Nery Alaev writes about Madrid’s property market.
Spain’s capital has seen an uptake of office leases at the highest rate since the beginning of the global recession – this is the result of a positive macroeconomic outlook for the country among other factors.
I’ve decided to look further into the news and draw a conclusion upon the findings made.
The amount of land in square metres taken up, when compared to 2014, has increased over 25% (385,000m² vs. 490,000m²) – this number is the highest since the Great Recession, which acutely effected Spain’s then-booming property market.
The amount of land signed for was also more than was predicted – 17% more than even the most optimistic of predictions.
Knight Frank’s detailed report further outlines the specific details of the market. It highlights that the strengthening Spanish economy has helped the sector to recover and a lack of quality assets has driven competition for existing spaces in the capital, which is home to 3 million people.
Commenting on the report, Knight Frank’s Humphrey White said:
„The absorption figure stands at close to its historical average level, this means that the employment market has evolved positively to stand on a strip of healthy market.
This increase in recent months compared to the forecasts that we drove is the result of a less conservative market that has evolved more quickly thanks to the good economic prospects.“
Mr. White’s comments imply that the strong employment market in Spain has helped to propel office take-ups, as well as an ambitious environment in the country that has led to stronger investment and more deals being made for more land.
In conclusion, there is clearly a positive environment in Spain, especially Madrid, regarding the commercial property market – the time to invest may just be now.
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.