Real Estate market in Spain is currently undergoing a reshaping process marked by: growing
vaccination rates (c.40% of the population fully vaccinated), high liquidity in the financial markets and
record low interest rates. The attractiveness of the real estate market has greatly increased as investors
seek investments which provide protection vs. inflation and recurring cash flows.

The Spanish Real Estate market registered an investment volume during H1 2021 of c.€4,300 million,
out of which €2.600 million correspond to Q2 2021 which experienced a c.200% growth y-o-y (€850
million) and a 50% increase vs. Q1 2021 (€1,700 million). Although, it represents a lower investment
volume vs. H1 2020, this is explained by the high investment volume reached during Q1 2020 (€4,000
million), which almost represented an all-time record.

Logistic, residential and hospitality assets have gained traction during H1 2021 representing c.30%,
c.24% and c.15% of total investments respectively. The most relevant transactions during this period
have been Bankinter Investment’s purchase of Montepino’s logistics portfolio; Archer Hotel Capital’s
acquisition of Hotel Madrid Edition from KKH Capital for c.€205 million; and the purchase of One
Central Parc in Barcelona by DWS from Värde Partners for c.€128 million.

Regarding the investors profile, domestic investors have drastically increased their presence in the
market, accounting for c.49% of total investments during H1 2021 (vs. c.26% in H1 2020). Investment
funds and institutional investors remain the most significant players, while Spanish REITs followed the
trend of previous years accounting for c.7% of total real estate investments.

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