A total of 875 million euro was invested in the Madrid office market during the first three months of the year alone. This number is 6% higher yoy.

The results are from consultant Savills Aguirre Newman, which further revealed that «this boost was caused by three mega-operations (≥100 million euro), which together represented around 47% of all office investment in Madrid». The three transactions were: the Hélio building –ING’s future headquarters – for which Blackstone paid 190 million euro; business park Castellana Norte which earned Harbert Management Corporation 127 million euro; and the Axis building which was acquired by GPF Capital for 100 million euro.

«Investors maintain their interest on the market, although remaining cautious about the Covid-19 repercussions on the office segment. 68% of the pipeline remains active, affected by delays and deadline extensions in terms of the final decision», the consultant concluded in its latest report.

On the other hand, the consultant further warned that «it is important to review companies’ direct participation in Asia in terms of tertiary real estate, a trend which emerged in 2019 after several years during which their presence was felt through management companies and other investment vehicles».

Yields seem to not have suffered the effects of the pandemic. The business district remains with 3.25% and outside the M-30 it remains at 4.75%.

On the market’s potential price adjustment due to the pandemic, Savills Aguirre Newman clarifies that «despite there not currently being a constant drop in terms of the repercussion values, there might be an expansion connected to financing or deadline extensions for marketing the assets, but we should recall that the market remains at maximum liquidity within a context of low-interest rates».