Spain slips into the major Real Estate investment markets in Europe
After months of uncertainty and crisis generated by Covid-19 pandemic side effects. The Spanish Real Estate market has successfully managed to reach a merit fourth position in terms of total direct investment, by capturing over €5,500 million during H1 2021. From CG Capital Europe we are experiencing a very active H2, and therefore we can foresee to beat the most optimistic forecasts set at the beginning of the year (between €9,000 and €11,000 million by the end of 2021).
Spain is only behind the United Kingdom, Germany and France, respectively, and surpassing other dynamic countries like Ireland or Italy. Novelty this year is that the United Kingdom may regain the top position, after three consecutive years of Germany leading this category.
When speaking of Asset typology, on one hand, investment in build-to-rent assets has represented an outstanding growth during H1 2021 (c.€651 million), and logistic assets represented a 26% of the total during this period (c.€1,400 million). On the other hand office assets, with c.€850 million suffered a -47% y-o-y decrease during H1 2021, but will presumably be the leading edge of the investment volume in H2.
In terms of Real Estate investors geographical origin, there has been a shift from c.40% of investors being domestic buyers to c.50%, which is thought to be a consequence on the Covid-19 lockdowns across Europe. In Spain, German investors represent c.40%, followed by the US (c.18%), France (c. 15%) and the UK (c. 10%).