More than 60% of overseas real estate investment will be heading to the EMEA region in 2022. This is one of the main conclusions drawn from the European Outlook 2022 report, prepared by real estate consultancy firm Knight Frank, who forecasts that it will be a record year for global cross-border real estate investment. Moreover, if Europe, the Middle East and Africa have become the focus for investors, the main source will be the US, which will provide about half of the capital to reach real estate markets this year.

Within the EMEA region, Spain will be one of the main recipients of cross-border real estate investment during what is expected to be a great year for our country. With an economy in the midst of recovery and employment at pre-pandemic levels, investors are seeing opportunities in the industry's different segments.

Logistics and build-to-rent
Logistics will be one of the main areas of interest in Spain for overseas investors, who are watching with interest to see how our country responds to the needs of the e-commerce market. This translates into the development of new warehouses to meet the growing demand, as well as last-mile logistics solutions. According to Knight Frank’s Active Capital report, this scenario will contribute to our country being among the top five destinations for investment in international logistics in the EMEA region in 2022.

In the opinion of Humphrey White, Managing Director of Knight Frank Spain, “The demand constrained by the lockdown, investment opportunities in Spain and the low interest rate environment are the driving forces for this growth.” He also explains, “The assets with the greatest appeal for investors continue to be, among other things, the build-to-rent market and logistics. In 2022 data centres will see an upward trend, although it remains a very specialised segment.”

Supermarkets and hotels
The private build-to-rent and logistics segments are joined by investors' interest in retail and, more specifically, in supermarkets, a subsector that offers long-term lease contracts and has performed well during the pandemic. Given this situation, the report predicts that the Spanish retail sector will be among the top ten in the region in 2022.

Another segment that will bring joy to the real estate market will be hotels, and US investors will be playing a prominent role here. The recovery of the Spanish tourism industry, with the consequent increase in hotel occupancy, will result in our country becoming the second destination for international capital in the hotel segment.

Attractive post-pandemic offices
As for the offices segment, one of those most affected by the health crisis, Knight Frank expects a recovery in demand parallel to the return of workers to their jobs. Spain has not been the only country to have suffered in this sector, nor will it be alone in its recovery, in which the report places us among the top ten recipients of international investment.

Offices will not be like they were before; flexibility is here to stay, and this will reduce the number of workplaces and increase the space allocated to meeting rooms. As White says, “Offices should be designed as attractive spaces for employees, because we have all learned to work from home. Offices should be places that are productive, creative and organised for face-to-face meetings.”

In general terms, the main recipients of international real estate capital in Europe will be the United Kingdom, Germany, France and the Netherlands.