Now that the Eastern European property market is full of investors, South African real estate companies are setting their sights on the Spanish property market.
The economy in Spain is robust, especially compared to elsewhere in Europe. With a big boost from increased tourism, Spain’s economy grew by 3.2% in 2016. According to a recent investment attractiveness survey conducted by advisory company EY, Spain comes out fourth as Europe’s most attractive market after the UK, Germany and France.
Last May Vukile Property Fund announced that it had purchased 86.89% of the shares in Castellana, an unlisted Spanish real estate investment trust, for R193 million ($15 million).
“The Spanish economy has been very consistent over the past few years. There is steady job creation and the current account balance has been positive since 2013. The growth has been regional or city-based, with strong performances from Madrid, Barcelona, Valencia and places near the Costa del Sol,” said Garreth Elston of Golden Section Capital.
South African investors are branching out to other markets aside from Central and Eastern Europe (CEE), said Len van Niekerk, a senior property analyst at Nedbank CIB.
