Retail Market in Spain (Q1 2021)
Total retail real estate investment in Spain amounted circa €200 million in Q1 2021, experiencing a 20% decrease vs. Q4 2020 and a 85% decrease y-o-y. However, the unexpected high investment levels of Q1 2020 were driven by two large pre-Covid transactions of two large shopping malls.
High Street Assets have been the most sought-after assets accounting for 44,5% of total investments (c.€89 million), representing a +200% increase over the previous quarter and +10% y-o-y. Investments in the supermarket segment amounted to c.€85M, representing a significant decline from both the previous quarter and year-on-year. The Retail Park segment accounted for c.13% of total retail investments (€26 million), representing a c.100% increase over the previous quarter and -20% decrease y-o-y.
Core assets accounted for c.80% total investments. Investment funds continued to be the most active players along with international investors.
Prime rents have shown a stable quarterly evolution, despite annual decline. High Street prime rents stood at c.245 (€/sq.m.) experiencing a c.17% annual decline, Shopping Centres prime rents stood at c.90 (€/sqm) with a c.10% annual decline, while Retail Park prime rents stood at c.€17.5 /sqm (-c.12.5% vs. Q1 2020).
High Street Prime Yields remained at c.3.5%, while prime Shopping Centres and Retail Parks yields remained stable at c.5.40% and c.5.75% respectively.