Author: Ramón Ferrando

Source: El Periódico

Consultants agree that the first part of the year will be marked by a calm analysis of the market before investors make major purchasing decisions (a phenomenon known in the real estate sector as “wait and see”). Alejandro Campoy, General Director of Savills Spain, explains that the doubts of investors from the last months of 2022 persist at the start of the year.

“In investment, the first months will still feel the effect of uncertainty, but we will see the closing of deals that have been postponed from 2022 and some new ones that will continue to occur, usually off-market operations (transactions where the investor seeks opportunities outside the listings on the market). For the second half of the year, we expect to return to normal with new transactions coming to market. We will still see some price adjustments, especially in some sectors. It should be noted that the type of owners and sellers is much more institutional and professional, so the adjustment will be faster than what we saw in the previous cycle. Nevertheless, Spain’s positioning in the European market is very good due to the structural need for new products in key segments where the market has only recently begun to create this type of asset, and the macro perspectives compared to other markets. Rents remain stable, and in some markets, such as prime office space in Madrid or the logistics sector, they are slightly on the rise.”

Jesús Silva, General Director of Cushman & Wakefield in Spain, highlights the ups and downs the real estate market has suffered in the last year and is convinced of the recovery of investor confidence as 2023 progresses. “After overcoming the pandemic, we were all very excited about the evolution of the market. However, the war in Ukraine came, and uncontrolled inflation led to rising rates. This caused a slowdown in real estate activity, and the market adjusted from September onwards due to the rise in interest rates. In the end, in the coming months, we are headed for a price adjustment of real estate assets. Until this happens, there will be a certain paralysis of investors who are in a wait-and-see position,” assures Silva.

The Cushman executive is convinced that the second half of the year will be better than the first. “We do not believe that the investment level of 2022 will be reached, but it will improve as the months go by due to the price adjustment. That adjustment will provoke greater interest from investors,” insists Jesús Silva.