Spanish commercial property sector raises questions

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The property market in Spain continues to present a selection of confusing images in terms of trying to predict what will happen over the coming year.

In some areas activity is strong, whilst in others the overall negative state of the economy is still represented by the difficulties in getting properties moving again.

One of the areas that is looking positive is that of commercial properties, where investment levels were seen to rise during last year.

The 10% rise in investment volumes in the sector looks good on paper, although this must be taken alongside the fact that of the €2.1 billion (£1.8 billion) total, almost half was down to only three separate transactions.

The sale of Torre Picasso, Canalejas complex and Banco Santander's headquarters in Madrid were major events which don’t come along every year, and with the majority of commercial investments in Spain continuing to be from domestic sources at a rate of more than 60%, there is little sense that foreign investors are regaining interest or confidence.

The glaring exception to this comes in the form of Latin America, which made up 22% of the total investment volume, representing 55% of total international investment.

Of course this can be partly attributed to the common language connections for many countries, but also points towards yet more evidence of the growing strength of their economies in relationship to their ‘old world’ European counterparts.

The lack of action from foreign investment is helping to feed the cycle that means a lack of new projects leads to a suppression of labour markets, which in turn holds back on general spending.

With analysts suggesting that international buyers are keeping a close eye on developments and are ready to get involved when the markets start moving upwards, it seems that it just needs some form of stimulus to get the ball rolling, but no one is quite sure what form it will take.

Transferring money abroad should always be done with the help of a currency exchange specialist who can find the best rates on the markets.

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Spanish commercial property sector raises questions

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