16 March 2017
Cannes
Reporter: Theo Andrew

Spanish REITs must keep up with the times


The Spanish residential real estate market is evolving and it is up to real estate investment companies to keep up, a panel has warned.

At MIPIM in Cannes, attendees heard that an increase in renting homes over buying, and increased equity in the market, is set to shape institutional real estate investment in the country.

Javier Garcia Heredia, head of the office and residential segment for Hispania Actives Immobillarios, said: “Long-term renters will grow and younger people are changing their thinking.”

He added: “Five million of Spain’s population is 15 to 24 and you have to think 50 percent of them will be renters.”

Panellists noted that Spain is enjoying a period of political stability in comparison to many of its european neighbours, while investment is now close to pre-crisis levels.

Juan Velayos, CEO of developer Neinor Homes, said: “We are creating a new market, we need to adapt to change or [we] won’t be part of the game.”

“There is equity in the market now.”

Nelinor Homes plans to list up to 60 percent of its shares on the Spanish stock exchange, the first time a residential developer has done so in a decade.

Velayos said: “You need strong institutions and in the future you will have five or ten big guys who will be leading the market into the new generation, it is the same in France, the UK and the US.”

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