Madrid is one of the best cities in Europe for real estate investment in 2024.

The consulting firm Colliers believes that 2024 will be challenging for the real estate sector in Europe. However, it will also provide investment opportunities in certain cities and sectors. According to the company's forecast report, "In the coming year, the gap in price expectations between buyers and sellers is expected to narrow significantly, leading to a revival in real estate investments." It is also emphasized that "interesting opportunities are increasingly emerging."

According to the consulting firm, Madrid is among the top six favorite cities for real estate investment in the coming year, alongside London, Paris, Berlin, Munich, and Amsterdam. Special attention is given to industrial, logistics, and multi-family properties, as well as the hotel sector in Spain.

However, the study claims that the key point of the year will be stability. "Investors clearly understand that stability is an important factor. As an increase in interest rates is expected to combat inflation for the long term, the prospects for real estate investment are moderate.

The consulting firm emphasizes that the logistics and industrial sectors will continue to be in demand, driven by supply shortages and reliable fundamental data. Additionally, it is explained that "protectionist industrial policies in many European countries and rising energy resource prices will encourage further offshore placement of logistics and industrial projects," which will serve as an additional attraction for investors.

Regarding the multifamily housing sector, Colliers insists that "the imbalance between supply and demand, caused by population growth and issues of housing affordability and accessibility, will be the basis for investment activity in this sector in the future. Many investors are still interested in investing in alternative housing related to demographic trends, such as co-living, student housing, and housing for the elderly."

He also sees potential in alternative assets, noting that "strong performance in sectors related to technological and demographic trends will continue to attract investor interest amid the existing imbalance between supply and demand for products. Therefore, we expect an increase in investments in assets closer to infrastructure rather than traditional real estate, such as data centers, renewable energy, and healthcare."

As for offices, the market will focus on well-located, sustainable, and high-quality assets, which are generally in short supply. Colliers believes that the price gap between prime and non-prime offices will continue to widen in the coming months, and that "upgrading and transforming assets to meet sustainability criteria will be an important driver of activity next year and beyond."

Finally, the consulting firm believes that the hotel sector will continue to show positive investment trends in Spain due to the strong position of the domestic leisure market compared to Europe.