Spanish Real Estate Market Overview in Q1 2021 – 2
Real estate investments in Spain during Q1 2021 amounted to €1,800 million, experiencing a c.43% decrease y-o-y, although certain assets such as residential, food-anchored retail and logistics assets have experienced a relevant surge in investment’s volume.
Investments in the Office sector, during Q1 2021 amounted to c.€290 million, accounting for c.16% of total investments. Investors’ appetite in prime assets (CBD) remains high, with prime yields currently standing at c.3.5%.
The Residential Sector has cemented its position as the most defensive sector this quarter, being the most sought-after assets, accounting for c.36% of total investments (c.650 million) and continuing with the upwards trend of 2020 (c.1.700 million invested). Alternative assets have concentrated c.8% of total investments (c.€140 million) mainly focused on student and senior housing. Investment funds were the most active players in 2020 (c.60% share), although, the type of buyer has changed significantly recently, REIT’s and family offices have risen from a c.23% share in 2020 to c.40% in Q1 2021.