24/10/2014 – Expansion
The tertiary sector clutches its head in disbelief on news that year-on-year the total investment in the Spanish real estate advanced by a staggering 240% and hit €3.5 billion in the third quarter of 2014, says advisor CBRE.
Year-to-date, an amount of €6.5 million was spent on the country’s properties. Also, this is the first quarter with such a great volume since the real estate bubble burst in 2007.
‘If the trend persists, the year 2014 will undoubtedly be key for the new cycle’, assures Investigation and Investment Strategies director of the firm, Patricio Palomar.
Spain ranks the third in Europe as one of the countries where most money was spent on the real estate, outrun by the United Kingdom and Germany.
About 39% of the foreign equity came from other European countries like the UK, Germany, France, the Netherlands, Switzerland, but also from Qatar, Singapore, India or China as these countries increased their interest significantly.
Moreover, large transactions have been closed by investors originating from markets considered emerging, such as the Asian-Pacific area and Southern America.
‘The fact that opportunistic purchasers gave way to more cautious ones proves that Spain gradually advances in the cycle after having hit the bottom or even positioning on the growth curve in case of some more defensive assets’, adds Mr. Palomar.
The property manager believes there will be more large-volume deals sealed still in 2014 and new players are expected to arrive at the market, such as specialized funds or even insurance companies, domestic and international alike.
Original article: Expansión
Translation: AURA REE