With more than 100 days of war between Ukraine and Russia, European countries have seen asymmetric impacts on their economic activity, so for Mariano Capellino, general director of Inmsa Real Estate Investments, in the case of real estateSpain has turned out to be a strategic point for this type of investment.
According to the specialist, Spain is currently a benchmark for investors real estate who are looking for an “attractive” and safe market to protect their capital.
“The experts in global Real Estate investments see in Spain a great opportunity to increase capital in the coming years, attentive to a complex and challenging situation.
“Of course it is not a fortuitous situation nor did it happen overnight, but rather the situation ends up strengthening a recovery process that has been going on for some years now,” said the specialist. real estate.
According to Capellino’s analysis, a Knight Frank survey of foreigners from 44 countries places Spain as the second most attractive country in investment Propertyonly behind the United Kingdom, to relocate after the Covid-19 crisis, a trend that increases after the war between Russia and Ukraine.
Why is it an attractive country to invest in real estate?
For Mariano Capellino, the elements that make Spain stand out from other European economies, in what corresponds to investment PropertyThey range from the importance of tourism, the Russian invasion of Ukraine, as well as the decline in interest rates.
In the case of tourism, the specialist pointed out that although the activity that represents 15% of the Spanish economy, it fell by up to 70% in its activity in 2020, but in recent months it has registered a positive change in the face of the war between Russia and Ukraine.
“Today, after the invasion of Ukraine, Spain is once again positioning itself as a safer tourist destination that will generate a significant amount of employment and consumption,” said the manager.
On the other hand, regarding the drop in reference interest rates, coupled with excess liquidity in the market, this represents an opportunity that makes real estate a profitable and safe investment due to the new economic cycle that starts at the global.
“Income in Real Estate went from 1.5 to 3 of the multiplication factor of returns compared to European fixed income. The substitution of financial investment for real estate officiates a window of opportunity and the recovery in Spain is shorter than in other crises”, assured Mariano Capellino.
Bad for many, opportunities for others
For the specialist, elements such as the strong economic impact as a result of Covid-19 is even an opportunity for investors interested in Spain.
“The Spanish economy has been severely hit by Covid-19. In the year 2020, the GDP contracted around 12%”, explained Capellino.
Given this context of economic decline, the specialist commented that several companies, especially smaller ones, had to close their businesses and liquidate their inventory, which in the real estate represents investment opportunities at lower cost.
“A large number of small and medium-sized companies and investors were forced to liquidate their assets to save their companies, and some were or are even being foreclosed on by banks.
“This huge drop in activity in the hotel, retail and office sector offers a great opportunity in the face of the considerable drop in the values of the properties where these activities were carried out,” said the specialist Inmsa Real Estate Investments.
What Spain expects in real estate
In a context of high inflation in construction and consumption, which translates into financial volatility, according to analysis by investment funds real estate investmentSpain expects an investment volume of 30,000 million euros in a period of 18 months.
“The reading of reality tells us that it is very likely that rates will not rise in Europe. The euro is depreciating and this is good for boosting Spain’s already good position, since it makes it more competitive to attract tourism and foreign investment”, Capellino estimated in his report.