The new edition of the Meridiana Meetup - MIPIM, held in the emblematic building of the 'Colegio de Aparejadores y Arquitectos Técnicos de Madrid', brought together the main leaders of the real estate sector to explore the challenges and opportunities in investment. Organised by Spain at MIPIM and Meridiana, and sponsored by RocaJunyent , M2F Advisors and One Investment, the event brought together more than 90 real estate professionals.
The round table "Investment perspectives in Spain and Europe in 2024 and 2025", moderated by Roger Pla, Partner at RocaJunyent, and with the participation of great experts such as Ismael Clemente, CEO of MERLIN Properties; Anna Gener, CEO Barcelona at Savills Spain; Teresa Marzo, CEO of ELIX; and Mikel Echavarren, President and CEO of Colliers Spain & Portugal, was a highlight of the event.
Ismael Clemente, CEO of MERLIN Properties, was positive about the previous year:
"Despite the tepid outlook, it has been good. In offices, we expected a drop in occupancy of 100-150 basis points, which did not materialise. In addition, consumption has been magnificent, very impacted by the performance of shopping centres and the robustness of the consumer. Logistics has also been very good. 2024 looks set to be a year of continuity," Ismael Clemente remarked.
MERLIN Properties is betting on a bolder investment in Yields and in October 2023 they inaugurated the first data centres: "Now that they are up and running, we are expanding the equipment with the irruption of AI", added the CEO of the Socimi when talking about this promising sector.
Anna Gener, CEO Barcelona at Savills Spain, wanted to show the difficulties that real estate has been going through:
"In terms of investment volume, there have been difficulties: a slump in office space that is unlikely to recover in the short term and rising interest rates".
Even so, she ended up showing optimism for the future by naming the stabilisation and, perhaps, the lowering of interest rates.
Anna Gener also addressed the issue of offices. She explained the high demand for this type of asset in 2023 and the current oversupply of 3%, which must be reconverted: "There is a lot of obsolete office space that needs to be reconverted and we need to convince local councils to make changes of use easier". The CEO of Savills Barcleona concluded by remarking that "it is worth investing in Spain despite difficulties such as dialogue with the administration. We need more flexible bodies for changes of use. We need a stable regulatory framework and legal certainty".
Teresa Marzo, CEO of ELIX , has evaluated the previous year highlighting that "there have been decreases of 40%. Investment has fallen from 17,000 million in 2022 to 9,000 million in 2023". Residential has taken the lion's share of investments. To improve the evolution, Teresa Marzo explained that a lot of focus is being placed on improving the operating result of the assets.
"The Housing Act and certain approvals in the last year do not provide certainty. We are calling for a housing law that is a state policy, that does not depend on the government of the day. In this sense, in order to attract private capital, the profitability of the assets must be guaranteed", the CEO of ELIX called on the public institutions.
Mikel Echavarren, President and CEO of Colliers Spain & Portugal, evaluated the forecast for 2024 with a more positive approach:
"Markets never go in parallel. Financial circumstances anticipate risks or announce opportunities. Rates will go down and thinking about financing now it will be possible to refinance with new rates".
In terms of innovation, the president and CEO of Colliers spoke about the hotel sector: "The real alternative product is holiday hotels. Spain can become the number one tourist destination in the world. In 2030, 100 million visitors are expected".
SPAIN AT MIPIM
During this event, Jorge Ginés Franco, Director General of ASPRIMA (Association of Real Estate Developers of Madrid), shared his vision of Madrid's attractiveness to investors.
In the same line, Ramón Cubián, General Director of Land of the Community of Madrid and Madrid Nuevo Norte shared Madrid's plans at MIPIM and the projects that will transform the Spanish capital in the coming years: "Until recently, the administration used to put bureaucratic obstacles in the way of any transformation process. Madrid is 'business friendly'. We are transforming that initial idea because the administrations generate business and development options. When we talk about generating investment for Madrid, it means generating benefits for Spain". The union of the City Council and the Community of Madrid in MIPIM represents the will to bet on growth and improvement in this sector.
Finally, Albert Castro Domenech, MIPIM's official representative in the Iberian Peninsula and CEO of Meridiana, shared his vision on how internationalisation, through MIPIM, can become a key strategy for companies and public administrations in a globalised market.
This year, the Spanish Pavilion will expand its exhibition space and the stand will have 160 sqm in the centre of the Palais des Festivals. A space where both national companies and public institutions will showcase their projects, services and present themselves to the international community.
In the 2023 edition, the Spanish community at the stand grew by 30% and this year they are on track to grow even more.
"Attending MIPIM is a must in the real estate business," says Meridiana CEO and official representative of MIPIM in Iberia Albert Castro Domenech.
With 6 weeks to go until MIPIM, there are more than 45 Spanish companies confirmed and 5 public administrations (Málaga City Council, Castilla la Mancha, Murcia, Castilla León, Valencia).