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70 // iberian.propery / 2017
dossier// ISSUE: TOP IBERIAN Investors
It is nowa proven fact that international investors
consider the Iberian Peninsula a stable market
for their investments. Their needs, objectives and
yield targets determinewhether theyopt for either
Spain or Portugal, although they are fully aware
that both countries are growing economically
and, consequently, offer more robust real estate
sectors. Early figures for this year reflect this, with
both markets attracting strong interest. Current
numbers suggest Spainwill close 2017with com-
mercialproperty investment volumes on a parwith
recent years, which are close to pre-crisis levels.
Non-residentialvolumes in Portugal are expected
to close 2017 at around 2 billion euros, making it
one of the country’s best years.
Investor strategies generally involve entering
the Spanish market first, given that it is a larger
market with a greater supply of assets, before
expanding to Portugal. It is worth bearing in mind
that the two countries’ strengths lie in different
market segments. Offices and logistics assets
are more compelling investments in Spain, for
example, whereas retail assets carry greater
weight in Portugal.
However, work is required in both countries to
resolve a shared problem: the lack of available
supply to meet existing demand. The solution,
without a doubt, is to emphasise the need to de-
velop new product and increase efforts to ren-
ovate existing assets as a way to boost supply.
Borja Ortega
JLL Spain
Head of Capital
Markets
Fernando Ferreira
JLL Portugal
Head of Capital
Markets
Investors are setting
their sights on
Spain and Portugal
For those who operate in this business on an
international level, our country offers real estate
investors stability in the midst of an atmosphere
of uncertainty, brought about by Brexit in the
United Kingdom and political change in both
Europe and the United States.
Our market is currently growing at a rate that
had not been seen in the past decade. Accord-
ing to data by members of the Asociación de
Consultoras Inmobiliarias (ACI), during the first
quarter of this year, real estate investment in
Spain surpassed 3.4 billion euros, 50% more
than the volume recorded in the same period in
2016. These numbers are a clear indication of the
importance Spain holds for real estate investors,
who seek quality assets that are adapted to their
current needs and meet their demands, such
as a prime location. On the other hand, these
requirements represent unique opportunities
for the development and regeneration of real
estate products, transforming them into efficient,
tailor-made solutions.
Given this context in the property market, in-
vestors are developing strategies that include
expanding their assets, adding to properties
located in the busiest areas of the major cities
others in adjoining streets. Furthermore, inves-
tors are also studying new investment oppor-
tunities in secondary cities, such as Malaga for
residential and hotels, Bilbao for logistics, high
street retail and shopping centres, as well as
Valencia, Sevilla and Alicante. Ultimately, these
tactics are a clear indication of the full potential
Spain has to offer all real estate investors.
Ricardo
Martí-Fluxá
Asociación de
Consultoras
Inmobiliarias
Chairman