On the 25th and 26th of June, the Spain Real Estate Summit comes to Madrid, taking place at La Finca the UZalacaín space, to debate the attractiveness of Spain as an investment destination, and where the main opportunities may be for the future.
Throughout 2023, the residential sector maintained the trend of generalised price increases, although these have occurred at a more contained pace than in the previous two years. Rental values have raised more sharply, hiding the displacement of a percentage of demand that opt for this model due to the tightening of financial conditions, something that is expected to start easing at the second half of 2024.
With residential being one of the preferred sectors among investors, attracting both private and institutional capital, the demand shift towards alternative models could lead to significant growth in flex living this year. And, as for the BTR segment investment volume is growing year after year.
Spain is the 2nd European country with the highest effort rate to rent an apartment. There is no doubt that the supply and demand are imbalanced, and with demand expected to grow by 15% this will require 180,000 new households by year, of which 90% should be concentrated in the main metropolitan areas. Currently, Spain is only building 100,000 units per year, leaving a gap of 80,000 apartments per year. In Europe the affordable housing stock represents around 9% of the total housing stock and in Spain the same figure stands at 2%.
But besides the challenges of providing more supply, what is the demand profile for the different types of housing? And is public/private partnership still not working effectively?
To debate the sector evolution and possible affordability solutions, Aref Lahham, Founder of Orion Capital Managers, Kevin Cahill, Partner and Head of European Investment at Ares Management, Karin Koks-Van der Sluijs, Head of Fund Management Europe & Managing Director at Greystar, and David Martínez, CEO of AEDAS Homes will share the stage on the second day of the Spain Real Estate Summit. This roundtable discussion will be moderated by Richard Betts, Co-Founder and Head of Content of Real Asset Media.
The Speakers expertise: a clear focus on Living solutions
Since inception, Orion Capital Managers has completed 90 investments across Europe on behalf of its’ Funds totalling in excess of €10 bn of GAV, having allocated more than €1.2 bn to residential.
Ares Management, through its Spanish subsidiary Avalon Properties, has a portfolio of more than 6,500 rental properties in Spain. It currently has a portfolio of 3,500 homes linked to the public administration, having been awarded the construction of two lots of land in the Community of Madrid, within the ‘Plan vive’.
Last year, Greystar acquired a portfolio of 2,425 rental properties in Spain comprising 12 projects in Madrid, Malaga, Valencia, Seville and Bilbao. The American firm had already stood out in the Spanish market in 2022 with the purchase of a portfolio of 2,500 flexible accommodation units in Madrid.
Finally, Aedas Homes has invested more than 220 million euros in land over the last twelve months, which will enable it to develop more than 2,500 homes in the country. The Spanish developer has an unrivaled land bank, with a special focus this past year on the Madrid region, where it has accumulated an investment of 108 million euros for the development of close to a thousand homes.
A 2-day intense conference
The SPAIN REAL ESTATE SUMMIT, which is organised in collaboration with CBRE and JLL, comes at a crucial time and in a challenging environment, influenced by the geopolitical situation, and will be a unique initiative for a deep collective reflection by leaders in analysis and opinion and references in the world of economics and investment in the real estate sector.
The macroeconomic situation, the reconversion of assets, new financing models, the production of a greater volume of affordable housing or the effect that new technologies and the deployment of AI have on the real estate sector will be some of the issues to be debated.
The SPAIN REAL ESTATE SUMMIT will also feature parallel sessions to generate maximum interaction between participants, which will cover complementary topics such as investment in retail, hotels, logistics and data centres, allowing investors to take an active part in the debate by expressing their concerns and expectations.
This Iberian Property event is set to be an essential platform for the discussion of the current and future dynamics of the real estate market in Spain. By bringing together opinion leaders, economic experts and investors, the event aims to foster collective reflection and the identification of innovative solutions to market challenges. A true catalyst for growth and adaptation of the sector in a constantly changing economic and technological environment.
The SPAIN REAL ESTATE SUMMIT will not only be a reflection of the dynamism of the Spanish real estate market, but also an opportunity to influence and form part of its future. A vital meeting point for sharing knowledge, driving innovation and forging new alliances in the sector.
For more details about the SPAIN REAL ESTATE SUMMIT and how to participate, please click HERE.
IBERIAN PROPERTY INVESTMENT AWARDS
At the SPAIN REAL ESTATE SUMMIT, on 25 June, the winners of the IBERIAN PROPERTY INVESTMENT AWARDS 2024 will be announced, a high point for the Iberian investment sector in which, after the analysis of a large jury of more than 40 prestigious professionals, the main transactions will be awarded and the best practices of the sector in Spain and Portugal during 2023 will be recognised.
For more details about the IBERIAN PROPERTY INVESTMENT AWARDS, please click HERE.