Spanish Real Estate Market Overview in Q1 2021
Real estate investments (commercial properties) in Spain during Q1 2021 amounted to c.€1.800 million, experiencing a c.43% decrease y-o-y. This is explained by the Covid-19 outbreak and economic crisis, lock-down measures and subsequent uncertainty during the last months.
Retail sector, concentrated c.15.6% of total investments accounting for c.€280 million. This quarter has experienced a great surge in the investment in food-anchored assets with large supermarket portfolio transactions accounting for half of total retail investments (c.€140 million). High Street prime yields experienced a slight increase reaching 3.5%.
Logistics sector has confirmed its position as most resilient segment in Q1 2021. Investments reached c.€250 million (+c.34% y-o-y). Prime net yields have experienced a downward trend standing at c.4.5% and are expected to compress further in the coming months.
Lastly, hotel sector has experienced the worst performance this quarter, accounting for 10% of total investments (€180 million) and experiencing a 61% decrease y-o-y. Nevertheless, major deals are expected to take place in the second half of the year.