Spanish market offers investors positive returns

For the first time in two years, investors who have brought into prime commercial property in Spain have seen positive returns, a new survey has found.

This is according to research conducted by the Investment Property Databank (IPD), which noted that total returns for 2010 reached 4.9 per cent, up from a negative return of 9.3 per cent in 2009, Reuters reported.

It comprised a 1.2 per cent fall in capital values and a 6.2 per cent gain in income returns, IPD said.

Retail property was named as the strongest performer over the year, with total returns of 7.7 per cent. This was followed by offices at 1.9 per cent and industrial at minus 0.6 per cent.

"Spanish GDP growth in 2010 remained negative, at minus 0.1 per cent, but this was nevertheless a substantial improvement on 2009's minus 3.7 per cent," Elsa Galindo, IPD's country manager for Spain, told the news provider.

"This recovery is reflected in the Spanish commercial real estate market - while capital depreciation remains, it has slowed considerably, allowing returns back to positive territory."

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