Spain has become Europe’s ‘golden girl’ with executives from BlackRock and other major global funds saying the country is now dominating international investment discussions.
Speaking during a real estate conference at Madrid’s SIMA property fair, Adolfo Favieres, managing director of BlackRock in Spain, said the country had become the standout market on the continent.
‘We Spaniards have never had a moment like this before,’ he said.
‘You talk about Spain in an investment committee and you see smiling faces.’
According to Favieres, Europe’s traditional investment hierarchy has been turned upside down.
‘Italy is the new Germany, France is the new Italy… while the rest of Europe is struggling, we are clearly the star of Europe in our sector,’ he said.
The comments reflect growing international appetite for Spanish real estate as investors increasingly shift focus away from weaker-performing European economies.
Javier Quintela, head of Iberia at Cheyne Capital, said Spain had become an ‘absolute priority’ for investors.
‘Three years ago Spain was secondary,’ he explained. ‘Now the question is no longer what yields look like in the UK, but in Spain. For the first time, Spain is Europe’s golden girl.’
Felipe Perez, head of Praemia REIM Spain, also confirmed that international funds are now actively raising capital specifically to invest in Spain and southern Europe.
‘This would have been unthinkable six years ago,’ he said.
Executives pointed to Spain’s strong economic growth, relative political stability and solid market fundamentals as the key drivers behind the boom.
They also stressed that the market is not currently showing signs of distressed or panic-driven investment opportunities.
Instead, investors are focusing on long-term sectors including residential living, healthcare, student accommodation, hotels and flexible living developments.
BlackRock revealed it is particularly interested in affordable housing in Spain, although it has not yet closed any deals in the sector.
‘We believe affordable housing will eventually be treated like social infrastructure and attract huge amounts of infrastructure fund money,’ Favieres said. ‘We think there is an enormous opportunity there.’
Executives also highlighted increasing interest from US family offices, Asian funds seeking diversification and Middle Eastern investors looking for safer markets amid instability in Iran and the wider Middle East.
Spain’s hotel sector was also singled out as especially attractive.
‘We are Europe’s hotel country par excellence,’ Quintela said.
Despite geopolitical uncertainty, the executives said they currently see no major warning signs for Spain’s property market.
‘There are always black swan events,’ said BlackRock’s Spain chief. ‘But the real estate cycle here is still going well and I don’t see any reason for that to change.’
