Increased Office Rental Portends Recovery

23/04/2014 – Cinco Dias

Many experts agree that the year 2014 will go down in history as the turning point for the collapsing Spanish economy. One of the most trustworthy indicators of the real estate revival is the lease of offices. As they have performed very well recently, one may lean towards positive outlook for the nearest future.

There have been signs of improvement in confidence that starts a loop. If customers are ready to spend their money again, companies receive an incentive to produce more in order to meet the demand. They will also need more employees, who in turn will earn and spend, and the cycle closes.

Present bottomed-out prices convince many companies to move their premises. In 2013, demand for office spaces rose 7% in Madrid and is to arrive soon at Barcelona as well. The moving firms usually pick good quality and well located spots, more spacious and in fact at comparable prices.

In spite of having left the recession behind, Spanish GDP still must overcome 1% to generate long-awaited work places.

Moreover, over the past months investors literally flocked to Spain in search of high yields assured exclusively by property market recovery.

 

 

Original article: Cinco Días (by Carlos Gorostizaga)

Translation: AURA REE

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