Country Report Spain Q3-2022
“The overall mood is cautious – the market is waiting to see how things develop.”

Dear readers,

“Current inflation rates and the resulting rise in interest rates represent a major challenge for the economy. It remains to be seen how these factors will affect various parameters such as consumption and government debt. The actual consequences for the real estate sector are equally uncertain at present. While some transactions are currently continuing, we are already seeing a variety of postponements. However, a full-blown halt is not yet apparent. Real estate prices are nevertheless expected to fall across all sectors. Logistics and residential properties are consistently in demand, and office space is also highly sought-after. The easing of pandemic restrictions has enabled the hotel sector to continue its recovery and return to roughly the level seen in 2019. That said, it will be some time before the losses of recent years can be made up. The overall mood is cautious – the market is waiting to see how things develop.“

Maria Teresa Linares Fernández

Contact

Ms María Teresa Linares Fernández
Managing Director Spain

Phone: +34 618 109905
E-mail: Maite.Linares@Deutsche-Hypo.de

REECOX Spain remains in negative territory

The REECOX Spain stood at 172.9 points at the end of September, down 2.9 % overall on the previous quarter. However, the loss posted in the third quarter corresponds to the second-lowest decrease when compared with other European countries.

Spanish real estate index FTSE EPRA NAREIT continues downward trend

The dramatic slump in Spain’s FTSE EPRA NAREIT real estate index at the end of the second quarter was followed by a significant rise of 10.1 % in July. However, the index recorded huge losses once again in August (7.1 %) and September (14.0 %) to close the third quarter at 18.9 points. The Spanish blue-chip index IBEX 35 also experienced a significant slide, falling by 9.0 % quarter on quarter to stand at roughly 7,367 points. In contrast to the Spanish equity markets, business sentiment decreased by 4.9 % as early as July. Compared with the previous quarter, it was down 5.1 % to 96.7 points at the end of Q3.

Synopsis of Input Variables and Real Estate Economic Situations Q3-2022

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q2-2207/2208/22Q3-22Delta (%)
Q2-22 / Q3-22
DE
do
dodo
dodo
eq
upup
289.8
289.2
278.1
258.9
-10.7
GB
do
dodo
dodo
upup
upup
202.5
195.8
198.1
189.5
-6.4
PL
dodo
do
dodo
upup
up
183.1
181.9
179.4
175.1
-4.4
NL
do
do
dodo
eq
upup
184.8
189.5
183.2
175.8
-4.9
FR
do
do
dodo
eq
upup
225.6
231.9
227.5
219.3
-2.8
ES
dodo
do
dodo
eq
upup
178.4
174.9
175.3
172.9
-3.1