A positive outlook for Spain's shopping center segment
Among crossborder investors, American funds entered the market strongly in 2014, eclipsing European fund activity, which until then had been breathing new life into the market.
The outlook for the shopping center segment in 2016 was positive, thanks to strong economic fundamentals such as consumption. At the same time, the large number of tourists that visit Spain also continues to break records and this has undoubtedly helped to drive activity in Madrid, Barcelona, and other coastal cities. Local Spanish retailers are in full expansion mode and prime rentals have reached the levels achieved before the crisis.
According to figures released by INE, throughout 2016 retail sales grew by more than two percent, which runs in line with consumption growth. Given the private consumer spending growth forecasts, it is expected that sales growth will continue to increase in 2017.
REflexions issue 5 - May 2017
REflexions is a bi-annual digest, dedicated to the real estate investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.