Iberian real estate returns double the European average

Iberian real estate returns double the European average


The data are from the MSCI, which has just released the results of the IPD Property Index 2017 series, a benchmarking tool that analyzes the main real estate investment markets worldwide.

The Spanish market contributed the most to the 14.1% results registered by IPD®Iberia Annual Property Index's, with investment in commercial real estate monitored by the IPD® Spain Annual Property Index to refund a total return of 14.8% in 2017. Across the border, real estate investment activity generated returns of 11.6%, according to the IPD® Portugal Annual Property Index.


Spain leads with the highest return

MSCI data show that "in 2017, Spain refunded the highest returns from all the 25 monitored national markets, while Portugal ranks 7th in the ranking," said Luis Francisco, MSCI Iberia vice president. A performance that "is reflected in the appetite of investors, with both Iberian markets placing themselves as excellent alternatives for investors in recent years," he says.

This expert declared also: “In recent years, Spain has always been in the Top 3 markets analyzed by the MSCI, but this year it consolidated its position, confirming that the real estate market is indeed one of the sectors of the Spanish economy that seethes the most”.

It should be recalled that, according to the data presented, last year about 10% of the return refunded to investors in Spain corresponded to the capital appreciation component, with the return component of incomes standing at around 5%. In the Portuguese case, the capital appreciation was of 5.4% (better than the 4.9% in 2016), being exceeded by the contribution of 5.7% of the income component.

The IPD®Portugal Annual Property Index and the IPD®Spain Annual Property Index were presented publicly in Lisbon and Madrid on April 17 and 20, with the support of Iberian Property.

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