Drop in investment in Spanish commercial property

A fall in the levels of activity in Spain's commercial property market has been recorded.

Data published by Cushman & Wakefield showed that investment in Spanish commercial real estate assets dropped by 46 per cent during the third quarter of this year, compared to the previous three-month period.

However, as a whole Europe experienced an increase in the amount of activity in the commercial property sector, with a rising number of international buyers seeking out investment opportunities on the continent.

Michael Rhydderch, head of the European capital markets group at the organisation, commented: "Momentum has definitely slowed but values are stable and the market overall has held up well, particularly when you compare it to other asset classes."

Last week, Bloomberg Businessweek reported on a study carried out by Savills, which found that the Spanish commercial property sector has seen its lowest investment volumes since 2001 this year.

As a result of the wider economic problems in the country, as well as the European sovereign debt crisis, the firm predicted that it would take more than 12 months for the market to begin to recover.
 

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