Juan Velayos (The Region): “The regulation has slowed down the impact of professional rental income in Spain”

2024-09-06 05:31:30

Them investment in the development of residential buildings intended for rent It is one of the sectors within the real estate sector that has the most ‘delay‘ has suffered in recent months, despite the lack of supply of workers and high demand, which caused sudden increases in prices. In 2023, investment contracted around 15%, to 2,332 million euros, according to data from the Colliers consultancy; while, in the first half of 2024, volumes are down 54%, according to JLL.

Juan VelayosPresident of The District fair and one of the most familiar face of the country ‘brick’, believes that this is due to several factors: “The refused to rent (the construction of the exclusive to be taken) and the private rental sector (house blocks for rent with one owner) They are property with a very high supply shortage to which different regulations impose constraints mistake, hold on to the role you have taken in our country, which is important and important.

The former CEO of developer Neinor Homes pointed out that Spain is “not perfect” when it comes to building regulations. “The lack of supply of the final land to build, combined with a really poor regulatory framework and an increase in interest rates, has created a key and important need in our country,” he pointed out in an interview with MOBILEeconomic vertical of Prensa Ibérica.

“The logical thing is that we are starting to see a recovery in prices”

Velayos believes that, in the coming months, Real estate assets will begin to rise in value, after two years of recovery. The rise in rates and greater demand by investors to acquire properties caused a decline in valuations, partially offset by an increase in inflation-linked rents. “The fall in prices has now stabilized and what makes sense is that we are starting to see a recovery,” he explained.

Real estate investment will increase in the coming months

The expert believes that the price expectations of buyers and sellers are increasing. “At first this event took place in public marketswhich is the first to respond,” he explained. Public stocks (in Anglo-Saxon jargon) are already listed companies: the two largest real estate companies of made capital improvements in recent months, Merlin Properties and Colonial, and the third, Lar España has received a takeover bid (takeover bid) from the North American fund Hines and Grupo Lar Ask about it. return of great worksthose that exceed 1,000 million euros, Juan Velayos points out that “they will return sooner rather than later“.

Regarding the record investment figures in shopping centers for five years, the Regional Director pointed out that they were overcorrected in price after the emergence of electronic commerce, unlike logistics stores, whose record prices before the rate increase had caused Great correction in value, despite the fact that there is still “a lot of surprise.” For Velayos star asset in data centers (data center in specialized jargon). “There is a lot of interest, even though it is a highly complex asset, because Spain is a very good market and important Spanish players, such as Merlin or Azora, have already taken positions,” he added.

Third edition of The District

Between September 25 and 27, the Fira de Barcelona Gran Vía, in the area of ​​L’Hospitalet, will take place. third edition of the home sales fair Regionwhich will employ 12,000 professionals from the real estate industry, according to data managed by the organization. During the three days, several sessions will take place related to different properties: offices, residences, hotels, logistics, data centers and other other sectors.

Regional 2024 will take place from September 25 to 27 in Barcelona / allocated

“This third edition will be a consolidation of the fair, with the capital in the middle. We want the participants to leave the event. Be clear about the main market trends or properties that attract the most investor interest. The chief executives of the first institutional investors will tell us this. We also promote meetings in the offices to improve the investment and decision-making process, in addition to important networking events, which this year will have disabled and they will coincide with the start of the finals of the America’s Cup for the vehicle sea,” he commented. The ships.

Asked about the security of the event (in the first and second edition of the shows and throwing in to the participants), the chairman of the fair sent a message of calm: “We have the support of companiesthey are proving it. Everyone has the right to demonstrate, but in peace and guarantee the safety of event participants. We are calm and confident that this will happen. “I am sure that Barcelona will be the activity of the event, after all the conversations that have taken place with the companies and the security forces.”