Better prospects. Real estate investment in Spain in 2024 will increase by 5% to 10%until 2023 12.5 billion euros. According to the ‘Real Estate Market Outlook 2024’ report published by the consultancy firm CBRE, this figure is compatible with the average volume recorded by the sector in the last five years.
“We are faced with a new stage and a new scenario, with new rules of the game, an interest rate environment different from recent years. According to our forecasts, real estate investment will increase its figures this year, especially towards the end of the year“said Paloma Relinque, Spanish Capital Markets Director of the consultancy firm, during the presentation of the research.
In 2023, Trade volume in Spain dropped by 35%A figure of over 17.6 billion euros was achieved compared to 2022, which was a record year. Total last year Transacted real estate worth 11.4 billion euros. While our country’s figures are well above the European Union averages, the decrease was around 48 percent. “Spain recorded a good fourth quarter with very good dynamism and we hope this will continue in 2024,” said Míriam Goicoechea, Research Director for Spain and Portugal.
According to CBRE, the sectors where corrections in asset values will continue are as follows: Commercial facilities, office buildings and logistics warehouses in very central locations. The returns received by investors in this type of real estate were very limited, and as interest rates increased, the returns also increased, causing valuations to fall. Specifically, offices will increase their profitability the most, between 0.3% and 0.4%; Compared to logistics and local, which will increase by 0.2% to 0.3% main StreetIt will correct between 0.1% and 0.2%.
What types of assets will receive more investment?
in 2023 The most invested asset class was hotelsfollowing the closure of numerous ‘macro operations’ carried out by significant foreign sovereign funds. The trend towards such complexes throughout this year will continue to be positive. “A record number of foreign visitors came to Spain and this was reflected in fare prices (ADR and RevPAR),” commented Míriam Goicoechea. Most investments made in the last 12 months holiday properties, around 66%Despite the historical predominance of urban complexes.
In addition, the housing market became one of the main actors. Special, the investment 3,000 million euros in rental land and buildings, positions itself as the best segment behind hotels. In addition, 41 percent of this volume was allocated to assets that will be rented at affordable prices, that is, at prices below the market. CBRE estimates that the number of transactions in traditional home sales will drop 10% to 554,000 in 2024, but price increases will continue at an average rate of 3%.
Another type of asset that will have a good year in 2024 will be parks and parks. shopping malls, It has become one of the most penalized with the rise of electronic commerce in recent years. “We expect salaries to increase this year above inflation, a capital that will be consumption that will benefit business assets,” said Director of CBRE Research in the Iberian Peninsula. Paloma Relinque added: “Shopping centers will be one of the surprise sectors of 2024. They record a good number of visitors and sales. They are at very attractive prices and profitability, at the same time banks are opening the tap to finance acquisitions.”