Spanish real estate is a very attractive buy-to-invest option. Due to strong fundamental indicators, the sector is healthy and stable in the face of a possible crisis or uncertainty that could be caused by inflation or growing interest rates. However, various experts in the sector indicate the risk that needs to be taken into account and the thing that can affect its effectiveness: legal uncertainty.
"Spain continues to be a magnet for international investors," says Antonio Sanchez Recio, PwC partner responsible for real estate. He points out that, despite caution, "investors see real estate as a safe haven." Among the factors influencing the liquidity flow to the Spanish market, Sanchez notes that "this is a market with more attractive and more affordable prices compared to other European countries. And this is a territory far from the war, so tourism is back in the spotlight".
Profitability
Today, one of the issues facing the sector is the evolution of returns. Monetary policy was soft in the past decade, "but we face a decade where it will be strict," Gelado explains, adding that "in the end, financing costs are increasing and this inevitably leads to a slight growth in return," but in this case, "we don't expect it to be too long."
Sustainable development
Sustainability is essential in the real estate sector. In the last few years, Colonial's Chief Investment Officer has noted interesting developments connected to various factors: "If we achieve more efficient buildings with energy savings, our customers can pay higher prices in the market. In addition, it makes the assets’ liquidity higher. On the other hand, regarding investments, all big funds take sustainability into account. In terms of access to market finance, we see some dynamics. Doors will be closed to those who cannot provide consistent sustainability parameters in the near future."