«Anticipation is key in the next 6-9 months»
In the context of a global crisis, Spain’s real estate has also been deeply affected.
Regarding the capital market, the investment volume, from the first to the third quarter of 2020, has been contracted a 29%. The current situation has been compared on numerous occasions to the financial crisis of 2008, but there are notable differences. Twelve years ago, the market was in a banking and liquidity crisis, while now the impediment is caution.
The outbreak of the pandemic has placed many investors in a ‘wait and see’ position in the short term.
The office segment focuses almost exclusively on prime product, although there are other segments that remain resilient and where investors maintain their appetite: logistics, rental housing (PRS), student residences and, in the retail segment, hypermarkets and supermarkets .
Positive outlook for food-retail, logistics, flex space and conversion of spaces to mixed-uses
In 2021 there will be a positive path for the hyper and supermarkets subsector, given the strength of the food sector during the pandemic, through the sale & leaseback format, with long-term contracts and confidence on the part of investors.
Logistics is showing itself as a segment not only resilient, with stable demand, but also with great growth potential given the investment appetite. The penetration of ecommerce in Spain (8%), still below the European average, will increase by 2 points this year and has caused the sector to rise rapidly.
Good news of effective vaccines will ensure that in 2021 the boom of flex space, the conversion of spaces to mixed uses and e-commerce will continue. That is why anticipation is key in the next 6 or 9 months and those who do best will come out the winners of this crisis.