Investment In The Spanish Real Estate Sector Grows 16%

Real estate continues to be a bet for investors. Thus, the real estate sector in Spain has registered an investment volume of 7,842 million euros in the first nine months of the year , which is 16% more than in the same period of 2020 , according to provisional figures from CBRE. Investment in the third quarter of the year reached 2,628 million euros, above the 1,620 million registered in the same months last year.

“The Spanish real estate sector has evolved positively throughout this year supported by a favorable macro context that places it as an attractive option for investors, who have a large volume of capital. The volume reached in the first nine months of the year, with an exceptional second quarter in which levels were even higher than those before the pandemic, allows us to place real estate investment in 2021 as a whole in the vicinity of 10,000-12,000 million euros “, explains Mikel Marco-Gardoqui, Managing Director, Head of Capital Markets at CBRE.

The multifamily sector accounts for 24% of total investment, with 1,875 million euros, of which 579 million were registered in the third quarter of the year. According to Lola Martínez Brioso, director of the Research department of CBRE Spain, “continues to highlight the great investment interest in land for the development of Build to rent (BTR), which reaches 990 million in transactions so far this year, 25% more than in the same period of the previous year. For its part, the PRS (finished and rented), despite a lack of product, also shows very positive results, adding 502 million in 2021, 80% more than in the first nine months of 2020 “.

One of the most noteworthy operations in this segment is the recent purchase by Aberdeen Standard Investments (ASI) of two turnkey residential BTR projects in the center of Madrid from Dazeo , in an off-market operation advised by CBRE for the value of about 55 million euros.

Another of the main protagonists of the year is the hotel sector, with an investment volume of 1,869 million euros, double the total volume invested throughout 2020 (945 million). According to provisional data from CBRE, in the third quarter has been the sector that more investment has reached ?? 33% of the total- with 875 million euros, after registering the purchase by Brookfield of Selenta Group and its four Spanish hotels for 440 million .

The industrial and logistics sector has reached over 1,500 million in investment so far this year , with a volume registered in the third quarter of 152 million, of which 105.4 million have been invested in the downtown area, according to the data. by CBRE.

For its part, the office sector has registered 493 million euros between July and September, representing a volume of 1,340 million so far in 2021 , a figure that could reach 1,400 million euros at the end of the third quarter.

In Madrid, the volume amounts to 243 million euros, of which 60% are located in the CBD, while Barcelona already registers a volume of almost 1,100 million euros , 75% above the average of recent years and again setting a record figure in 14 years. The 22 @ district concentrates more than 60% of investment in Barcelona offices.

In the first nine months, investment in retail could be around 600 million euros , according to CBRE. “Although the levels are still below the totals for 2020, due to the large operations of Shopping Centers during the first months of 2020, in this third quarter of 2021 it has been possible to perceive a significant increase in investment activity”, emphasizes Martínez Brioso, who adds that this recovery is led by the food sector.

Alternative assets
On the other hand, investment in student residences stands out , with 139 million in the third quarter , which represents 380 million so far this year, while the healthcare segment exceeded the figure of 120.6 million euros , which is which represents a volume of more than 460 million in the total of 2021 (186% more than in the same period of the previous year), which confirms the resilience of nursing homes for the elderly due to a growing demand against a limited existing offer .

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