Professionals hold their expectations due to the retail segment’s fragility

Professionals hold their expectations due to the retail segment’s fragility

One of the study’s main conclusions was the idea, amongst the respondents, that the domestic real estate market is at the early stages of deceleration: 30% of respondents have this opinion about the third quarter and 16% have the same opinion concerning the second quarter.

The Investment Sentiment Index was mitigated during the third quarter down to +11 from the +17 of the previous quarter. This represents the lowest reading of the last six years.

The retail segment showed the most signs of fragility since it receded during the third quarter, whereas the office product increased.

Caution was also very apparent concerning property value for the next 12 months. Whereas the prime office and industrial segments are expected to improve, the prime retail and office segments should remain stagnant and the secondary industrial and retail segments’ prospects are negative.

«The good projects and buildings will stand above the average and will have their own run of rents and capital value. This includes all segments, from retail, to industrial and offices», clarified RICS president for Spain, Eduardo Fernández-Cuesta.

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