2023-10-27-莱坊-Spain_Retail_Snapshot_Q3_2023_2页_619kb

Retail Snapshot Summary - Q3 2023

Core Content Overview

This document provides a comprehensive overview of the retail sector in Spain for the third quarter of 2023, highlighting macroeconomic growth, retail turnover, consumer confidence, international tourism, and investment trends. The analysis is based on real data and market trends, compiled by experts at Knight Frank Spain.

Macroeconomic Growth and Retail Performance

• GDP Growth Projection: The International Monetary Fund (IMF) has raised Spain's expected GDP growth for 2023 from 1.5% to 2.5%, and forecasts it to be 2% for 2024.
• Retail Turnover: Retail turnover in Spain has remained positive, with a year-on-year growth of 9% in August, significantly higher than the -1.2% recorded in the same month of the previous year.
• Consumer Confidence: Consumer confidence in September 2023 reached 77.2 points, a 21.7-point increase compared to September 2022.
• International Tourism: The number of international tourists is approaching pre-pandemic levels. As of the year-to-date, the total is 57.7 million, a 20% increase compared to 2022, and only 1% below 2019 levels.

Retail Investment Trends

• Q3 2023 Investment Volume: Retail investment in Spain reached €155 million in Q3 2023, down from €525 million in Q3 2022, representing a 50% decrease.
• Investment Typology: Retail parks accounted for nearly 50% of total investment, showing a 30% increase in the first nine months of 2023 compared to the annual average of the last three years.
• Prime Yields: Prime yields for retail parks (RP) and high streets (HS) in Madrid remained stable at 7% and 4%, respectively. Shopping centers (SC) saw an increase in prime yield to 7.25%, up from 7.00% in Q2 2023.

Top Retail Investments in Q3 2023

1. P.C. Rivas Futura, Madrid

   • Value: €67 million
   • Vendor: Lar España
   • Purchaser: AEW
   • Capital value: €1,800/sq m

2. P.C. Vistahermosa, Alicante

   • Value: €62 million
   • Vendor: Lar España
   • Purchaser: AEW
   • Capital value: €1,800/sq m

3. C.C. Hipercor El Faro, Badajoz

   • Value: €22.2 million
   • Vendor: El Corte Inglés
   • Purchaser: Castellana P.
   • Capital value: €1,100/sq m

Recent Retail Openings

Madrid

• Cupra (1,300 m²): Serrano 88
• Scalpers (800 m²): Gran Via 27
• Brownie (200 m²): Fuencarral 61

Barcelona

• Miin Cosmetics (400 m²): Calle Balmes
• Tommy Hilfiger (265 m²): Paseo de Gracia 15
• San Saru (142 m²): Provenca 253

European Prime Yields Comparison

Note: Data is based on the latest available as of Q2 2023.

Key Information

• The retail sector in Spain is showing resilience and growth, supported by improving macroeconomic conditions and a return to pre-pandemic tourism levels.
• Retail parks are a major focus for investors, with a significant increase in investment volume.
• Prime yields in Madrid for retail parks and high streets remain stable, while shopping centers have seen a slight rise.
• The sale of two major retail parks by Lar España to AEW highlights the ongoing consolidation and investment activity in the sector.
• Limited supply of prime retail premises in key areas continues to affect investment dynamics.