Rising Star on European Market: Spain

6/02/2014 – Expansion

(…) Great international funds, real estate companies, investment banks and consulting firms are convinced that Spain is not “the black sheep in the European market” anymore, according to the report Tendencias del Mercado Inmobiliario (“Real Estate Market Tendencies”) drawn up by PwC and Urban Land Institute. “There has been a striking turn in the perception of the Spanish market”, explains Guillermo Massó from PwC. “The rebound shall be assigned to uncertainty in Spanish economy and the country´s possible withrawal from Euro, the release of Sareb and unblocked banks´portfolios”.

Acquisitions

From January to September 2013, the real estate investment rate shot up by 198%, compared to €2.400 million in 2012, as the data of Real Capital Analytics shows. (…).

67% of the 600 people surveyed by PwC belives that there are attractive offers on the Spanish market, so the pace is bound to be kept. “24 months ago investors shut their ears to Spanish property and now it becomes the most desirable again”.

“There will be many purchases as the portfolios, not only put on sale by Sareb but also by banks and real estate companies, are very appealing. What is more, apart from debt, also individual assets, portfolios with certain liquidity and (…) land will find their enthusiasts”.

However, the rebound should be considered cautiously, at least until first purchases are finalized. (…).

Europe

The European market is dominated by demand for primary assets. (…) Thus, direct investment is “practically lower than before the recession”. Last year marked arrival of the U.S. funds that raised its rate by 10% (…). Apart from them, also Asian funds turn their eyes to the Old Continent.

(…) Principal investment targets remain unchanged for years: London and Paris, then big German cities, (…) where the economic risk is the smallest.

Original article: Expansión (R. Ruiz)

Translation: AURA REE

47