Back to school 2017. The real estate sector opens the year with one of the most significant operations ever recorded in the student dormitory segment. French insurance company Axa and real estate firms CBRE and Greystar are buying Resa, the largest group in this space in Spain and most of Europe. The action triggers a chart based on the company’s records. Savills real estate agentincreased from a total investment of 27 million euros the previous year to over 860 million euros that year. Five years later, the brand has not been beaten. Until today. So far this year and in this case according to information from the company itself CBRE, this same investment volume already exceeds 1300 million Euros. And yet it is expected to grow a little more by December.
As at that time, the record was broken thanks to another operation related to Resa: ax, CBRE Y gray star they have now sold Dutch fund PGGM around 850 million euro The thing is that even without this deal, the investment figures for mid-year (around 460 million euros) are 23% higher than in the same period in 2021. Especially in Barcelona, the volume by June exceeds 44%. the entire previous year.
“We have seen investment volumes fluctuate between 300 and 500 million euros for several years, this year we expect the Resa operation alone to be over 850 and also around 600 million euros,” he said. Head of ‘student housing’ at CBRE, Charles of the towerthis also highlights the sale of two centers in Barcelona among the symbolic operations. Student Hotel for patricia background More than 130 million Euros or auction University of Barcelona Sant Jordi College and now owned fund manager Plenium Partners approximately 25 million euros. “We know there are two or three platforms that will be sold in the next six or at most 12 months,” he warns.
In short, this expert confirms, the industry is booming. So much so that it has already started to attract investors who do not specialize in this field and find security that is not guaranteed by others in this field. “This industry is very resilient, investment volume, exit of assets to institutional investors and those operating margins also super high repetition too high and in many cases barely suffered from covid”, justifies the director. For example, two residences Patrizia purchased that are currently in operation and have a “very high” occupancy rate, or Commerzbankbuying another center zone 22@ last year and will open the residence with a two-year lease that is already closed.
“The Spanish market is adapting to international standards and improving the quality of the housing stock, which allows it to be stronger in Europe,” they say in turn from Savills. ” arrival of studentsadded investor entryit attracts more investment and causes young people from all over the world to choose Spain to carry out their studies”, concludes the consultant.
According to their data, between this year and the next, 36 new dormitory projects will be launched in Spain, adding a total of 14,600 new places to the country. The offer closed over 100,000 beds in 2021 and was distributed among six-tenths. Barcelona, Madrid, Valencia Y Seville.
The sale of Resa for approximately 850 million and the general interest of funds in the sector mobilized a segment that raised 23% more money in the middle of the year than the previous year and at this point broke the 2017 record.
supply gap
As a result, according to information from CBRE, there were more than half a million students in need of accommodation in Spain. Most citizens, an increasing rate this year. ” rate of providing beds for permanent students 6.5% in Spain is far from the European average of 19%: this indicator is supply gap there is a counter increased demand and that means a lot of operations closed in the first half”, analyzes in a statement Director of ‘Research’ at CBRE in Spain, Miriam Goicoechea.
“The mismatch between supply and demand, coupled with a lack of enterprise-quality operating product, continues to drive the market. incentive activity sector“, accepts Life Director of real estate services company JLL, John Manuel Brown, in an industry-related study late last year. “New investors are entering the market through ‘joint ventures’ with local developers to develop projects already ‘in the pipeline’ and other new projects,” the same executive concludes, anticipating that the development of new locations will mean a change in an industry. traditionally managed by Resa and a few other companies.
Data collections show 1,053 centers in Spain at the end of 2020; eight out of ten were university dormitories and the rest, senior colleges. The same report states that this figure will reach a minimum of 1,113 centers by 2023, with projects still under development. In this sense, Barcelona will be the city that will receive the most beds (approximately) and will benefit the most. 5,000) and reduced the huge gap with Madrid, which had crossed 8,000 places in the academic year 2021-2021, by nearly 2,000.
investment opportunity
Whatever the purpose, what is clear to CBRE is that investment will not stop growing into what they describe as ‘alive’. dormitories‘to live together‘, residences for the elderly and housing in general. “It’s the biggest investment opportunity for the next ten years,” says De la Torre.
Currently, by the middle of the year, the residential sector overall is the second sector to capture the most real estate investment after the commercial sector: €2,450 million (71% more than in the same period in 2021), over a third of which, around 900 million, is in these student centers and He went to ‘live together’, at the same time dangerously approaching two very fashionable and increasingly dynamic fields. Logistics and Offices.
growth growth
There is another variant of this whole scenario in the student zone: ‘to live together‘, buildings or houses in which rooms are rented to persons of a similar profile with spaces for joint work, study, exercise or leisure.
“A market reminiscent of the dormitories of ten years ago: few operators still to be consolidated, multi-segment and large platforms, so many opportunities, but also with uncertainty,” he summarizes. Administrator of the ‘partnership’ domain in CBRE, Xavier Caro. “Once they start being active and are shown to work, major platforms will likely start being built that will be traded in the future,” this expert predicts. It is a great application model in cities such as BrusselsWith great mobility among its population of professionals and students.
In fact, although the promise is for the future, the segment moved ten times more money in Spain during this first period than a year ago: more than 400 million euros were transferred once again to a single operation in Madrid. this skewed the statistics. “’Living together’ comes out as something very collaborative, especially for digital nomads – explains Caro. Starting this way, the preferred locations were: Canary Islands anyone Javea and it was later when it finally reached the bigger cities where it was more difficult to find. professional rental offerwhere most of GDP and where else Young professionals They are looking for a medium term solution.
Source: Informacion
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