Real estate investment in Spain rises by 15% up to September with more than 8,300 million euros

The real estate business continues its good run in the Spanish market. The volume registered has exceeded 8,300 million euros of direct investment in real estate assets, compared to 7,228 in the same period last year, 15% more, according to preliminary data from the international consultancy Savills. Hotels, residential and retail have continued to drive the real estate investment market in Spain until the end of the third quarter of 2024.

53% of the investment has been allocated to properties related to accommodation and housing, including hotels and tourist facilities, residential for rent, flex and coliving, student residences and residences for the elderly.

Of the remaining 47%, 18% has been allocated to retail assets, 16% to offices, 11% to assets related to the industrial and logistics sector, and 2% to other uses. By type of asset, the largest year-on-year increase was recorded in student residences, with €730 million up to September, 286% more than last year and 68% above the average of the last five years, driven by the purchase of EQT's portfolio in Spain.

It is followed by retail investment with the return of funds to shopping centres, which with 155% more investment than last year with almost 1,500 million euros, has managed to align itself with its average of the last five years. and nursing homes, with a 145% increase boosted by the purchase of a portfolio of 11 DomusVi residences.

In terms of investor profiles, Savills highlights that, although funds continue to be the majority investment profile in the tertiary real estate sector, private investors have continued to increase their share up to September to 31% of total real estate investment in offices, logistics, retail, hotels and alternatives. For their part, real estate companies and developers, funds and REITs have been the most active in living.

Savills expects that in the remainder of the year, with the capital available to invest in real estate in southern Europe and after the expected first decrease in interest rates, the market will continue to recover the usual pace of previous years with the return of cross-border investment and the consolidation of operations already underway.