Spain is the third favourite market for investors in Europe, along with the UK and the Netherlands. Germany and France rank first and second, respectively, according to the EME Investor Sentiment survey conducted by Savills, in which real estate investors with total assets under management in EMEA totalling more than €500,000 million took part.
According to data from the international real estate consultancy, 70% of those who took part in the study consider it very likely (48.15%) or likely (22.22%) to invest in Spain in the next 12 months. The top five favourite segments for real estate investment in Europe over the next year are multifamily, big box and last mile logistics, CBD offices and student residences.
In terms of their long-term strategy, 55% of respondents intend to follow a more defensive approach, focusing on beds and sheds, where the structural imbalance between supply and demand is favouring rental growth, and CBD offices in Europe's most liquid markets. This is largely because more than 76% believe that refinancing will have a significant impact over the next two years on total earnings.
Adopting sustainability certifications, such as BREEAM or LEED, as well as improving energy efficiency and investing in renewable energy, are all part of the real estate investment strategy for 90% of respondents. Ninety-seven percent of respondents have an ESG strategy in place, and among them, a quarter say they already only acquire ESG-ready assets, while around three quarters are willing to pursue management strategies aimed at meeting ESG criteria.
The total volume of real estate investment in the third quarter in Europe was around EUR 55 billion, according to Savills. From January to September, real estate investment now stands at more than EUR 200 billion. Savills forecasts that by the end of the year, the volume of real estate investment in Europe will reach around 280 billion euros.
