The office market in Madrid has started 2025 with a solid performance, reaching a total take-up of 127,110 sqm between January and March, which represents a 3.3% growth compared to the previous quarter. This is the highest level of absorption recorded in the last five years, in a macroeconomic context marked by GDP growth forecasts of around 2.6%, according to data published by BNP Paribas Real Estate.
Between January and March, 128 deals were signed, 19 more than in the previous quarter and 39 more than in the same period of 2024. The average size of the contracted areas was 992 sqm. The highest volume transactions were recorded in Alcobendas (5,400 sqm), Manoteras (5,311 sqm) and in Paseo de la Castellana 36-38, in a refurbished building.
The business district (CBD) accounted for 32% of the contracted area and 28% of the transactions, with an average of 1,115 sqm per contract. The most active areas were Azca, Salamanca, Cuatro Torres, Castellana and, particularly this quarter, the area around Cuzco. The decentralised area, between the M30 and M40, accounted for 31% of take-up and 33% of transactions, with particular activity in areas such as Arturo Soria, Campo de las Naciones, Las Tablas and MadBit. The periphery accounted for 19% of the contracted area and 18% of the transactions, while the centre accounted for 18% of the area and 21% of the transactions, with the signing of 3,172 sqm in calle Mateo Inurria, close to Plaza de Castilla, standing out.
In terms of prices, average rents in Madrid increased by 1% in the first quarter of the year, standing at 22.54 euros per sqm per month. In the CBD, the average rent reached 35.83 euros, an increase of 6.6%. The highest rent was recorded in Paseo de la Castellana, at €44 per sqm per month. During the quarter, 15 transactions were closed with rents above €35/sqm/month, driven by low availability in the higher quality buildings.
Currently, 17 new projects are expected to come on the market in the next 36 months, with a combined surface area of 222,000 sqm. These include the Faro building in Méndez Álvaro, Marqués de Mondéjar and the Oria Innovation Campus.
Looking ahead to 2030, BNP Paribas Real Estate estimates an accumulated growth of 17% in prime rent and 11.1% in average rent. ‘Taking into account the good figures of the first quarter of the year and the dynamism of demand, supported by strong economic growth in the city of Madrid, the number of contracts for the total year 2025 could approach the levels recorded in 2024 and again exceed the barrier of 500,000 sqm,’ said David Alonso, Director of Research at the consultancy firm. Alonso also stressed that ‘these market fundamentals support the return of institutional capital to the office sector in Madrid and its metropolitan area’.
