• 2024 High Street Retail Sector – Madrid

    May, 2024

FY24 is representing a very dynamic year for the Spanish High Street Retail sector, with numerous openings and a high demand for retail space in prime locations. The increase in tourism in FY23 pushed occupancy of retail space in Madrid’s main prime thoroughfares to over 90%.

Rents and occupancies of prime retail space in Madrid have managed to reach, and in some cases exceed, pre-pandemic levels, following an upward trend. In recent years, the retail sector in Madrid has undergone significant changes, driven by trends such as the growth of high street and flagship stores.

The main streets of the capital have consolidated as the most important hubs for international operators. International brands continue to consider Madrid as one of the main locations when investing in Spain and locating their shops, as they seek to establish themselves in the busiest shopping areas. This trend continues to strengthen.

Demand is very strong and competition is very active. Since FY22, C.200 new openings have taken place in Madrid and Barcelona. The forecast for FY24 is that retailers will continue to invest in physical shops, focusing on prime locations.

The high demand for premises in these areas has resulted in a very limited availability of space in High Street areas. According to leading brokers in the sector, the level of occupancy in the main streets has increased significantly, reaching pre-pandemic levels. Fuencarral Street reaches 100% occupancy, followed by Serrano, Madrid’s main luxury shopping street with 99.36% occupancy (only one available space). In Gran Vía, the occupancy rate is 94.76% and lastly, Ortega y Gasset has an occupancy rate of 90%.