JLL expects office rents in Barcelona to increase 3.8% per year until 2020

JLL expects office rents in Barcelona to increase 3.8% per year until 2020

 

In fact, 60% of the supply of offices that will be launched on the market, in Ciudad Condal, in the next two years is already pre-leased, which will put pressure on rising incomes, which are currently expected to increase by 3.8% of annual average until 2020, according to the data of the real estate consultant JLL.

In this sense, JLL has prepared a ranking of cities with the greatest potential for income growth, after an analysis of market behavior in the last 20 years regarding the rate of availability, current supply and future supply. In this ranking Barcelona is placed in 8th position, behind Amsterdam, Stuttgart, Stockholm, Munich, Prague, Dublin and Edinburgh and ahead of cities such as Warsaw or Utrecht, which complete the top 10.

These are cities where the growth of incomes is motivated by a set of factors. Thus, in the case of Barcelona, have been taken into account the data such as the fact that average availability has been reduced by half in 4 years - currently standing at 7.1% - and that in the center and in new business areas (22@ and Plaza Europa) this percentage is reduced to 5%. On top of that, Grade A stock represents around 12% of the total stock of offices, when this category of buildings is the most requested by companies, JLL points to a strong upward income pressure, mainly in new buildings, due to the inability to meet the future demand for spaces.

It is estimated that in the next two years 328,000 m2 of new offices will be launch on the market (60% already pre-rented), of which almost 100,000 m2 will do so at the end of 2020, and JLL expects its delivery to be postponed until 2021. Thus, if we take into account that the solid levels of contracting in Barcelona will continue, between 320,000 and 350,000 m2 per year, it’s confirmed the lack of real supply for the existing demand and the pressure on income.

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