Non-Residential Investment in Europe Hits Highest Since 2007, Madrid Tops YoY Increase

4/12/2014 – El Mundo

Latest report by BNP Paribas Real Estate shows that non-residential property investment in 14 main Western European cities (like London, Paris, Berlin, Hamburg, Frankfurt, Munich, Brussels, Milan and Madrid) totalled at €48.6 billion at the end of the third quarter of 2014, going up 16% in year-on-year terms. The highest upsurge was registered in Dublin (up 202% YoY) and Madrid (up 180% YoY).

In the first three quarters of the year, cumulative investment figures marked the highest levels since 2007, not seen during whole years 2008, 2009, 2010 and 2011. Apart from Milan and Lisboa, the volume exceeds the last-five-year average in all the examined cities. When it comes to overseas investment, American investors have grabbed a bigger market share than the Europeans, also for the first time since 2007.

Global investment strikes mainly liquid and core assets, however value-added and speculative transactions also come into fashion. During the discussed period, in half of the 14 metropolises there has been a decrease in prime returns.

By segments, offices were the top pick, crossing annual average in all cities but Lisboa, where it stood still. In turn, retail assets gained popularity in Paris, Dublin and, above all, in Madrid.

 

Original story: El Mundo

Translation: AURA REE

Photo: Chema Moya

Investment in Non-Residential RE Reaches €5 Bn, Up 34% Over Entire 2013

30/10/2014 – Expansion

During the first nine months of 2014, a nearly €5.04 billion amount was spent on the Spanish real estate. The score beats the 2013 figures by 34%, reports BNP Paribas Real Estate.

The company estimates that the data ‘reflects sustainable interest of investors, both domestic and foreign, in a market offering prices close to the bottom levels’.

BNP says Socimis (Spanish REITs) contributed to the numbers significantly as they have spent €2 billion on residential and commercial real estate in Spain.

The firm claims that beyond these vehicles stands the ‘unsatisfied appetite of international investors who invested the equity throught various formulas’.

Most 2014 active so far have been the Northern American, the British, the Asian and the Latin American investors. Speaking of the asset types, prime retail parks are considered the engine of this year’s bumper investment as they account for 32% of the total, although behind the office sector (34%). Hotels repesented 20%, while logistics units 9% of the whole investment volume.

The Investment director at BNP Paribas Real Estate España, Francisco Manchon, stated that ‘2014 is exceptional in terms of real estate spending. The market has stayed at its lows when it comes to return and capital value since the end of 90s and this drew attention of those who found out that Europe alternative markets are worn-out’, the executive highlighted.

 

Original article: Expansión

Translation: AURA REE