This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Real estate investment Trusts in Spain: SOCIMI
Analytical article published by the Bank of Spain in which Víctor García-Vaquero and Irene Roibás from the Directorate General Economics, Statistics and Research, review the evolution, regulation, situation and main characteristics of the real estate investment Trusts in Spain (SOCIMI).
The main conclusions of the analysis are as follows:
- Rapid growth in recent years to reach a relative size higher than the average for this type of company in the euro area as a whole:
- “The number of registered SOCIMIs rose from 2 to 90 between 2013 and 2019, while their stock market capitalization increased from €0.1 billion to €27 billion.”
- “The number of registered SOCIMIs rose from 2 to 90 between 2013 and 2019, while their stock market capitalization increased from €0.1 billion to €27 billion.”
- Potential positive impact on the residential rental market: Although so far most of their investments have been in the commercial real estate segment, in recent years there has been an increase in the weight of the residential real estate in their portfolios, a trend that should continue "could prompt a rise in the supply of rental housing in the next few years. This could contribute to tempering the growth dynamics of prices observed recently in this market"
- SOCIMIs have increased the offer of investment products among savers, showing some advantages for retail investors compared to direct investment in real estate, in terms of risk diversification, professional management and scalability.
- From the point of view of financial stability, SOCIMIs could also offer some advantages over other types of investment products:
- Reduced direct exposure of Spanish banks (through equity investments and the granting of loans) to SOCIMI, " both in terms of absolute value and its weight in banks’ balance sheets"
- Eventually, during periods of stock market and real estate crisis, The structure of these vehicles is, in principle, sounder as they don´t have to reimburse unit-holders when they demand their contributions, reducing the risk of accelerated portfolio fire sales in crisis periods and the collateral effects that these may cause.
- Reduced direct exposure of Spanish banks (through equity investments and the granting of loans) to SOCIMI, " both in terms of absolute value and its weight in banks’ balance sheets"
Filter results
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.