Marketbeat Spain Retail

Key Takeaways

• Sustained Economic Growth: Spain maintains its momentum with GDP growth of 0.6% in Q1 and annual forecasts between 2.4% and 2.5%. While private consumption shows signs of moderation, the retail sector remains resilient, supported by household savings and spending on leisure and retail.
• Tourism as a Key Driver of Consumption: Over 35 million international tourists visited Spain between January and June (+6% year-on-year), boosting sales in shopping centres and key retail zones. Tourism continues to consolidate its role as a strategic pillar for the retail sector.
• Shopping Centres and Retail Parks on the Rise: Sales rose by 4% in June, with footfall also increasing (+2.2%). Sectors such as fashion, leisure (+8%), and home (+11.8%) are leading the growth. Demand is outpacing supply, reinforcing the scarcity of quality retail space.
• High Street: Strong Activity and Rising Rents: The first half of the year saw solid leasing activity, with 40 deals in Prime and Superprime areas. Prime rents have increased to €280/sqm/month, while availability has dropped to 2.8%, putting upward pressure on prices.
• Retail Investment at Record Levels: Retail investment volume reached €1.573 billion, up 40% year-on-year. Shopping centres and retail parks accounted for 70% of the capital, with stable yields and growing interest from private investors.