Land market in Spain

The residential land market shows great dynamism in 2022, but the level of supply of new construction is insufficient to cover the demand

• The accelerated real estate activity will tend to ease during the second half of the year, due to the increase in construction costs and the loss of purchasing power of buyers, after the rise in interest rates and the level of inflation at maximum levels.
• Investors and developers increase their interest in buying industrial and logistics land on the main access routes of capital cities, especially in areas close to Madrid and Barcelona, with slight price increases.
• The tertiary sector (offices and retail) is reactivated, especially in prime areas, but it presents a high level of supply and a contained demand in those assets located on the outskirts of large cities.
• The hotel segment recovers its pulse and reaches levels similar to those prior to the pandemic, attracting investment and repositioning assets, especially in the main locations of the coast and the islands.

Full details of the last report can be checked at the following link: Spanish Real Estate “Weather Map“.