real-estate-news Market News: Spanish Real Estate Intelligence

Investors were only Interested in Real Estate at the end of 2019, according to JP Morgan

Real estate investment, excluding the purchase of first and second homes, reached its highest level since 2007 in the fourth quarter of 2019, according to the latest survey about the confidence of Spanish investors conducted by the manager J.P. Morgan AM.

Lack of confidence

Even so, bank deposits are still the predominant vehicle for Spanish savers, despite the zero returns seen in recent years. 88.8% of those surveyed claimed to have deposits in their portfolio, and an additional 43.1% said they were willing to make deposits within the next six months.

The second most popular product are pension plans, with 42.1% of the total. In third place, are investment funds and listed funds (ETFs), with 29% of the total.

Merlin Leases its Torre Chamartín Project in its entirety

Merlin Properties has now leased all of the office space in its Torre Chamartín project, which will comprise two buildings with more than 18,000 m2 of available space in the north of Madrid, according to El Español.

The main tenant of the north tower is going to be the consulting firm Deloitte, which will occupy 14 floors in total, although most of its staff will continue in Torre Picasso and other nearby buildings. The British firm will share its space with Buran Energy, Arka Telecom and LOOM, the coworking brand owned by Merlin Properties.

Hotel Investment Decreased in the Major Markets in 2019: by 22% in Madrid & by 35% in Barcelona

Investment in hotel assets in the Spanish market amounted to €1.6 billion in 2019, which represented an increase of 1.6% with respect to the previous year, although it decreased in Cataluña (by 34.8%) and Madrid (by 22%). As such, the hotel sector accounted for 13% of the total investment in real estate assets in the Spanish market, according to a report from BNP Paribas.

Despite this decrease, Madrid was the highest-ranking Spanish city in terms of hotel investment, with €420 million, equivalent to 26% of the total. One of the reasons why companies are continuing to invest in the capital is that it is the city where tourists spend the most, more than in Barcelona. The most important purchases in the capital last year were the acquisition by the Socimi Milenium of the future W Hotel by Marriott in Plaza Canalejas for €80 million and the purchase of Hotel Aloftha by Henderson Park for €56 million.