Tag Archives: madrid
Wealthy buyers increasingly attracted to Barcelona real estate market
Barcelona is attracting more wealthy real estate investors thanks to a reputation as a luxury lifestyle destination, it is claimed. Rich property buyers are looking to expand their portfolios beyond traditional property hotspots such as New York, Paris and London and are increasingly spending sums of €10 million and above. Agents Luca Fox International Properties said that affluent buyers are attracted by the lifestyle which has seen Barcelona transform itself into a prosperous, global city since the Olympic Games in 1992. The city is also regarded as a leading gastronomic hub with 23 Michelin starred restaurants, drawing in entrepreneurs and businessmen from all over the world, as well as some big name celebrities including Rolling Stones guitarist Ronnie Wood, who bought a property in 2013. Singer Shakira and FC Barcelona footballer Gerard Pique are currently building a home in the city’s outskirts, providing an additional glamorous vibe to this already buzzing coastal city and last year saw the launch of Barcelona’s superyacht marina, ideally positioned in the heart of the city and which regularly welcomes Roman Abramovich’s fleet of yachts. Barcelona’s fashion brands such as Desigual and Zazo and Brull have encouraged major international chains to make the city a key part of their strategy for flagship store openings in Southern Europe. There is also a growing number of tourists visiting the city. ‘Barcelona is a very seductive city. Progressive, creative and constantly re-inventing itself, it has always attracted a discerning, creative crowd but now we are seeing new wave of very wealthy investors, who recognize the city’s global appeal as well as its growth potential,’ said Lucas Fox co-founder Alexander Vaughan . ‘A number of high profile industry leaders, businessmen and personalities such as Ronnie Wood have chosen to buy through Lucas Fox in recent years and, as Barcelona continues to establish itself as one of the world’s leading cities, we believe this trend is set to continue,’ he added. Even at the lower end of the market buyers are spending more, according to a survey carried out at the recent Madrid International Property Show (SIMA). ‘Compared to previous years they have a bigger budget and foresee fewer difficulties in financing their purchase,’ said Eloy Bohua, managing director of Planner, the show’s organisers. The survey found that compared to the previous show a year ago the percentage of people looking for property at the cheapest end of the scale up to €150,000 has dropped from 36.5% to 22.1%. At the other end, those looking for property priced at over €300,000 have gone from 12.8% to 21.6% while 29% are searching for property between €150,000 and €210,000, and 28.3% between €210,000 and €300,000. Continue reading
Spain’s commercial property market outlook improving
There are already signs that Spain’s residential property market is recovering and now a new report shows that its commercial markets are also growing. International real estate advisor Savills is predicting CBD office yields in Madrid will move from 5% to 4% and 4.5% for super prime properties, as a lack of good quality stock puts pressure on pricing. This follows strong investment volumes in Spain’s office market during 2014 in which €2.8 billion was transacted, triple the €990 million total in 2013. The firm states that in terms of location, 60% of investment was made in Madrid, 30% in Barcelona and the remaining 10% in other locations throughout the country. Savills reports that the growing amount of demand and the lack of supply continues to push achievable yields down in the CBD and the main business areas. Prime yields at the end of the year moved in 100 basis points, secondary areas 75 basis points and out of town locations saw a change of 50 basis points. ‘Investors preference for Spain’s more mature market of Madrid is undeniable, accounting for a total of €1.65 billion. But the lack of good quality stock is putting pressure on yields,’ said Luis Espadas, director of investment at Savills Spain. ‘The yield in the CBD stands at 5%, and for super prime properties could achieve between 4% and 4.5%,’ he added. The firm finds that SOCIMI, the Spanish equivalent of REIT’s, were very active in the office market, with 27% of their total capital being invested in commercial property and 76% of that total in offices. ‘Whilst the SOCIMI and domestic investors were very active in 2014 this year we predict we will see large Latin American investors capitalizing on opportunities in the Spanish office market,’ said Pablo Pavia, director of investment at Savills Spain. The Savills report also states that take up in the office market at the end of 2014 was 382,000 square meters, some 2.5% less than the previous year. However, 2013 take up was heavily distorted by the Vodafone letting of 50,000 square meters, and discounting that letting take-up grew 12% on the previous year. Additionally, it points out that there are a number of large space requirements currently in the market, several of which are seeking space exceeding 5,000 square meters. ‘Thanks to signs of a recovery in Spain some occupiers are more willing to sign pre-lease agreements on speculative space in the CBD which in term is prompting major market players to carry out speculative developments. The increase in take up activity will cause rents in the best properties to continue to rise through 2015,’ said Ana Zavala, director of office agency at Savills. According to Savills rents in the CBD are currently in excess of €25.50 per square meter and could reach €28 per square meter in 2015 given continued strong take up. The firm also predicts landlord will continue to undertake refurbishment projects in 2015, with three quarters of… Continue reading
Recovering European real estate markets set to be magnet for investors in 2015
Berlin is expected to be the top European real estate investment market in 2015, followed by Dublin, Madrid, Hamburg and Athens. Recovering markets like Dublin, Madrid and Athens which were hit by the economic downturn are regarded as being fertile grounds for property investors, according to the latest annual emerging trends report from the Urban Land Institute and PwC. The report points out that competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets. It highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid, up 16 position, Athens up 23 positions, Birmingham up 14 positions, Amsterdam up 17 positions and Lisbon up 17 positions. Berlin has moved up the rankings from last year, knocking Munich off the top spot for investment prospects in 2015. Historically dominated by domestic buyers, Berlin’s investment climate has now changed as international investors pour capital into the city, the report says. The city is described as a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector. Ranked again in second place, Dublin has had another strong year in which investors have jostled for opportunities. There was strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak. Madrid has shot up the rankings for investment prospects and many overseas investors are targeting the city. But whether Spain offers solid, long term business prospects is hotly debated among opportunistic investors, the report points out. Hamburg has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals, the report explains. International investors are flooding into Hamburg, accounting for half of the €2.4 billion of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving. Athens is the biggest mover on the list this year, up 23 places to number five. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention, the report says. Although Europe’s hardest hit economy remains fragile, a few trail blazing investors are moving in to take advantage of pre-rebound opportunities. The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. Some 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead… Continue reading
