The report states that the overall investment made by funds, venture capital and financial institutions grew by 118%, to 13,935 million euros. And in the real estate sector, the figure reached a volume of 5,211 million euros, which is equivalent to 37% of the total investment made in Spain. In fact, the report shows that investment in the real estate sector in Spain has increased 12-fold, over the 433 million euros achieved in 2012.
The increase in activity experienced since the second quarter of 2013, produced by the improvement in the national economic indicators (risk premium, GDP growth, etc.), “will continue to mobilise the interest of domestic and, fundamentally, international investors in Spain”, said IREA.
According to the CEO of IREA, Mikel Echavarren, this increased activity will be reflected “with special intensity” in the real estate sector, as “some opportunistic funds already began organising local teams in Spain at the end of 2013, which will bring greater dynamism in the coming months and will encourage the closing of more transactions”.
Echavarren points out: “It is expected that during 2014 transactions on sales of debt will increase, mainly due to the activity of the SAREB and other non-Spanish financial entities (real estate debt) and the deleveraging of other financial institutions (consumer debt).”
During this year, according to the study, Madrid and Barcelona will be the focus of real estate investments, mainly offices, hotels and retail. However, it notes that new investment products will appear in late 2014, such as coastal residences, student accommodations and retirement homes.
Despite this, El Mundo reported that IREA predicts that “the weak domestic consumption will remain for most of 2014, which will hinder the recovery of sales promotions of a residential character”.
Source: rmrspain.com
