“The market is doing well and it is expected that all business segments to improve their investment volume regarding 2016, and we can achieve a historical investment by the end of the year”, explains Borja Ortega, Director of Capital Markets of JLL.
Retail, the head of the investment
By segments, JLL’s forecast refers to the retail market as the one that higher volume of investment brings together in these nine months, by reaching €3,267 million, 28% more than the same period of 2016, and could end the year with €4,000 million, a historical fact due to the number and volume of transactions closed or in the process of being closed. In the Q3 it shall be highlighted operations such as the sale of Mercado de San Miguel for €70 million, of Mercado de Fuencarral for €50 million or Gran Vía 18 for €44 million.
They were followed by the investment volumes in offices and hotels, which closed the quarter with a total investment of €1,700 and €1,900 million respectively. In the case of offices, these €1,700 million are divided between the ca. 1,000 million invested in Madrid and the more than 700 million in Barcelona. With regard to Madrid, the majority of transactions corresponds to core and core + assets, and the average price of the transactions stands at €41 million. Regarding the hotel market, the total investment over these nine months was of €1,900 million, 85% of all volume traded in 2016. Stand out operations such as the transaction of Portobello Capital, which acquired a hotel resort portfolio for 40 million, or the sale of Vincci Selección Posada del Patio, in Malaga, to Internos Global Investors, in an operation advised by JLL.
In the case of residential investment, by the end of Q3 it stands above the €1,180 million; in other words, 118% above in the same period of 2016, when it added €543 million, and above all the investment of the year 2016, which was of €802 million.
Finally, the logistic sector has a total investment of €578 million and is expected to end the year with 1,000 million, 20% more than the volume of the entire 2016, due to the number of operations ongoing or in the process of being closed. As explains JLL, “the main trend of the year 2017 is the lack of product and sales opportunities, which causes that industrial land go back to being the protagonist and the investors enter the sector not just with the purchase of projects, but also buying land directly, as long as it is well located”.