New trends in the tertiary real estate market accelerated by COVID-19
- Despite the searches for small premises in city centres still being stable, warehouses, especially on the outskirts of the main cities, have shot up by 40%
- E-commerce has the most in-demand type of spaces and it shifts interest from the centre towards the surrounding metropolitan areas
- Toledo and Navarra are some of the provinces that have seen a large increase in searches; the metropolitan areas of Madrid and Barcelona are also attracting interest from users
Barcelona, 8th May 2020.- The coronavirus crisis has had a strong impact on many business and economic drivers in the country. It has also had a serious impact on trade and the way in which we buy and consume items. The confinement has accelerated the increase in e-commerce (it has grown by 33.5% in the first half of April in comparison with the second half of March, according to data from Netquest). This is a highly solidified trend already in the market, but it has now been extended to almost all the sectors, including those that had been more reluctant to it in the past. This data has also been confirmed by the Organization for Logistics and Transport, which put the increase of e-commerce shipments in recent weeks at 50%.
This change in trade translates directly to the types of real estate demands in the tertiary market. According to Servihabitat data, operations in March and April have continued along their upward trend from the previous months despite the confinement. The searches for warehouses have shot up by 40% in March and April in comparison with the first two months of the year.
By analyzing the type of properties that are in most demand, an increase in the search for warehouses was mainly found in the provinces of Toledo (+560%), Navarre (+160%), Segovia (+150%), Teruel (+150%) and Albacete (+130%), comparing the searches during the confinement with the period before COVID-19.
On the other hand, this increase in the search for warehouses has especially taken place beyond the main cities, in the surrounding metropolitan areas (+700% in Illescas on the outskirts or Madrid or +300% in Reus). Shopping centres will be seriously affected by the change in retail trade, and it is estimated that they will start to adapt their activity to the new market needs and demands.
Iheb Nafaa, CEO of Servihabitat points out that “the increase in demand for logistic space, premises and warehouses in the surrounding metropolitan areas has been accelerated by COVID-19, but it isn’t just a circumstantial trend; it is expected to continue to grow beyond this current context. The change in the trade model and consumption habits is going to reinforce this behaviour in the tertiary sector. Equally, many shopping spaces and premises that could be emptied in central locations in the big cities could become collection and logistical handling points to respond to the needs of these new purchasing models”.
Servihabitat is the leading multi-client and multi-product servicer for providing services to comprehensively manage mortgage and developer credit portfolios, as well as real estate assets. Its 30 years of experience in the market and the heightened volume of assets under its management consolidate the company’s position as industry leaders.
A highly qualified multidisciplinary professional team, management excellence, the quality of the service adapted to the needs of each client, its marketing prowess and technological innovation have allowed Servihabitat to become a strategical partner that is able to provide differential solutions to the entire asset management cycle.