The IPD Spain Annual Property Index is reporting that the Spanish commercial property market showed a slight recovery of 0.3 per cent in 2013.
In 2012, it had a negative return of -2.2 per cent. The recovery was driven by a slowdown in the rate of capital decline. Capital growth was -4.9 per cent in 2013, and -7.4 per cent in 2012.
This is the sixth year in a row that real estate in this country has registered a capital
Of all the sectors, retail had the poorest showing in 2013. It had a negative return of -1.5 per cent. The other sectors showed positive performance due to income returns which compensated for falling values. All sectors reported negative capital growth. Retail fell to -7.3 per cent. Industrial was -5.4 per cent, and offices stood at -4.0 per cent.
After falling for nine consecutive quarters, GDP started to grow slightly, by 0.1 per cent and 0.2 per cent in the third and fourth quarters of 2013 respectively.
This signaled the end of the recession, but not the end of the crisis. Over the entire 12 months of 2013, GDP fell by 1.2 per cent, which was an improvement of 4 bps over 2012.
The slight recovery was reflected in the commercial real estate market where there was a slowdown in the rate of capital decline. 2013 may have marked a turning point and the beginning of a gradual recovery in both the economy and the real estate market.
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