Spanish real estate equities: Get a grip

Joe Valente, head of research, DTZ.

Soft but bumpy landing

This year will be a transitional period for real estate markets in Europe. It will be the year when the nature of the real estate market as a global asset class, dependent and vulnerable to the ebbs and flows of local supply demand, will come centre stage. Over the course of the past five years real estate value has been determined largely by yield compression driven by international capital. Going forward the driver of value in real estate shifts towards rental growth, which is clearly a function of local supply demand.

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