28/01/2014 – Expansion
Spanish real estate market is screeching its dive step by step, however in some areas it can ever climb up in 2014. This is the opinion of the majority of European investors, according to a survey conducted by EY on 500 executives from 15 member countries.
The investors agree in pointing out the real estate assets price increase in Spain in the “prime” localizations (very well situated or luxury ones). Houses included. Thus, 93% of investors reckons that the price will climb up in the office and shopping center segment within the areas, and so will the price of hotel assets, as 84% of the respondents said.
The same percentage, 84%, suggests that Spain as an attractive destination to invest into in the real estate market. The score is 47 points better than the results from 2013. And the same 84% (420 out of 500 executives taking part) expects an increase in the transaction volume, juxtaposed with the 50% thinking so in 2013 (and that has been wrong).
If it comes to the residential property market, the investors are optimistic: 64% of them expects the price to go up in the primary areas.
Not in vain, 90% of them believes that the foreign buyers will continue to expand the number of acquisitions in Spain in 2014. (…)
In regard to the “no prime” assets, tendency is not clear. Shopping center prices are said to rise by 33% of the respondents, while 40% thinks they will fall. 38% of them predicts soaring up, while 31% – decline. Asked about the peripheral localizations, they foresee a drop.
“The main obstacle for more stable real estate market recovery is still caused by restricted access to credit (…)” – Helena Burstedt, expert in the sector from EY explains.
Who will be the most important buyer? The opportunistic (vulture) and core funds. And the latter news indicates nearby recovery.