How did 2022 end for the real estate Spain ?

The year 2022 was a great year for the real estate sector in Spain. Because the investment in real estate has reached a substantial increase in its numbers, according to the reports of the different real estate consultants that can be found in the market. If you want to know the details of how the year ended in the real estate Spain, I invite you to stay with us and discover every detail about it, Let’s get to it!

What was the scope of the Commercial Real Estate area?

Real estate investments in Spain grew a lot in 2022, reaching 10.8 billion euros, according to the international real estate consultancy JLL in its report on the sector. It makes an analysis and advances the data of the third quarter of the year and all that has been realized so far.

Topping the list of investments we find the Commercial Real Estate area, which generated a sum of 7.5 billion euros, representing an increase of 80% compared to 2021. Subsequent to this, the increase in demand for the sale and purchase of homes stands out, which reached 174,075 transactions for the first half of the year, 10% more than in 2021.

To achieve the figure mentioned by the consulting firm JLL, its report estimated an investment of 2 billion euros in real estate assets such as offices, logistics and retail for the months between July and September. This amount is 49% higher than what was stipulated for the same period last year.

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The majority of investments made in Spain were of foreign origin.

During 2022, the investment area stood out for its capacity to cover different types of retail such as shopping centers, restaurants, offices, medical centers and other spaces.

These in turn can be distributed into two major segments: logistics and retail. In 2022, this area generated millions of euros in the real estate sector in Spain, much of it thanks to foreign investments, which account for 97% of the capital.

• The logistics segment valued transactions in the third quarter at €610 million. Which is equivalent to an increase of 113% from the same period in 2021, and 76% higher than in the second quarter, reaching €2 billion, 90% more than last year. This is thanks to the fact that 70% of the operations were achieved through investment funds and 97% of the capital raised from abroad. 
• The assets of the retail segment reached an investment of around 550 million euros in the third quarter. In addition, the accumulated total for the whole year reached 3,690 million euros. It achieved a 427% increase in its numbers over the previous year, an achievement that is due to the purchase of the Merlin branch portfolio by BBVA. 
• As part of Retail we can find commercial assets or High Street assets, which have attracted 820 million euros. Of these, 350 million were invested in shopping centers, 322 million in supermarkets and 280 million in retail parks. In addition, the acquisition of the Merlin portfolio acquired by BBVA must be added, giving a total of 2,807 million euros. 2,807 million, making this type of asset a highlight in this segment.

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How was the evolution of the home sales and purchase market and the rental market?

The year 2022 was a year that had all the necessary elements to be an excellent year for these real estate markets, with more than 600,000 homes sold, a number that surpassed previous years in a quite impressive way. 

Although the closing of the year left very positive numbers, we could observe a decrease in the growth pattern in the numbers, forecasting a more moderate 2023 in this real estate sector.

For this new year, the real estate market will be affected by the financing plans, causing a drop in the number of mortgage transactions. 

However, it will still be possible to see dynamic movement in the shift from variable to fixed mortgages. It will also be possible to see the supply of available homes stabilize, as well as to witness how prices will remain in a similar range to those of 2022.

On the other hand, for the rental market we find that, as last year, there will be a shortage of available supply. This is mainly due to the insecurity that owners have when it comes to renting their property. 

Many of them are at a crossroads between the legal measures taken by the regional governments and the central government.

This leads us to believe that this trend will not change in the times to come, generating a substantial increase in prices and causing the collective to have less access to this particular market.

What can we expect from the real estate market in 2022?

As many reports show, the real estate Spain sector, during 2022, achieved the success expected by the projections and will maintain its dynamism for next year in real estate investments.

Investment in office properties had a positive impact on the real estate market in Barcelona and Madrid, with transactions accumulating 25% more than in previous years. 

Also, there was an increase in the residential segment, where real estate sales and purchases moved a total of 3.3 billion Euros. This shows that the real estate Spain is booming and that growth is substantial compared to previous years. 

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If you want to know more about the Spanish real estate market, please contact our professionals at TAS Consultancy at tasconsultoria@tas-sl.es and they will provide you with the support and advice you need to enter it.