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Spanish retail market sets historical record in 2017
Research - FEBRUARY 16, 2018

Spanish retail market sets historical record in 2017

by Andrea Zander

Annual growth in Spanish retail investment reached 41 percent, or €4.1billion ($5.12 billion) setting a historical record, and well ahead of the long term average, €2.4 billion ($3 billion), according to Cushman & Wakefield.

As per retail asset types, shopping centers and retail parks dominated the volumes and secondary locations and assets are dragging investor’s attention as the prime cohort is presenting stark signs of scarcity.

Madrid and Barcelona are benefiting strong demand and particular locations for both mass market and luxury retail are confronting competition from international tenants. The search for space in cities such as Bilbao, Valencia, Malaga and Palma is also gathering momentum, especially for mass market brands. Shopping centers’ footfall has slightly increased in 2017 and shoppers are lured by new F&B and leisure formulas.

As a whole Spain lead the recovery of Southern Europe’s commercial real estate market since the Great Financial Crisis (GFC), due to continued interest from foreign investors who have been responsible for 62 percent of all commercial real estate investment activity so far this year, according to Savills. Investment volumes are looking to hit €8.9 billion ($10 billion) this year, a year-over-year increase of 5 percent, and a post GFC record.

In addition, Spain toped the 2017 edition of the Travel & Tourism Competitiveness Report 2017, The World Economic Forum global rankings for the second time. However, Asia-Pacific is emerging as the most-improved region.

 

Other IREI stories about Spain and Spanish malls:

Spain remains focus of wide investor interest

Switching focus: Spain has progressed and its time has come

TH Real Estate invests €264m in Spanish mall

Klépierre buys Spanish retail complex for €233m

Patron plans to invest €500m in Spanish real estate

Redevco JV sells 9 retail parks in Spain for €193m

Foreign investors buy mall in Madrid

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