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Spanish commercial property investment tops 8 billion

Savills has returned to Spain to make its first major retail deal since the financial crisis, as overseas investment in the country’s commercial property stays strong.

Savills Investment Management acquired a medium-sized park near the city of San Sebastián (Spain) for 16 million euros this month – its first operation in the Spanish retail market since the great financial crisis.

The asset, acquired from a local developer, covers 10,300 square meters and has supermarket giant Mercadona as its main tenant, together with the specialist DIY chain Brico Depot.

It is the first acquisition of the fund in Spain and is a prime asset in San Sebastian in the Basque Country. It is new construction and is already delivering above expectations, thus providing the fund with a solid and defensive distribution and opportunities to increase its value in the future.

The deal arrives after a year of strong demand in Spain’s commercial real estate.

According to some sources, international investors continue to underpin the commercial property market. For the third consecutive year, international investors accounted for around 60 per cent of total investment in the market in 2016. Almost €8.2 billion was invested in commercial property across the whole of last year, similar to the figure achieved in 2015.

Delayed completions of deals, as well as a lack of product on the market, were the main reasons for the slowdown in the market, with the total volume transacted just 2 per cent down year-on-year.

Nevertheless, this has not been the case in every sector of the commercial real estate market – investment in the industrial/logistics market and the hotel market rose considerably y-o-y, notes Savills.

Alternative emerging property sectors, such as the student accommodation market, are also gaining ground, and are attracting the interest of specialist student market investors from other European countries.

Investment in Spanish commercial property hit an eight-year high in 2015, reveals Knight Frank’s latest market snapshot. A total of €8.8 billion was invested in the country’s commercial real estate last year, the highest figure since 2008.

Offices and retail remain the most popular segments for investors, with investment in shopping centres and the high street reaching €4.6 billion, accounting for over half (52 per cent) of investment. Offices accounted for €3.3 billion (38 per cent), while logistics has also risen exponentially, due to higher yields.

Investment funds and SOCIMIs (Spanish REITs) have been the most active in the last 12 months, accounting for the majority of all investment (55 per cent), but private investors and family offices are also entering the market: private investment jumped from 4 per cent in 2014 to almost 14 per cent in 2015.

France, the USA and the UK are the main international players in the sector, although The Philippines accounted for one major sole asset investment: Torre Espacio, in Madrid, for 558 million euros.

Projects from this area

Playa Marques, Andalucia, Spain

Beachfront living at it’s very best offering a really outstanding quality of life.

Traditional Spanish flavour with a real feeling of luxury.

Overlooking the beach and with stunning views to the mountains.

Superbly situated villas designed to the most exacting of specifications with extensive pergola style veranda with barbecue, private roof terrace to main bedroom and spacious roof solarium. Three double bedrooms, three bathrooms, extensive living/dining area and full size basement and games room and a personal choice of kitchen and bathroom fittings.

Located right in the middle of El Playazo, the great 7 kilometre long sandy beach of the Almanzora region, these quality beach homes, set between the beach itself and the main road, represent an almost unique opportunity to be in a newly built individual villa or townhouse, where you can wander down to the beach at any time of day or night, without crossing a road.

This type of holiday home is becoming increasingly rare as spiralling land costs result in the development of more blocks of ‘go anywhere’ apartments. The Playa Marques beach homes, on the other hand, are very individual, with spacious roof terraces and great views to the sea and the mountains that surround the Almanzora coast.

They are created for relaxation and are purposefully designed in a very light breezy Mediterranean maritime style.

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Villaricos, Almanzora, Spain


Designed by a registered professional, endorsed by his College of Architects, Technical Architects, Surveyors or Engineers as appropriate and guaranteed by a 10-year structural insurance.

Walls, Floors and roofs

Reinforced concrete frame with insulated cavity double walls with traditional render, brick or stone finishings under typical clay tile roof, with ceramic tiled floors.

Windows and Doors

Low maintenance powder coated, colour co-ordinated, double glazed, aluminium door frames and windows with opening shutters or traditional iron grilles. Solid front doors fitted with a five – lever mortice deadlock and door viewer.

Living and Dinning Rooms

Breakfast bar. French doors with security locks to the veranda.


High quality fitted kitchens are included as shown on the plans and include granite worktops, oven, ceramic hob, fridge/freezer, washing machine and ceramic wall tiling with decorative band.


Includes fitted cupboards with mirrored doors, bedside power points and light control.

Bathrooms and Cloakrooms

High quality chinaware, single or double basins as indicated, marble or ceramic floor and wall tiling with

decorative band, bathroom accessories and mirror.


There is a generous provision of conveniently located power points and switches throughout. The living rooms and principle bedrooms have provision for TV and FM. Bathrooms have shaver sockets, halogen light over the basin. Externally there are light points, switch and bellpush.

Air-Conditioning and Heating

Sufficient electric power and external conducts have been provided for later installation of combined air conditioning, cooling and heating. The remaining works and equipment can be installed prior to occupation as an optional extra.


The property will be connected up for mains water and drainage, electricity and telephone allowing the

purchaser to contract with the relevant service provider for each supply.


A formal Community of Owners under the Spanish Law of Horizontal property has been formed to maintain the buildings in good condition, to preserve their value and to encourage harmonious relations between owners.

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