Almost 80% of the 1,117 million euros of transactions this year alone corresponds to the traditional total product, with 892 million, 30% more than in the same period as last year, and where Xanadú shopping centre, sold for more than 500 million, boosted the figures.
The pleasing start to the year has maintained continuity compared to 2016, which ended at a little more than 2,900 million, which involved almost 36% of the total tertiary sector, and a total way above the historical 27% average.
Salvador González, Director of retail investment at Savills explained, “2016 did not exceed 3,000 million due to the delay in some operations which carried on to complete in 2017, but it is a segment which continues very much in the spotlight for investors in the Spanish market. The return of financing to the market provides an important lifeline not only for the investors, but also for developers.”
For 2017, Savills estimates a level similar or slightly more than last year. In terms of traditional product about 1,500 million euros have been identified as a possible total for transactions in months to come and which confirm the prediction of surpassing the 2,100 million euros registered in 2016.
As for yields, the evolution of the retail segment in the past few financial years perfectly reflects the imbalance between supply and demand, with the tendency to compress yields, more evident in product of medium size and commercial parks, which need a longer adjustment period than shopping centres, at present standing at 4.25% for prime product.