Tag: Dublin

Madrid Is The 3rd Most Attractive City For Hotel Inv’t

19 May 2017 – Iberian Property

Madrid is the third city to attract the most hotel investment in Europe, appearing on the recently published top 10 from Savills.

This list is based on factors such as the overnight visitor market, GDP and employment growth forecasts, stock levels relative to demand and indicative prime yields as of Q1 2017. Dublin and Milan head the list, in 1st and 2nd positions respectively.

After Madrid, London is in 4th place, followed by Barcelona in 5th, Amsterdam, Budapest, Rome, Paris and Berlin, the final city in the top 10.

According to this report, the top 10 cities have strong perspectives relative to income security alongside capital preservation and capital growth.

Tim Stoyle, head of hotels valuation at Savills, comments, “The analysis highlighted there are still a number of cities in Europe that offer good ‘value’ prospects in light of the outlook for operational performance going forward.” He went on to give Dublin as an example: “Dublin for example has been one of the best performing European cities in terms of RevPAR (revenue per available room) growth over recent years, which looks set to continue as new development remains constrained,” quotes Europe Real Estate.

Rob Stapleton, Director of the Hotels team at Savills, adds that, “Across Europe, we are seeing increasing interest from investors looking for both the income and capital value growth provided by hotels. Dublin has experienced a recent rise in institutional investment whereas markets like Milan and Madrid are being driven by private equity investors and owner-occupiers looking for hotels with both development and income growth potential.”

Original story: Iberian Property

Edited by: Carmel Drake

Office Rents In Madrid & Barcelona Are Still Very Competitive

19 September 2016 – Expansión

London: €116.25/sqm – and up to €198/sqm in the West End -. Dublín: €64/sqm. Frankfurt: €45/sqm. Madrid: €34.5/sqm. Barcelona: €28.5/sqm.

Spain’s two largest cities still have the lowest office rental costs in Europe. But, how are these costs calculated and why are Madrid and Barcelona still the most attractive cities in this sense?

A study prepared by the real estate consultancy Knight Frank compares average rents for prime offices, along with occupancy costs, which include amongst other items, taxes, services and establishment costs that companies deciding to open offices in these cities must incur.

For Raúl Vicente, Director of the Office Agency at Knight Frank, “if we compare our markets with those of our European counterparts, then the office markets in both Madrid and Barcelona are still more attractive in terms of costs”.

Moreover, the available supply is also greater and we are currently at a low point in terms of the rental cycle”. The Madrilenian market is proving to be particularly active and the sector may still generate lots of good news between now and the end of the year. Madrid leads the ranking of cities with the greatest potential for rental growth, followed by Amsterdam, Barcelona, Budapest, Lisbon, Milán, Paris and Stockholm.

Average rents have increased in some of these cities, including Madrid, but the price level is still a long way below that of other capitals such as London, where costs soar. The occupancy rate has grown in the Spanish capital by just 1% during the first half of the year and it is noteworthy that no major operations have been signed – i.e. those involving leases for more than 10,000 sqm of space – during the first six months of the year.

Despite everything, the real estate consultants are optimistic and they expect the Madrilenian office market to experience a better second half of the year. Madrid’s capacity to attract businesses is one of the variables that will help this improvement.

Original story: Expansión (by E. Viaña)

Translation: Carmel Drake

Madrid: Third Favourite Investment Market In Europe

12 February 2015 – Expansión

PwC Report / The Spanish capital is the third favourite investment market after Berlin and Dublin. The commitments made by George Soros and Dalian Wanda are generating the “pull effect” (in 2015).

The financial investor George Soros, the giant Chinese corporate Dalian Wanda and the new fund manager Tiaa Henderson all have something in common: they have all invested in the Spanish real estate sector in recent months. This activity has not gone unnoticed by other investors, since not only has real estate investment in Spain returned to figures not seen since the boom years (2007), but also the phenomenon is also expected to continue in 2015.

According to the ‘Trends in the European Real Estate Market 2015’ report, prepared by PwC, Madrid is the third favourite destination for investors at the European level, behind Berlin and Dublin. “There is a mixture of 28 cities in this ranking: classic investment destinations such as Berlin and Munich, capitals that are in recovery, such as Athens – the survey was conducted in November before the Greek elections – and Dublin”, explains Rafael Pérez Guerra, the partner responsible for the real estate sector at PwC.

Of the 28 cities studied, only those in Russia have limited prospects for investment growth, even though 61% of respondents believe that the good assets (known as “the core” in the sector) are overvalued in virtually all of the European markets.

This boom has led many investors to seek out new markets. “Another important area of interest are the secondary cities, such as Birmingham, which is ranked in sixth place, above London and Munich. Investors have started to take on more risk because profitability in the large markets is scarce; as a result they are exploring secondary sites”, he adds.

Spain

The change in the Spanish real estate sector is reflected in the rise (up the ranking) of its main markets as investment destinations: Madrid has risen from 19th place to third and Barcelona from 22nd to 13th, according to PwC’s report.

“There is a very high level of interest and activity in Spain. It is not that the market is not over-heating, but rather that the dynamics of the sector are changing, with an imbalance between a scarcity of good deals in prime areas and significant demand from opportunists who remain in the market and more stable investors who are arriving”, says Enrique Used, the partner responsible for transactions in the real estate sector at PwC.

This commitment to the Spanish market will continue in 2015, according to the survey respondents, and will not be limited to the large markets. “International capital has moved towards Spain, en masse. Prices have risen considerably in Madrid, which suggests that the investors that are looking for the highest returns, should set their sights on the secondary markets in Spain during 2015 to obtain higher returns.

Although the 500 people surveyed by PwC see a clear recovery in investment in Spain, they still believe that the market for the construction of new homes should improve; Madrid and Barcelona are ranked only 14th and 23rd, respectively, although that represents an improvement with respect to 2013 when they were ranked 21st and 25th.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake