• • Transactions in such projects will increase compared to speculative transactions.

• • David Martinez, Founder and CEO of ProEquity, "2023 will be a year marked by moderation. However, the real estate sector will continue to be a safe form of investment, due to the great interest in the new formats that are emerging and which demonstrate the strength of the market.

Madrid, 23 January 2023. 

Despite the uncertain times we are going through, the real estate sector continues to position itself as a safe option when it comes to investing in real estate. In the coming year, despite forecasts of a slowdown in investment, the sector will continue to be a safe investment choice, continuing its activity in a more moderate way. According to forecasts by ProEquity, a leading real estate consultancy, it will be the turnkey projects that will receive the most investment interest, with activity expected to increase during 2023. 

Although it is true that investments will moderate during the first months of the year, given the current situation, real estate operations will continue to establish themselves as a strong market within the sector. In this respect, experts from ProEquity point to turnkey projects, i.e. platforms/vessels whose facilities and technologies are custom-configured for a particular operator, as one of the preferred formats for this type of operation. 

This trend will occur, on the one hand, following the change in customer preferences, which prioritise aspects that this type of platform offers in contrast to older or outdated warehouses. Given the modernity of the facilities, these types of warehouses have good energy efficiency standards, with consequent cost savings. This is a very relevant aspect considering the generalised increase in the cost of industrial activity. Likewise, this type of warehouse favours sustainability within industrial activities, an aspect that tenants and buyers value more and more. 

Taking into account this foreseeable preference for turnkey warehouses by operators, together with the land absorption forecasts for this year, similar to those of 2022, speculative projects, i.e. those built at risk, without an assured tenant, will take a back seat in terms of new projects in 2023. 

According to ProEquity, those warehouses built in 2022 and scheduled for delivery in 2023 will continue to be marketed; however, it is estimated that the development of new projects of this type will be lower in the coming months. As experts point out, this is largely due to the costs involved in this type of operation, in addition to the risk involved. "This scenario, coupled with the current situation of rising interest rates and rising construction costs, is leading to a decline in speculative vessels.", declares David Martínez, CEO of ProEquity. 

This series of trends thus determines the need for the sector to renew itself in favour of innovation, new technologies and cost savings in order to continue to attract investment interest. 

"2023 will be a year of moderation. However, the real estate sector will continue to be a safe form of investment, due to the great interest in the new formats that are emerging, which are proof of the strength of the market, concludes Martínez. 

The creation of logistics land: a priority for the sector's growth

Following this trend on the part of buyers and tenants, the real estate sector is facing a new challenge, and that is that, in order to ensure the correct development of projects, the logistics sector must have sufficient means to cope with the demand and the square metres of available land.  

According to David Martínez, "To ensure that the sector can meet demand preferences and continue to attract investment interest, it is important to prioritise land creation as well as new logistics projects with the right standards of efficiency and quality.