IREI: Spain’s resi market set to deliver some of the best returns in Europe
Spain’s residential rental market is set to deliver some of the best returns in Europe, according to a new study by Green Street Advisors.
The real estate research firm has priced risk-adjusted expected returns in Spain’s residential market at 5.6 percent, and believes that yields in Madrid could be as high 6.3 percent.
The author of the study, Peter Papadakos, a managing director and lead research analyst for the continental European region at Green Street, has said that the Spanish multifamily residential market is attracting wider investor interest. This is due to three main reasons: disposable incomes, especially in top cities such as Barcelona and Madrid, are rising; mortgage finance remains difficult to secure; and the rental market is notably fragmented, with only 2 percent of stock in the hands of institutional investors. This, says, Papadakos, should allow professional landlords to take market share from amateurs.
To read the full article from IREI, click here.