Real Estate Investment Cycle Undergoes Change in Profile

20 July 2019 – Richard D. K. Turner

The real estate investment cycle in Spain is beginning to change as the funds that first acquired land and homes for rent from Sareb and the banking sector start to finally unload those initial acquisitions.

The new investors are generally conservative investment funds looking for large portfolios of long-term rental properties in Spain. These more conservative funds, such as the Dutch fund APG and AXA IM, seek returns of between 3.5% and 5%. The capital entering the market is often being deployed by insurers and pension funds, which look for stable, long-term income flows from their investments.

Another changing aspect of the market is the increased interest in turn-key projects. Such a structure allows investment funds to accelerate their business plans and improve results. Aedas Homes and Metrovacesa are considered two of the major players in the market.

Original Story: El País – Inmaculada de la Vega

 

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