8/04/2014 – El Pais
Spanish real estate market slowly revives. According to KPMG, housing prices climbed in Madrid and Barcelona by 3% and 0.8% respectively. Moreover, vulture funds that landed in Spain looking for opportunities of a 15% yield gave way to those that conform with 10% yields coming from less spectacular transactions, such as the sale of the Castellana 200 complex.
As the advisory firm tells, Spain is the second most popular investment destination among the surveyed funds, just behind Germany. The position is remarkable due to the fact that foreign funds usually look for large office buildings and iconic residential situated in the prime areas. In Madrid one may find hardly a dozen of them, while in such cities as Paris or London, there are hundreds. (…)
Be as it may, 75% of the total of respondents point at Germany, 45% at Spain and 42% at the United Kingdom. About 90% of them reckons that in the forthcoming five years the following top 5 markets will continue to attract the greatest investment volume: Germany, Great Britain, France, Spain and Italy. Legal and monetary stability may help them win more investors from South America and Asia.
(…) KPMG reminds that there are 750.000 finished houses and 50.000 units under construction in Spain waiting for a purchaser. In 2012 and 2013, 300.00 dwellings were sold each year and out of these around one third corresponded to new houses.
It is worth to mention that Sareb (the Management Company for Assets Arising from the Banking Sector Reorganization), the Spanish bad bank, served as a benchmark for foreign investors. Moreover, if compared to the Irish bad bank, NAMA, it scores much better during its first year of lifespan.
Gap between supply and demand prices shrank from 20% to 7%. (…) Socimis (Spanish REIT companies) and the sale & leaseback trend are becoming increasingly popular.
Original article: El País (by Susana Blázquez)
Translation: AURA REE