The Spanish office market remains one of the most competitive in Europe in terms of office space, with average costs per sqm lower than in neighbouring countries. In Madrid, the average cost per sqm is 1,083 euros, while in Barcelona it is 1,138 euros, according to the EMEA Office Fit Out Cost Guide 2025 report prepared by Cushman & Wakefield, which analyses 53 cities in Europe, the Middle East and Africa.
Compared to other European capitals, Spain continues to be a more affordable destination. Paris has an average cost of 1,161 euros per sqm, while the figures in Germany are much higher: 2,333 euros in Berlin and 2,408 euros in Frankfurt. In the UK, London reaches €2,671, with Manchester and Birmingham at €2,311 and €2,199 respectively.
The study also points to a year-on-year increase in set-up costs of between 3% and 4% in Europe, and an increase of between 2% and 7% in relocation costs.
Demand for quality offices in Spain
During 2024, despite an economic context marked by volatility, the office market in Spain has shown a positive evolution. Lower interest rates in the second half of the year boosted business confidence, with 10.3 million sqm of office space being taken up in Europe, 5% more than in 2023.
In Spain, demand has been particularly focused on high quality space. In Madrid, 75% of the surface area contracted corresponded to category A and B+ buildings, while in Barcelona this percentage was 70%. This preference has contributed to sustaining the dynamism of the market, especially in well-located areas with a modern offer.
In the case of the capital, growth has been driven by a consolidated supply of buildings with high standards and a strategic location, with historically low availability within the M-30. Sectors such as the public and educational sectors have also contributed to the maintenance of activity.
Barcelona has followed a similar dynamic, with high demand in New Business Areas and a growing presence of the technology sector. The contracting of flexible spaces, such as plug&play models and subletting, has reflected the adaptation of the market to new forms of occupation.
Impact of ESG criteria and rental prospects
ESG (environmental, social and governance) criteria are also gaining increasing weight in the decision-making process. According to the report, 46% of respondents indicated that their tenants had increased spending in this area compared to 2023.
In relation to rents, the high demand for space has contributed to a 5.4% increase in 2024. However, a slowdown in growth is anticipated for 2025, with an estimated increase of 2.1%, due to the entry of new supply that could raise vacancy rates.
‘Spain is positioned as one of the most attractive markets for office space, driven by competitive costs and a growing stock of high quality space. With a stable economic outlook and a growing real estate market, Madrid and Barcelona will continue to be key and priority destinations for office investment in Europe,’ said Óscar Fernández, Partner and Head of Business Development for Project & Development Services at Cushman & Wakefield in Spain.
