In the third quarter of the year, real estate investment has taken in 1.8 billion euros, showing a significant adjustment compared to 2022, which was a year of historical records. This is according to the report prepared by BNP Paribas Real Estate, which highlights that in relation to interest rates, the current difference is 400 basis points more than in the third quarter of 2022.
During 2023, the average investment per transaction was 32 million euros, compared to 50 million euros in 2022. This scenario has opened up opportunities for private wealth, which has led numerous transactions.
Borja Ortega, CEO of BNP Paribas Real Estate, said: "Interest rates are being a conditioning factor in terms of real estate investment. While it is true that the volume of investment in the third quarter has tightened considerably, it is expected that the stabilisation of interest rates, expected in the coming months, will lead to a rapprochement between the positions of sellers and buyers, which will boost investment".
In 2023, Spain continues to be a focus of attraction for investors, due to its reputation as a tourist destination. Of the €1.8 billion invested, the hotel sector has captured the largest investment with €512 million, representing 28% of quarterly investment. On an annual level, to date, investment amounts to €2.42 billion, surpassing the total figures for 2022.
One notable transaction was the sale of the Mandarin Oriental Barcelona hotel by Reig Capital, acquired by a Saudi investor for around €240 million, marking one of the largest deals in recent years. During the summer, Barcelona accounted for most of the transactions, with 66% of the total volume transacted.
The residential sector, with an investment of 456 million euros in the third quarter, was another major player, surpassing the number of transactions registered in 2022. The retail sector, on the other hand, registered 332 million euros in investment, although in the year-to-date it shows a decrease compared to 2022.
The office segment had an investment of EUR 238 million in the third quarter, while the logistics sector reached EUR 178 million. It is important to note that, to date, investment in logistics has been 40% lower compared to the same period in 2022.
Institutional funds continue to be a predominant investor typology, registering 14 deals with a total volume of more than €744 million this quarter. However, their market share has decreased from 52% in Q2 2023 to 41% in Q3 2023. On the other hand, Family Offices are capitalising on the current situation, increasing their presence, especially in sectors such as offices, hotels and retail.