The consultancy Price Waterhouse Coopers (PWC) together with the Urband Land Institute has prepared a report on the trends that the real estate market has in Europe during this 2018. In this report, Madrid has been placed in the top 5 of the European capitals with more attractive to invest.
It is estimated that more than half of the agents surveyed by real estate companies, financial entities, investors and funds, want to invest in residences for the elderly, students or in the logistics sector (the sector that shows more growth and development) .
Logistics, a sector on the rise
The partner responsible for Real Estate PWC (Rafael Bou) argues that the cause of the interest generated by investing in these sectors, is based on the history of growth they have had and also the great digital transformation that these sectors are experiencing. Since in the case of logistics, it has completely transformed the digital platforms that existed up to that moment.
As for the residential market, especially that which focuses on rents, it remains attractive to Europeans (ranking third in the report we are discussing). The truth is that in the real estate sector, the precautionary protocol is being followed, since investors want to see profitability. At present, investors assume greater risks to achieve a higher percentage of profitability.
Are things changing in the logistics sector?
All these data, make us reflect on the future of Real Estate in Spain. One of the great risks is to fall into the same failures that caused the crisis of 2007, so that at present, extra precautions are taken.
On the other hand, Wolfgang Beck, CEO of Testa Residencial, expresses much more optimistic opinions. Comparing Spain with other European countries and commenting that prices are still well below the prices reached in 2007. Likewise, he argues that it is the perfect time for foreign investors to invest in Spain.
Leticia Fusi, current investment director of Iberian Real Estate in Castlelake, expresses an opinion very similar to the one exposed by Wolfgang Beck. And is that, although some alarms have been expressed, has not yet reached the level of prices or transactions that were taking place in the pre-crisis era. At present, Spain has a great attraction for foreign investors. It is thought that the most attractive places to invest are in Germany and Spain.
Caution in investments
Finally, Juan Barba (the parter-managing of Meridia Capital), puts the alarm in the exogenous factors, since these can affect Spain. These are:
- Interest rates
- Risk premium.
- Among others.
In short, it could be said that interest rates are not going to experience a big rise.