Sandra Daza was talking during her speech at the Spanish Conference, held within the MIPIM 2018, in which has analyzed the trends that are emerging in the real estate sector.
The data shows that the majority of investors choose core assets of high quality and stable returns. The traditional assets that are located in the prime areas of the main cities are running out, so they have inaccessible prices for average effort rates. However, as Sandra Daza said during her statement, "there are other equally viable opportunities in our country, whether in secondary markets or in other segments less explored."
In the case of retail, in the High-Street sub-sector, while in Madrid and Barcelona the returns are below 3.25%, in secondary markets, such as Valencia, Seville and Malaga, can be obtained returns of around 4%. However, the investor appetite has focused on the shopping centers that have combined more than half of the investment, because their profits are more than one point above the High-Street. Despite the strong outbreak of e-commerce, the investment volume of the sector has reached €4,000 million, 30% more than in the previous year.
It also happens in the office sector since, while in Madrid and Barcelona the returns do not exceed 5%, in the secondary markets they are closer to 6%. In the absence of attractive workspaces, a clear opportunity for the investor is the renewal of obsolete buildings.
Alternative assets, new investment routes
According to the managing director of Gesvalt: "Given the scarcity of the most common properties, the investors should not lose sight of new investment paths in other types of alternative assets that, even in sectors of low volatility, may offer very attractive returns, if is carried out an expert and specialized management ".
Within the alternative assets with a greater potential, Sandra Daza has pointed the student residences, as a sector with little competition, a turnover of €455 million and that has increased its investment volume of more than 1,000% This is due to the fact that the existing offer does not cover the growing demand and, therefore, investors obtain returns that vary between 6 and 6.5% on average.