Spanish commercial property showed a 10.1% total return in 2014, a rise from 0.3% in 2013, and the first time the index has reached double figures since 2007, according to new data from MSCI.
The recovery in commercial property total returns was driven by a positive capital growth of 4.2% compared with -4.9% in 2013. This is the first time capital values have increased after six consecutive years of decline.
Industrial was the best performing sector with a total return of 14.4%. Retail was the worst-performing sector but still experienced a total return of 9.7% – a sharp rise from the -1.5% reported in 2013.
Elsa Galindo, senior associate at MSCI, said: “After many years of negative and sometimes cataclysmic return levels, favourable trends in macroeconomic fundamentals seem to have had a positive impact on confidence levels within the real estate sector.”
