Investment in Spanish office space will exceed €2,000 million in 2014, a record figure, and three times higher than in 2013, reports the Spanish daily El Mundo. This is a positive sign for the overall Spanish property market.
Almost two thirds (64 per cent) of this investment come from foreign investors according to figures from JLL, a property consultancy.
By nationality, however, the Spanish are the biggest investors, making up 36 per cent of the market, followed by British investors on 17 per cent, the Swiss (14 per cent), Andorran (10 per cent), and Mexican (9 per cent).
In terms of deals, the largest purchase of office property was a portfolio of buildings belonging to the Catalan regional government sold to Zurich Re for €201 million. The next biggest deal was the acquisition of the Agbar Tower in Barcelona by Emin Capital for €150 million, and of IBM’s headquarters in Madrid for €130 million.
Foreign investors were even more dominant in the commercial real estate market (shopping centres and shop premises), reaching 68 per cent of the total €2,700 million spent on these assets throughout the year.
Once again, Spanish investors were the biggest on 32 per cent of the total, followed closely by the US with 31 per cent and France with 17.7 per cent.
In the retail sector, the largest purchase completed this year was the acquisition of a portfolio of 63 shopping centres belonging to Klépierre by Carrefour Property for €400 million. In second place came the purchase of Marineda City shopping centre in A Coruña by Socimi Merlin Properties for €260 million, and Islazul shopping centre in Madrid by the investment fund TIAA Henderson in a transaction valued at €230 million.
Optimism and deals in the commercial and office markets bodes well for the Spanish economy, and could in due course have a positive impact on the residential market.