Post by account_disabled on Feb 22, 2024 7:43:39 GMT -4
The economic slowdown, high inflation, rising interest rates and uncertainty have been a drag on the real estate market in 2023. Investment in the sector is plummeting, while housing transactions and the signing of new mortgages They have fallen sharply compared to last year, when they achieved their best results since the real estate boom.
Among the main changes of the year are the rise of the hotel and residential sectors, which continue to attract the attention of large investors, the 'sorpasso' of the Valencian Community to Catalonia and Madrid in number of sales, or the arrival of investors to the market with a more opportunistic profile.
One of the keys to the year has been the sharp decline in investment in the real estate sector, which has been weighed down by high inflation, the rise in construction costs, increases in interest rates, and uncertainty. political and economic. In the case of Spain, the double electoral period has also had an influence, which has resulted in a change of government in several autonomies and a second coalition government.
The consulting firm Colliers already predicted Job Seekers Phone Numbers List at the beginning of summer a drop in investment of 50% compared to 2022 levels and at the moment its forecasts are being met.
Data from PwC and Urban Land Institute point to a collapse of close to 50% of investment in Europe, with 119 billion euros invested between January and September, while in the case of Spain the drop is around 30%, with 13 billion euros. accumulated in the first nine months of the year. BNP's real estate division also supports the contraction in investment, with a 63% year-on-year drop in the third quarter of the year, a period in which 1.8 billion euros of investment were quantified.
According to different studies , investors are in 'wait and see' mode , waiting for bank financing to improve and real estate assets to become cheaper. The most critical moment will foreseeably occur at the start of 2024 , although the situation will improve as the year progresses and there is more certainty about the ECB's monetary policy.
That is the scenario handled by Colliers, which states that "theoretical asset prices should bottom out in the first half of 2024" and that the possibility of the ECB lowering interest rates in the coming months "will open up a good opportunity." investment that, with all certainty, many players are going to take advantage of. Some owners, forced by debt maturities and liquidity needs, will assume the new scenario and approach price positions with investors, thus reactivating investment activity." From the consulting firm Savills they also expect a comeback in real estate investment in 2024, the year in which it could register an increase of up to 35% in Europe.
Another key this year has been a change in the profile of investors. In a market dominated by economic uncertainty and rising interest rates, managers and consultants affirm that, in the current scenario, core funds are not finding new real estate investment opportunities that fit with their long-term strategy. so they are analyzing other financial products with similar performance and less risk. Thus, these conservative investors are giving way to 'value added' funds, with a more opportunistic nature and with interest in different sectors, from housing to hotels or data centers. Profiles such as individual investors and family offices are also gaining more weight, to the detriment of large institutional investors.
Among the main changes of the year are the rise of the hotel and residential sectors, which continue to attract the attention of large investors, the 'sorpasso' of the Valencian Community to Catalonia and Madrid in number of sales, or the arrival of investors to the market with a more opportunistic profile.
One of the keys to the year has been the sharp decline in investment in the real estate sector, which has been weighed down by high inflation, the rise in construction costs, increases in interest rates, and uncertainty. political and economic. In the case of Spain, the double electoral period has also had an influence, which has resulted in a change of government in several autonomies and a second coalition government.
The consulting firm Colliers already predicted Job Seekers Phone Numbers List at the beginning of summer a drop in investment of 50% compared to 2022 levels and at the moment its forecasts are being met.
Data from PwC and Urban Land Institute point to a collapse of close to 50% of investment in Europe, with 119 billion euros invested between January and September, while in the case of Spain the drop is around 30%, with 13 billion euros. accumulated in the first nine months of the year. BNP's real estate division also supports the contraction in investment, with a 63% year-on-year drop in the third quarter of the year, a period in which 1.8 billion euros of investment were quantified.
According to different studies , investors are in 'wait and see' mode , waiting for bank financing to improve and real estate assets to become cheaper. The most critical moment will foreseeably occur at the start of 2024 , although the situation will improve as the year progresses and there is more certainty about the ECB's monetary policy.
That is the scenario handled by Colliers, which states that "theoretical asset prices should bottom out in the first half of 2024" and that the possibility of the ECB lowering interest rates in the coming months "will open up a good opportunity." investment that, with all certainty, many players are going to take advantage of. Some owners, forced by debt maturities and liquidity needs, will assume the new scenario and approach price positions with investors, thus reactivating investment activity." From the consulting firm Savills they also expect a comeback in real estate investment in 2024, the year in which it could register an increase of up to 35% in Europe.
Another key this year has been a change in the profile of investors. In a market dominated by economic uncertainty and rising interest rates, managers and consultants affirm that, in the current scenario, core funds are not finding new real estate investment opportunities that fit with their long-term strategy. so they are analyzing other financial products with similar performance and less risk. Thus, these conservative investors are giving way to 'value added' funds, with a more opportunistic nature and with interest in different sectors, from housing to hotels or data centers. Profiles such as individual investors and family offices are also gaining more weight, to the detriment of large institutional investors.