Commercial property investment in Spain increased by 12% to €2.5 bn in 2013 compared with the year-earlier period, according to a new research report by Savills.
Commercial property investment in Spain increased by 12% to €2.5 bn in 2013 compared with the year-earlier period, according to a new research report by Savills.
Interestingly, overseas buyers accounted for around 80% of deals in the country, representing a sharp increase on the 40% average recorded over the past few years.
Investors from the US, France, UK and Germany, who were frequently active prior to the economic downturn, have returned to the market, Savills noted, while a number of new players, most notably from Latin America, have also entered Spain in the recent past.
Around 52% of overseas investment, or just over €1 bn, originated from various European funds, followed by Latin American companies with 16% (just over €315 mln), mainly driven by the purchase of the Sabadell bank branch portfolio by Fibra Uno.
'Spain is back en vogue with the fear of investing here replaced by a fear of missing out on an opportunity to invest in what buyers now feel is a market with upside potential,' commented Luis Espadas, head of capital markets at Savills Spain.
He added: 'With the latest GDP data showing a 0.1% quarter-on-quarter increase after nine consecutive quarters of decreases, it is thought that the Spanish economy is now at a turning point and this is reflected in the real estate market by a renewed confidence from outside the country to invest.'
In terms of sectors, the retail market has returned to the top spot, accounting for 45% of investor volumes in 2013 with five of the 10 largest transaction coming from this sector. In addition, the Spanish hotel market saw 33% growth last year with a total transaction volume of almost €300 mln.