Spanish economy experienced solid performance during H1 2024, with an interannual GDP growth of 2.9%. According to the International Monetary Fund, Spain’s overall growth prospects have risen to 2.4% for 2024 and 2.1% for 2025. These forecasts are anticipated to improve further as the year progresses.

Given last months’ inflation moderation, ECB started in June an interest rates’ decrease period, with the first cut since 2016 (25 bps, to 4.25%). Additional drops are expected for H2 2024 and 2025.

Real Estate Spanish investment reached €4.9 billion in H1 2024 (c. +13% vs. H1 2023). Institutional investors lead the market (46% of volume and 25% of transactions), followed by Family Offices (19% of volume and 33% of transactions).

Market fundamentals (rents, take-up, vacancy rates), remain solid in all real estate sectors, reflecting the attractiveness of Spanish Real Estate sector. Considering the above and ongoing sale processes, we anticipate a very dynamic H2 2024.

Hospitality sector has been the most active sector during H1 2024,reaching c. €1.4 billion investment, representing 29.0% of the total Spanish real estate investment. Average room price continues its upward trend and reaches c.180k. The sale of the Six Senses in Ibiza has been remarkable, with a record price of +€1.7 million/room.

Retail achieved an investment amount of €1.2 billion (c. 3.0x vs. H1 2023 and +37% vs. last 5 years average. Shopping Centres led retail investment with c. €840 million (70% of the total).

Living sector reached an investment volume of over €1.1 billion (22% of Spanish real estate investment), driven by alternative sectors (Flex Living and PBSA). The housing market, is showing sings of greater dynamism than expected, after reaching c. 160,000 transactions in Q1 2024 (c. +2% vs. Q1 2023).

The Office sector reached a total investment volume of c. €800 million H1 2024 (+13% vs. H1 2023), mainly driven by purchases for own use and for subsequent conversion (change of use), mostly into residential assets.

Finally, the Logistic sectorattracted €410 million in investment volume. The take-up pace acceleration during H1 2024 confirms the strength of logistics fundamentals. Madrid’s and Barcelona´s Q2 2024 take-up rose to c. 235,000 and to c. 184,000 (+85% and +61% YoY), respectively.

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