Supermarkets: the retail segment preferred by investors


Supermarkets: the retail segment preferred by investors

The real estate market in Spain is projecting its path towards investment revival and is advancing with forecasts of sustained growth. According to CBRE, there is expected to be a contained increase in real estate investment throughout the year, primarily occurring in the second half of the fiscal year.

As indicated by the Real Estate Market Outlook 2024 report from the consulting firm, it is estimated to reach €12.5 billion, representing a growth of between 5% and 10%. The consultancy anticipates, among other forecasts, improvements in the retail segment, primarily driven by increased private consumption.

Within the retail segment, supermarkets will continue to be the focus of real estate investment. This will largely be due to the demand for commercial premises in Spain. Alongside parking garages, commercial premises are a very good source of income for investors.

Spain doubles its supermarkets in 15 years

Investment in supermarkets has surged in recent years to the extent that our country has doubled the number of such establishments in 15 years. According to the latest annual report from the National Association of Large Distribution Companies (Anged), nearly 5,800 supermarkets were opened in Spain between 2008 and 2022 (400 new centers per year). It’s a resilient segment and a booming sector that already demonstrated its strength during the pandemic and continues to attract investors despite inflation.

Moreover, companies traditionally linked to the hypermarket format are increasingly opting for the neighborhood supermarket model. This is the case with companies like Carrefour, which is acquiring medium-sized stores to extend and enhance its proximity formula.

With more than €650 million raised, according to the latest “Retail in Spain” report from real estate consultancy Savills, the supermarket sector is the preferred retail segment for investors. This is for many reasons, but above all for having perfectly adapted, despite difficulties, to the needs and preferences of consumers.

Laborde Marcet, a consultancy specialized in wealth management and real estate investments, maintains in La Vanguardia that the retail sector currently maintains an upward trend. It points to a growth in demand for commercial premises, particularly in specific sectors such as supermarkets or restaurants, while there is greater caution in the residential sector.

Why invest in commercial premises?

There are many reasons to invest in commercial premises – regardless of whether they will be used to house a supermarket or any other business. The most important reason: they offer returns in many cases higher than those provided by residential investment. The real estate portal Idealista estimates that commercial premises are the most profitable asset in almost all capitals: an average yield of 9.9% compared to 7.1% for homes.

Income projects: invest in commercial premises with Urbanitae

Would you like to invest in commercial premises? Thanks to real estate crowdfunding and Urbanitae, this type of investment is now within reach of any budget, and we’ll show you how.

As pointed out in this interview by our specialist in the field, Luis Maura, head of Urbanitae’s income division, Urbanitae’s income projects “combine the stability of brick with effective protection against inflation.” Additionally, they generate recurring dividends for the investor during the project’s lifespan, derived from the rent paid by the tenant. Furthermore, after a specific period of time (approximately three to five years), the asset is sold, generally resulting in capital gains that further increase the return for the investor.

Finally, the risk assumed by the investor in these types of projects is lower, as the goal is to purchase assets in consolidated areas with solid tenants and lease agreements with mandatory compliance.

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