• Spanish Market Overview Q3 2023

    December, 2023

The sharp rise in interest rates and the market uncertainty has tightened conditions in the markets, and as a result, investment volumes in the real estate market have been significantly reduced in Q3 2023.

In the first nine months of the year a total transacted amount of €7.5 billion (-49% vs. Q3 2022). Only in Q3 2023 €2.3 billion (+6% vs. Q2 2023) was transacted.

  • Hospitality Sector: It has been the most active sector in Q3, recording an investment volume of approximately €800 million, 35% of the total transaction volume. So far this year, this sector has reached an investment volume of €2 billion. Barcelona has been the Spanish city with the highest investment volume in this sector, accounting for approximately 60% of the total invested.
  • Living Sector: The living sector is the second most impacted, with a total investment in Q3 of €495 million. In the overall year-to-date, it is 57% below the values of the previous year, with a total of €1.9 billion in investment.
  • Retail Sector: Investment in the retail sector in Spain amounted to c. €530 million (-14% vs. Q3 2022). The most important type within the retail sector are retail parks, which has accounted +50% of total invested in this sector.
  • Office Sector: Investment volume has decreased to €885 million (-50% vs. Q3 2022), and investors are looking for established markets in prime locations where the current supply is limited. There is also a growing trend of investors acquiring office buildings and later converting them into other types of assets, with residential being the most prominent.
  • Logistics Sector: The logistics sector remains an important investment category, but economic imbalances caused by the rise in interest rates have prevented it from growing as expected. The investment volume in this category has reached €280 million and an accumulated total of c. €900 million for the year so far.