The level of investment in Spanish property so far this year has almost overtaken the amount invested in the whole of 2016, reveals new research from the international property consultants JLL, reported by the Spanish daily El Mundo.
In the first nine months of the year €8.679 billion has been ploughed into Spanish real estate by both local and international investors, a figure that is close to the total for 2016 (€9,508 million). With three months of the year still to go, this year’s total comes to 91.46% of last year’s with just €811 million between the two. The data comes from JLL for direct investment in property in both commercial and residential markets.
The figures don’t include indirect investment or company transactions to date. However, they do reflect two of the trends marking the recovery of the Spanish property market: the rise in retail, and the renewed interest in residential property. Investment in both sectors by September is already on a par with of last year’s total.
In the retail sector, transactions worth highlighting include the sale of the San Miguel Market in Madrid for €70 million and Fuencarral market for €50 million. They’ve contributed to a total of €3,267 million in investment at the end of Q3, compared to €2,977 million for the whole of 2016.
JLL estimates that investment will total €4,000 million by the end of the year, and forecasts that this will “a record year in the sector due to the number and volume of sales that have taken place or are in the pipeline”.
Residential investment totals €1,188 million so far this year, against the €802 million for the whole of 2016. The figures underline the positive trend of other indicators such as property prices, which rose by 5.6% in Q2 year-on-year; sales up by 14.7% over the same period; and the number of mortgage approvals – up by 32.9% in the year to July.
“This all definitely reflects the idea that the market is beginning to build up speed after years in the shadows,” concludes the article at El Mundo.