In 2017, over €9 billion was transacted in the Spanish commercial property market, making it the best year in the last decade! International capital accounted for 63% of these transactions, with the US, UK and France leading the way. 2017 was the fourth consecutive year of growth for commercial property investment with an 8% year on year increase. These statistics show how the Spanish market is thriving and going into 2018 strong.
The rise in tourism has led to high investor interest in retail and hotels. According to Reuters, Spanish tourism has increased for fifth year straight, with tourism spending reaching a new record, rising 12.4% from 2016. This increase is boosting the economy and is expected to increase investor interest through 2018.
Retail sales were strong with a growth of 1.2% year on year. This growth has led to fashion retailers such as Victoria Secret and Quiz choosing the Spanish market within their expansion strategies
It is expected unemployment will continue to decrease until at least the year 2022 – giving increased spending power to the Spanish population – set to further increase retail sales.
Employment rising in 2017 resulted in a 10-year record in office take-up in Madrid and positive performance across other major Spanish cities. Cushman & Wakefield have reported that with vacancy rates increasing, the rental price is doing so simultaneously – there is increased demand and good economic momentum.
The above being said, current political uncertainty regarding the Catalan referendum is a concern and may slow the positive momentum the country is currently enjoying. However, statistics and research are showing confidence that the progressive trend will continue, even if the pace decreases.
The statistics being reported are strong. With tourism figures increasing, rent rising and the economy strengthening, investor interest is forecasted to be strong – 2018 is looking to be another buoyant year for the Spanish market.