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Iberian property stands out from other Southern European competitors

The Iberian Peninsular will continue to stand out in Europe as an ever more popular destination for real estate investment in 2017. Taking into account the strong dynamism experienced during the first trimester, and in line with estimates from market specialists, the prediction is that this year the total volume of transactions will reach the highest ever recorded amount, both in Spain and Portugal.

This is, also, one of the ideas put forward by Cushman & Wakefield in the most recent report “What next for European Property Investment”, which concludes that in 2017, Spain and Portugal will stand out as the most popular markets for real estate investment among the countries of Southern Europe. The consultants predict that the region will together secure together 11% of the total European market this year, compared to the 10% of 2016.

In relation to the numbers put forward by JLL, in 2016 transactions came to a total of 9,961 million euros in property investment (commercial, retail, offices, logistics and hotels) in Iberia. This amount reflects a decrease of 10% in relation to  the total  transacted in 2015,  in a trend across Spain and Portugal, but the specialists in property investment consulted by Iberian Property point out that this is due to the fact that some of the large operations expected to close in 2016, in fact continued into 2017. The vast majority, 8,707 million euros, was invested in Spain. Although this market registered an annual drop of 8% compared to the 9,407 million in 2015, the results for 2016 continue to be above the maximum reached in 2006, at 7,800 million euros.

Cushman & Wakefield, believe that Spain Espanha, Barcelona e Madrid in particular, will stand out as an increasingly attractive prospect for international investors in months to come, after core markets such as Germany and the Scandinavian countries.

In the case of Portugal, JLL calculated a total investment volume of 1,254 million euros in commercial real estate in 2016, 29% less than the 1,764 million of 2015, but, even so, more than 60% above the average of the last decade, as CBRE points out. This is a total which should be overtaken in 2017, which, in the opinion of the specialists at Cushman & Wakefield, could once again be a record year for commercial real estate investment in Portugal, exceeding the 2,000 million barrier of 2015.

 

 “Small is beautiful”

In a Europe where available capital for investment continues abundant, and where it is increasingly cities rather than countries which direct the investment strategies of big investors, a new tendency is emerging, favoring the Iberian market: the belief that “small is beautiful” in the real estate market as well.

This is, indeed, one of the big ideas discussed in the latest edition of the ranking publication “Emerging Trends in Real Estate Europe”, produced by ULI and by the PwC, and which every year identifies major trends directing activity in the sector, classifying the 30 best European destinations for real estate investment.

Confirming the predictions of recent years, the 2017 edition brings good news once more for Iberian cities, classifying them again in the group of cities deemed the most attractive for this effect, with especial mention for Lisbon and Madrid, both positioned in the Top Ten, in 7th and 9th position respectively. Barcelona was placed in the middle of the table, in 16th position.