Spanish market poised for an increase in activity

Investment activity in the Spanish real estate sector is beginning to show signs of recovery. At the beginning of this year, logistics real estate investors adopted a "wait and see" policy in terms of buying and selling assets,?resulting in a 37% year-on-year decrease in investment volumes, to 207 million euros. Funds and core+ assets were the most active, accounting for 80% of the total volume transacted.?In the second quarter, the situation is changing, with deals materializing that will determine?the investment scene in the coming months.

Leasing deals in the first quarter of 2024 were driven?by demand from Third Party Logistics (3PL) operators seeking to optimize their real estate. We saw strong activity in locations such as Cabanillas del Campo and Ontígola in Madrid’s third ring?and in areas within the second ring of the Catalan market.

In Madrid, 89,000 square meters?of new space was delivered, 60% of which was speculative, bringing the availability rate to 8.4%. In Catalonia, the lack of availability of quality warehouses has led to an 11.5% increase in prime rents and an availability rate of 5.5%. A further 261,000 square meters are expected to be delivered by the end of the year. In this sense, our Logistic Park Montornés development, 25km from Barcelona, is a perfect option for those customers who require state-of-the-art warehousing in an area with low availability. ?

Although the leasing and investment data for the first quarter have been low in terms of?volume and number of?deals?compared to the same period in previous years, this second quarter is expected to show an improvement. At Scannell Properties Espa?a , we are optimistic about the second half of the year thanks to an increase in demand for high quality and sustainable warehousing. This is evidenced by the amount of interest we are receiving for our project in San Agustín del Guadalix, in Madrid and our recently-completed sale of Logistic Park Alovera to the Cárcaba group.

Looking ahead, at a macroeconomic level, the recent interest rate cut from the European Central Bank gives further reason for cautious optimism.? This in turn should aid confidence in the market and lead to a greater number of transactions completing.