Spanish transactions to average EUR 30m in 2009

Spanish investment transactions will average EUR 30 mln in 2009 as international investors join local competitors in search of bargains, property consultant Savills predicts in its latest office report.

The report states that yield adjustments have taken place and whilst buyers are cautious of the country' s fragile economic situation, Spanish investors are accepting that yield adjustments are realigning prices to more realistic levels. In central Madrid yields have moved out 175 basis points since the first half of 2007, and 200 basis points outside the M-30 in the same time period.

Rafael Merry del Val, head of Savills Spain, said: 'The recovery of activity in the market will depend on the banks being confident enough to provide access to credit. Price adjustments will continue to push up yields, which will attract foreign funds that previously pulled out of the Spanish market back into the country. Investors will be looking for properties with strong tenants.'