Unlike the other European markets, the Spanish real estate sector was already weak before the Covid-19 pandemic. This is demonstrated by the German entity Deutsche Hypo, which observed a 2.4% monthly drop in the REECOX index that it produces for Spain.
This downward trend was strengthened with the arrival of the coronavirus. The index closed the first quarter of 2020 at 180.8 points, which means a decrease of 9.4% Compared to the same period of the previous year. In this way, the Spanish real estate market is in an intermediate position with respect to the rest of the European countries analyzed.
"Although activity is slowly resuming in some sectors, it is already foreseeable that some classes of real estate assets will not escape the consequences of the pandemic," warns the Director of the Deutsche Hypo branch in Madrid, María Teresa Linares. This will lead to large differences between different types of assets.
STRENGTH OF THE LOGISTICS SECTOR
"While the hotel and retail sectors are the most affected sectors, the logistics sector it is the one that will most benefit from the effects of the health emergency, due to the increase that has occurred in online purchases and the greater need for surface area derived from it, "says Linares.
In the office market the situation is somewhat more uncertain and there are very different opinions. "While some think that there will always be a need for this asset, others believe that the pandemic will enhance teleworking, thus affecting the need for office spaces," the report highlights.
The REECOX index reflects quarterly developments in the real estate markets of Germany, France, Great Britain, Poland, Spain and the Netherlands calculating for each of these countries values based on five variables. In Spain, these variables are the IBEX 35, the ES BCN 5 Property real estate index, the European Commission's economic sentiment indicator "Economic Sentiment Indicator" for Spain, the ECB interest rates and the interest rates on government bonds. to ten years.