Alternative real estate assets are now in-vogue
Between 2009 and 2012, Spain was hit by a harsh economic crisis, which put a large amount of product on the market, but a lack of available capital. The backdrop changed as of 2013 and the recovery not only brought a lot of product with it, but also heightened liquidity. Since 2016, growth has stabilised, and with a lack of traditional product and heightened liquidity on the market, alternative real estate assets have become a firm fixture on investors’ radar.
Key characteristics shared by alternative real estate assets
These are assets that are running as operational businesses, and where the value of the asset is directly linked to the business itself. They also belong to highly fragmented markets, which are in the process of becoming more established, with stable cash flows, even in recessions, and that boast high yields compared to traditional assets.
Today, the alternative real estate asset segment is one of the most-favoured by investors. In fact, the CBRE EMEA Investors Survey 2017 highlights that a considerable share of investors now have exposure to this segment (71%) and that the majority of these (64%) are looking for new investment opportunities.
At CBRE Spain, we are one step ahead of the market. We launched the Alternative Real Estate Assets department in 2013, working closely with our London-based European specialist team, which boasts over 15 years of experience in this sector. We offer end-to-end advisory services that drive our clients’ businesses, covering the following areas: