Catella sees bright property market in Spain

Catella, the pan-European financial group has said it sees reasons for international investors to once again consider the Spanish property market.

According to the group’s analysts, the turnaround in this market has come from a mix of factors, including increased investor appetite coupled with the effects of recent years’ economic reforms in the country. They identify 2014 as the turning point for this market.

Thomas Beyerle, head of Group Research at Catella, said that the process of growth in investor interest started with domestic family offices, before attracting investors from across Europe, and now “we are seeing many international core investors turn their attention to Iberia again.”

The popularity of the asset class has dampened yields. Currently estimates for Madrid and Barcelona respectively are 4.25% and 4.75%. The current average spread of some 200 basis points against 10 year government bonds is predicted to decrease to about 150 bps by 2018, Catellas suggests; this yield trend should also divert more investor interest to other Spanish cities, such as Seville, Malaga, Bilbao and Valencia through 2016.

The Catella Market Tracker – Spain, March 2016 is available at


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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