Non-Residential Real Estate Investment In Spain Grew by 36% in 2015

Non-residential real estate investment in Spain reached a record 11,700 million euros in 2015 which, according to a real estate investment market study carried out by Deloitte Financial Advisory, represents a year-on-year increase of 36%.

The city of Madrid accounted for 57% of the investment, while Barcelona received 10% of the total investment.

With regard to the sectors which had most activity last year, the offices sector showed to be most active, representing 45% of the total investment, followed by the retail sector, with more than 1,817 million euros of investment in commercial centres and 1,220 million euros of investment in street shop premises.

The third most active sector was the logistics sector, which reached 674 million euros of investment last year, and confirmed its place as the more affordable alternative for those investors seeking higher returns without the risk of land development.

El Mundo reported that, in 2015, the private equity investor represented only 7% of the volume of investment, giving way to the large institutional investors and the Socimis, which represented 62% of the total annual activity.

Global investment in non-residential real estate exceeded 600,000 million euros in 2015. The EMEA region (Europe, Middle East and Africa) registered 35.5% of the activity, Asia-Pacific 19,4% and the Americas 45%.

In this regard, the study highlighted the strong growth in the flow of investment from the United States to the EMEA region, which has doubled in the past year due, among other factors, to the greater strength of the US dollar.

Within Europe, the cities of London and Paris concentrated 50% of the registered volume of investment, while Madrid is the fifth European city in the ranking, by volume of investment, taking 4.6% of the volume in 2015.


Source: Kyero