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.

All material subject to strictly enforced copyright laws. © 2020 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.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


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