An ‘unparalleled’ influx of global capital drove Spain’s commercial real estate market to its best performing year in 2014 since the global crisis.
An ‘unparalleled’ influx of global capital drove Spain’s commercial real estate market to its best performing year in 2014 since the global crisis.
Around €9 bn was spent in Spain in 2014 as large numbers of institutional investors from Asia, the Middle East, Latin America, North America and Europe entered the fray, according to a report by US investment banking firm The Carlton Group.
The report said only the peak year of 2007 – when asset prices were much higher – saw more investment volume than 2014.
‘Spain has once again become a relevant destination for real estate investors and the positive trend is expected to continue over the next few years,” said Javier Beltran, managing director of Carlton Iberia.
The report said the increased number of international investors, the recovering Spanish economy and the renewed interest in Spanish banks’ lending capacity all contributed to the rejuvenation of the real estate market.
The most sought-after Spanish assets in 2014 were prime office buildings and shopping centres, followed by hotels, logistics and car parks.
Investors have also been buying up land development sites in good locations in Madrid, Barcelona and on the south coast, fuelling a construction boom that is expected to continue for several years.
Prices in the residential market are stabilising and have shown slight increases in some areas of the main cities, with price and activity both forecast to increase.
