The office markets in Madrid and Barcelona are facing a growing imbalance between demand for high-quality space and the available supply, a trend that is set to triple the projected shortfall in both cities by 2028, according to the report Shrinking Supply Spain, produced by Cushman & Wakefield.
In Madrid, the shortage of prime space will rise from around 39,000 sqm in 2026 to over 117,000 sqm two years later. This forecast is set against a market totalling around 13.6 million sqm, but where high-quality options are already scarce: availability in the financial district is limited to 2.7% and falls to approximately 0.5% in Grade A buildings.
Barcelona will follow a similar trend, with a shortfall set to grow from around 19,000 sqm to over 59,000 sqm during the same period. The pressure is concentrated mainly in the CBD and the city centre, where supply is more limited and high-quality offices already account for around 73% of take-up.
The shortage stems both from the concentration of demand on modern, efficient and well-located properties and from the difficulties in bringing new stock onto the market. Rising construction costs, more expensive financing and the conversion of buildings to other uses are limiting new developments and the renewal of the existing stock.
This imbalance has driven up prime rents, which have risen by 14% since 2023 in Spain’s main property markets. The consultancy firm anticipates a further increase of between 4% and 5% from the end of 2026 to the end of 2028, driven by the limited availability of the most sought-after properties.
“Quality, efficiency and location are more important than ever in companies’ decision-making”, said Alfredo Collar, Director of Office Agency Spain at Cushman & Wakefield, who pointed out that buildings capable of enhancing the employee experience and helping to attract talent are attracting the bulk of demand, which is accentuating the polarisation compared with the rest of the stock.
This trend extends across Europe as a whole, where Grade A spaces accounted for 52% of office take-up in 2025, with 67% of that volume concentrated in prime locations. However, their availability stands at 3.3% and falls to 2.8% in core areas.
Between 2026 and 2028, some 6.5 million sqm of new developments are expected to be completed across the continent, compared with an estimated demand of 15.4 million sqm of Grade A space, which would leave a potential shortfall of around 8.9 million sqm.
