Simultaneously with the decline in the incidence of COVID-19 in Spain, the Spanish real estate sector strengthened its positive trend for the third consecutive month and showed a recovery in April due to the positive dynamics of the economy and mobility indicators. This is reflected in the CBRE Recovery Monitor, a super-indicator prepared by the Data Science and Research departments of CBRE Spain, which measures the recovery dynamics of the real estate sector r.
Based on the data updated as of April 30, this parameter shows +40 in April, which puts it at the highest level seen since the beginning of the pandemic. Thus, this parameter shows an improvement over the previous indicator, which was +40 in March, +15 in February and -5 in January.
"The significant progress in implementing vaccination plans and the low incidence rate in our country have had a positive impact on the recovery of the real estate sector, consolidating a positive trend for the third consecutive month, according to our CBRE Recovery Monitor indicator," explains Sergi Esteban, Senior Data Analyst in the Data Science Department of CBRE Spain. "Looking ahead to the second half of the year, the recovery is expected to continue in a positive direction as mobility restrictions ease and economic and significant improvement in economic and market indicators," he adds.
Key variables
Miriam Goicoechea, Assistant director of Research at CBRE in Spain, explains that "demand indicators for both industrial and office assets registered an upward trend in April, exceeding pre-pandemic levels."
In terms of macroeconomic indicators, "we saw improvements in the social security coverage indicator, consumer confidence, and the volatility index (VIX). The composite PMI index, which is closely related to the service sector, stands out, reaching 55.2, above the limit of 50, which was recorded only in the pre-COVID period," Goikoechea explained.
In terms of mobility indicators, the demand for hotels, as well as the number of passengers and flights, increased during the Easter period, and the expected trend for the coming months after the end of the isolation period is very positive.