Since mid-2013, Spain has been enjoying a resurgence in investment activity from global investors. The weight of capital has started to push prices upward while economic fundamentals are about to bottom. The question is, are we seeing early signs of a recovery or is the commercial real estate market already beginning to look overpriced?

Recent investment intention surveys from INREV and PMA show a remarkable shift toward Spain. In 2012, Spain was not on investors’ agendas; however, investment volumes have been increasing since the end of summer 2013. Some investors may still criticise the low level of liquidity in the Spanish commercial real estate market; however, this is probably more due to investors’ perception rather than to reality. According to