Property investors, and investors of all kinds, in fact, have had their eye on Spanish real estate for some time now. So much so that during the first 6 months of this year, they have invested a total of 6 billion euro into distressed properties in this country.
According to the report by Cushman & Wakefield, a commercial real-estate brokers from the UK, only more money has been pumped into property in the UK and Ireland, with Spain being the third most invested in European country this year.
Distressed property in the UK has attracted 16 billion euro worth of sales, followed by 9.9 billion euro being spent in Ireland. Spain is next with 6 billion euro.
All three countries have seen investment rise from last year, whereas in Germany and other countries the tendency is reversed.
The report has revealed that in Spain investors have suddenly begun to snap up property here, and this change in attitude has accelerated rapidly since last year when it began during the summer.
In fact, investors shelled out a total of 4 billion euro for toxic assets in 2013, and already the amount invested during January to June 2014 exceeds that sum by 2 billion euro.
A spokesperson for Cushman & Wakefield in Spain commented that during the first 6 months of the year, Spain’s real-estate sector was hot, yet now interest is through the roof.
Sareb, Spain’s bad bank, which looks after all its toxic property assets, which themselves are valued at 200,000 million euro, will certainly receive an influx of offers from investors who are all on standby waiting for the slightest change that would spur them into action.
According to many experts, property purchases in Spain can only go one way – and that’s up.
Nevertheless, figures are still way off those that have been registered in the UK, and even Ireland, to some extent.
Out of the 40.9 billion euro invested into toxic European real estate in the first 6 months of this year, 63% of all transactions were carried out in the UK and Ireland, with record figures being registered during the first quarter.
It’s all looking good for Spain, however, as although interest was concentrated in the UK and Irish markets in the first quarter of 2014, focus moved to southern Europe during the second, with some very attractive deals being made in this country by foreign investment companies such as Lone Star and JP Morgan.