Investments in the office real estate market reached one billion euros in the first half of 2016
During the first half of 2016, investments in the office real estate market in Madrid and Barcelona reached 970 million euros. This indicator represents a decline of 27% compared to the same period in 2015, which was due to a decrease in the supply of assets for sale in the market. At the same time, the rental yield remains stable at the center and at the periphery of both cities.
Rental prices for of offices continues to grow in all areas of Madrid and Barcelona. One of the reasons for this increase is high demand and lack of new projects.
In Madrid, rent office space amounted to 273,019 m2, which indicates a positive change on the demand side. During the first half of 2016 320 transactions were closed, the volume of investment increased to 700 million euros, accounting for 72% of total office space investments in Spain.
The total number of unoccupied office space continued to grow and accounts for 11.5%, in the business district – 6.6%. At the same time, the rental prices have continued their positive trend, although the percentages stayed lower compared with the previous period. In the first half there was a rising rents in all parts of Madrid. The average rental rate reaches 26.88 euros / m2 per month, while the highest rate in this area comes to EUR 34 / m2 per month.
In Barcelona in the first quarter of 2016 was leased 160.448 m2 of office space, which is 9.5% less than in the same period of 2015. It is worth noting that data on 2015 are the highest in history – an investment for this period exceeded 270 million euros, which accounted for 28% of the total.
As a result of strong demand and shortage of new assets, rental rates in Barcelona have increased in all areas of the city. The average rent in the business district increased to 16.77 euros / m2 per month, which is higher by 5.1% than in the first half of 2015.