The positive data from last year for real estate already predicted an even better 2022. And, for now, this is confirmed by the figures from BNP Paribas Real Estate: in the first half of the year , 8,200 million euros were invested in the real estate market , which points to a historic investment volume, with 4,580 million in the real estate market alone. second quarter.
The French bank’s real estate consultant points out in its At A Glance T2022 report that investment activity has been very dynamic these months despite the uncertainties in the international context. Added to the war in Ukraine are inflation and the rise in interest rates , which could draw a less favorable scenario for real estate. However, the figures show that the second quarter has followed the trail of optimism of 2021.
In BNP they point out that the investment market “is in a unique situation”, due to the current diversity of opportunities. The existence of many open and pending negotiation processes this year suggests record numbers in 2022 as a whole, above the peak of 2019. It must be remembered that in 2021 real estate investment in Spain grew by more than 30%.
The volume of real estate investment in this second quarter amounts, as we said, to 4,580 million euros, driven by the repurchase by BBVA of 659 bank branches . The figure represents an advance of 24% compared to the first quarter and 55% if we compare it with the same period of the previous year. This is the largest volume of real estate investment in the entire historical series , according to BNP.
The ‘retail’ sector, protagonist
The retail sector registered 55% of the total investment between April and June, where supermarkets and hypermarkets have shone . By typology, high street stores , which account for 50% of retail movements, and shopping malls, which are once again the focus of investors, are once again in the spotlight.
The living sector is also experiencing a good moment, with the residential -private rented sector and build to rent- leading the way. It concentrated 16% of the investments in the second quarter, thanks, above all, to the increase in demand. In the first six months of 2022, total residential investment reached 1,710 million euros , 92% more than a year ago.
Hotels and offices, on the rise
The offices also strengthen their return, with 1,300 million euros in transactions between January and June, 31% more. In contrast to 2021, Madrid has become the most dynamic market so far this year.
The recovery of the tourism sector has also been reflected in hotel investment, which grew by 125% annually in the first half. As indicated by BNP, the investments have been distributed mainly between Madrid, Mallorca, Catalonia and Andalusia.
As for alternative assets, these have moved a total of 257 million euros, which maintain an investment figure similar to that of 2021 and are divided between student residences (40% of the total), nursing homes (40%) and clinics, laboratories and medical centers (20%). The investments have been distributed eminently between Madrid, Barcelona and Seville.
With a volume of 165 million euros, the logistics sector is the only one that seems to have suffered in this period. BNP attributes this to the failure to close large operations in the sector.
The profile of the investor in the Spanish market
According to the consultant, the large institutional funds are the most active, since they represent 50% of the operations registered in the first semester. Banks and insurance companies also stand out. Thus, in recent months the movements of Greystar have stood out -with the acquisition of 2,500 build-to-rent homes-, Brookfield -purchase of the Princess Triangle- and MDSR with the purchase of the Carrefour portfolio.
Almost half of the operations have been carried out by national investors. Internationally, it is the Germans, with 18% of the total, who have invested the most capital in the Spanish real estate market -the living sector is their preferred investment asset-, followed by the French and North Americans, who between them reach a 30% of the market share in the first half of the year.
Today, thanks to collaborative investment and technology, the profile of the investor is also open to ordinary citizens. Anyone can participate in the financing of a real estate project from small amounts of money. The vehicle for this is the real estate crowdfunding or participatory financing platforms, such as Urbanitae where, from 500 euros, we can rub shoulders with the large funds and benefit, just like them, from interesting returns. A real opportunity considering that, in the global context, real estate continues to show great strength and reaffirms its position as a haven investment.