Deutsche Hypo study examines development of specific asset classes
Spain’s positive economic development is providing the local real estate market with ongoing tailwind. A recent study carried out by Deutsche Hypo comes to the conclusion that the markets for office, retail, hotel and logistics real estate are on a growth trajectory and that they will also be maintaining this growth.
“Spain’s appeal, especially in the major cities of Madrid and Barcelona, is being reflected in high demand for prime commercial real estate. The supply of commercial real estate is becoming increasingly scarce, which is leading to an increase in peak rents. I expect a further increase in take-up,” explains Sabine Barthauer, Member of the Board of Managing Directors of Deutsche Hypo. “Madrid and Barcelona are and will remain Spain’s top locations in all asset classes.”
Deutsche Hypo’s study shows that increasing demand has reduced vacancy rates in Madrid and Barcelona. At the same time, both office markets are currently being defined by an increasing shortage of prime properties. There is high demand from investors for retail real estate in the two major cities as well. The logistics real estate markets in Barcelona and Madrid are likewise experiencing an upwards trend. Demand for logistics real estate is steadily increasing, which means there is also a shortage of prime locations here.
As a result of record tourist numbers, the signs in the hotel real estate market are also pointing to growth. According to Deutsche Hypo’s study, the performance of hotel markets in Madrid and Barcelona has steadily improved in recent years. Madrid will feel the positive effects of the increase in business travel activity as a result of the economic recovery. Barcelona, on the other hand, is and will remain a tourist magnet.