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iti has reinstated coverage of Inmobiliaria Colonial with a "buy" rating, driven by its confidence in the real estate market's recovery and the resilience of prime office spaces. The broker notes that declining interest rates and shifting post-pandemic trends have led to increased demand for limited prime office supply, particularly in key markets like Paris, Madrid, and Barcelona.

    Citi expects prime vacancy rates to decline further, putting upward pressure on rents in these areas. The bank believes the worst is behind Inmobiliaria Colonial, which has faced sustained share price weakness since its peak in Q1 2020, dropping from over 13 euros per share to below 6 euros over the past three years.

    Among the 19 analysts covering the company, 12 rate the stock as "strong buy" or "buy", while five recommend a "hold" and two advise against it. The stock has gained 15.3% since the start of the year, according to Friday's market close.