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Real estate investment in Spain drops 75% in March
01 April 2020 |

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The effects of the Covid-19 pandemic on the Spanish real estate market is already showing on the aggregated investment. During last March alone, yoy real estate investment in the country dropped 75%.

There were only 841 million euro in March, whereas during the same month last year, real estate investment was 3.400 million euro. This number is, according to the Addmeet data El Confidencial had access to, the second-lowest since 2014 when only 400 million euro was traded.

Among the few operations concluded last month are included the sale of 5 Family Cash supermarkets, the purchase of two office buildings by management company Mazabi and also the transaction of 5 logistic assets by CBRE Global Investors.

And these operations are only being closed, because, according to Colliers’ International managing director Mikel Echavarren, «institutional investors are trying to close operations at advanced stages and waiting to see how the situation will evolve in the next three or four months».

The first months of the year seemed to continue the Spanish real estate market’s good momentum, which reached amounts never seen before last year, for a total 35.000 million euro. Starting well, in January transactions reached 2.600 million euro and in February 3.400 million euro, with no indication of what was coming.

The amounts invested during the first two months of 2020 mitigated the effects felt during the first quarter, but it still caused a 13% drop when compared to the same period last year when there were 7.900 million invested in real estate.

Despite the country’s current situation, Mikel Echavarren believes that investors «have enough munition to start moving again once the crisis is gone and to take advantage of the investment opportunities since risk has increased and that should be reflected in the prices».