• Spanish Retail Market Overview 2023

    May, 2024

FY23 retail investment reached €1.2 billion (c.-28% compared to FY22(1)) Retail Parks have been the sub-sectorwith the highest volume,with more than €432 million (c.36% of total retail investment and +105% vs. FY22). Shopping centres and supermarkets have represented c.28% and c.23% of total retail investment, respectively.

Prime net yields for high street retail (4.0%) and retail parks (6.5%) have remained stable throughout last Qs of FY23, after a slight expansion during Q1-Q2. Those of shopping centres increased by c.50 b.ps. to c.7.75% (compared to c.7.25% in Q3 FY23), due to higher leverage required for these acquisitions.

Prime rents have shown stability in FY23, staying at €215.0/sq.m. for high street retail, €90.0/sq.m. for shopping centres and €17.5/sq.m. for retail parks.

Footfall has increased in shopping centres in FY23, with sales growing by c.6.0%, demonstrating a rise in consumer interest. This is expected to lead to an appetite’s growth from investors in the coming years.

High street vacancy rates in FY23 decreased both in Madrid (3.0% vs. 6.6% FY22) and Barcelona (9.5% vs. 11.6% FY22), reflecting the high demand from operators for establishing in prime locations.