Laborde-Marcet: Inv’t in Tertiary Assets Amounted to €8.5bn to September

12 November 2018 – Eje Prime

Non-residential assets are proving themselves to be another driver of the Spanish real estate sector. The retail, hotel, logistics and office segments received investment of €8.5 billion between January and September, according to the latest report published by Laborde-Marcet. If that pace is maintained, the tertiary real estate sector will achieve an investment figure of almost €11.3 billion by the end of 2018.

The third quarter has been the most significant of the year in terms of registered investments, with €3.8 billion in total. By segment, between July and September, retail accounted for 34% of total investment (€1.3 billion), ahead of offices, which accounted for 29% (€1.1 billion). Meanwhile, the hotel segment accounted for 24% of the market (€912 million) and logistics the remaining 13% (€494 million).

According to the study, the market is dominated by a large variety of players: private equity funds, Socimis, companies and local family offices. Despite the large presence of domestic and international capital, the investment recorded between January and September 2018 was 11.5% lower than during the same period in the previous year, a record year when real estate investment amounted to €9.6 billion.

If this trend continues until the end of the year, the Spanish tertiary real estate sector will reach a total real estate investment figure of around €11.3 billion, which would represent a decrease of 6.6% with respect to 2017 (€12.1 billion), but an increase of 1.5% with respect to 2016 (€11.1 billion).

For Gerard Marcet, the founding partner of Laborde-Marcet, “the fact that these kinds of real estate projects are happening in our country is very good news for the economy in general and for the real estate sector in particular”.

Original story: Eje Prime 

Translation: Carmel Drake