According to the real estate consultancy RTV, currently more than 70% of the investments made in Spain come from abroad. In fact, the main sources of investment in our country today come from France, the United States and Great Britain. However, the national investment has also increased since the beginning of the year, in fact, the Socimis have invested 40% of the total and there is also a lot of movement in the real estate and investment platforms or family offices.
What are the sectors with the greatest investment?
During 2015, the most active sector was that of offices, where around 6 billion euros have been invested. Investment in shopping centers and retail have reached 4 billion euros, a figure very similar to that of 2014. According to Real Estate Group RTV, 2016 will be marked by a large investment in the real estate sector, which estimates an investment that can be achieved easily the 10,000 million euros.
This improvement of the real estate market in Spain during the current year, is led by the recovery that has been experienced in this sector within Madrid, Barcelona, the Levante and the Costa del Sol, where the so far high stock of product already built and pending of being sold has been reduced considerably, especially in the case of large cities. While we are witnessing the reduction of this stock, at the same time there is a new aspect of investment, since the purchase of land for new buildings by investment funds is increasing every time. In fact, it is not surprising to see again in many Spanish areas populated by cranes in which the building has been put back on its land. Within this sector, in addition, there is a growing demand for residential buildings for rent or sale, both by domestic investors and foreign investors, the latter mainly of Israeli and French origin.
Why invest in the real estate sector in Spain during 2016?
- Because Spanish GDP growth is expected to be around 2.8%. This growth gives high hopes of achieving in the Spanish economy the figures obtained before the crisis. Thus, the increase of employment, of liquidity, and greater investment and increased demand could put the real estate sector back on the crest of the wave in a very short time.
- Real estate investment in Spain has broken records during 2015 despite the irregular economic situation we are experiencing since 2008. Approximately 13,000 million euros have been obtained in investment that have allowed the consumption of products related to this sector to increase again and that will translate into a new investment momentum in the real estate market for 2016. In fact, it is estimated that during this year real estate investment will grow by 7.1%.
- Since 2014 we are witnessing a recovery process in the housing sector and a new gradual increase in prices. In fact, housing indicators have begun to enter the growth phase: construction grew by 2.4% in 2015 and is expected to increase to 4.4% in 2016; the gross rent yield in Spain has increased, being placed, according to the Bank of Spain, by 5%; the price of housing has been growing (0.7% with respect to the first quarter of 2015) and the purchase and sale of homes has increased by 16.3% during the first quarter of the year.