variants
The early part of the year will be defined by careful market analysis as investors defer major purchases, a pattern often described in the real estate sector as a wait-and-see stance. In Spain, market watchers note that investor skepticism from the final months of 2022 continues to color decisions at the outset of the year.
For the investment landscape, uncertainty is expected to fade gradually in the initial months. Yet, many deals postponed in prior periods will begin to close during 2023, often outside standard market-entry offers, as opportunistic transactions surface. A stable reopening is anticipated in the second half, with new operations launching and some sector-specific price adjustments likely to accompany the rebound. The owner and seller profile is increasingly institutional and professional, which tends to accelerate reorganization compared with earlier cycles. Spain remains well-positioned within Europe, driven by a structural demand for new products in key segments where the market has started to establish a notable presence, and in light of macro expectations that compare favorably with other markets. Rents show stability with modest increases in select areas, including Madrid’s office market and the logistics segment.
Jesús Silva, managing director at Cushman & Wakefield in Spain, highlights the market’s volatility over the past year. He believes investor confidence should recover as 2023 progresses. “Following the pandemic, optimism about market development was high, but the Ukraine conflict and elevated inflation pushed interest rates up. This slowed real estate activity, and the market began to recover by 2019,” he notes, with rates rising in September. Looking ahead, prices are expected to adjust in the coming months as uncertainty wanes and the market stabilizes.
The Cushman executive anticipates the second half of the year will outperform the first. He says that while investment levels from 2022 may not be reached again, they should improve gradually due to price adjustments that will attract more attention from investors.
variants
The Savills team points to ongoing strong interest in assets tied to long-term leases, including build-to-rent developments and residential portfolios, as well as other income-generating properties.
Alejandro Campoy asserts that rental-centered assets, such as purpose-built rental housing, student housing, co-living arrangements, elderly care facilities, and logistics facilities, will stay in focus for investors. The office sector is regaining appeal for both demand and investment, and flexible workspaces are proving valuable for users and owners alike.
Analyses of economic and sociodemographic indicators also reveal other growth areas for 2023, such as the elderly housing sector, healthcare facilities, education properties (schools, vocational centers or university buildings), student housing, and data centers. The shortage of rental housing for students and seniors continues to attract substantial investment in these segments, though they face pressure from rising interest rates due to tight yields.