Spain 2021 – Real Estate Investment Forecast
Investment volume in the Spanish real estate sector for 2021 is expected to increase substantially, driven by the gradual recovery of the economy (particularly during H2 2021) and the vaccination plan, with total investment estimated at c.€11.50 billion in 2021 (+c.23% vs. 2020).
Within the residential sector, BTR and PRS segments are expected to maintain their upward trend, while housing demand is predicted to increase, reaching c.480,000 house sales in 2021 (+c.14% vs 2020).
The logistics sector is expected to be positioned as one of the best performing segments (particularly last-mile assets) with total investments predicted to reach c.€2,000 million in 2021 due to several unusually large deals, such as, the anticipated sale of Montepino’s portfolio for c.€800 million.
Investments in the office segment are forecasted to increase, accompanied by growth in office take-up (+c.15% vs 2020). Investments will be mainly concentrated in prime assets in detriment of value-added properties.
Hospitality and retail segments are expected to experience a large increase in investment from H2 2021 onwards, as vaccination plans progress and lockdown measures relax.