«The market is experiencing a great time, and it’s possible that all business segments would improve its investment volume regarding 2016, leaving a real estate investment at the end of 2017 which could be between 10% and 15% higher than last year”, explains Borja Ortega, Director at Capital Markets JLL.
The projections of JLL mark the retail market as the one which aggregates the highest investment volume in the Q1 of the year, reaching €2.400M, 188% more than in the same period last year. It should be specified the influence that the sale of Xanadú shopping center had in the market, as well as the proportional part of the sale of Edificio España - 51% of the total sale price relates to retail and the remaining 49% to hotel.
From behind stand the investment volumes in offices and Hotels, both with an estimate to close with an investment around 1.200M. As for offices, this figure would represent an increase up to 55% facing the €775M of the first semester in 2016. These would distribute among the 510M in Barcelona and the almost 700 in Madrid. In Barcelona is remarkable the fact that it's almost reaching the investment level of all year of 2016 (512M).
Regarding the hotel market, the investment volume in the Q1 of the year will be around €1.200M, which means an increase of 69% regarding the 711M of the same period last year. A number where foreign investors widens their influence, setting their goals into beach hotels, as opposed to a few years ago when the efforts were focused in Madrid and Barcelona.
As for residential investment, this is projected to be by the end of the semester above €780M, meaning 136% above the Q1 of 2016 when added 330M. In this context, as Ortega explains, “the residential sector is still on a transformation process. Upon landing of foreign investors attracted by the profitability and path presented by the sector, there's now a consolidation and training process of major corporations, from major developers to major property-owners”.
Finally, the logistics sector would be the only business segment where the investment would close the first semester of the year with a slight YoY decline. In particular, the volume of the first six months of 2017 will be ca. €400M, facing 453M from 2016 of the same period. However, JLL estimates that the sector will close the year with positive figures, and predicts an investment for 2017 superior to the €1.000M, above the €819M of investment in 2016.