Spanish real estate market “red hot” according to PWC report. Most popular assets: public buildings, housing and property in secondary areas
Spain will continue to be in the spotlight for investors, above all Madrid and Barcelona, which are now third and tenth on the ranking of investment opportunities despite economic and geopolitical uncertainties. Investor confidence remains high, as do expectations for profitability and job creation in the sector, according to the report on trends in the European real estate market in 2015 compiled by PWC and the Urban Land Institute from 500 interviews with the main stakeholders in the sector.
Global capital has come flooding into Spain, mainly driven by private equity funds. The price of assets like offices and retail premises has risen in Madrid, suggesting that investors looking for higher return on investment will probably set their sights on secondary markets in Spain this year to achieve higher profitability.
Investors are also seeking out publicly owned buildings and homes in order to serve as rental properties. The report says, “There is now an opportunity to establish a rental sector and at the same time some blocks are coming on the market that we haven’t seen in the past seven years.” This is why it is a good time to invest in residential property.
SOURCES: Idealista | PWC
