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The District: The real estate sector expects the recovery in 2024

The real estate fair The District in Barcelona has been a great success, exceeding the expectations of its organizers. In its second edition, it managed to attract more than 10.467 visitors, compared to the expected 8.000. In addition, 390 experts from more than 34 countries participated, according to the data provided by the organization. This event has become the main reference of the sector, reflecting the uncertainty of the current context.

Due to the general conclusion of real estate experts, interest rates are expected to stabilize in 2024, which will provide greater certainty to investors and encourage them to reactivate their acquisition plans. "We are two-thirds of the way through the price correction; the next twelve months will be a fantastic time for investment," said Adolfo Ramirez-Escudero, president of Cbre Spain and Latam, during one of the morning conferences. Xavier Güell, director of Cbre Barcelona, added: "We are entering a key phase of the cycle where prices will fully adjust, and investment activity will accelerate. We must be ready, because in the next eighteen months it will be possible to create solid real estate portfolios."

In this way, the real estate market moves from the "wait & see" attitude institutionalized last year in The District, to a more hopeful "let's see” approach, due to the capital retained in recent years that is expected to translate into an increase in operations. 

Another important conclusion of the fair is the cooling of investor interest in offices and the growing commitment to traditional housing alternatives. Due to the shortage of stock and the increase in prices, coliving, student or elderly residences, corporate apartments and other similar types are becoming more demanded assets. In fact, "student housing" has been identified as one of the most profitable assets with the greatest future potential due to the increase in people in the academic stage and its prolongation.

Another trend that arises in relation to the instability of offices is the redistribution of assets. Juan Velayos, president of The District, has commented that "it is necessary to find an alternative use for assets that are not working, such as some offices, and convert them, for example, into homes where there is a high demand, little new supply and less available land".

Another great news of the meeting of professionals was the focus on the ESG criteria. In The District it was concluded that environmental certifications are fundamental to increase the value of assets, since they allow obtaining liquidity, operational efficiency, and a purposeful distinction.

During this edition of The District, held at the headquarters of the Fira in L'Hospitalet de Llobregat, there were again protests by demonstrators called by various entities such as the Platform of Those Affected by the Mortgage. These incidents generated unrest among numerous attendees at the congress due to the lack of action on the part of the Mossos d'Esquadra, which caused a delay in the start of the event. However, this has not affected the decision of the organizers to continue in the Catalan capital, since the next edition, which will be even bigger, will also be held here. "We feel welcome and welcomed in Barcelona," Juan Velayos, president of The District, said on Friday. "Barcelona has gone through a very difficult stage and now it must return to normal." However, the organization has requested greater institutional and security forces support, and has requested a meeting with the Interior Minister of the Generalitat.

The District has managed, in just two years, to attract national and foreign executives from large investment companies such as Blackstone, JP Morgan, Goldman Sachs, TPG, BlackRock, Axa, Orion Capital and King Street. The event's sponsors also include Santander, Caixabank, Merlin Properties, Colonial, Aedas Homes, Servihabitat, Deloitte, Lar España, Cushman & Wakefield, CBRE and JLL.