The significant fall in commercial property investment volumes throughout Spain over the last two years is showing signs of stabilising, according to international real estate advisor Savills. This is expected to create a window of opportunity for equity rich investors as pricing of prime properties becomes more attractive, the company said.
The significant fall in commercial property investment volumes throughout Spain over the last two years is showing signs of stabilising, according to international real estate advisor Savills. This is expected to create a window of opportunity for equity rich investors as pricing of prime properties becomes more attractive, the company said.
Office investment transactions throughout the country fell by 70% and retail by 50% in the first half of 2009, compared with the same period in 2008, Savills' research shows. In addition, the European Commission has announced that Spain will be the only country in the eurozone which will continue to be in recession next year. However, other European countries such as France and Germany, along with Japan in the wider global market, have shown signs of growth and recovery over the last few months, which indicates positivity for Spain moving forward.
Rafael Merry del Val, head of Savills Spain, said the office and retail values in prime locations appear to have bottomed out. 'This is making pricing more attractive to investors looking to take advantage of the window of opportunity before values begin to increase again,' he said.
He added: 'This demand is very much focussed on prime property that offers strong covenants and a secure income. The secondary market, however remains stagnant.'
