Angel Garcia, whose family has sold hand-tailored shirts since 1857, will be shutting his shop on Madrid’s Gran Via in the New Year after his landlord decided to raise the rent almost 10-fold. 

At the stroke of midnight on Dec. 31, a rent-control rule introduced under Spanish dictator General Francisco Franco comes to an end, spelling financial turmoil for thousands of small store owners.

Among the 236 real estate deals sealed in Spain during the first nine months of the ongoing year, noteworthy are the purchase of the Edificio España building by China’s richest man Wang Jialin who paid €265 million for it, and the €2 billion amount invested year-to-date by local REITs (known as Socimis).

Spain: It is getting increasingly difficult to find good deals in size, with so many funds looking for discounted property. While Socimis (=Spanish REITs) don't pay tax on a corporate level, please note that you still owe dividend tax as a shareholder. 

Investment in non-residential property in Europe’s nine biggest markets jumped 28 per cent in the year ended in June, led by a 126 per cent increase in Madrid.

Norges Bank Investment Management, which manages the world’s biggest sovereign wealth fund, bought a portfolio of real estate in Madrid and Barcelona through a joint venture with Prologis Inc. 

Prologis European Logistics Partners Sarl bought more than 1.6 million square feet of logistics facilities and development land in the two Spanish cities from SABA Parques Logisticos, Prologis said in a statement today. 

“Demand for logistics infrastructure in Spain is rising while construction of new facilities is at an historic low,” Philip Dunne, president of Prologis Europe, said in the statement. “We are pleased to acquire this well-located portfolio at a discount to replacement costs.”