Real Estate Markets | Zentrica Real Estate Investment Club Blog

Real Estate companies will have to reduce costs using IT and Internet, and reducing risks

Real Estate companies with a lot of prople working will have to reduce cost using IT and Internet with more flexibility that the rest of companies.

In Spain there are companies with big estructural costs that do that the company have a ballast. Little companies working with less costs are faster working and are thinking only in operations, not in how to reduce costs laying off staff.

Internet offer to companies the possibility of expand quicker, working in a distribuited map and contribute with a better service to property holders and investors, working with their sell or invest interests in order to the goal of the company, this means, focus on the operations and having a very good rotate operational.

One of the things that Zentrica have been improving is the possibility to offer to our investors information like if they where working with a big bank or an investment bank, information about how the investment vehicles we do are having their movements, expectations and profits for investors and shareholders of the vehicle company.

Our main focus markets are Europe and Latinamerican markets and in these markets you have to be very informed about the general situation, mainly in Latinamerican, like with the Politic situation to move quickly interest or to desinvest having profits is its necessary. Countries like Venezuela for many people y very secure and for a lot of people is a very dangerous market, we know several Real Estate investors selling all the properties they have there a.s.a.p and re-investing in Spain, mainly Madrid and Barcelona and doing this in products like little buildings in the center of these cities.

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Prime zones like Barrio Salamanca in Madrid are more valuated by investors

Prime zones in all cities are the most valuated by investors by the little impact of Real Estate Market fluctuations. In Madrid, prime zones like Barrio de Salamanca or Paseo Castellana are the main streets where investors want to adquire Real Estate Assets (where the price per square meter may be from 8.000 to 12.000 euros).

There is a big contrast with the beach areas where the Real Estate market fluctuation in very accentuated and where the price of these assets are, in many cases, purchased with a 40% off discount. These points are mainly beach villages like Gandia or Oliva in the Levante area (East of Spain).

The more attractive assets to invest are products with direct yield like office buildings or commercial centers, like malls or similar and the medium yield percentage may be between 5% and 7%.

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