The volume of real estate investment in Spain during the first half of 2024 has reached 4,000 million euros, according to data from Cushman & Wakefield. This figure represents a 15% decrease compared to the same period last year, influenced by the increase in interest rates in the first quarter of 2023. The consultancy's estimates suggest that annual investment could close at €8 billion, a similar level to the previous year, if interest rates remain on a downward trend.
In the hotel sector, which continues to show strength after a record year in 2023, investment of more than 1.7 billion euros has been recorded during the first half of 2024, an increase of 30% over the same period last year. The Six Senses Ibiza Hotel stood out with record sales of 1.7 million euros per room.
Jesús Silva, Managing Director of Cushman & Wakefield Spain, said: "The hotel sector, due to its fundamentals both in terms of tourism, as well as the performance of the main cities, with Madrid at the forefront, is positioning itself as the main pole of attraction for investment capital".
Retail on the rise
The retail sector has experienced a remarkable growth, closing the half year with an investment of more than 1,000 million euros, compared to 300 million euros in the same period last year. This represents 93% of the total 2023 investment in this sector, highlighting operations in shopping centres such as Isla Azul and the ASG Portfolio, and activity on Madrid's High Street, with the WOW galleries in the Gran Vía building. Silva commented: "We can see that in the first half of the year, the appetite for investment in the retail sector has been reactivated due to the differential in profitability compared to other types of assets, and the stability in terms of income".
Polarisation, conversion and reactivation: offices, living and logistics
Offices, historically the main investment asset, have registered 290 million euros, 60% less than in the same period of the previous year, with a reduced interest due to the lack of product in central areas. Silva pointed out that "this investor appetite is polarised between the city centre and the periphery, with a particular interest in assets with potential for change of use". Of particular note is the purchase of the Titan 8 building in Madrid by GMP, advised by Cushman & Wakefield.
The change of use from office to residential has gained momentum, with close to €300 million in transactions recorded during the first half of the year, matching the total figure for the previous year. Among the notable transactions was Impar's deal at the former McKinsey headquarters.
The living and logistics sectors continued their revival, with living closing the half year with €590 million, down significantly from €1,690 million in the first half of 2023, including the sale of Via Celere's portfolio to Greystar, which totalled €730 million. Meanwhile, the logistics segment recorded an investment of €350 million, 30% less than in the same period of the previous year.