The investment in Spain’s real estate market reached a historic record in 2017

Investment in Spain’s real estate market increased by 45% in 2017, surpassing the acquisition volumes recorded before the sector’s financial crisis.

According to data from real estate consultancy JLL, investment reached a historic high of €13.99 billion. The firm attributed the result partly to major transactions in residential property, land and alternative assets—sectors that had previously attracted less capital. It also noted that inexpensive financing in Europe continued to make real estate an attractive investment.

Investment growth

The figures cover offices, retail property, hotels, logistics, residential property and alternative investments. Total investment approached €8 billion in 2006 before declining to slightly more than €2 billion in 2009. After several uneven years, it exceeded €7 billion in 2014 and continued rising. Investment reached €9.62 billion in 2016, followed by the 45% increase to €13.99 billion in 2017.

Mikel Marco-Gardoqui, capital markets director at CBRE, said the historically high figures reflected growing investor interest and confidence in the Spanish market.

Investment by property type

• Retail: Investment in shopping centres and stores increased by 31% to €3.9 billion, supported by stronger consumer spending. One of 2017’s largest transactions was Intu’s €530 million purchase of the Madrid Xanadú shopping centre.
• Hotels: Investment reached €3.875 billion, an increase of 75%. The leading operation was Blackstone’s acquisition of 14 assets for €630 million.
• Offices: Investment totalled €2.21 billion, 20% less than in 2016. Despite the decline, it remained among the highest annual totals recorded in recent years.
• Residential: Transactions involving land and complete buildings rose by 160% to €2.082 billion.
• Alternative assets: Investment climbed by 1,052% to €561 million, driven mainly by the acquisition of Resa’s university residences.