This is the view from Carlos Portocarrero, Partner and Head of Real Estate at Clifford Chance, who further argues that «the country needs investment and capital. But in order for that to occur, we certainly need tax incentives. We already saw this happen in the past, when the Government approved the REIT regime, which was a great success. What we need now is something similar», he explained in an interview to Iberian Property Investment Talks.
Carlos Portocarrero also encouraged the Spanish Government to be «consistent and have a holistic and comprehensive approach of the real estate market». According to him, when it comes to the law «certainty is a critical issue. Investors need to know the scenario and have a full picture of what is going on so they can assess it», he explained, remarking that «the Government has been implementing certain measures which are neither consistent nor clear», as is the case of the rents’ suspension and reduction measures. «Uncertainty is extremely prejudicial. I would ask the Government to be 100% clear», assumed the Partner and Head of Real Estate at Clifford Chance.
It is certain that the Government has been implementing measures which aim to protect employment and small business, but, according to Carlos Portocarrero, this is also the moment to issue «owners some incentives. We really need something to be done, because this sector is extremely critical for the economy. And, as thus, we need real estate investment», he highlighted. One of the ways to create this type of support would be to «question the market’s big players, such as REITs, operators and associations on their needs», he argues.
The arrival of these incentives combined with lower interest rates and incentives for long-term renting might be good indicators for the Spanish real estate market, which is already waiting for investors who should also bet on the Stock Exchange with a particular focus on listed real estate companies.
Tourism should be restructured
This should also be the moment to advance with the «restructuring of tourism and the hotel segment in Spain», which may change its genesis, betting on quality rather than on more attractive prices.
This change should be boosted by the density reduction in the context of this new normal. «I think the sector is ready to be restructured provided there are enough incentives», he explained, assuming that this is a «critical issue for Spain».