Foreign Investment in Spanish RE rose by 15% in 2015


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Foreign Investment in Spanish RE Rose by 15% in 2015 reaching €10Bn
Ibiza property In 2015, foreign residents in Spain carried out real estate transactions amounting to a total of 9,918.6 million euros, which represents an increase of 15% compared with the previous year when 8,637.9 million euros in real estate transactions were made.
According to the Ministry of Public Works’ data, the greater part of the investment value related to second hand housing, which accounted for 8,808.6 million euros, while transactions for new builds had a value of 1,110 million euros.
Compared to the previous year, El Economista reported that the number of transactions on second hand dwellings grew by 14.5% and those on new builds rose by 18%.
In terms of regional distribution, the regions which registered the greatest levels of housing investment by foreign residents were Andalucia, with transactions amounting to a value of 2,255.6 million euros, followed by Valencia (2,202.3 million) and Catalonia (1,797.2 million).
These figures are aligned with two recent papers from CBRE and Jones Lang LaSalle (JLL), in collaboration with IESE.
Spain now ranks 3rd for real estate investors says CBRE
According to the CBRE ‘Global Investors Intentions Survey 2016’, presented during the MIPIM World’s Property Market exhibition earlier this month in Cannes, Spain is the third most favoured market in Europe amongst professional investors, behind Germany and the UK.
Based on a survey of big investors in global real estate, CBRE reveal that 17% preferred Germany, 15.1% the UK, and 10.2% Spain, after which came countries like France and the Netherlands. Looking at European cities, Madrid was number two in the ranking of investor intentions, with 12.2% of respondents saying it was their priority investment target this year, out of a total of 35 cities.
9 out of 10 large investors have Spanish Real Estate in their sights for 2016 according to JLL.
Based on a poll of more than 100 leading property investors both in Spain and abroad, the report reveals that 89% of those surveyed have a high or very high priority for investing in Spain this year. 47% of them have investment budgets of over €100m.
53% of investors were focused on office space in Madrid and Barcelona, followed by 46% in logistics and 44% in shopping centres, all of which are management-intensive investment strategies.
Spanish residential property was a priority for 38% of the investment managers surveyed, and 31% said they planned to invest in building land, showing how much investor sentiment has changed in recent years. Not long ago investors had zero interest in land for residential building.
What does that mean for property buyers? It might mean a greater selection of new homes to choose from as the pipeline of developments fills up with new projects financed by foreign investors, many of them in Barcelona, Madrid, and on the Spanish coast, plus the Balearic and Canary islands. More choice is usually a good thing for house-hunters.
Sources: Kyero and Mark Stucklin (Spanish Property Insight)
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