The Spanish real estate market has been thriving since 2013, with consistent price hikes. The most dramatic price increase, up to 7%, occurred in 2018. This is especially noticeable in tourist and expat hubs like Valencia, Barcelona, and Madrid, one of Europe’s most expensive cities. However, the trend slowed in 2019. And the global pandemic complicated the problem. According to the local newspaper El Pas in April 2020, there was a -6 percent drop in property prices between February 2019-2020.
The Spanish real estate market stabilized in 2020, and a new surge was observed in early 2021. Single-family house prices increased by 6% in a single year (from April 2020 to April 2021.)
According to international real estate consultancy firm Knight Frank, Spain will attract around 7,500 million euros in real estate investments. Jorge Sena, a partner at Knight Frank in Spain, believes that the real estate market will stabilize in 2022.
The Spanish real estate industry is swiftly recovering following the pandemic, notably in the areas of offices and residential, data centers, and logistics. Due to greater yields in the finest places than in other nations, Spain is a particularly appealing option for real estate investment. It is one of the findings of the company’s sixth edition of the Active Capital report, which examines markets and capital on a worldwide scale. It summarizes the company’s worldwide real estate predictions for the upcoming investment cycle.
In addition, the report contains essential statistics on global capital flows in 2022, grouped by type of investor and sector. Real estate specialists anticipate that investments in European nations will lead to a resurgence in cross-border acquisitions. According to the Active Capital report, the volume of cross-border property investment is expected to reach a new high in 2022.
In terms of diverse areas of activity, the real estate consultancy firm’s staff forecasts that 2022 “will demonstrate that the office market is still very much alive.” They state that the UK office sector will have the most capital inflows in EMEA, followed by Germany, France, and the Netherlands. Sixty-one percent of this funding will come from investment managers and institutions.
Other areas of high investor interest include PRS and student housing, which, according to the research, will continue to garner the most significant share of funding from the specialized sector. Data centers, which are increasing due to the rise of e-commerce and the cloud computing sector, and healthcare are also receiving record levels of asset inquiries.
In comparison to many other European nations, Spain has practically year-round sunlight, a magnificent coastline with wonderful beaches, a laid-back culture, and a lower cost of living. Spain also benefits from its advantageous geographic location, which is near to Portugal and France and only a few hours away from the UK, Italy, Germany, and North Africa.
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