Spain, European Investment King
7/11/2014 – Expansion
The extraordinary scenario written by the return of the funds to the Spanish property market has seen more and more lines being added for the last 15 months.
Before, only vulture funds used to nose-dive at the country’s property in search of bargains. Now, there are no investors who would sniff at this market.
One of the proofs is the recent survey by consultancy Knight Frank , carried out on 200 investors based in London. The respondents said Spain would be their number one target. ‘Around 26% of the asked experts voted for Spain and this is the first time when the United Kindgom loses the top pick position’, explains Humphrey White, Investment director at Knight Frank Spain.
Presently, the market observes both opportunistic and conservative funds operating together and this is a change. ‘The investors arriving now are much more sophisticated than they were in 2007 (the real estate boom), when solely family offices used to buy’.
‘The new purchasers have many reasons to switch its European investments, until now focused on London, Paris and Frankfurt, to Spain’, Mr. White says. ‘If a state bond returns 1.2% annually, the real estate gives you back 5%, it is worth to go for this type of transactions’, he concludes.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE