Consultants for the first part of the year will be marked by calm analysis market before investors make big buying decisions (a phenomenon known in the real estate industry as wait and see – wait and see). Alejandro Campoy, managing director of Savills Spain, explains at the beginning of the year that investors’ skepticism from the last months of 2022 continues.
“In investment, we will still notice the impact of uncertainty in the first monthsHowever, from 2022 we will see the postponed operations and some new operations that will continue to take place, normally non-market operations (transactions where the investor is looking for opportunities outside of market-entry offers) to be closed. . We hope to return to normal with new operations to be launched in the second half of the year. We will continue to see some price adjustments, especially in some sectors. It should be noted that the owner and seller typology is much more institutional and professional, so the reorganization will proceed faster than we saw in the previous cycle. However, Spain’s position in the European market is very good given the structural need for a new product in key segments where the market has recently started to create such a presence, and macro expectations compared to other markets. Rents remain stable and increase slightly in some markets, such as the main offices in Madrid or the logistics sector.”
Jesús Silva, managing director of Cushman & Wakefield in Spain, It highlights the volatility of the real estate market over the past year and believes investor confidence will recover as 2023 progresses.. “After the pandemic was over, we were all very excited about the development of the market. However, war broke out in Ukraine and uncontrolled inflation caused interest rates to rise. This caused a slowdown in real estate activity and the market recovered as of 2019. Due to interest increases in September. Finally, real estate in the coming months we will adjust their prices. wait and see“Silva says.
The Cushman executive believes the second half of the year will be better than the first. “We do not believe the investment level of 2022 will be reached, but it will improve as the months go by due to price adjustment. This adjustment will attract more investors’ attention‘, insists Jesús Silva.
variants
The CEO of Savills emphasizes: assets associated with the lease (eg rental buildings – segment build to rent– or residences) will continue to attract great interest from investors.
Alejandro Campoy thinks: “Anything related to rental housing, student housing, co-living (en suite rooms and shared services) or centers for the elderly (communal living sector) and logistics will remain in focus. Office segment regained interest (in demand and investment) and flexible (flexible workspaces) will continue to prove itself as a useful alternative for users and owners alike.
The analysis of economic and sociodemographic indicators also points to other emerging segments in 2023, such as the elderly (property for the elderly), healthcare (healthcare-related assets), education (schools, vocational training centers or university buildings). , student housing (student accommodation) or data centers (data centers). The lack of rental real estate and housing for students or seniors continues to attract large investment in this segment, but it is also the sector most affected by the rate hike because it has the tightest returns.”