The reports on real estate investment in Spain have just been published and during the first three months of the year and, according to the numbers, the Covid-19 has had no effect on the transaction figures in the first quarter and, before the declaration of the state of alarm, It has been a very good period.
If we go into more detail, we see that the estimated volume of tertiary investment, that is, retail, logistics and hotels, reached 1.900 million. According to specialists, the year started very well, but due to the coronavirus crisis, the activity has stopped.
If we focus on the real estate sector it is a very profitable alternative for investors and, if the Covid-19 crisis does not continue, the investment will reflect an improvement. In any case, the measures approved by the Spanish government, especially focused on small homeowners, may temporarily alienate large investors.
According to Oriol Molas, CEO of Orience, these are the scenarios that can occur after the current crisis:
Real estate investment in Spain, the price of new housing rises
According to the latest figures, during the first three months of the year, the average price of new and used housing stood at € 1,383, 2.5% more than the same period of the previous year.
More specifically, Madrid registered an increase of 2.3% compared to the same quarter of the previous year. In contrast, Catalonia recorded a 1.6% drop in the average price of housing.
By autonomous community, Asturias (-2%), Castilla y León (-1.9% and Galicia (-1.4%) were the only three regions that presented lower prices in the first quarter than those of a year earlier.
On the other hand, the highest increases in the prices of new and used housing were recorded in Navarra (+ 12%), La Rioja (+ 6.7%), the Balearic Islands (+ 6.2%) and Cantabria (+5, 1%).
Real estate investment in Spain 2021
Real estate investment in 2021 has shown a completely different scenario from the previous year. Investment optimism has been reflected in the figures, especially in areas such as logistics and rental residential.
In the last 12 months in Spain there has been a 30% growth in investment compared to the previous year, approaching 11,800 million euros at the end of the year.
Information sources: Expansión, El Economista and Cinco Días