Yesterday Reuters reported that a big German-based property group called IVG have forecast a Spanish property market recovery starting later this year.
IVG even forecast that Spain’s moribund real estate sector will recover faster than the wider economy, when normally it happens the other way round.
“Theoretically, the real estate market always follows in the steps of the wider economy, with a delay of around 18 months,” IVG’s corporate social responsibility and research head, Thomas Beyerle, told journalists at a news conference in Frankfurt. “With Spain it is likely that we will see a case of reverse psychology,” he added.
Having not read the IVG report, only the Reuters article, I get the feeling that IVG are talking about commercial property, perhaps even office property, talking as they do about rents in Barcelona, Madrid, and London’s West End.
IVG are a monster European property fund managing €22 billion of assets, so I assume they have done their homework, though I can’t say I agree with them if they are talking about the market in general.
Even so, I thought I should give this report a mention as a story with some optimism about Spain makes a refreshing change. I’d love to have more.