Juan Velayos (The District): "España es un destino de referencia para el capital"

España is a top destination for capital, according to Juan Velayos, the president of The District and founder of JV20. The District is hosting its fifth edition in Madrid this week, after four years in Barcelona. The congress will bring together high-ranking executives from national and international firms such as Blackstone, Norges, and Azora to discuss the market's evolution in uncertain macroeconomic conditions, focusing on the residential segment due to the shortage of housing and the rise of AI and data infrastructure.

Madrid is chosen as the host city for The District's fifth edition, as the Spanish market is on track for a record year of investment in 2026, despite rising interest rates. In the first half of 2023, Spain saw record investment, estimated at around 20 billion euros. Velayos, who previously served as the CEO of Neinor, highlighted the favorable macroeconomic environment, improved asset management, increased volume generation, and greater institutional investor presence as key factors contributing to Spain's growing appeal for capital.

Large institutional investors have played a significant role in recent transactions in Spain. For example, Norges invested 1.5 billion euros in acquiring a portfolio of eight shopping centers, and Brookfield bought Fidere for 1.05 billion euros. These operations demonstrate Spain's ability to attract significant investments, even amidst challenges such as inflation and rising interest rates, which could limit access to financing.

The residential segment led the residential investment in Spain during the first half of 2023, with over 4,000 million euros in operations. Velayos anticipates that residential real estate will continue to be a driving force for the sector, although he regrets that the regulatory environment has hindered the growth of the build-to-rent industry.

At The District, investors will discuss how to bring new supply to the market in a context of rising construction costs and higher mortgage rates, encouraging governments to promote regulations that do not impede supply generation and prevent price hikes.

The District will also focus on the deployment of artificial intelligence and the sector's role in generating data storage centers. As the Spanish government prepares to approve a decree to regulate data centers and their energy needs, Velayos believes it would be a shame if Spain missed the opportunity to become a reference point for the industry on a global scale. Energy access remains a sensitive issue, but Velayos sees it as a challenge to overcome.