Hotel repositioning keeps investment alive in Spain
The real estate investment market in Spain is holding up, thanks to the repositioning of hotels in the first six months of 2023. In the first half of the year, the hotel sector received investments of 1.3 billion euros, according to data from Savills.
Up to June, direct investment in real estate assets has exceeded 4.5 billion euros. The living sector and hotels accounted for just over 64% of investment in the first half of the year: 1.6 billion and 1.3 billion euros, respectively.
The Savills report confirms that, in overall volume, investment funds account for 57% of the share, up from 65% last year, while private investors have raised their share from 5.5% in 2022 to 20% in the first half of the year.
A study by Savills presented a month ago detailed that institutional investors invested around €25bn between 2015 and 2022, 66% earmarked for asset repositioning.
As for the origin of investment in real estate assets between January and June, 44% was domestic and 56% international. In hotels, the majority of capital came from the Middle East and France in the first six months of the year.
For the second half of the year, the real estate consultant forecasts that total investment could return to levels similar to those of five years ago, around 12,000 million euros, “once the end of the rise in interest rates and the cost of financing is clear”.
