Post by account_disabled on Mar 13, 2024 5:41:48 GMT -5
Covadonga Sanz Llaca has been director of asset management for Greystar in southern Europe for almost three years . In this interview in idealista / news, the executive reviews the plans of the American real estate giant in Spain and what type of properties she plans to invest in. She currently manages about 500 million euros in assets in the domestic market and is committed to promoting a new format of temporary rental housing to provide a different solution to a certain demand.
In her opinion, the only way to solve the problem of access to housing is to develop more supply, for which it is necessary to make urban planning regulations more flexible and more collaboration between the public and private sectors. The company also focuses on student residences, senior living and traditional rental housing.
The real estate sector has been going through Phone Lead a few turbulent years. We have passed the covid, from which, from my point of view, we have emerged stronger; then the war in Ukraine and now we are living in a macroeconomic environment of uncertainty, marked by very high interest rates, a very high construction cost and, on top of that, in an environment of inflation. All this affects all the pillars of management and investment in the real estate sector.
But it is true that investors continue to bet on this sector. Investment continues to grow, after reaching 16,000 million euros in 2022 and growing almost 30% compared to what was achieved the previous year, and has been led by the 'Living' sector, with an investment volume that has been around 4,000 million.
Many voices in the sector assure that there has been a stoppage in institutional investment, especially at the beginning of this year, although they predict that activity will gradually return to usual levels. Have you also detected it?
I would not call it an institutional stoppage, but there is more prudence in making decisions about new investments. This comes from this macroeconomic environment and also from the new regulation that is being seen in the market of which we are now the first face, but it has been around for a long time. In the end, anything less than clarity scares investors a little and makes their decision-making a little slower. I think 2023 is going to be a year of transition.
Exact. The investment appetite is still there and the investment figures for 2022 and 2023 show us that the investment appetite remains focused on the real estate market in general and the residential market in particular. I think more caution is simply being taken in making new investment decisions.
In the end, the real estate market has the ability to reinvent itself or resist and investors also have the ability to enter and exit the market based on the returns it gives. So, depending on the market cycle we are in, we have a different investor profile, but we have never stopped having investors interested in the Spanish real estate market. We have experienced many real estate crises and I am not going to say that they will not exist in the future, but real estate is very resilient and a place where investors feel safe.
In her opinion, the only way to solve the problem of access to housing is to develop more supply, for which it is necessary to make urban planning regulations more flexible and more collaboration between the public and private sectors. The company also focuses on student residences, senior living and traditional rental housing.
The real estate sector has been going through Phone Lead a few turbulent years. We have passed the covid, from which, from my point of view, we have emerged stronger; then the war in Ukraine and now we are living in a macroeconomic environment of uncertainty, marked by very high interest rates, a very high construction cost and, on top of that, in an environment of inflation. All this affects all the pillars of management and investment in the real estate sector.
But it is true that investors continue to bet on this sector. Investment continues to grow, after reaching 16,000 million euros in 2022 and growing almost 30% compared to what was achieved the previous year, and has been led by the 'Living' sector, with an investment volume that has been around 4,000 million.
Many voices in the sector assure that there has been a stoppage in institutional investment, especially at the beginning of this year, although they predict that activity will gradually return to usual levels. Have you also detected it?
I would not call it an institutional stoppage, but there is more prudence in making decisions about new investments. This comes from this macroeconomic environment and also from the new regulation that is being seen in the market of which we are now the first face, but it has been around for a long time. In the end, anything less than clarity scares investors a little and makes their decision-making a little slower. I think 2023 is going to be a year of transition.
Exact. The investment appetite is still there and the investment figures for 2022 and 2023 show us that the investment appetite remains focused on the real estate market in general and the residential market in particular. I think more caution is simply being taken in making new investment decisions.
In the end, the real estate market has the ability to reinvent itself or resist and investors also have the ability to enter and exit the market based on the returns it gives. So, depending on the market cycle we are in, we have a different investor profile, but we have never stopped having investors interested in the Spanish real estate market. We have experienced many real estate crises and I am not going to say that they will not exist in the future, but real estate is very resilient and a place where investors feel safe.