Realcast: Iberian opportunities in the spotlight, Redevco invests in Barcelona and a firesale of UK assets is expected

Real Asset Media’s Why Iberia? investment briefing, held in London in partnership with Iberian Property, was packed with delegates, which shows the level of interest in the region’s prospects.

Experts said 2022 has been a really strong year so far, with record prices for offices, logistics and residential. Foreign investors have come back in a big way and they are playing a really crucial role, accounting for 78% of all deals done in Portugal and 60% in Spain. Prime office rents are increasing and there are many opportunities to repurpose assets and make them ESG-compliant. The return of international tourists is also galvanising the hotel sector in both Spain and Portugal.

The political and economic crisis in the UK is dominating headlines and making refinancing real estate assets “almost impossible”, experts say, which means that many UK office and retail property landlords may be forced into what many are describing as a firesale over the next six months and that pressure could slash capital values.

In the UK residential market the demand for rental properties is rising rapidly and agents are reporting there are 13 applicants on average for every rental property. While the number of house-hunting tenants keeps climbing, the number of available properties has flatlined.

On a happier note, in a good story for both retail and sustainability Redevco has acquired the El Corte Ingles department store in the heart of Barcelona and plans to transform it into a highly sustainable mixed-use destination. A €200 million investment that shows Redevco sees a bright future for high-quality sustainable retail in prime locations.

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