25 October 2018 – Eje Prime
Offices are the most sought-after assets by overseas investors in Spain. The limited availability of workspaces with the appropriate requirements is pushing international investors to bet heavily on this real estate segment.
In light of the shortage of high-quality stock, overseas investors have a Plan B for the country. According to the latest report from Savills Aguirre Newman, investors are currently looking for new build projects and are opting to renovate properties already being offered in the Spanish market.
The recovery of the economy and the consequent reactivation of employment has meant that buyers see Spain as a country with lots of opportunities in the office segment. This trend is expected to last for a few more years, above all in cities such as Madrid and Barcelona, where the creation of employment is set to grow above the European average; with annual growth of 1.7% and 1.5%, respectively (…).
In 2017, rents in the office segment rose, by 6% on average, in the main financial districts of Europe. Nevertheless, four cities led the growth in rental prices last year: London, up by 13.9%; Stockholm, 12.5%; Berlin, 12.4%; and Madrid, 10.7% (…).
Original story: Eje Prime (by B. Seijo)
Translation: Carmel Drake