Investment in office spaces, hotels and the retail sector in Spain was forecasted to reach 10-year highs by the end of 2018, due to a sustained average home value growth and the reactivation of employment and company creation within the sector.
According to BNP Paribas Real Estate's 'At a Glance T4 2018' report, the projections have exceeded expectations. The volume of direct investment in real estate (offices, hotels, retail and residential portfolios) reached a total of 3,700 million euros in the fourth quarter of 2018, a 60% rise to the same quarter in 2017. Investment in Spanish property assets, from both domestic and foreign investors, funds or REITs (Real Estate Investment Trusts) totalled 11.63 billion euros in 2018, a gross increase of 8% compared to the year before and the greatest volume and rise across the country for a decade.
The retail sector experienced a significant surge in 2018, representing 37% of the total volume invested (5.28 billion euros) - 23% more than in 2017. The residential property market represented 16% of the total investment, further confirming Spain as one of the most attractive markets for investing in a second home.
Investment interest in the logistics sector set a new annual record for the Spanish market according to the report, with an 11% share of the total volume. The figure is a 30% improvement on 2017, signalling the significance of the e-commerce boom in recent years lead by global online retailers like Amazon, who now own 12 warehouses in Spain and process thousands of daily home deliveries.
The report is a solid indicator of the Spanish property market's sustained health, which will continue to bolster the economy and further solidify Spain as an important commercial hub and a significant point of interest for private and corporate investors and finance and banking institutions.