Top leaders in the Spanish real estate sector gathered this morning at the VII Iberian Reit & Listed Conference, held in Madrid. Organised by Iberian Property in collaboration with EPRA, the event brought close to 300 business leaders, investors and economic experts to discuss the trends, challenges and opportunities of the listed property market in a challenging economic context.
The day began with a welcome address by Roger Cooke, conference chairman, senior advisor to Iberinmo Group; and Dominique Moerenhout, CEO of EPRA, who noted in his speech that over the past year, cautious optimism has been the dominant tone in the Spanish listed real estate sector, and remains so today. While the industry has faced challenges, from regulatory pressures to evolving market dynamics, including takeover bids, adaptation continues. The macro landscape continues to shape the sector, but geopolitical uncertainty is now the biggest obstacle. The strategic shift in the US adds another layer of complexity: how will it affect global markets? 'One thing is for sure, EPRA remains committed to attracting more capital and diversifying the investor base, opening up new opportunities for growth’. Dominique also shared that ‘to remain competitive, companies need to grow, and in that sense, IPOs could be the key to unlocking the next phase of expansion’.
The impact of REITS & SOCIMIs in Europe
In charge of providing insights on the role of European REITS, Hans Op’t Veld, Research Fellow at the Amsterdam School of Real Estate, explained how REITs are more than just investment vehicles—they level the playing field, offering diversification, liquidity, and professional management while ensuring transparency. 'They help lower the cost of capital, stimulate real estate supply, and improve market liquidity, even during crises. In markets with distressed assets, like Spain and Portugal, REITs have played a crucial role in transferring ownership and stabilizing the sector', Hans argued.
As a final statement, he stressed that 'amid today’s challenges, best-in-class REIT structures are more vital than ever'. With permanent capital and a proven track record of supporting policy goals, policymakers should focus on fine-tuning regimes to maximize their impact.
The (R)evolution of the Spanish listed real estate market and SOCIMIs
One of the most anticipated moments of the day was the round table discussion entitled ‘The Spanish REIT's & Listed Real Estate Market (R)evolution’, moderated by Ignacio Martínez-Avial, CEO of BNP Paribas Real Estate Spain. It was attended by representatives of the main SOCIMIs, Ismael Clemente, CEO of Merlin Properties; David Martínez, CEO of Aedas Homes; Miguel Pereda, Executive Chairman of Grupo Lar, and Carlos Krohmer, Director of Corporate Development at Colonial.
The discussion revolved around the evolution of the Spanish market, investment opportunities and the challenges faced by SOCIMIs in a changing regulatory and economic environment.
Ismael Clemente, CEO of Merlin Properties, noted: ‘Artificial intelligence in the design of supply chains is contributing to increased efficiency, so eventually some cross-docking and warehousing stocks could become obsolete or exceed supply, a good sign of progress’. As possible challenges to Merlin's data centre expansion plan, Ismael Clemente expressed some considerations to take into account: ‘First, the high energy consumption, which is not a real problem, as Spain has not only a surplus capacity but also one of the cheapest costs in Europe. Secondly, job creation: although data centers are associated with a lot of technological power, there is still a very focused workforce demand, especially for data centres under development’.
Miguel Pereda, Executive Chairman of Grupo Lar, stressed that ‘Iberia's retail stock is good enough, we don't need to develop more assets, so it's one less thing to worry about. Thus, we can focus on the quality of the assets (which doesn't necessarily mean luxury), and on the quality of the management. The yield spread versus cost of debt is also adding to the sales metrics to continue to define retail as a resilient asset class, and a number of recent transactions have shown that investors are confident about the sector'.
For its part, David Martinez, CEO of AEDAS Homes, outlined three key levers to increase housing supply and address the supply shortage: the first is to produce more land, faster; the second is to produce more housing, faster; and the third is to attract more capital. And he put on the table initiatives for each lever: ‘To produce more land it is necessary to approve a Land Law that protects urban development processes, modify the regulations to make urban development uses more flexible, simplify the administrative processing of licences, even implement AI agents and encourage concessions on idle public land. To produce more housing, it is necessary to facilitate the incorporation of qualified foreign labour into the construction industry in an orderly manner and to promote and support initiatives to industrialise or prefabricate construction elements. And to attract more investment, a clear and stable legal and fiscal framework for investment must be put in place’. ‘Increasing supply may seem like a simple solution, but it is the only way to solve a current problem that will worsen in the coming years,’ he warned.
At the same table, Carlos Krohmer, Director of Corporate Development at Colonial, underlined: ‘real estate is not just about location; you need very specific knowledge beyond square metres. Operational knowledge is a new foundation for all sectors, and the attraction qualities of cities lie in the combination of asset classes with good quality services’. Krohmer also recalled that institutional players have a strong need to deploy capital, and this capital will seek liquid and safe markets.
Adding value to bricks and mortar: how to optimise a real estate portfolio
The transformation of the real estate sector is in full swing, and experts agree that it is essential to reimagine the use of traditional real estate assets to adapt them to the new demands of the market.
The second round table of the morning, moderated by António Gil Machado, partner at Iberinmo Group, brought together Samuel Duah, director of economics at BNP Paribas Real Estate; Ana Escalante, stock market analyst at Morgan Stanley; and Albert Olasolo Artero, portfolio manager at Zurich Insurance Company.
In her intervention, Ana Escalante, Equity Research Analyst at Morgan Stanley, pointed out that while investors have been taking a defensive approach, there is now space for a more aggressive stance as macro conditions improve. However, the NAV discount remains a key challenge, stemming from the difference between direct and indirect real estate returns—at the end of the day, equity investors demand higher profits. She also stressed the risk this divergence poses for non-specialist investors. While cash flow should, in theory, be a solid metric for valuing real estate stocks, history shows it has not always been a reliable predictor in stock picking. Leverage is another critical factor, with many companies still carrying high debt levels. This means that a significant portion of returns will be allocated to repaying debt rather than fueling growth.
Albert Olasolo Artero, Portfolio Manager at Zurich Insurance Company, emphasized that 'last year’s market conditions presented investment opportunities, and the company has acted on them. While defaults in the sector are not a major concern, investors must choose between short-term strategies focused on company valuations or long-term approaches based on the future value of real estate assets. Many listed companies already hold top-tier properties, but to attract more capital, shareholder remuneration policies need to evolve'.
With a large expertise in direct real estate investment, Samuel Duah, Chief of Economics at BNP Paribas Real Estate, highlighted that 'stable income returns, supported by capital growth, will be key to attracting core capital back into the market. However, the sector is not simply waiting—new players have already stepped in to fill the gap. Liquidity is available, but the real question is at what price'.
Data centres a new era for the real estate industry
In a world where digitalisation and artificial intelligence (AI) are redefining the business landscape, the final roundtable at the VII Iberian Reit & Listed Conference raised the fundamental question of deploying next-generation data centres to meet clients' needs for location diversity and connectivity, scalability and sustainability. The panel, moderated by Richard Betts, Director of Real Asset Media, featured Jacques Perdrix, Head of Europe, Portfolio Manager Public RE Securities at HEITMAN; Carlos Portocarrero, Partner at Clifford Chance; and Fernando Abril-Martorell, Partner - Equity Research at Alantra Equities.
The speakers highlighted how Iberia is becoming a key destination for data centre investment. With FLAP-D markets facing record low vacancy rates, energy and land constraints, and increasing regulations, Spain and Portugal emerge as attractive alternatives.
Iberia's leadership in renewable energy and low electricity costs make it a competitive option for data centre expansion. The growing influence of hyperscalers and increasing local demand are driving the data centre boom in Spain, positioning the region as a strategic hub for future growth.
tuTECHÔ first social SOCIMI in Spain
During the event, Blanca Hernández, Founder & CEO of Magallanes Value, presented the first Spanish social SOCIMI, an impact investment vehicle that seeks to end homelessness in Spain. In a country where there are 40,000 homeless people and 3.4 million empty homes, this initiative offers sustainable solutions through a model that applies 30% discounts on rent and, in the event of non-payment, is backed by the TECHÔ Foundation. It currently operates in 12 Spanish provinces, consolidating its position as an innovative proposal in the real estate sector with a social focus.