The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

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. The Spanish market shows all the characteristics of that attrition between global investor demand and local supply demand.

In the recent past the Spanish economy has enjoyed reasonable growth, employment gains and a significant rise in consumer demand. Inevitably this has been reflected in strong demand in the housing sector, retail as well as logistics. Sound economic growth coupled with the weight of investment capital globally meant that Spanish real estate was also actively pursued by international real estate investors. The net result was that yields compressed further to around 4.5% in both Madrid and Barcelona office markets.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree