22 April 2016 – Expansión
According to Cushman & Wakefield, during Q1 2016, 40 operations were closed in the real estate sector, worth €2,400 million.
Real estate investment in Spain grew by 20% during the first quarter compared with the same period in 2015, with the signing of around 40 operations, worth €2,400 million, according to a report published on Thursday by Cushman & Wakefield.
“The first quarter of the year continues to show the strength of investment activity in the Spanish real estate sector”, said the real estate consultancy, which explained that more than 40% of the figure recorded during the 3 months to March related to a single transaction, namely the portfolio of offices acquired by Metrovacesa.
The office sector secured the most capital (51% of the total), with investment of almost €1,200 million, followed by the retail sector, which accounted for 36% of the total investment volume.
The main operations closed during the quarter were: Invesco’s purchase of an Eroski portfolio for €358 million; and the portfolio of offices in Madrid and Barcelona, owned by BBVA, Santander and Banco Popular, which are now owned by Metrovacesa.
According to the CEO of Cushman and Wakefield, Oriol Barrachina, “the lack of available high quality office space is creating difficulties for companies to find the space that they need, which has caused the rate of new rentals to drop but, at the same time, the price of office rentals, in the best areas of Madrid and Barcelona, to rise, as the availability of the best buildings continues to decline”.
“This potential for rental growth, which we have seen now for over a year, is one of the main reasons why investors are so still so interested in taking up positions in the sector”, he explained.
Original story: Expansión
Translation: Carmel Drake