The contracting of real estate space in Valencia falls at the beginning of the year. The report carried out by BNP Paribas Real Estate for the first quarter of 2024 reveals a contracting of 53,783 square metres. A volume that represents a decrease of 38.5% compared to the last quarter of 2023.
Jean-Bernard Gaudin, national director of industrial & logistics in Spain for BNP Paribas, attributes the reduction in take-up mainly to the limited availability of space in Valencia. However, expectations for the current year are optimistic due to solid demand and low supply that continues to attract both domestic and institutional investors. Gaudin anticipates that the introduction of significant new projects to the market could revitalise contracting activity.
Valencia is currently experiencing significant interest from developers and investment funds interested in developing logistics parks, with 97,144 square metres of construction projects and logistics platforms scheduled to come onto the market during 2024. Locations such as Ribarroja, Cheste, Náquera and Picassent are key in this expansion, with Ribarroja representing 21.7% of the new supply.
In terms of rents, the first quarter has shown a significant increase of 7.7% in the average rent, reaching 4.92€/sqm/month, compared to the same period last year. Prime rent has remained stable at 5.50€/sqm/month, after experiencing a 22.2% increase last year.
