Investment into Spanish offices has strongest first quarter in decade

The volume transacted in Spain in the office market so far this year exceeds €800 million, which is more than double the first full quarter last year and 80% higher to the average recorded in that period since 2008. The sound start to the year reflects the pace of the market at the end of 2018, when after two years of decline in activity, they reached 2,800 million euros, 17% more than in 2017.

Of the figures recorded, 90% of investment has been concentrated in Madrid, where the largest operations have included the Hispania, on behalf of Blackstone, sale of a portfolio to Zurich and another portfolio which Starwood acquired from Autonomy. Similar to 2018, international capital continues to dominate the market in the capital, with a 60% share of the total volume, while in the historical series overseas money only accounted for 30% of total volumes.

Alejandro Campoy, Managing Director of Savills Aguirre Newman, commented: “We have made a strong start to the year with important closures from 2018 and a healthy level of new stock which we expected to be transacted in the first half of this year. These indicators both point to an even more successful 12 months than those that have just passed.

“Although the majority of activity was concentrated in Madrid, the strong fundamentals of Barcelona including low employment levels and growing incomes, are proving attractive to investors.” 

In terms of origin of capital, international investment continues to dominates – especially in prime CBD locations but also increasingly in urban areas and in periphery of the CBD where consolidated business districts are emerging. This trend is expected to continue into 2019.