Gain in Spain: country seeing most investment since financial crisis

Prior economic slump had been worst in democratic history of nation

New York /
Dec.December 23, 2017 01:00 PM

Madrid (Credit: Good Free Photos)

Signs of life are returning to the Spanish real estate market.

Investment in the country’s hotels, warehouses, offices and malls is poised to reach its highest levels since 2007, right before the global economic crisis plunged Spain’s economy into the worst slump in its democratic history, according to Bloomberg.

The turnaround is partly due to banks getting rid of foreclosed assets and selling foreign buyers on cheap properties. For instance, Banco Bilbao Vizcaya Argentaria SA, the second largest bank in Spain, made a deal last month to sell foreclosed property assets worth 13 billion euros to Cerberus Capital Management.

Investment in the country’s commercial properties should reach 8.9 billion euros by the end of 2017, coming close to the 2007 pre-crisis level of 10.8 billion euros. The most popular investment this year has been retail assets, followed by hotels and offices.

Spain’s overall economy is forecast to grow 3.1 percent this year and 2.5 percent next year, and unemployment in the country is at a nine-year low.

Ismael Clemente, CEO of the Madrid-based REIT Merlin Properties Socimi SA, told Bloomberg that 2017 was “the year when it’s all come together. The Spanish economy is doing well, its banks are healthy, there’s a very investor-friendly legal framework and property is still cheap compared to other European cities.” [Bloomberg]Eddie Small


Related Articles

arrow_forward_ios
Columbia Property Trust's Nelson Mills and 799 Broadway (Columbia Property Trust, 799 Broadway, iStock)
Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
Columbia Property Trust signs investment firm to 71K sf at 799 Broadway
East End Capital's Jonathon Yormak and 141 East Houston Street (141 East Houston Street, East End Capital)
Boutique LES office scores blockchain firm as anchor tenant
Boutique LES office scores blockchain firm as anchor tenant
Vice Media CEO Nancy Dubuc and 225 Broadway (Getty Images, Google Maps, iStock)
Refinery29 subleasing at 225 Broadway for move in with Vice
Refinery29 subleasing at 225 Broadway for move in with Vice
Naftali Group's Miki Naftali, BRP Companies' Meredith Marshall (Photos by Paul Dilakian)
Miki Naftali, Meredith Marshall talk development, death of 421a
Miki Naftali, Meredith Marshall talk development, death of 421a
R-L: Willow's Kevin Danehy, Era Ventures' Clelia Warburg Peters, Fifth Wall's Brad Greiwe and The Real Deal's Hiten Samtani (Photo by Paul Dilakian)
Real estate tech is coming for your business
Real estate tech is coming for your business
Industrious CEO Jamie Hodari and CBRE chief financial and investment officer Emma Giamartino (LinkedIn, CBRE)
CBRE doubles down on flex-office provider Industrious
CBRE doubles down on flex-office provider Industrious
New York skyline
Rising interest rates will dampen city’s investment sales market this year
Rising interest rates will dampen city’s investment sales market this year
135 West 50th Street in Manhattan in NYC with George Comfort & Sons CEO Peter Duncan (Google Maps, George Comfort & Sons Inc.)
George Comfort & Sons inks 62K sf tenant in Midtown
George Comfort & Sons inks 62K sf tenant in Midtown
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...