Segro Purchases 44,500 m2 of Land for Industrial Development in Madrid

11 October 2018 – Eje Prime

Segro is increasing its commitment to the Spanish logistics sector. The British Socimi, which specialises in the industrial segment, has purchased 44,500 m2 of land on which it is going to build two urban distribution centres in Madrid.

The first logistics space is going to be located in the south of the Spanish capital. The centre, spanning a surface area of 33,500 m2, will be located in the district of Villaverde, an area that is home to multinationals such as Telefónica, Repsol and Air Liquide.

The Socimi is also planning to build a second warehouse measuring 11,000 m2 in the Madrilenian municipality of Coslada, where it already owns a business park. The company has chosen that location due to its proximity to Barajas airport, the centre of the Spanish capital and motorways such as the A-2 and the M-40.

This operation reinforces the good times that the logistics sector is enjoying in Spain, driven by the rise in e-commerce in the country. Not in vain, in 2017, the sector achieved an investment record, exceeding €1.5 billion.

With demand constantly growing, above all due to the arrival of international funds and investment firms that are keen to enter the logistics segment, encouraged by the high yields and stability, operators are also looking for land in the last mile space to respond to current demands. That means the development of sites on the outskirts of large cities, with assets that are no more than 50km away from the city centre.

Original story: Eje Prime

Translation: Carmel Drake

CBRE: Logistics Leasing in Spain Grew by 17% during First 9 Months of 2018

8 October 2018 – Eje Prime

The logistics sector is continuing its rate of growth. In total, 1.38 million m2 of logistics space was leased in Spain during the nine months to September, up by 17% compared to the same period in 2017.

Investment in the industrial sector also increased between January and September 2018, exceeding €1.1 billion, up by 43% compared to the previous year, according to CBRE. Prime yields, on the other hand, amounted to 5.55%, driven by high buyer activity and a shortage of available products on the market.

In terms of geographical areas, during the first nine months of the year, 632,000 m2 of logistics space was leased in Madrid, almost equalling the figure recorded during the same period in 2017. Of that amount, more than 50% corresponded to warehouses with surface areas spanning more than 20,000 m2.

Similarly, in Barcelona, the other city that accounts for some of the most logistics activity in the country, 483,000 m2 of logistics space was leased during the nine months to September, whereby exceeding the figure registered during the same period a year earlier by 53%. The lack of available space in the first and second rings means that the volume of space leased depends, to a large extent, on turnkey projects and pre-leases.

For another quarter, prime rents in both Madrid and Barcelona remained stable at €5.25/m2/month and €6.75/m2/month, respectively.

Other areas recorded a good level of activity during the nine months to September with Valencia, Zaragoza and Sevilla leading the charge, with logistics leasing of 138,800 m2, 58,800 m2 and 42,000 m2, respectively.

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “cities such as Valencia, Zaragoza and Málaga blame the lack of available land dedicated to the execution of new projects, which is making the search for new mega-plots imperative”.

Original story: Eje Prime

Translation: Carmel Drake

Just Four Socimis Own Almost 20,000 Rental Homes in Spain

22 July 2018 – El Diario

The debates over rental housing, rising prices and the risk of a new real estate bubble are all continuing to rage. Whilst Pedro Sánchez’s government has started to outline its new policy to avoid a hike in prices, investors are not letting up in their frenzy to take positions in the sector. Proof of that is the continuous trickle of new listed Socimis specialising in the residential rental sector.

One of the latest entities to hit the headlines in this regard is Testa Residencial, whose General Shareholders’ Meeting approved its debut on the Alternative Investment Market (MAB) this week. That secondary market, specialising in Socimis and companies with smaller market capitalisations, will have 19 companies that either specialise in housing or own a significant portfolio of rental homes. Together they own a volume of assets that now comprise almost 24,000 homes, with a combined value of just over €4.1 billion.

Specifically, Testa is going to make its debut on the MAB as the largest rental home real estate company on the secondary market. Following its most recent operations, the Socimi now has 10,573 homes. The entity is owned by BBVA, Santander and Merlin, amongst other shareholders. It is followed, in terms of the number of assets owned, by Albirana, Fidere and Torbel, the three residential Socimis owned by the vulture fund Blackstone, which together own more than 9,300 homes.

Those four companies alone own almost 20,000 rental homes, according to data registered by the companies themselves in their issue brochures or annual accounts. That figure coincides with the plan outlined by the Minister for Development, José Luis Ábalos, which includes the creation by the Government of a stock of public housing for rent over the next four to six years.

Another of the most important Socimis in this field is Témpore, a subsidiary of the bad bank, Sareb, in which the company that owns the toxic assets of the rescued savings banks has placed some of its best homes and which made its stock market debut in March. It owns almost 1,400 homes and announced recently that it will be increasing its portfolio with new assets from Sareb.

Madrid is the province that is home to the most homes owned by the almost twenty Socimis that are listed on the MAB, accounting for 47% of the total (…). It is followed by the province of Barcelona, with 22%, and to a lesser extent, Valencia, with just over 4%. Together, those three provinces account for almost three-quarters of the assets owned by those entities.

Rising yields

The real estate consultancy firm JLL justifies this interest from the Socimis in rental housing by the significant returns that they generate. According to that firm, over the last year, rental homes generated a yield of 11.4%, compared with 10-year public bonds, for example, which generated a return of 1.6%. “Our forecasts indicate that yields will grow by 6.1% over the next three years”, they add, although they highlight that there are differences by region.

JLL specifies that the market is “highly fragmented” despite the “profound transformation” that is happening in the rental housing sector due to the development of Socimis and the arrival of institutional investors. The consultancy firm points out that these types of real estate investors are faced with the limitation of a shortage of entire buildings available for rent, a model that they prefer because it allows for a more efficient management. For that reason, they say that investors such as Testa and Azora are looking to grow their portfolios by building new rental homes in collaboration with property developers and construction companies.

Another noteworthy point about this growth in the number of Socimis dedicated to rental housing is the ownership of the companies. Almost half of the real estate companies that are listed on the MAB, eight to be precise, are controlled by companies that have their headquarters in Luxembourg. Such is the case of Albirana, Elaia, Elix Vintage, Fidere, Hadley, and Torbel, a company that is also indirectly controlled from the Cayman Islands. Another of the companies is located in The Netherlands (Barcino) and two others, Galil and VBare, are linked to Israeli investors (…).

Original story: El Diario (by Diego Larrouy)

Translation: Carmel Drake

Twin Peaks Buys Plot of Prime Residential Land in Pozuelo (Madrid)

4 June 2018 – Eje Prime

Pozuelo de Alarcón has land for sale and nobody wants to miss out on the chance to acquire a slice of it. The Madrilenian town, the richest in Spain in terms of income per capita, has had a large portfolio of land up for sale for a few months now, and the family office Twin Peaks has opened the bidding in the flurry of purchases that are expected to be signed soon. The family office has acquired a plot of buildable land owned until now by Banco Santander.

The plot in question is included in the Arpo Partial Plan, the name given to the whole portfolio. Definitive approval is expected to be given for the reparcelling and urbanisation of the plots soon, which will allow investors to start building the first homes on the site. As such, the operation by Twin Peaks comes as it tries to position itself ahead of the great appetite from international funds, which are already working on buying plots on this site, according to El Confidencial.

In fact, Oaktree is already very close to sealing two operations with Iberdrola for the acquisition of plots located on the perimeter of Arpo. For Twin Peaks, the land attached to its real estate portfolio will allow it to continue growing in the luxury market in Madrid. In Barcelona, the other major Spanish city in which the firm has a presence, it acquired an asset on the central Paseo de Gracia last November for €25 million.

Pozuelo is a prime and very attractive market for property developers and funds in the residential boom that the Spanish capital is experiencing. Its high rents and ability to generate high yields are a showcase for luxury in the sector, which has seen how in just two and a half years, land prices in this municipality have risen by 20%, boosted by demand and, above all, by the shortage of buildable land available for development in Madrid.

Property developers such as Metrovacesa, which owns land spanning 46,000 m2 in Pozuelo alone worth €25 million, Vía Célere and iKasa already have important projects in place in this prime area of the Spanish residential market.

Original story: Eje Prime

Translation: Carmel Drake

Málaga Vies to Compete with Madrid & Barcelona in the Office Sector

11 April 2018 – La Opinión de Málaga

The yields for investors (in Málaga) range between 5% and 7.5%, and exceed these reference areas, although the experts agree that more tertiary development is needed. The real estate sector highlights the recovery of its activity and rules out signs of a bubble in the housing sector.

The real estate market in Málaga is on the rise and is in the spotlight of all investors both in the residential sphere as well as in the tertiary and office segments, according to comments made by several experts yesterday at a forum organised by Málaga’s Association of Construction Companies and Property Developers (ACP). They also ruled out that that there is currently a risk of a bubble since the rate of growth is being sustained. In the office sector and from the point of view of investors, Málaga capital, specifically, is positioning itself as a great alternative to the saturated markets of Madrid and Barcelona, which are showing signs of “depletion” with the lowest yields for 20 years (3.2% in the prime areas and 6.25% in the more peripheral districts), according to explanations provided by the Director of Investments at Savills Aguirre Newman, Pablo Méndez. By contrast, yields in Málaga range between 5% and 7.5%, with potential for returns that exceed by 1.5 points the markets that have traditionally monopolised investors’ interest.

“The office market has to look for new destinations to house its money and, after Madrid and Barcelona, Málaga is in an enviable position. We need to take advantage of that. There is office demand that is not being met in Málaga, which means that a great investment opportunity is opening up”, said Méndez. A recent study by his consultancy firm revealed that Málaga capital, with an office stock spanning 600,000 m2, has reached leasing and occupancy levels not seen since before the crisis, with percentages of 90% in the prime areas, the financial district and the area around Vialia, established as the Business Centre.

Rents amount to €12/m2/month on average, with maximum values of €18/m2/month for buildings on the most sought-after streets. This trend will continue in 2018, with the forecast that rental transactions could reach record volumes, boosted by sectors such as real estate, services and technology, which means that properties that have been available for almost a decade may have new tenants.

In light of this scenario of a “shortage” of sites, Méndez warns that the city needs new tertiary developments and office buildings given that the spaces that currently have most availability, on the Andalucía Technology Park (PTA), do not meet the expectations of companies who prefer a more urban environment for their workers. Areas such as Martiricos and La Térmica, in his opinion, represent development enclaves that could be used to alleviate this situation.

“Right now, the decisions as to whether to change headquarters are taken by considering the human resources team, the communications, the flexibility of hours, the services in the vicinity. There has been a substantial change in terms of the demand from tenants. The way of working has changed. Companies want to be more central and in their own environments”, he said (…).

Original story: La Opinión de Málaga (by José Vicente Rodríguez)

Translation: Carmel Drake

BNP Paribas: RE Inv’t in Europe Reached Record High of €259bn in 2017

2 April 2018 – Expansión

Madrid is placed in third position in the ranking behind Paris and London.

Real estate investment in Europe reached a record figure of €259 billion in 2017, which represents an increase of 11% with respect to the previous year, according to a report compiled by BNP Paribas Real Estate, which has attributed this growth to the improvement in the global economy.

Madrid (-14%) was placed in third position in the ranking of real estate investment in Europe behind Paris (-18%) and London (+26%).

Almost half of the investment volume in 2017 involved “mega-deals” worth more than €100 million a piece.

The research also reveals that offices continue to be the most sought-after asset for European investors, given that they account for 43% of the total investment figure.

Moreover, the logistics sector grew by 56% last year, boosted by major corporate agreements, according to the report.

On the other hand, yields continued their downward trend to reach historical lows by the end of the year. Prime or exclusive yields in the office market in Madrid amounted to 3.25%.

Original story: Expansión 

Translation: Carmel Drake

Axis: Spain’s Banks Have €31.7bn in Toxic Assets Up For Sale

15 March 2018 – Eje Prime

After a 2017 in which one of the key characteristics of the residential market was the interest from funds in going to banks for property, this year, the trend is set to increase. The investment funds are now being joined by Socimis, which want to take advantage of the rapid and generous divestments that the banks are undertaking of their real estate portfolios.

Pressure from the European Central Bank (ECB) for the financial entities to clean up their balance sheets has meant that they have been rushing, for the last year and a half, to sell almost all of their portfolios of assets and non-performing loans relating to the real estate sector. According to data from the consultancy firm Axis, the banks currently have €31.7 billion in toxic assets up for sale.

This large sum of portfolios up for sale is proving to be the subject of major battles between the main investment funds, the majority of which are international, and which in 2017 managed to close record operations in this sense. The sale by Santander of property inherited from Popular to Blackstone for €10 billion, and the agreement reached between BBVA and the fund Cerberus for €4 billion to transfer assets from the real estate firm Anida, fired the starting gun for a race that is going to reach its cruising speed this year, according to Cinco Días.

Spain is the third country in the Eurozone by volume of doubtful loans, with €136 billion and a default rate of 5.7%, a percentage that is above the European average of 5.1%. According to the Bank of Spain, non-performing loans held by the banks at the end of 2016 amounted to €190 billion.

The oligopoly of the servicers 

Axis details that the assets of the banks under the management of the servicers are no longer going to be a question of five, since some of the players may come out of the equation. In 2018, “there will be a greater concentration in the market, with the sale of some of the servicers”, according to the study.

Until now, 80% of the portfolios have been managed by the banks and funds, as demonstrated in the cases of Altamira, which is controlled by Banco Santander; Haya and Anida, companies that are both linked to Cerberus; Anticipa and Aliseda, which are both owned by Blackstone; and Servihabitat and Solvia, which are owned by CaixaBank and Banco Sabadell, respectively.

In addition to the aforementioned funds, Axis adds others with a presence in the Spanish market such as Lone Star, Oaktree, Deutsche Bank and Fortress, which will try to acquire one or more of the portfolios for sale.

Funds and Socimis are going to be searching to generate returns this year, above all, in the rental market, which with yields of 8% “is going to be the product with the most attractive investment prospects”, according to Axis.

Original story: Eje Prime

Translation: Carmel Drake

Rental Boom Triggers Investment in Madrid & Barcelona

27 January 2018 – Expansión

Markets are booming / The central parts of Spain’s two largest cities are the most sought-after by those investing in housing in search of returns, but rental prices are increasing more quickly in the districts on the outskirts of those cities, with rises of more than 10%. The experts forecast an accentuation of this trend, given that the supply of rental properties in the prime districts is starting to prove insufficient to cover all of the demand.

The real estate recovery is happening at three speeds. On the one hand, the large cities and most established areas along the coast are experiencing significant house price rises, a notable increase in sales, an increase in rental prices, a rise in non-residential investment and even a shortage of land for sale. On the other hand, medium-sized cities have left the lethargy behind and are now recovering, although with less energy than the large real estate centres. Finally, the less populated provinces are still recording ups and downs, although even there it is clear that the worst of the crisis is now over.

A large part of this improvement is due to the country’s underlying macroeconomic performance, but not all of it. The impact of private investors is playing a crucial role in the strengthening of the two large real estate centres, whose prime areas are the most sought-after by those looking to buy homes to put them up for rent, where they can obtain returns of more than 10%. Why? Because, in addition to the immediate increase in value that they are obtaining, a kind of rental boom is also happening in Madrid and Barcelona.

That said, “rental prices may be starting to peak in cities such as Barcelona and Madrid” says Beatriz Toribio, Head of Research at Fotocasa. “The market is normalising”, and so “although rental prices will continue to rise during 2018, they will do so at a lower rate than they did in 2017”, she adds.

The district of Chamberí exceeded the district of Salamanca in 2017 as the most expensive in the capital for renting a home. The average price of a rental home in Chamberí is €16.41/m2/month, followed by Salamanca (€16.07/m2/month), Tetuán (€14.94), Chamartín (€14.46) and Retiro (€14.35). At the other end of the spectrum, the district of Villaverde, with an average rental home cost of €8.91/m2/month was the most affordable. It was followed by Vicálvaro (€9.58), Moratalaz (€9.68), Villa de Vallecas (€9.90) and Usera (€10.15).

Almost all of the districts in the capital saw rental prices increase with respect to 12 months earlier. The district that rose by the most was Hortaleza, which increased by 13.1%, followed by Puente de Vallecas (12.9%), Ciudad Lineal (11%), Usera (9.4%), Retiro (9.1%) and Tetuán (9%) (….).

In Barcelona, the same thing is happening. The two districts that closed 2017 with decreases in rental prices are two classics in the rental market: Eixample (-1.4%) and Ciutat Vella (-1.2%). How come? “The rental boom started in the best locations and so when those areas reach very high prices, demand starts to withdraw from these areas and move to other more peripheral neighbourhoods”, says the real estate consultant José Luis Ruiz Bartolomé, Managing Partner at Chamberí AM. “The push from investors is also moving to other less central neighbourhoods, which are very well connected and cheap compared to the city centre”, he adds (…).

Specifically, the district of Ciutat Vella is the most expensive in all of Spain when it comes to renting a home. The average price there amounted to €17.16/m2/month in December 2017, despite the decrease seen YoY. It was followed by the second most expensive district, Sarrià-Sant Gervasi, whose average price amounted to €16.63/m2/month in December (…). Compared to 2016, prices rose in eight districts in the Catalan capital. The leader of that ranking was Sant Andreu, where prices rose by 12%, followed by Gràcia (9.5%), Les Corts (8.1%), Sants – Montjuïc (6.7%), Nou Barris (6.4%), Horta–Guinardó (4.8%), Sarrià-Sant Gervasi (3.9%) and Sant Martí (2.7%).

Gustavo Rossi, President of Alquiler Seguro, adds that “2017 will be remembered as the year in which the supply of rental housing became insufficient to meet demand”. The sector needs to be professionalised and the owners of empty properties need to realise that putting them on the market is a good option”, he says.

“Over the last decade, rental has established itself as the preferred option for young people and new families. In 2018, we are going to move closer than ever to the European model, where the rental segment has many followers”. (…).

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

Deloitte: Tertiary Real Estate Inv’t Amounts to €9.7bn in 2017

27 December 2017 – Expansión

An increase in property prices has led to a 22% reduction in the purchase of non-residential assets in 2017 with respect to 2016.

The boom that has marked the real estate investment sector in Spain since 2014 is starting to show signs of slowing. That is according to the most recent non-residential investment figures, which, with just a few days to go before year-end, are reflecting a decrease of 22% with respect to 2016.

According to a market study performed by Deloitte Real Estate, investors spent €9.7 billion this year on tertiary properties (offices, hotels, commercial and logistics assets) compared with €12.4 billion in 2016 and €11.8 billion in 2015.

“With just a few operations still left to close before 31 December, which will amount to between €0.5 billion and €0.6 billion, tertiary investment has fallen by 22%. This decrease in activity is a sign that we have crossed the equator of the bullish cycle and that we are possibly starting a period of greater stability”, explained Javier García-Mateo, Partner in Financial Advisory at Deloitte.

The 22% decrease is due to a weaker second half of the year in terms of the rate of investment (…). During the third quarter, investment fell from €6.6 billion in 2016 to €1.6 billion this year, says Deloitte in its report. During the fourth quarter, the difference was a decrease of 42% (€2.8 billion compared with €1.8 billion). The decrease is more pronounced in the property segments that tend to lead absolute investment, namely, offices and retail assets. In the case of the former, investors have spent €2.3 billion in 2017, less than half the amount recorded in 2016 (€4.9 billion) and 2015 (€5.3 billion) (…). “Offices tends to be the segment that traditionally leads investment, but this year it has decreased by 55%. This is not due to a lack of supply, but rather the gap between the expectations of sellers and the offers from buyers. Moreover, some operations have been abandoned, such as the sale of Hispania’s portfolio”, said García-Mateo.

In this way, unlike in previous years, where large operations were closed during the final quarter of the year, such as Torre Foster – sold for €490 million at the end of 2016-, Torre Espacio – sold in November 2015 for €550 million – and Torre Picasso – sold for €400 million in December 2011 – this year, the most significant operation has been the sale of 50% of Torre Caleido on Paseo de la Castellana, for around €150 million, closed during the first quarter of the year.

In the case of retail assets, investment in shopping centres fell by 29% to €2.7 billion, despite record operations such as the one involving Xanadú, whilst the purchase of shops fell by 36% to €421 million.

“After 4 years of increases in valuations and the consequent decrease in yields, investment in offices and retail property is significantly less attractive than in the hotel and logistics segments, where there are up to 3 points of differential per year”, say the sources at Deloitte. The large hotel operations this year have included the purchase of Edificio España by the Riu Group and the sale of HI Partners, along with its 14 establishments, by Banco Sabadell to Blackstone for €630.73 million.

Cataluña

The 22% decrease comes at a time that is being characterised by the independentist challenge in Cataluña, although the uncertainty being generated in that region does not seem to have had an impact on real estate investment, at least not yet, according to García-Mateo. “In Cataluña, the absorption of office space has fallen and sales in shopping centres have also decreased, by around 10% with respect to Q4 2016, but investment has not been hit, as evidenced by Meridia Capital’s recent purchase of the Barnasud shopping centre and Invesco’s acquisition of the Mango facilities in Palau de Plegamans (Barcelona)”, he added.

In this way, the experts justify that the decrease in investment is due to a change in the cycle, following four years of rapid growth (…).

Nevertheless, the €9.7 billion spent during 2017 represents the fourth-highest figure in the historical series (dating back 13 years).

It was only in the last two years, as well as in the record year for the sector (2007), when investment amounted to €12.6 billion, that investment in non-residential assets exceeded the €10 billion threshold, according to Deloitte.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Servihabitat: Rental Yields Now Exceed 10% in Madrid, Cataluña, Balearic & Canary Islands

18 December 2017 – Expansión

“The Spanish residential market has been showing clear signs of recovery in 2017 and all indications are that the rate of growth will be even higher in 2018. The number of house sales will rise by 16.9% this year, to exceed 472,000 operations, and by another 18.3% next year, which means that we will see the sale of almost 560,000 units”. In this way, Servihabitat summarises the trend in the residential sector, which is enjoying a sweet moment.

The key factors contributing to the boost in demand include: the growth of the number of solvent buyers; policies by financial institutions to grant more loans; the progress in terms of the construction of new homes; and the increase in investor interest – in the case of holiday homes, investors now account for 19% of all operations.

This last aspect is fundamental for understanding the boom in the most consolidated areas of Spain. According to data from Servihabitat, the average annual yield from buying a home to let is 10%: 5.5% from the gross rental yield and 4.5% from the appreciation in the property value over 12 months, which the real estate servicer calculates in its forecasts at the end of 2017.

This data tallies with the 9.8% calculated by the Bank of Spain. The difference is that Servihabitat breaks down the yield by region and province. The regions in which it is more profitable to acquire a home to let are: the Community of Madrid, (13.3% gross p.a.), Cataluña (13.1%), the Balearic Islands (11.4%) and the Canary Islands (10.8%).

They are the only four regions where yields exceed the national average, which gives us an idea of the importance that the two largest cities and residential investment along the coast play in the overall calculation for the Spanish market. It comes as no surprise that the most profitable provinces are: Barcelona (13.7%), Madrid (13.3%), Las Palmas (12.4%), the Balearic Islands (11.4%), Málaga (10.1%) and Santa Cruz de Tenerife (9.5%). In other words, the six largest real estate markets in Spain (together with Alicante), where demand from overseas buyers is boosting the sector and the cranes are back on the horizon. Overseas buyers now account for 17.4% of all purchases or one in six. That percentage rises to 47.6% in the case of Alicante, 40.8% in Santa Cruz de Tenerife, 33.7% in the Balearic Islands, 32.8% in Girona, 31.4% in Málaga and 22.6% in Las Palmas.

They are clearly the “hot” areas of the real estate sector, but they are not the only ones to be offering high returns. Other examples include: Salamanca (8.4%), Guadalajara (7.8%), Murcia (7.7%), Cantabria (7.6%), Valladolid (7.5%) and Lleida (7.5%), amongst others. This positive trend will become even more marked in 2018 (…).

In the Catalan capital, yields in the district of Sants-Montjuic are off the scale, with an average gross annual return of no less than 32.9% (5.3% from the rental yield and 27.6% from an appreciation in property prices). It is followed by Eixample (26.8%), Gràcia (25.9%), Sant Martí (25.6%), Horta-Guinardó (24.9%) and Nou Barris (21%). The centre (Ciutat Vella) yields 19%, and the exclusive district of Sarrià-Sant Gervasi 13.2%

In Madrid, yields in the Centre amount to almost 20% (19.7%), followed by Salamanca (19.2%) and Chamberí (18.8%) (…).

Despite this inflation in prices and yields, “there is no risk of a bubble in either city”, according to Cabanillas. “The problem is not speculative; the price rises are resulting from the pressure in terms of demand for the use of second homes and tourist accommodation. The risk is that gentrification will force young people out of city centres, but there is no risk of over-financing”, says the CEO of Servihabitat.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake