GRISpain’s secondary cities set to shine
At España GRI 2019, opportunities in residential real estate were keenly discussed by both global and local investors.
April 30, 2019Real Estate
España GRI 2019, held in Madrid on 10-11 April, attracted over 170 senior real estate executives, with discussions ranging across all asset classes in both Spain and Portugal. It was noted that global capital flows into Iberia remain strong and stable in 2019, although some investors are looking for capital preservation, preferring security over returns.
Residential - secondary cities enter frame
Investors remain very interested in residential assets, which dominated much of the proceedings at España GRI 2019, despite signs of a slight moderation in the sector’s growth. There is a notably high level of investor demand for alternative assets, especially student housing, with interest being shown by both foreign and local investors. The main focus has always been on Madrid and Barcelona, but investors are now looking at secondary cities such as Valencia, Granada, Pamplona, Seville and Salamanca. Residential prices between regions are expected to continue to be marked, with the highest prices to be found in Madrid and Barcelona as always.
Office revolution - space constraints and co-working
Demand for office space remains high in Barcelona and Madrid and investment is strong, even though there is an increasing lack of space in both cities. It was remarked that the 22@ office district in Barcelona, in particular, is experiencing increased demand and attracting the attention of investors and developers. Regarding co-working and flexible office space, participants agreed that while there is still uncertainty about the future size of this emerging sector, there is plenty of potential for growth.
Portugal - how hot is too hot?
Demand continues to outstrip supply in Portugal’s Real Estate market, driving strong price growth within diverse sectors and asset classes. Against this backdrop, participants discussed whether Portugal is the right place to invest for long-term returns, whether prices reflect the realities of Portugal, and indeed whether a bubble is being created. Amongst other observations, rapid growth in Portugal’s hospitality sector was noted, partly driven by a number of international brands entering the country.
Portugal’s real estate market will be discussed further at Portugal GRI 2019, a dedicated event being held on 21-22 May in Lisbon. Spain and Portugal’s real estate markets, and their place in Europe’s broader landscape, will be discussed again at Europe GRI 2019 in Paris on 11-12 September.
Residential - secondary cities enter frame
Investors remain very interested in residential assets, which dominated much of the proceedings at España GRI 2019, despite signs of a slight moderation in the sector’s growth. There is a notably high level of investor demand for alternative assets, especially student housing, with interest being shown by both foreign and local investors. The main focus has always been on Madrid and Barcelona, but investors are now looking at secondary cities such as Valencia, Granada, Pamplona, Seville and Salamanca. Residential prices between regions are expected to continue to be marked, with the highest prices to be found in Madrid and Barcelona as always.
Office revolution - space constraints and co-working
Demand for office space remains high in Barcelona and Madrid and investment is strong, even though there is an increasing lack of space in both cities. It was remarked that the 22@ office district in Barcelona, in particular, is experiencing increased demand and attracting the attention of investors and developers. Regarding co-working and flexible office space, participants agreed that while there is still uncertainty about the future size of this emerging sector, there is plenty of potential for growth.
Portugal - how hot is too hot?
Demand continues to outstrip supply in Portugal’s Real Estate market, driving strong price growth within diverse sectors and asset classes. Against this backdrop, participants discussed whether Portugal is the right place to invest for long-term returns, whether prices reflect the realities of Portugal, and indeed whether a bubble is being created. Amongst other observations, rapid growth in Portugal’s hospitality sector was noted, partly driven by a number of international brands entering the country.
Portugal’s real estate market will be discussed further at Portugal GRI 2019, a dedicated event being held on 21-22 May in Lisbon. Spain and Portugal’s real estate markets, and their place in Europe’s broader landscape, will be discussed again at Europe GRI 2019 in Paris on 11-12 September.
