IP03

34 // iberian.propery / 2017

dossier// ISSUE: TOP IBERIAN cities

RETAIL

High street retail moves onwards and upwards in Madrid, with the sector

featuring its greatest performance ever, thanks to the growth in the

economy, consumer confidence and tourism.

265

265 €/m²

| Calle Preciados is the most expensive

location to lease a shop in Madrid, and the second

most expensive in the country.

6% Vacancy Rate

| the Madrid market can be divided

into two principal zones: the centre and Salamanca

District, where approximately 912 shops are

concentrated and the vacancy rate is below 6%.

Salamanca District| The luxury cluster:

this is

the principal cluster for the most exclusive brands

in Madrid, in the premium and luxury segments,

especially concentrated in the areas surrounding

Calle José Ortega y Gasset (66% of luxury brands)

and Calle Serrano (43% of premium brands). The

average rents practised on these streets vary

between 220 and 250 €/m² per month.

Barrio Centro is the preferred location for mass

market brands

: in Madrid’s most central zone, Calle

Preciados, Gran Via and the Fuencarral zone are the

preferred destinations for mass market operators,

occupying 84% of the 557 shops located here. The

average vacancy rate on this axis is 5.4%.

More than 50.000 m² of new GLA

| there are

currently various works under way that will

significantly reinforce the retail stock in Madrid,

namely the Plaza Rio 2 shopping centre (with a

GLA of 39.000 m²) and the Canalejas project, which

includes a retail component measuring 16.000

m². Added to these, there are various building

regeneration projects taking place on Madrid’s most

commercial streets, such as Calle Preciados and

Fuencarral, which intend to compete for the power

wielded by the Gran Via to attract flagship stores.

HOTELS

One of the main urban tourism destinations in Europe, Madrid receives

millions of visitors every year, and the numbers keep growing. The

results in the hotel business reflect this, with investment in the sector

maintaining an upward trajectory.

83.000 rooms in supply

| At the end of the 1st quarter

of 2017, approximately 52% of hotel rooms in the city

were in the four-star category and 13% were five star.

2.8 hotel rooms/ 100 inhabitants

|A ratio that is

significantly below cities like Barcelona, Paris and Roma,

confirming that there is room to increase supply.

More international operators

| Over the past months,

there has been an evident increase in interest from

major international operators to set up or reinforce

their operation in Madrid. Four Seasons, Barceló, Riu

Hotels & resorts, Pestana and Starwood are some of

the major chains that recently purchased new hotels

in the city, or signed management or concession

agreements for luxury units in the city centre.

18 new projects under construction |

Regarding new

supply, most of the new hotel works are concentrated

in the Centre district, where 18 new units are being

constructed, 15 of which will offer more than 1.720

rooms, which will be reflected in an increase of

approximately 10% in supply on that axis. Most of the

current projects are in the four and five star categories.