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25|08|2016

Spain increases its attractiveness for real estate investors

The study entitled

Real Estate, Hospitality & Construction Capital Confidence Barometer

, compiled by the firm EY, rates Spain as the ninth most attractive country for executives in the real estate and construction sectors planning to make an investment in the coming months.

According to EY's analysts, this improvement comes despite the flagging optimism about the course of the world economy owing to the uncertainties at the international level.

According to Francisco Fernández Romero, head of EY's construction, real estate, hotel and transport sector for Spain, Italy and Portugal, “the numerous uncertainties in the international sphere have reduced the outlook for the sector from optimistic to stable at the global level with regard to the course of the economy and for important factors such as business results and access to credit. However, Spain has succeeded in climbing the ranking to become one of the ten most attractive investment destinations for executives in the real estate and construction sector”.

Javier García Seijas, responsible for infrastructures and project finance for EY España, and head of the real estate and transport sector in the transactions area at EY in the Mediterranean region, says: “the volume of transactions in the real estate and infrastructure sector continues to grow, and the main funds and investors are looking for long-term returns on mature assets”.

According to the data obtained for this study, the expectation of improvements in the global economy among global executives in the sector has fallen from 80% six months ago to 36% today.

Whereas six months ago 50% of those surveyed expected to make some acquisition in the following year, now only 37% say they intend to do so, although 48% say they have at least three transactions in their pipeline (six months ago the figure was 57%).

In terms of the outlook for prices for real estate assets, 29% of the executives (as opposed to 4% in the previous six-month period) believe prices will fall, whereas 19% forecast an increase. 49% expect the difference in the assessment of these assets by buyers and sellers to widen in the next twelve months.

Changes in the 20 most attractive countries

The ranking is once again headed by the United States, but reveals numerous variations in the top twenty positions: United Kingdom jumps from fourth to second place, India goes from eighth to third place, and China slips from second to fourth place.

Also ahead of Spain, Canada stays in fifth place and Germany in seventh, while the United Arab Emirates takes sixth place, replacing Argentina which disappears from the list along with Indonesia (previously in tenth place), Egypt, Italy, Qatar and the Philippines. The lowest positions in the top 20 are occupied by Brazil, Holland, South Africa, Switzerland and Malaysia.

Sweden also appears on the list –at number eight in the ranking– and is the only country that has seen a greater growth in its attractiveness than Spain.

Last updated: 05|09|2016

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