Real estate investment in the third quarter of this year increased 40% compared to the figures for 2016
The volume of real estate investment (residential, office, retail, logistics and hotels) closed the third quarter of the year at around 8.7 billion euros, an increase of 40% over the same period of the previous year, according to data of the international real estate consultancy JLL. In addition, this figure already represents 91% of all investment in 2016, which stood at 9,564 million euros
“The market is going through an excellent time and it is foreseeable that all business segments will improve their investment volume compared to 2016 and we can achieve a historic investment at the end of the year,” explains Borja Ortega, director of Capital Markets at JLL.
By segments, JLL’s forecasts point to the retail market as the one with the largest investment volume in these nine months, reaching 3,267 million euros, 28% more than in the same period of 2016, and could close the year in around 4,000 million euros, a historical fact due to the number and volume of operations closed or in the process of closing. In this third quarter, we can highlight operations such as the sale of the San Miguel Market for 70 million, the Fuencarral Market for 50 million or Gran Via 18 for 44 million.
Behind are the investment volumes of Offices and Hotels, which closed the quarter with an accumulated investment of 1,700 and 1,900 million euros, respectively. In the case of offices, these 1.7 billion are divided between the nearly 1 billion invested in Madrid and the more than 700 million in Barcelona. In the case of Madrid, most of the transactions correspond to core and core + assets and the average price of operations was 41 million euros. According to JLL estimates, investment in offices in Madrid will close the year around 2,000 million, in line with what was signed in 2016. Meanwhile, in Barcelona highlighted the growth of land purchase operations for office buildings by national and international funds in the 22 @. The average transaction price stood at 68 million and the year is expected to close with an investment of about 1,100 million euros, a figure that would double the investment of the previous year.
The logistics sector has accumulated an investment of 578 million euros, and is expected to close the year around 1 billion, 20% more than the volume of all 2016, due to the number of operations in progress or in the process of closing . As JLL explains, “the main trend of 2017 is the lack of product and opportunities for sale, which causes industrial land to return to the forefront and investors enter the sector not only by buying projects , but even directly buying soil, provided it is well located.