Property investment in Spain by overseas property investors hit record levels during 2018, according to the latest report from Savills Aguirre Newman.
Around 68 per cent of the 10,800 million euros worth of property investment in the Spanish property market came from foreign investors according to data released by the real estate advisor.
The figure represents the highest proportion in the last five years and is an increase of 12 percentage points over the last three years.
The volume of cross-border property investment reached 7,300 million euros last year, a figure that is 23 per cent higher than 2017.
Europe and the United States of America provided the most overseas property investors, responsible for almost 57 per cent of total investment and 85 per cent of volume in cross-border investments.
In addition to property investment, the boom in e-commerce saw logistics see a huge increase of 61 per cent when compared to 2017, reaching 1,300 million euros.
Retail was still a popular option for investment, reaching 3,432 million euros, 68 per cent of which came from overseas investors.
The office sector also saw a positive increase in investment, up 19 per cent when compared to the previous year. 67 per cent of this investment came from overseas investors.
Executive Director in the Capital Markets Division of Savills Aguirre Newman, Luis Espadas, commented: ‘ 2018 really was the year of foreign investment in Spain. We have had a high volume of portfolio deals across all sectors, with high cross-border interest in high street retail, shopping centres, logistics and offices.’
He continued: ‘We expect to see increasing demand for all these sectors and investors can expect to see strong returns in a thoroughly positive climate. Rents continue rising and economic indicators for Spain show better evolution than average across the rest of Europe.