International property investment funds continue to see good investment opportunities in Spain, particularly with assets that the banks have. Its main objectives are to achieve double-digit returns in the office market, retail or residential. While now it costs them ‘give everything’ for the purchase of residential land and promote housing, but they see it as an investment with a future.The economic crisis and the resulting fall in the property sector funds attracted opportunists seeking property investment opportunities in Spain. Today it is a normality in the sector find this and other types of funds in the housing market. “The Property investment funds sought out the best investment opportunities in search of high returns quickly , ” said Pedro Abella, team manager real estate in HIG Capital, during the Investment Forum organized real estate market during the SIMA, early this month.
“The Spanish housing market is now more mature and the property investors who enter come to add value to asset management. They no longer have such a hurry to disinvest but still betting on high returns,” specified Abellá.
Falling prices widespread in the sector during the crisis opened up investment opportunities for these funds, from opportunists to consolidated funds. Over the years, and the industry on the road to normalization, experts still see investment opportunities, especially those related to assets from the banks.
The commitment to investment is concentrated in real estate assets in offices, retail and even residential housing, which binds the promoter ground, although with caution. “The land development requires another form of investment and involves other returns for the investor. But not all funds assume the risk of promoting” said Gregg Gilbert, director for Spain of Benson Elliot Capital Management.
“The Property investment funds are used to other types of faster investment where benefits are achieved quickly. But we must be aware that where we will find the returns we seek will be through promotion and development. It is still early for many,” he also mentioned.
The Property investment funds are committed to provide expertise and capital to renew their acquired assets, particularly offices and hotels, where there are still investment opportunities. “The stock of offices and hotels in Spain is large but has become somewhat outdated. It is time to renew the offer in the absence of product at reasonable prices that give profitability is sought , ” Gilbert said.
The funds that do decide to bet on the ground do not hesitate to join with developers and builders to build housing, but they claim the real estate experts focus on the finalists soils and in the best locations, that for the global market ends up being an investment small. “There is still much that needs development land is not zoned land and take time to be urban land. But everything depends on the laws of each administration , ” Mario Verdyguer commented, development director Solvia investments.
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