Diversifying investment continues to be an "excellent long-term opportunity"

Diversifying investment continues to be an "excellent long-term opportunity"
Hernán San Pedro
  1. Indicate 3 reasons to invest in Spain

 Diversification. In the last decade, the Spanish property sector has achieved great diversification, driven by the sector’s professionalisation. There are recognised experts in the different segments and managers have acquired extensive experience.

Quality of the assets. The assets in the portfolios of SOCIMIs and other real estate players are high quality. This is proven by their constant appraisal over recent years, with important yields obtained in disinvestment processes.

A stable market. Investing in various Spanish real estate segments continues to be an excellent long-term investment opportunity, with a wide range of SOCIMIs approved according to international standards and a highly consolidated volume of activity.

  1. Where are the best real estate investment opportunities in Spain currently found?

First in retail. The Spanish retail sector has demonstrated in the past a great capacity to adapt to new scenarios. E-commerce, technological disruption, omnichannel, big data, customer experience and environmental awareness, have made it stronger. This is a resilient sector with great medium- and long-term projection. In terms of the price vs NAV ratio, the opportunity is abundantly clear.

Secondly, the residential rental market. A traditionally small sector in Spain, it is expected to grow substantially in the next ten years in the principal Spanish cities.

In third place, the logistics market. This segment has been booming in recent years, and it is likely we will witness a new boost due to the creation of state-of-the-art, modern, efficient and sustainable facilities.

Read More opinions of major real estate investors operating in Spain in last Iberian Property Edition 

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