Now is “the right time to invest” in spanish commercial property

The bank’s latest report shows that while the economic indicators in the third quarter of 2013 suggest Spain has stagnated, the conditions are favourable for commercial real estate investors. Buyers are particularly keen on Madrid and Barcelona’s markets, with recovery expected in 2014.

“There is an a priori perception of available assets with prices below market levels which may offer high internal rates of return,” explains the report.

Indeed, the first nine months of 2013 have set a strong positive tone for investing in Spanish real estate, with the acquisition of 278 bank branches by a Mexican fund and the sale of El Corte Ingles’ retail facilities in Barcelona to IBA Capital Partners helping to drive up total investment volumes.

“Capital values are triggering the appetite of both domestic and foreign investors,” explains the report, noting that aggregate volume of investment up to Q3 2013 has already far exceeded that of 2012.