Real estate investment 2023: what the experts say

La inversión inmobiliaria en 2023 según los expertos

Real estate investment 2023: what the experts say

Real estate investment figures in 2022 not only pointed to the recovery of the sector, but also to its good health. According to the consulting firm Cushman & Wakefield, the real estate market, with an investment volume of 13.7 billion, grew by 14% compared to 2021. But what happened with real estate investment in 2023?

In recent years, and despite the pitfalls of the pandemic, the real estate sector has maintained its dynamism, something that has been reflected in its investment possibilities. We have seen this not only in transactions and investment figures, but also in its flexibility and capacity to adapt. At present, subject to uncertainties, it is inevitable to ask: where is the market heading, what paths will real estate investment follow in 2023?

Flex living

The need to find flexible spaces has also reached the housing market. Driven by changes in our living and working routines, adaptive spaces are responding to this growth in demand. If some time ago we were talking about formulas such as coliving, now we are also talking about phenomena such as flex living. This, which places the concept of flexibility at the heart of housing, offers real estate solutions that adjust to the needs -also changing- of citizens. As CBRE points out, flex living connects with other segments such as urban living, which tends towards more traditional coliving, or suburban flex living, with larger spaces.

Real Estate Tech

Digitalization has been on the table in real estate for a few years now and seems to be finally on the road to success. However, Spain is still behind other European countries in real estate digital maturity, according to Carlos Casado, COO of CBRE Spain. Along these lines, Alberto Fernández-Aller de Roda, CEO of Prinex, recently confirmed this trend in an interview with Urbanitae. “Scandinavian countries, the Netherlands, Germany and the UK are at the forefront in terms of digitalization in real estate,” although Spain has advanced significantly in recent years. Thus, technology is rapidly transforming real estate, thanks to tools such as data analysis or artificial intelligence, among others, which at the same time are increasing the efficiency, transparency and profitability of real estate investment in 2023.

Alternative financing

The role that alternative financing is playing in real estate is also being recognized by the major consulting firms. According to Ignacio Ruiz Gallego, Associate Capital Advisors at CBRE, “alternative financing by international funds is beginning to be seen with good eyes from Spain”, which only confirms the growth trend of collaborative investment models, such as the one promoted by Urbanitae, which have been established in recent years. Other major consulting firms such as KPMG confirmed this trend some time ago, predicting that alternative financing could reach 50% of the market share by 2025.

ESG criteria

There is no doubt that sustainability has taken hold in real estate investment. In fact, it is a key factor in investment decision-making. Without going any further, almost 90% of the land contracted for offices in Madrid is already guided by ESG criteria, according to the consulting firm Savills. For investors, the energy efficiency of buildings and their decarbonization, inclusive governance practices, attention to diversity and responsible resource management are key factors in the long-term success of many real estate projects. Their relevance is also borne out by the data. At least 93% of respondents to PwC’s 2023 Real Estate Trends Survey believe that ESG criteria are important for the transformation of the industry in the coming decades.

‘Life sciences hubs’

Life sciences hubs are areas that concentrate companies and organizations related to research, science and medicine. They aim to offer a specialized space that promotes collaboration and innovation, seeking synergies between entities. Although it is not an established market in Spain -compared to the United States or other European countries-, it is emerging as an alternative asset. And it is doing so because Spain has “all the ingredients to constitute a powerful life sciences sector”, as Daniel Zubillaga, Senior Director of Life Sciences at CBRE, explains.

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