637,000 m2 of offices contracted in Madrid, the best year since 2007

637,000 m2 of offices contracted in Madrid, the best year since 2007

 

The record volume of gross contracting has been driven by the behavior of demand in the last quarter of last year, which has registered four operations above 14,000 m2. In addition, operations exceeding 3,000 m2 have accounted for 48% of total market contracting. Savills Aguirre Newman highlights the good performance of the demand within the M-30, particularly in the center of the business district, where the 92,000 m2 have been surpassed, its highest historical level.

As usual in Madrid, it has been the business services sector that has shown the greatest activity, with 24% of the total contracting. However, the report highlights the high level of hiring registered by the Public Administrations, which has gone from almost residual contracting in recent years to contracting more than 110,000 m2 of offices in 23 operations, which has accounted for 17% of the total volume of hiring in 2017.

In the prime area of Madrid, the average rent is already close to €30 / m² / month (€29.95 / m² / month) and the maximum rents have been at €36 / m² / month. "Prices have gone up five years in a row in the center of the business district and three years in a row in the decentralized zone (between M-30 and M-40). Even so, Madrid is still a capital with low average prices compared to Europe and with a rental road up to the market peak. We expect that they will continue to rise, although in a controlled manner, "explained Ángel Estebaranz, national director of Agencia Oficinas de Savills Aguirre Newman.

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