With a total of €8.3 billion in investments in the first semester of 2024, the Southern European regions together recorded a 5% increase in volumes compared to the same period last year. Italy, Spain, and Portugal displayed varied market dynamics, however Hospitality emerged as the main sought after asset class in each market, followed by an increasingly attractive Retail sector and by Logistics and Living which continue to gain a strong interest but are constrained by a lack of supply in line with institutional standards and a gap between buyers and sellers’ expectations.
Spain Investment Market
Investment in Spain closed the first half of 2024 with a total volume above 4€Bn. This figure is at similar levels to the same period last year -only 15% lower, largely due to the first quarter of 2023, when interest rates had not yet reached such high levels.
The hospitality (1.7€Bn) and retail sectors (1.1€Bn) are driving investment in Spain, with record numbers thanks to the strength of their fundamentals. The living sector continues at a good pace and the logistics and office sector are struggling despite healthy fundamentals.
Specially in Madrid (300€Mn), important capital movements are being carried out towards changes of use of obsolete office buildings to be transformed into Living/Hotel.
