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Investment Market Update

Spain : Strongest first quarter since 2010 - Q1 2014

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A research produced by DTZ

This first quarter has recorded the highest investment volume for a first quarter since 2010 with a total of approximately €927 million.

Investment in retail assets dominated the other sectors, attracting almost 56% of total investment in the first quarter. This is a continuing trend from 2013, where retail investment jumped above 40% of total investment for the first time since 1999.

Over the past year, domestic vendors have represented over 87% of the divestments in commercial property in Spain. In the first quarter however, transactions featuring domestic vendors accounted for less than the half of the total investment volume. This is mostly due to the size of divestments made by some foreign vendors.

In the first quarter of 2014, we continue to see higher levels of foreign investment with 68% of total investment, although falling slightly from its peak in the final quarter of 2013.

Yields for prime retail properties fell slightly to 5.7% from 5.75% in the previous quarter. Yields on Industrial properties in Barcelona and Madrid have stayed at 8.25%, while office yields remain at 6.20% in Barcelona and 6% in Madrid

Source : DTZ (Groupe UGL)

Keywords : DTZ