As September arrives, the new school year begins for the real estate sector amidst economic uncertainty expected in the coming months. Experts predict that inflation, rising interest rates, and the slow market recovery will shape transactional activity until 2024.
Gonzalo Ladrón de Guevara, Executive Director of Capital Markets at Savills, highlights the challenge of conveying the advantages of the Spanish real estate market to international capital compared to other countries. He also emphasizes that, unlike other types of assets, the real estate sector offers limited alternatives, making it an attractive market once interest rates start to decline again in 2024.
Consultancy firm JLL suggests that the new academic year will bring similar challenges seen earlier this year, such as volatility, inflation, and slow recovery, leading to a slowdown in investment activity. However, it is expected that transactional activity will pick up from next year, especially in the second half, when there is greater economic certainty and the interest rate hikes come to an end.
Paloma Relinque, Director of Capital Markets at CBRE Spain, highlights the high volatility of the environment and predicts a reactivation of investment towards the end of 2023 and the beginning of 2024. Alberto Díaz, Director of Capital Markets at Colliers, indicates that the most resilient sectors will be logistics and hotels due to their solid fundamentals and sustained occupancy.
Regarding the assets that will attract the most investor interest, Ivan Vaqué i Mas, CEO of FORCADELL, highlights the industrial and logistics area, as well as possibly residential properties, once sale prices stabilize. Finally, the importance of aspects such as technology, sustainability, and flexibility in the real estate sector is emphasized.
– CBRE Spain