2014 was characterised by the en masse arrival in Spain of international investors and by the creation of large Spain-REITs, Sociedades Anónimas Cotizadas de Inversión en el Mercado Inmobiliario or SOCIMIs. After seven years of being a no-go area, Spain has transformed into one of the hottest markets for investors. Last year alone, more than €7 billion was invested in commercial real estate — almost three times the amount invested in 2013, when transaction activity stood at €2.5 billion.

The influx of investor interest is mainly due to Spain’s economic recovery and the attractive price levels. Spain has been one of the best performers in the euro zone, with consistent quarterly GDP growth since mid-2013. Euro zone growth has been mixed, rising by 0.8 percent in 2014 whereas Spain’s GDP grew at 1.4 percent over the same period — Spain is expected to grow by 2.8 percent in 2015 and by 2.5 percent in 2016.

The recovery is demonstrated by all the main economi