Spain Ranks Third For Investment in Europe

Madrid remains popular amongst investors
Madrid remains popular amongst investors

Further to my previous article regarding foreign investment in Spain, research released by the CBRE has placed Spain as the third choice for European investment in real-estate.

According to the ‘Global Investors Intentions Survey 2016’, 10.2% of respondents suggested that Spain would be their third choice for European investment during 2016. Only Germany and the UK came ahead with 17% and 15.1% respectively, beating other once popular European countries like France and the Netherlands.

When looking at cities within Europe, Madrid maintained its position as the second most attractive city on the continent for real-estate investment, chosen by 12.2% of respondents, just behind London, but ahead of Paris, Berlin and Warsaw.

Diversification is the word of 2016 according to the report with more cities getting a mention than in similar research conducted in previous years. The top 15 saw first time entries for cities including Budapest, Prague and Bucharest.

Product Choice

While 30% of investors specified the housing market as their first product choice, other markets have also made gains with student residences, health centres and leisure facilities all being noted as worthy of investment this year.

The retail sector also appears to be making a recovery thanks to rising consumer confidence and increased consumption. The sector accounted for 22% of investment in 2015 with a predicted rise to 27% in 2016.

Despite this, office property continues to hold high interest for investors with 37% of respondents stating they have or would invest in business premises.

Backing up thoughts that residential property is back on investors’ shopping lists is a 7% increase in residential investment making it the fastest growing sector with 12% of respondents putting their money into homes.

Of the respondents 82% stated that their investment activity during 2016 will be the same or greater than in the previous year.

Rest of the World

North America was the global first choice with 48% saying they had or would invest in the USA in 2016, while 26% named Europe as their first choice. Other once popular regions didn’t fare so well with Asia Pacific seeing reduced interest partly due to concerns about the China slowdown and a “murky outlook” for other emerging markets in the region.

Only 4% suggested Central and South America as their investment choice while 1% chose Africa for their money. Central & Eastern Europe also failed to make an impression attracting only 8% of the reports respondents.

 

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