The Spanish real estate sector has reached an investment of 4,300 million euros in the first quarter of the year, increasing by 155% compared to the same period of the previous year, according to data from the consulting firm CBRE. This is the second best investment figure in the real estate sector for the first quarter of the year, only behind the data recorded in 2018.
By region, Madrid and Barcelona led investments in the first quarter of the year, representing 52% of the total volume, a figure six percentage points lower than a year ago.
"The slight reduction in investment in these two cities is due to certain large-scale operations that have been carried out in other Spanish cities, which have contributed to this decline," they explained from CBRE.
"Investment prospects are favourable, but they are not without risk due to high geopolitical and economic uncertainty and high inflation," said Lola Martínez Brioso, director of research for CBRE in Spain. "However, investor appetite remains latent and is not affecting the course of ongoing operations," she added.
In Europe, real estate investment reached €78 billion in the first quarter of 2022, an increase of 29% compared to the same period in 2021. This figure is "the second strongest start to the year history", only behind the first quarter of 2020, when 90,000 million euros were invested.
By region, the best figures were given in southern Europe. Specifically, in countries such as Spain, investment grew by 123%, above the levels of the first quarter of 2020.
Living consolidates and hotel recovers
By sectors, the living segment "consolidates its position", with an investment of more than 1,100 million euros, making it the sector that has attracted the most capital. Within this segment, Build to Rent (BTR) and Private Rented Sector (PRS) operations exceeded 858 million euros.
The hotel sector was in second position, with an investment of 995 million euros, which represents a "significant" increase in purchases compared to the first quarter of the previous year, when an investment of 279 million euros was recorded.
The logistics sector ranked third, with more than 578 million euros, followed by the office and retail segments, with more than 578 million euros and 407 million, respectively.
"Yields remain unchanged for the moment in all sectors, but we must not lose sight of the increase in the cost of debt that is taking place in the capital markets", Martínez Brioso highlighted.
Boost of real estate investment compared to 2021
Spain has registered an increase of 123% compared to the same period last year, exceeding the levels of the first quarter of 2020. According to CBRE, the Logistics market has registered the strongest first quarter in its history in 2022, with investment volumes which have increased by 39% compared to the first quarter of 2021 and 52% compared to the first quarter of 2020. This sector has proven to be particularly strong in Spain, which has increased by 402% compared to the levels of the first quarter of 2021.
Investment in the Office market has also been stronger than in the last two years, with an increase of 78% compared to the first quarter of 2021 and 5% compared to the first quarter of 2020. There have been continued signs of recovery in the Retail and Hotels sectors, with an increase of 63% and 3% respectively, in the first quarter of 2021. Spain has had a record start to the year in Hotels with an investment that has increased by 283% compared to last year . The Residential and Health sectors are the only ones that have decreased in the first quarter of this year compared to the last two years (-21% compared to the first quarter of 2021 and -14% compared to the first quarter of 2020).