Savills: Investment in Offices in Madrid Will Amount to €2bn in H2 2018

19 July 2018 – La Vanguardia

Madrid is accumulating investment projects in the office market worth almost €2 billion, which will materialise during the second half of this year, according to the consultancy firm Savills Aguirre Newman, which estimates that the figure for Barcelona amounts to around €700 million.

In Madrid, there was an 11% reduction in the volume of office space leased during the first six months of the year, and absorption in the office segment of the capital amounted to 273,000 m2.

In Barcelona, the transacted volume amounted to 207,447 m2, and the peripheral area was where operations grew by the most during the six months to June, up by 78% YoY, to 56,030 m2.

In terms of average rents, in Madrid, the figure reached €17.70/m2/month, up by 12% compared to the first half of last year, whilst the theoretical “prime” rent in the central business district amounted to €32/m2/month, up by 10% YoY.

The report indicates that in Barcelona, the evolution of rental prices is continuing to rise, with growth of 6.2% on average over the last year.

The average price in “prime” areas in the central business district of the Catalan capital amounted to €19.35/m2/month, compared with the new business areas, which saw prices of €15.70/m2/month.

Of the operations planned for Madrid this year, the consultancy firm highlighted new developments and renovations in Vía de los Poblados (33,000 m2), Puerto de Somport (14,000 m2), Avenida de Bruselas (14,500 m2) and Príncipe de Vergara (11,400 m2), amongst others.

In terms of the main projects in the Catalan capital this year, Savills Aguirre Newman highlights the Luxa building, with a surface area of 17,000 m2, Tánger 66 (8,000 m2) and Parc Glòries (24,000 m2). In 2019, the Can Batlló project in Plaza Cerdà will be completed, with a surface area of 17,000 m2, as well the Hexagon in 22@, spanning 10,800 m2.

Original story: La Vanguardia

Translation: Carmel Drake