Guess the European country that had an excellent year for commercial RE

Property investment in Spain has finally recovered from the financial crisis

TRD WEEKEND EDITION /
Dec.December 31, 2017 09:00 AM

(Credit: www.viajar24h.com/Wikimedia Commons; Pexels, right)

For Spain, the future post-crash finally began this year as commercial real estate investment reached comparable pre-2007 levels to the tune of an estimated 8.9 billion euros, according to Savills.

With the economy slated to grow 3.1 percent by the time Spaniards ring in the new year and growth for 2018 pegged at 2.5 percent, Bloomberg reports that 2017 was the country’s year, despite political upheaval around the Catalan secession movement.

“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,” said Merlin Properties Socimi’s founder Ismael Clemente. “It’s all come together.”

The majority of the real estate investment comes from foreign buyers who account for approximately two-thirds of investors, according to Savills. Retail properties were the most popular buy, an understandable figure considering Spanish shopping malls offer owners the best yields in comparison to cities like Frankfurt or Paris.

“Rents are rising and so is occupancy, and that’s what’s motivating investors,” said Savills’ Luis Espadas, head of capital markets at the firm office in Madrid.

[Bloomberg] — Erin Hudson


Related Articles

arrow_forward_ios

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

arrow_forward_ios