Real estate consulting company CBRE has presented its New Real Estate Horizon report, which highlights that the logistics and residential sectors have become leaders in 2021.
Logistics
With asset valuations rising by more than 23.21% in Madrid and 18.87% in Barcelona compared to 2019, this sector has performed the best. For its part, the value of assets in cities such as Valencia and Zaragoza reflected more moderate growth – 5% and 8.37%, respectively. Nevertheless, the profitability in the country continues to decline, and at the end of the year a yield of about 4% is expected.
Residential sector
Many people prefer to rent rather than buy real estate. It is expected that «construction for rent» will attract the largest volume of investments at the end of the year, and may end the quarter with an annual revaluation of almost 6%.
«In terms of revenue, we expect that rents will not undergo significant adjustments and the situation will represent a stable trend, although the CPI in 2021 will have a positive impact on the renewal of contractual rents», said Fernando Fuente, senior director of Valuation and Advisory Services at CBRE in Spain.
Retail trade
The sector suffered a lot at the beginning of 2021. Due to the restrictions imposed last year and the subsequent closure of stores, the attendance of shopping centers and retail parks decreased by 40%.
During the year, the indicators improved moderately for the regional and secondary sectors, while the cost adjustment may exceed -5.5% by the end of the year. Supermarkets have shown the best results thanks to major deals, such as the sale of 27 Mercadona stores to MDSR.
Hotels
This is another «victim» of the pandemic, which led to a 12% of drop in hotel prices during 2020. As for investments, Fuente notes that Spain is one of the busiest countries in Europe, thanks to the gradual growth of tourism and the corporate presence of companies in major cities. In the resort hotels sector, asset valuations are expected to improve by about 8% compared to the same period last year, and in the urban hotels sector by 7%.