- Indicate 3 reasons to invest in Spain
There are several reasons why Spain should continue being an attractive destination for real estate investments. In this sense it is relevant to remark that construction activity is rejuvenating the real estate stock (commercial and residential) whilst public authorities in some cities like Madrid are helping in this transformation by approving ambitious projects and simplifying regulation.
On a more macro level and in the context of the discussions about debt mutualization, local bond yields remain low making Spanish real estate yields to become more attractive vs. fixed income and yields in other European countries. Additionally, Spain will be the second-largest beneficiary of the Recovery and Resilience Facility which should help to produce a broad-based recovery of the economic activity in the years to come.
- Where are the best real estate investment opportunities in Spain currently found?
In relation to investment strategies, we continue seeing potential in the development of brand-new logistics warehouses to benefit from the shift from physical stores to e-commerce. Within this strategy, we target both infill/urban locations serving the customer supply chain and large distribution facilities in key transport hubs.
On the residential sector, there is an opportunity to create a clear differentiating factor vs. existing offer in Built-to-rent projects of quality affordable housing in undersupplied cities like Madrid and Barcelona.
The office sector will also offer opportunities via refurbishment or redevelopments of assets in desirable inner-city locations benefiting from the shortage of tech-enabled ESG-compliant Grade A space.
Finally, sectors like hotels (which will recover sharply after the pandemic due to lack of substitute product), leisure and retail should be also monitored in order to exploit mis-pricing opportunities as a result of special situations.
Read More opinions of major real estate investors operating in Spain in last Iberian Property Edition