Investment in real estate assets rose to 11.630 million euro in Spain

Investment in real estate assets rose to 11.630 million euro in Spain


The anual cumulative investment volume reached 11.630 million euro, which represents an 8% increase over 2017. If we add to this cumulative investment volume the corporate operations connected to real estate, the volume comes close to 19.000 million euro. This consultant estimates that 2019 will maintain the Spanish real estate investment market’s good moment.

The market’s good moment, with occupation levels at a high and the stable or growing rents in the most consolidated markets, added to the capital surplus and the lack of alternatives offered by other financial products promoted a «frenetic» activity in the investment market.


Retail, the year’s protagonist

Retail has been the year’s great protagonist. The volume invested in commercial assets during 2018 was around 4.280 million euro, 23% more than in 2017.

Druing the fourth quarter, investment reached 1.260 million euro, giving this sector a quarterly market share of 35%. The largest operation in the last quarter of the year was the purchase of a three shopping centre–Max Center, Gran Casa and Valle Real– portfolio by Sonae Sierra and Perter Varbacka for a total of 485 million euro.


The lack of product conditions the office market

The volume of investment in the office market during the fourth quarter reached 986 million euro and the annual aggregate reached 2.228 million euro. This represents a slight annual drop of 4%. The lack of product to sell has led to far fewer operations in 2018 when compared to 2017. The office market prime yield remained at 3.25% in Madrid and 3.5% in Barcelona.


Logistic real estate breaks records thanks to electronic commerce

The logistic market maintains the investors’ interest. The increase in electronic commerce, demand’s and the economy’s good period boosted investment in this type of assets. The volume of investment registered in the fourth quarter of the year was 400 million euro, while the year’s aggregate investment set a new investment record at 1.300 million euro, which represents a 30% increase over 2017. The lack of product added to the high investment pressure caused a considerable yields’ adjustment, placing the prime yield for the logistic market at 5.3% in the fourth quarter of 2018.


Funds represent 61% of volume of transactions

Investment funds kept being the market’s leaders, by representing 61% of the total volume of transactions in 2018. The REITs were very active in the investment market, both as buyers or sellers as well as in the main terrain transactions to develop new products.  Finally the  presence of the “family office” (private investors) with acquisitions generally below 50 million euro should also be highlighted.

Alternative investments remained targets for investors, particularly students’ residencies, clinics and senior residencies. The added volume for this type of assets reached 600 million euro in 2018.

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