The real estate sector is in a positive cycle

The real estate sector is in a positive cycle
Oriol Barrachina

In the office segment, the preferred destinations are Madrid and Barcelona, especially the former, which records increasingly higher demand and take-up levels. In logistics, interest is also growing in the great capitals for distribution warehouses within the so-called “last mile”, in other words the closest possible to consumption hubs, in Valencia, Saragosa, Seville and Bilbao.

In the retail segment, high street retail is growing in every city, as well as in the Balearic and Canary islands, while in the major urban centres, the traditional retail parks (Ikea and Leroy Merlin, for example) are flowing into the centres of Madrid and Barcelona with establishments between 1.500 and 4.000 m2.

There is strong interest in retail parks, with yield compression of up to half a percentage point, while other prime assets display greater stability. Aside from more traditional segments, there is also a substantial increase of investment in alternative assets (student and senior residences, for example), which offer significant returns. Finally, international investors display growing interest in urban hotels managed by international hotel chains.

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