“It’s a good time to invest in the real estate sector in Spain”

Es buen momento para invertir en el sector inmobiliario, a juicio de Eloy Bohúa, CEO de Planner Exhibitions

“It’s a good time to invest in the real estate sector in Spain”

The 25th edition of SIMA is shaping up to be the most international yet. What do you attribute this interest in the Spanish real estate sector to outside our borders?

Madrid’s positioning as a destination for real estate investment is increasing. There is no other region in Europe with the projection and opportunities that Madrid offers in the residential sector. Additionally, its attraction as a destination for capital from Latin America has solidified in recent years. This is evidenced by the strong representation that the region has this year at SIMA, with Panama as the guest country and other Latin American countries showcasing their products.

Do you think it is a good time to invest in the real estate sector in Spain?

There are several indicators that show it is a good time to invest in the sector. Real estate fundamentals remain solid, and although macroeconomic and geopolitical uncertainty persists, the news from Europe suggests imminent interest rate cuts.

The feedback we receive from the investor audience attending SIMA is that their main motivation for investing in the sector is security, above profitability, which allows us to clearly see that real estate continues to be viewed as a safe haven investment.

What will be the main themes of SIMA 2024? What new features will we find?

One of the main focuses of SIMA 2024 is housing production, specifically affordable housing. It is crucial for a benchmark event like SIMA to address how to put more housing on the market and do so at prices that are accessible to demand.

“There is no other region in Europe with the projection and opportunities that Madrid offers in the residential sector”

In this vein, we have developed an extensive conference program at SIMAPRO with 34 sessions and more than 130 speakers who will discuss the initiatives and changes necessary to sustainably increase the number of housing starts over the coming years to meet demand, as well as the state of different asset classes (tourist residential, flex living, senior living, student residences, and hotels), among other topics of interest.

Year after year, the real estate sector disproves the worst forecasts and shows remarkable resilience. How do you see the housing sector?

In the sector, we often say that the real estate market is inherently resilient.

One thing is clear: the demand is there and continues to need access to housing, while the supply is scarce, with a deficit of almost 120,000 homes per year according to Asprima data. Therefore, the main challenge we face as a sector is to meet this deficit by bringing more housing, particularly affordable housing, to the market.

All experts agree on one thing: there is not enough housing to meet the demand. Why is this happening? What measures could alleviate the problem?

Various factors influence housing production, from the raw material, which is the land, and its urban management to the labor shortage in construction, which is one of the sector’s major challenges.

Urban management poses a real obstacle course for land developers, not only because of the development times required but, above all, because of the legal uncertainty it currently entails. In this regard, there is consensus in the sector on the need for the approval of the legal certainty law.

“The investor audience attending SIMA seeks security above profitability”

Additionally, other factors such as financing and taxation also impact housing production and must be addressed to provide a solution to the problem.

In the last edition, more than 15,000 homes were offered at SIMA. Will we surpass this figure in 2024?

Based on available data, we estimate that the offer at SIMA 2024 will exceed 17,000 homes, which represents a 12% increase over the previous edition. Regarding the segmentation of this offer, based on the data provided by exhibitors and our past experience, we calculate that around 50% of the homes will be located in the Community of Madrid, 40% in other provinces (with 35% on the coast and 5% inland), and around 10% in other countries.

In 2023, SIMA registered more than 16,000 visitors. What is the forecast for this year? What profiles will be the most prominent?

At the moment, there is 5% more general public registered compared to the same dates last year and 9% more professionals. We will have to wait for the final figures at the close of the fair, but we are satisfied with how the campaign is progressing.

As of today, we can say that three out of every four registrations are from buyers of primary or secondary residences (60% and 14%, respectively). The group of small investors maintains a strong presence, with 24% of the total. If these figures hold, we will see a significant increase compared to last year in buyers looking for second homes and a consolidation of the investor profile percentage after the strong increase in 2023.

This year, Urbanitae is participating with the largest stand at SIMA. How do you assess the situation of real estate crowdfunding in Spain?

Crowdfunding platforms offer an alternative way for investors to enter the real estate sector. An attractive form with fewer entry barriers than direct real estate investment, which has helped expand the target audience for real estate. Your participation at SIMA this year is a testament to this.

Post a Comment