Spain may surpass €8.000M in RE investment in 2020

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The recovery dynamic of the real estate activity during the Summer gave a new boost to capital markets. In Spain, it is expected that 2020 may even surpass 8 billion euro.

After months of being suspended by the pandemic, investment on the Spanish real estate market increased its pace and volume between July and September, with a 22% increase over the previous quarter (around 1.439 million euro). This increase shows that «investors are coming of out of the wait&see state they had fallen under over the last few months», explained Lola Martínez Brioso, director of Research at CBRE España.

The numbers from CBRE point towards a total aggregated amount of 6.840 million euro over the first 9 months of the year, a number which «added to the increasing interest from potential buyers and the reactivation of transactions and operations, make us predict that this slight recovery will continue during the fourth quarter and that this financial year – marked by the unique situation caused by COVID-19 – will end with a total investment volume which may surpass 8 billion euro», advanced Lola Martínez Brioso in a release.

Nevertheless, this amount is 30% below the 12.700 million euro registered last year and, according to the consultant, «it would also be below the numbers registered during the last 6 years».

Retail had the most investment up until September

Under this new scenario, office, retail and housing transactions have stood out.

In terms of total investment allocated to the country during the last 9 months, retail took the lead with 1.975 million euro, followed by housing in second with 1.800 million euro and the office segment in third with 1.482 million euro.

Despite being considered one of the segments that «raises more interest amongst investors» logistics attracted around 620 million euro up until September, a number which «represents more than 50% less than the investment from previous years, with numbers similar to those reached in 2016», revealed CBRE. There aren’t any more transactions, not out of a lack of interest or demand in the country, but because «the owners of this type of assets are companies which do not want to release them as they are aware of the good returns they generate at moments like these», explained Alberto Larrazábal, national director for Industry and Logistics at CBRE España. Nevertheless, it is expected for the segment to reach 1 billion euro in investment until the end of the year, «a truly positive number for a segment which is under the focus of all investors», he added.

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