Real Estate Investment Returns To Normal In Spain
Skyline of the financial district of the capital Madrid
Interim money | Investments in real estate assets in Spain amounted to around 2.5 billion euros. According to preliminary estimates by the consulting firm CBRE, this is an increase of 52% compared to the value in the first quarter of this year.
For the half-year total, the total is 4.167 billion euros, a decrease of 19% compared to the previous year when one of the best first quarters in history was recorded shortly before the pandemic. By asset type, logistics was the biggest beneficiary, accounting for 29% of investments; In fact, the main transaction in the second quarter was the takeover of Montepino by Bankinter for around 900 million euros.
With investments of EUR 838 million in the first half of the year, the hotel industry exceeded the figures for the same period of the previous year.
Intermoney research team’s opinion:
We believe these numbers point to a return to normal for the Spanish property sector after the pandemic, although quarterly data tends to be quite volatile. The upswing in the logistics industry, spurred on by the emergence of e-commerce, is not surprising.
Offices, on the flip side, haven’t had the best six months as investments have halved. However, CBRE highlights the lack of assets for sale in Madrid as one of the causes; The consulting company has noticed an increase in the number of processes over the past few weeks.
The so-called “multi-family” with 24% of the total investment is also an increasing asset. These include rental apartments and student residences, which are gaining increasing interest from property developers as their marketing is associated with lower risks and costs.