Corporate operations could boost activity in the sector and investment may rise above 12,000 million euros in 2021.
After investment dropped by 24% in 2020 due to COVID, this year the real estate market in Spain is expected to recover, because of the booming rental market, logistics and alternative assets, as well as a rise in corporate operations.
According to the CBRE forecasts, between 10.5 en 12 billions will be invested in the sector in 2021, between 10 and 25% more than in 2020. These figures may even be higher in case larger corporate operations take place, such as the purchase of Quabit by Neinor.
‘There’s light at the end of the tunnel. Although there will be uncertainty during the first half of the year, this will start to disappear in the second half, due to the growing group immunity because of the vaccination program’, says Adolfo Ramírez-Escudero, president of CBRE Spain.
Rental market on the rise
The most important real estate sector in 2020 was the rental market. Investment in this sector grew to 1.7 billion, of which 1.4 billion was destined for new rental projects (BTR, Build to Rent), twice as much as in 2019.
If student and senior housing are added up as well, the figure rises till 2.6 billion, higher than the office market. ‘That’s because of a lack of product on the market. Investors have opted for soil for new developments’, thus Miriam Goicoechea, associate director Research within CBRE Spain.
The tendency is expected to continue and by 2024 there will be 5 million rental homes in Spain, 27%.
Director Research, Lola Martínez Bioso, believes investors are looking for defensive and active sectors, that guarantee profits. ‘Anti-cyclical sectors in favour of the demographic and social changes that are taking place.’
Also growth expected in logistics, retail, offices and hotels
‘The logistics sector may be good for 2 billion in investments this year, compared to 1.4 billion last year, due to Martínez Bioso.
CBRE also expects investment in the retail market. In 2020 the biggest investment of the last 3 years was registered, because of shopping centre transactions.
When it comes to the office market, one of the most affected real estate markets during the pandemic, this year a growth of 15% is expected.
The investment in the hotel sector dropped by 61% in 2020, but for this year transactions are expected to rise, especially during the second half of 2021.
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