It should be pointed out that the investment market, equally in Madrid as in Barcelona, has continued to reflect increased activity throughout the third semester of 2016, as much on the part of national as international investors. High demand and poor supply have caused changing yields, below 4% in Madrid, and 4,5% in Barcelona.
72% of investment concentrated in Madrid
In Madrid, gross purchase of office space has been 92.166 m2 in the third trimester of this year, which suggests a 32% adjustment compared to the same period of 2015, the Informe de Aguirre Newman points out, with the level of demand being maintained, total investment for 2016 being merely 8% lower than the same period in 2015, in spite of supply now being very low. A great deal of activity in urban renewal in the city centre is to be highlighted, as well as favourable rent trends.
The number of closed deals has risen to 112 and the volume of investment to 1,600 million euros, making up 72% of the total investment within Spain. Out of these operations, stands out the transfer with expansion by Everis Spain, securing rental space of 3,355 m2 on behalf of Accelva in the Paseo de la Castellana 268 and the purchase of Santa Leonor 32 (5,746 m2) for the Centro de Servicios Operativos e Ingeniería de Procesos.
The most active areas have been the Descentralizada (DEC), with 36% of total investment, the Resto del Distrito de Negocios (RDN), with 29%, and the Resto Ciudad zone, with 17%. In a superficial analysis of operations, the behaviour of the range between 1.000 and 3.000 m2 can be noted, with 32.880 m2 contracted, representing 36% of total investment and 19% of transactions.
In respect of rents, the maximum registered for this period has been 33 €/m2/month, whilst the average rent in the Centro Distrito de Negocios (CBD) has reached 26,97 €/m2/month and in the ‘Descentralizada’ zone 11,98 €/m2/month.
Investment in Barcelona falls, but unemployment decreases
In Barcelona, during the third trimester of 2016, 85.127 m2 of office space was contracted, a drop of 43% with respect to the same period of 2015. However, according to our spokesperson from Aguirre Newman, investment in the third trimester of 2015 was extremely positive, due to a contract of unusually large volume, with the consequence that investment will continue positively in 2016, as well as the drop in unemployment (to 9.97%).
The number of transactions during this period rose to 156, with 90% of these below 500 m2. The number of transactions above 3.000 m2 has increased relative to the remaining trimesters in 2016.
In the Aguirre Newman, it is noted that the most significant of the analysis of the absorption by zones has been the behaviour of the OUT zone (Outside of the City), which has reached 31% of the total. The zones in the business district (CDN and RDN) have had a reduction in their absorption rates (they represent 9% of the total each) with respect to the two trimesters prior to 2016.
In respect of rents, the maximum recorded in this period was 21,50 €/m2/month, while the average rent in the CBD reached 16,82 €/m2/month and in the Decentralized zone 13,30 €/m2/month.
Aguirre Newman concludes that the data for this third semester confirm the positive tendency of the market, as observed during the first six months of 2016, in respect of absorption, unemployment and price variables, with the consequence that an end to the year with levels of business above the average for the last ten years is expected, consolidating the tendency to growth felt in the last two years