Real Estate investment in Spain
One of the sectors that are betting more foreign investors is the real estate sector. “After an extreme adjustment in the residential property development sector in both production (-95%), and sales prices (-45%), operators and employment in the sector has bottomed out and after a point is already turning in the path of growth.
Investors have been positioned in Spain through the purchase. In 2015, transactions ‘commercial real estate’ were around 8,000 million euros. These figures represent four times the low of 2.000 million achieved in 2012, and account for about two-thirds of the maximum of 2007. The market dynamism ‘commercial real estate’ has generated a compression of yields, ie rising prices, a gradual market recovery funding and confidence in rising rents.
This situation is a consequence of the changes that have taken place in the last 18 months, both the demand and supply, has created new business opportunities for investors in the sector are trying to take advantage, because during the crisis assets have went to unnatural holders and desire to sell.
from the point of view of the residential property development, we are looking at several factors that are contributing to the revitalization of the sector, including:
– Phasing out the ‘stock’.
– Minimum output indicators.
– Progressive increase in home sales.
– Average price increase in certain areas.
These business opportunities have again put on the table the interest to buy land, which is now seeing an increase in price significantly in the main sources of demand for housing. “The expected return, with the purchase of land and the subsequent promotion, has attracted many foreign investors to the sector in anticipation of the opportunity and becoming protagonists present and future of the new series”
indicators point to the start of an upward cycle, the fact remains that the volume of current production (housing starts) is low, and although the number of transactions in 2015 will have surpassed the 400,000 homes (new and second hand)