a. Indicate 3 reasons to invest in Spain
Spain is a country with a strong economic backbone and long history of investment in real estate (both institutionally and by individuals). Therefore, the overall set-up for real estate investment (regulation, financing etc) is generally supportive.
In addition, given these historic factors, the Spanish real estate market is a large and liquid market to invest in, both within the Southern Europe context but also if put into the broader European context.
Finally, a number of megatrends are playing out now (and in some cases in an accelerated fashion), which make invests in Spanish real estate particularly attractive, as they provide exposure to these megatrends, with the added support of a real asset base.
b.Where are the best real estate investment opportunities in Spain currently found?
We believe in investing in verticals where we see supportive long term megatrends, as these will be more resilient across the cycles and will benefit from upside tailwinds (although we will also take an opportunistic view on certain assets).
On the back of this, we are focused on: (i) leisure hospitality (where we see a clear megatrend and are now seeing very attractive opportunities coming to market), (ii) rented residential (where we have been an active investor and property manager for the past 17 years and which is a clear beneficiary from COVID-19 and growing urbanisation), (iii) senior housing (with Spain as the country with the highest life expectancy in the world, coupled with a chronic undersupply of quality senior housing) and (iv) last-mile logistics (with constrained supply and demand predicted to grow exponentially as Spain reaches its e-commerce penetration tipping point).
Read More opinions of major real estate investors operating in Spain in last Iberian Property Edition