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2017 Real Estate Investment Tops 8,950 million

Investment in residential property reached 1,180 million euros
Real Estate Investment in residential property reached 1,180 million euros

1,180 million invested in residential property

The total volume of real estate investment in Spain (residential, office, retail, hotels) closed the third quarter of the year at around 8,947.4 million euros. This represents an increase of 40% over the same period in 2016. Additionally, this figure represents 94% of the total investment for the whole of 2016, which amounted to 9,564 million euros.

“The real estate investment market is going through an excellent period and it is foreseeable that all business segments will improve their investment volume compared to 2016 and can achieve a historic investment at year-end.” explained Borja Ortega, director of JLL Capital Markets.

Market Segments

By segment, JLL’s forecasts point to the retail market as the one with the largest volume of investment in these nine months, reaching 3,488 million euros. This is a huge 37% more than in the same period of 2016, and could close the year at around 4,000 million euros. This new high would be achieved due to the number and volume of operations closed or in the process of closing.

In the third quarter, we can highlight operations such as the sale of the San Miguel Market for 70 million, the Fuencarral Market for 50 million or Gran Via 18 for 44 million.

Investment volumes in offices and hotels closed the quarter with a cumulative investment of 1,776 and 1,913 million euros, respectively. Investment in offices is distributed between the nearly 1 billion invested in Madrid and more than 700 million in Barcelona.

The hotel investment of 1.9 billion reaches 85% of the total volume traded in 2016. Notable operations include Portobello Capital which bought a portfolio of resort hotels for 40 million. Also notable was the sale of the Vincci Selección Posada del Patio in Malaga to Internos Global Investors.

Residential

In the case of residential property investment, at the end of the third quarter this has exceeded 1,180 million euros. This is a massive 120% above the total for the same period in 2016 which was 543 million euros. Additionally, it also tops the total residential investment for the whole of 2016, which was 802 million euros.