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REITs: continued growth in a consolidated market
02 December 2019 | Observatorio Inmobiliario

REITs show a continued growth in an increasingly more consolidated market. This is one of the conclusions from the event organised by ASOCIMI together with Gesvalt and Gloval where the challenges and prospects for the future of socimis and sigis were analysed.

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The meeting took place in IESE’s campus in Madrid and was presented by ASOCIMI’s president Javier Basagoiti. According to Gesvalt’s report, presented during the meeting, the socimis maintain a stable growth, with 79 of them currently registered at MAB. Nevertheless, this situation occurs in an increasingly consolidated market. This is shown by the 2.000 million euro invested in 2018 on this type of companies. The Socimis’ average returns are of 4% in MAB and 3.4% in the continuous market.

Portuguese sigis will bring more capital to the market

In terms of the Portuguese sigis, the Guía de Inversión de socimis y sigis 2019 (2019 Socimi and Sigi Investment Guide) compiled by Prime Yield, from group Gloval, together with DLA Piper, highlights that real estate investment in the Portuguese market has reached record highs in the last decade, reaching 3.500 million euro in 2018. The arrival of the new Portuguese sigis will bring more capital to the market, with additional activity from banks’ real estate assets and NPL portfolios).

Corporate director for Business Development at Gesvalt, Luis Martín Guirado, painted a portrait of the sector remarking that «during the last few years we have seen a trend for growth in socimi investment, driven by the positive dynamics of the Spanish economy and the peak of the rental market, as well as the increase of added value projects which require higher expertise. Socimis have reached a mature stage, which is reflected in its openness to new alternative opportunities».

Socimis have great opportunities to grow

The expert added that «we are sure that these vehicles will remain a very important player within the sector. Next year we will see great opportunities to grow in terms of investment on alternative segments such as coliving and coworking centres, investment in shares from other socimis, expansion to new markets and concentration through corporate operations».

Prime Yield’s managing director and in charge of business development for Investment Funds at Gloval, Nelson Rêgo, explained the effect the new Portuguese sigis will have on the Spanish and Portuguese markets. «There will be business for all and Iberia will be a more vibrant and safer market», he assured.