Real Estate

The real estate sector in Spain attracts an investment of around 12,000 million euros per year. Following the end of the financial crisis, the economic recovery, more affordable financing, and high liquidity in general, make the real estate sector in Spain the main target for institutional investment and family wealth. Current investment is led by international capital that has entered with greater conviction at the beginning of the current cycle and that, according to experts, still has some way to go.

The retail sector leads real estate investment in Spain with a volume of 40%, closely followed by residential investment with 37%. The current trend in housing investment is to buy, make a return on investment through leasing and, finally, sell. Experts say that investment in property with a return that ranges between 5% and 8% is a solid alternative to r bank savings and other investments. Although the overall forecast for 2020 is a decrease in the price of housing, it is expected that in 2021 and 2022 Spain will lead the recovery in Europe with increases of up to 5% per year in prices.

The sector offers products of interest to very different investor profiles, such as housing for seasonal or tourist rental use, or the management of housing for student rentals, a sector that is gradually opening to small capital.

Although any investment requires a corporate structure, it is a fact that real estate investment can be channelled directly by the individual concerned or through simple and direct investment vehicles such as an S.L. or through more complex corporate forms, as the SOCIMI. Of course, this depends on the volume of the investment, the investor profile and targeted assets.

With our specialized team, we advise our clients and put at their disposal our commitment, resources, knowledge and contacts, so that they can find the asset and the means that best fit their real estate investment objectives.

REAL ESTATE INVESTMENT.
MOMENTUM LOST BY COVID19.

The real estate sector in Spain is one of the sectors that has historically contributed the most to the country’s development. According to some estimates, real estate investment in 2019 exceeded 19,000 million euros, marking its fourth consecutive year of growth.
In this sense, and despite certain voices of alarm at the beginning of 2020, the reality is that the real estate sector continues to be one of the great engines of recovery and growth of the Gross Domestic Product.
Within the real estate sector, retail sales, aimed at the individual (individual or family, even small businesses) who decides to invest in real estate, represent between 37% and 40% of investment in this sector.
During the first quarter of 2020, the price of housing has registered a growth of 4%. In this period, the number of housing sales has recorded a quarterly increase of 8.49%, reaching 127,357 sales in the first quarter of 2020, almost 10,000 more than in the previous quarter. In new housing, 24,252 sales were recorded, the highest result in the last four quarters, with a quarterly growth of 10.73%. In used housing has again exceeded 100,000 sales, specifically 103,105, with a quarterly growth of 7.98%.

The Autonomous Communities with the highest number of home sales have been Andalusia (25,182), Catalonia (20,232), Valencia (18,483), Madrid (17,759) and the Canary Islands (6,339).

The percentage of home purchases by foreigners fell to 12%, compared to 12.70% in the previous quarter. However, this percentage decrease contrasts with the absolute results since, in the latter case, there has been a slight increase, reaching more than 14,850 home purchases by foreigners in the first quarter, compared to less than 14,800 in the fourth quarter of 2019.
This growth scenario has been abruptly halted by the COVID, although it is expected to pick up strongly by the end of the year.