IP03

110 // iberian.propery / 2017

dossier// ISSUE: TOP IBERIAN cities

OFFICES

The activity of the office market is concentrated in the capital,

Malaga. This sector is expected to undergo a rotation in upcoming

years due to projects on the table to convert some buildings

located in the historic centre into hotels and tourist apartments.

Demand

: around 10.000 m² in 2016, take-up

is evolving favourably, driven not only by local

businesses, but also by national and international

companies (including operators in the technology

and call centre segment, for spaces above 1.000 m²).

There is also renewed interest from some companies

to purchase their premises although, at the moment,

this movement is moderate.

Supply

: 600.000 m² of stock, concentrated in four

zones (Historic Centre, Business District, Periphery

and PTA). This number does not include institutional

buildings, which represent an additional 300.000 m².

There are 100.000 m² in the pipeline exclusively for

office use, namely involving expansion of the PTA.

Rents

: stabilised. The highest rents are practised in

the Historic Centre, more specifically Calle Larios

and the surrounding area, where values above 15 €/

m² are applied in the best buildings on the Calle. The

average rents for reference are between 10 and 14€/

m² in the Business District, while in the out-of-town

areas (Teatinos, Parques Empresariales & Poligonos

Industriales) these vary between 7 and 12€/m².

HOUSING

Better quality product:

higher selectivity in terms

of the location of land, a focus on architecture with

modern lines and better quality rather than the

traditional

«Mediterranean style»

that was popular in

the previous cycle, as well as larger average areas.

This new paradigm in construction is also resulting

in higher prices, targeting a public with greater

purchasing power.

New players:

a greater presence of local developers

financed by international funds, which are risk-averse

but seek fast returns and prefer to invest in land that

is already developed.

Land

: given the lower availability of land in Marbella,

the adjacent municipalities of Mijas, Estepona,

Benahavis and San Roque have absorbed the largest

share of the development activity, accompanied by a

rise in land prices.

Demand

: in 2016, sales increased 8% in the province,

in line with the Andalusia Region but, nonetheless,

below the national average. Torremolinos, Fuengirola

and Malaga were the municipalities with the greatest

increase.

Supply

: the amount of new construction and licensed

residences continues to rise, and the launch of new

projects is expected to grow in upcoming months.