Investment market
Investment market situation - Barcelona
The positive outlook for rental take-up as well as for growth perspectives continue to generate interest from local and international investors, although the scarcity of quality product means the number of transactions is increasingly lower. Over the coming months, additional transactions are expected to be carried out which confirms that prime yields remain stable at 4%.
Barcelona
Investment market situation - Madrid
The investment volume during the second quarter of 2018 reached €259m. High rental growth forecasts mean interest from institutional investors continues to increase, although due to a scarcity of product the volume could start to decrease. Prime yields remained stable and stood at 3.75% in the CBD.
Madrid
Investment market situation - Paris
Investment market in Paris maintain an excellent dynamic in the second quarter, closing with an investment volume of ca. €6.1bn. Total investment volume for first half of the year was €9.2bn, representing a yearly increase of +69% and almost doubling the long-term average. This extraordinary performance is underpinned by large transactions. Regarding the type of product, it is worth mentioning that offices continue to be the most popular assets. Foreign investors have remained very active over the last three months. Prime yields stood at 3% in the CBD with even lower yields for trophy assets.
Paris
It is important to highlight that in the three markets, the spread between the prime yields and the 10-year bonds is high.