Investment in Spanish real estate has more than doubled, reaching 3,817 million euros in the first quarter of 2022, with an increase of 141% year-on-year, according to JLL.
"Between January and March we have reached levels higher than those of 2021 in almost all segments, driven by the capital available in the market and the recovery experienced by almost all real estate segments," says Sergio Fernandes, director of the JLL investors area. .
Investor appetite has focused mainly on the logistics sector, which accounted for nearly 80% of the total volume transacted in the quarter, registering an investment volume of 865 million, which represents a year-on-year increase of 432%, and a rise of 65% compared to the fourth quarter of 2021.
According to the consultant, this is "the best investment figure recorded in the logistics segment in a first quarter since 2017 and marks the highest year-on-year growth in the last five years."
However, this growing investor interest has also resulted in a compression of yields, reaching 3.75%, both in Madrid and Barcelona, which reflects a decrease of five basic points compared to the previous quarter and 50 basic points in the annual comparison.
From JLL they estimate that 2022 will once again be a record year for logistics investment, since "some investors are preparing funds to invest in Spain, and new logistics hubs will emerge, which will bring with them major investment transactions."
The best residential data
Record figures have also been registered in the living sector, which includes housing, student residences and healthcare. In this sector, investment has totaled 1,141 million euros, which represents a year-on-year increase of 92%. An increase that is due, especially, to the contributions to the multifamily, which have reached 997 million (146% more than a year before), marking "the quarter with the highest investment in the residential sector since data is available" and that "reflects the consolidation of the multifamily as one of the first investment real estate sectors", according to the consultant.
The accumulated investment in retail between January and March 2022 has been around 428 million euros, which represents an increase of 113% in the annual comparison and 51% compared to the previous quarter. The shopping center sub-segment stands out, with an investment of 162.5 million euros, exceeding the volume of the fourth quarter of 2021 by 333%. It is followed by the high street, with 153 million euros invested; supermarkets (107 million euros transacted) and retail parks.
Investment in retail continues to focus mainly on prime assets. Thus, the core product has represented 80% of total transactions during the first quarter of 2022.
As for branches, the sum of operations in the main markets of Madrid and Barcelona between January 1 and March 31 has reached 423 million euros, with an increase of 87% in year-on-year terms. Compared to the previous quarter, volumes are down 47% as the 2021 close exceeded expectations. Regarding yields, in Barcelona they have been compressed 10 basis points in the prime markets, settling at 3.4%. In Madrid, however, they remain stable at 3.25% due to the lack of existing product, "although there is investor appetite", they point out from JLL.
For its part, the hotel sector has registered 27 transactions so far in 2022, for a total value of 960 million euros, with outstanding operations of portfolios and "trophy" assets. From the consultant they foresee that both investment funds and institutional investors will continue to have a prominent role in this market throughout the year.
