October 4, 2019.
According to the last report released by BNP Paribas Real Estate, the direct investment in real estate in residential, hospitality, offices, retail and logistic sectors have amounted to €9 billion until October 2019, an increase by 10% compared to a year prior. In the third quarter, the real estate investment market have amounted to €3.4 billion, an increase by 9% compared to the same period of 2018.
By sectors, office investment market is by far the largest of the real estate asset investment markets. It will continue to draw the largest investments in Spain, mainly in Madrid and Barcelona as the most dynamic markets, where the experts foresee to reach the highest figures in the historical series at the end of 2019. In the third quarter of 2019 the investments have amounted to €995 million (accounting for 29% of total volume in that quarter). By cumulative volume, the investments were €3.6 billion in 2019 representing an increase of 59% over the total investments in 2018.
Total global residential investment volumes are second only to office investment. Investment into the sector has amounted to 981 million euros accounting for 28% of total volume in the third quarter of 2019.
Investment into logistics is the third sector in figures. The cumulative investment in this sector totalled 1.3 billion euros until October 2019, the total investment volume in 2018. BNP Paribas Real Estate foresees investment in this sector totalling €1.6 billion in 2019.
Investment in retail sector has declined in the third quarter of 2019. In cumulative terms the investments has amounted €1.35 billion until October 2019, down by 56% compared to the same period to a year prior.
BNP Paribas Real Estate foresees a total volume of investment in Spain totalling €12 billion euros in 2019, up by 10% compared to the previous year based on both the forecasts of economic growth from the main economic organisations that are larger compared with other members of the European Union average and the increase in the offices and logistic investment market for the next two years.