Transaction evolution in Real Estate Market during Q3 2021
Real Estate investments during Q3 2021 amounted c.€3,415 million, representing a superb 15.4% increase against Q2 2021 and 71.1% vs Q3 2020.
At CG Capital Europe, we expect that foreign investments in the Spanish Real Estate market will keep performing at high transactional levels along Q4 2021, leveraged on the low interest rates and the amount of product in the market, therefore increasing the attractiveness of Real Estate Assets. Positively, Spain continues to be perceived as a safe and attractive Real Estate market, showing strong resiliency under the current circumstances.
By Asset classes, Hospitality sector accounted for 40% of Q3 2021 investment volume, with c.€1,372 million, leaded by the sale of 4 hotels from Selenta portfolio to Brookfield Asset Management with a sale price of €440 million. Following this sector in direct investment volume, we cand find the Office sector with c.€718 million and the Residential sector with c.€460 million.
Overall, forward-looking indicators points towards a solid growing trend in investment volume for 2022. As an consequence of this investment appetite, both Madrid and Seville’s City Councils have announced the launch of new urban developments, comprising an area of 2.5 million sq.m. in Madrid to be developed and huge housing projects in Seville. Moreover, relevant residential portfolios and office buildings were presented on the market.