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Investment in Spain drops 65% during the second quarter
03 July 2020 |

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Data now revealed on deals carried out in Spain during the second quarter of 2020, confirm a reality that had already been announced: the drop in investment, which reached 65% yoy.

The total direct real estate investment in Spain during the second quarter, including offices, retail, logistics, hotels, rental housing and alternative assets was 1.060 million euro, according to the "Informe del Mercado de Inversión en España" (Report on the Investment Market in Spain) issued this week by consultant BNP Paribas Real Estate.

According to the report, around half of the investment was concentrated on 3 large operations: the purchase of a supermarket portfolio by LCN Capital from Mercadona – which in June was being negotiated for 180 million euro -; the purchase of 919 dwellings by AXA IM from developer Tectum for 150 million euro; and the acquisition of an office complex by DWS in Barcelona for 200 million euro.

One of the obvious conclusions is that the investment was divided into equal parts by the different segments – as revealed by the graphic. And that can be explained by the fact that logistics and rental housing gained ground against the office, hotel and retail segments during this period.

The e-commerce boom attracted around 279 million euro to the logistics segment and provided it «the perception of a safe, stable and attractive asset», revealed the document. And the rental housing market seems to be one of the «recovery’s boosters» with the build-to-rend trend increasingly standing out amongst investors.

During this period, the Spanish office market received a total 245 million euro, showing that there is still interest from investors in the segment. Retail had 228 million euro invested, with 88% of that amount concerning the operation carried out by Mercadona. One of the most affected segments was the hotel segment which represented only 5% of all real estate investment. One of the highlights was the acquisition of hotel Himalaia by Leo Messi’s hotel company.