Spain is the third most attractive European country for property investment in 2016, while Madrid is the continent’s second favourite city to invest in after London, according to the CBRE report “Global Investors Intentions.” The report was presented at Mipim, the world’s leading property fair.
Spain was the preferred choice for this year for 10.2% of investors surveyed, just below the UK (15.1%) and Germany (17%), and a more attractive choice than Holland or France. At the same time, Madrid has held on to its position from last year as the second most popular European city for investment, a preferred destination for 12.2% of those surveyed.
That said, there has been greater diversification amongst investment predictions for 2016 compared with previous years. The survey mentions 53 different cities, highlighting the growing interest for investing in central and eastern European real estate markets. Cities like Varsovia, Budapest, Prague and Bucharest are in the top 15. The CBRE report also shows the consolidation of investments in alternative products, already the choice of 56% of those surveyed. Real estate debt, in particular, is the segment with higher market penetration, attracting 30% of investors.
There has also been an increase in investor appetite for assets like students’ residences this year, as well as health and leisure centres. The recovery in consumer confidence and the rise in consumption in Europe seems to have rekindled enthusiasm for investing in the retail sector, which rose from 22% in 2015 to 27% this year. The segments which stand out are commercial centres and “high street.”
In spite of the increase in the retail sector, investors continue prefer the office sector, which is a priority for 37% of those surveyed. For its part, investment in the residential sector has grown most compared to a year earlier, more than doubling from 5% to 12%.
The report also highlights the increasing importance of the sustainability of the European property sector, in comparison with last year’s performance and with other regions across the globe.
