According to the consultant Forcadell, there’s a growing capacity to invest in assets focused on the type of requirements they present. The prices to which operations are closing today are increasingly challenging the goals of investors. Barcelona and Madrid, the cities that concentrate 85% of both foreign and domestic capital investment, show a great increasing liquidity. On the one hand this is due to the use of equity that are increasing by the bank, which is helping in professional real estate investment operations with structured financing.
Forcadell points out that this trend started in 2015 and, according to the Bank of Spain, these can currently finance up to 50% - 60% of the value (loan to value). The forecasts indicate that this percentage will not be exceeded, just like it happened in previous years when it reached 90%. According to the report, the current conditions allow a perfect balance and offer a sufficient comfort margin in order to avoid problems with financial institutions in the event of setbacks. Barcelona and Madrid will capture as much investment as long as that assets are able to adapt to the minimum investment requirements of this liquidity. Both Spanish cities live up to Germany, France and above Italy as an attractive investor, while London is no longer the main investment destination due to Brexit.