Savills Aguirre Newman publishes study that reveals where the office sector in Spain is heading

February 4, 2020
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Investment in Spanish offices has grown by 4.4% in Barcelona and 4% in Madrid.

According to Savills Aguirre Newman Barcelona's Office Manager, Hipólito Sánchez, in a presentation of the Office Market Study of Barcelona and Madrid published by the consultant, investments worth 4,300 million euros were gathered in 2019.

 "In income, the Spanish market still has a long way to go," said Hipólito Sánchez

The price per square meter per month in prime areas in Barcelona is 28.5 euros while Madrid 35 euros also the report places London with 110 euros and Paris with 70 euros per square meter.

The performance of investment in the sector in Spain contrasts with the 6% decline registered in the whole of Europe, up to 270,000 million euros. Sánchez said the investment has been weighed down "by Brexit and the trade war between the United States and China."

Sánchez explains that despite a 6% drop in the European market as a whole, although it is true that Brexit has weighed down investments by adding the friction between the United States and China, he is optimistic about the sector in Spain.

Availability under minimum in Barcelona

Barcelona closed 2019 with an average availability of 4.3%, the lowest figure since 2001, according to the Savills Aguirre Newman's directive, Natalia Montal.

“This shortage of product causes that there is a bulk of demand that has no alternatives to being in Barcelona," stated Natalia Montal

In this sense, the only area of ​​the city with an availability greater than 10% is the periphery, while the CBD, the city center and 22 @ are below 2%.

“Companies that demand between 500 square meters and 1,500 square meters can hardly find offices in the market. These are operations that could have increased the volume of absorption but could not be done,” commented Montal.

The Catalan capital is shown as one of the growing tech-cities, especially in the area @ 22 stimulating the market, the office sector accounted for 50% of the operations closed in the city in 2019. Reaching its historical record with 29 and 3,000 square meters.

Montal explains the estimates of the growth of the market of the city between 2020 and 2021, with the possibility of incorporating 312,000 square meters, of which the new construction represents 60% located especially in the new business areas of the city, 9% of the rehabilitation resulting in new stock and the remaining 31%, of rehabilitation of the current park.

However, Madrid shows fewer operations but more square meters

Madrid land has an availability of 8%. Ángel Estebaranz, Director of the Department of Offices of Savills Aguirre Newman, said: "In the last year the curve of decrease of available workspaces has accelerated," showing availability in prime areas of 2.36%, in the CBD, in 4.1%, and in the periphery, in 11%.

On the other hand, the planned offer between 2020 and 2021 amounts to 468,000 square meters, of which 50% are new construction and 40% are within the M30. Also, in 2022 180,000 new square meters will be placed on the market.

February 4, 2020

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