The contracting of offices in Madrid increased by 22%

The contracting of offices in Madrid increased by 22%

 

In the last quarter of 2017, the behavior of the demand for registered office spaces was extraordinary, reaching 195,000 m², 56% more than in the same period last year and 120% more than the previous quarter. This good behavior is explained, to a great extent, by the return of demands by public administrations.

The average rental income in Madrid and its area of influence increased in the fourth quarter of the year by 7.3%, compared to the same quarter of 2016, reaching €17.6 / m2 / month (€16.4 / m2 / month in the last quarter of 2016).  On the other hand, prime income increased by 6.8%, in year-on-year terms, and stands at €31.0 / m2 / month (€29.0 / m2 / month in the fourth quarter of 2016).  However, maximum rents have been recorded in the best buildings of the Business District Center at levels above €36.

For BNP Paribas Real Estate, the positive behavior of rents will be more pronounced in the more consolidated areas, where unemployment levels are low and in those renewed buildings or with qualities above the average. In decentralized or peripheral areas where there is still significant unemployment, rents will tend more to stabilization.

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