Laborde Marcet: RE Inv’t Amounted To €6,230M In H1 2017

3 August 2017 – El Mundo

Investment in real estate amounted to €6,230 million during the first half of 2017, in terms of non-residential property, according to data published by the real estate and wealth manager Laborde Marcet.

By sector, retail accounted for 42% of the total (€2,619 million), ahead of the office sector, which represented 25.5% (€1,588 million). Meanwhile, the hotel sector accounted for 23% (€1,433 million) and logistics assets the remaining 9.5% (€590 million).

The founding partner of Laborde Marcet, Miquel Laborde, said that the real estate sector is reaching “maximum levels” in terms of the final prices of operations given that the “the difference between demand and supply causes prices to rise, although that pushes down the yield on those assets”.

During the second quarter of 2017, the figures show a QoQ decrease. In the period from April to June 2017, €2,710 million was invested in non-residential real estate operations, down by 23% compared to the first quarter of 2017, when €3,520 million was invested.

By sector, during the second quarter of 2017, retail accounted for 41.5% of the total investment (€1,124 million), followed by the office sector, which represented 26.6% (€720 million). Meanwhile, the hotel sector accounted for 24% of the total (€650 million) and the logistics sector the remaining 7.9% (€216 million). All of the sectors saw their investment figures decrease with respect to the first quarter 2017, with the exception of offices, which increased their market share by 1.9 percentage points.

If this trend continues during the second half of 2017, the tertiary real estate sector would see total investment in real estate for the year reach almost €13,000 million, which would represent an increase of 16.75% with respect to the data recorded in 2016, when investment for the year amounted to €11,134 million.

Original story: El Mundo

Translation: Carmel Drake