager Rafael Miranda notes that the company, founded in 2018, has accumulated 270 million euros in equity value over the last five years, drawing both national and international investors from Egypt, Peru, and Belgium. [Citation: Caralca Real Estate company profile].
Yet challenges remain. Caralca’s leadership explains that some investors resist relocating away from Madrid or Barcelona. While national capital is easier to attract due to familiarity with Seville, international investors require more persuasion. The key argument centers on presenting Seville as a metropolis with a growing population of more than half a million and showcasing the advantages of a lighter corporate footprint in the region to improve investment potential. [Citation: interview with Caralca manager].
Funds buy housing for rent in Seville
Foreign capital has shown strong interest in rental housing in Seville. City One Metropolis del Sur aligns with Primevest Capital Partners, with Olaf Steinbusch serving as purchasing director. Primevest completed its first Spain investment in Guadalquivir, involving three buildings comprising 125 rental units delivered by Aedas Homes in January 2023. [Citation: Primevest transaction summary].
Developers also invest in rental housing in Seville through Via Celere, managed by José Ortiz, and a southern Spain investment fund known as Gray Star. These partnerships control a 45 percent and 55 percent stake respectively in a portfolio totaling around 2,400 properties, with a substantial portion under construction. In Seville itself, 419 properties are located within the capital, with another 321 in Malaga. [Citation: portfolio overview for Via Celere and Gray Star].