The office market in Spain is showing signs of dynamism in spite of the uncertainty derived by the current economic environment. In the first quarter of the year, Madrid and Barcelona registered positive figures with over €530 million invested in the sector.  

In Madrid, the high demand has been reflected into a take-up volume of c.110,000 sq.m., improving with respect to Q4 22, yet 11% below levels of last’s year first quarter. This resulted in a strong transactional activity of c. €400million, representing an increase of 15% with respect to the first three months of the previous year.

Prime yields in the Spanish capital also improved compared to the Q4 2022 standing at 4.10%. On another note, vacancy rates in Madrid stood at c.10%, whilst prime rents grew by 2.7% annually, rising to €37/sq.m./month.

In the case of Barcelona, the market has behaved relatively cautious with an investment volume reaching c. €130 million euros. Take-up volume stood at c. 60,000 sq.m. during the first quarter, increasing slightly compared to the previous quarter, although falling over 20% compared to the previous year.

Prime rents in Barcelona stabilized at €28 /sq.m./month, reaching levels not seen since 2008. On the other hand, vacancy rates are slightly below those in Madrid, yet surpassing the 9% mark. Finally, prime yields remain 5 basis points above Madrid’s levels, at around 4.15%.

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