Real estate investment increases 40% through September
The recovery of the real estate sector advances step by step but incessantly. Investors have allocated more than 8.7 billion euros to the real estate sector during the third quarter of the year, a 40% increase over the same quarter last year, according to statistics compiled by international real estate consultancy JLL.
“The market is going through an excellent time and it is foreseeable that all business segments will improve their investment volume compared to 2016 and we can achieve a historic investment at the end of the year,” explains Borja Ortega, director of JLL Capital Markets.
There are more and more real estate transactions, prices increase month by month and the sector begins to wake up from the horrible nightmare experienced with the bursting of the bubble with the start of the financial crisis.
Retail operations grow
The recovery of the sector is confirmed by the fact that the volume of real estate investment (residential, office, retail, logistics and hotels) during the first nine months of this year represents 91% of the total recorded in the previous year.
The JLL real estate consultancy offers data by business segment. The retail market of retailers is the one with the highest volume, with 3,267 million, almost 38% of the total. This market has grown 28% over the same period last year. “It could close the year around 4,000 million euros, a historical fact due to the number and volume of operations closed or in the process of closing,” said the consultancy, which highlights operations such as the sale of the San Miguel Market ( Madrid) for 70 million euros, Fuencarral Market for 50 million or Gran Vía 18 for 44 million, both also in Madrid.
Investment in offices and hotels is also progressing well. They accumulate an investment of 1,700 and 1,900 million euros, respectively. The hotel market also boasts a cumulative investment of 1.9 billion.
Source: “El Pais”