The recovery of consumption, the rebound of the real estate market and a record year for tourism have been key to positioning the main commercial streets of Madrid and Barcelona.
Barcelona and Madrid position some of their great avenues in the international map of the ‘retail’.
The ‘Ascana 2016 Report’ has been almost a decade as one of the main reference guides for the sector as far as commercial premises are concerned. Annual study from which the Ascana Index is extracted.
This is an analysis of the main shopping streets of Madrid and Barcelona, where the security and profitability of investment in prime rents is compared.
The latest edition of the report continues to raise rental income over the previous year. This time with an average increase of 7.3%, leaving the average return for the investor by 4%.
Great news for the real estate market!
Main shopping streets in Madrid
Madrid is experiencing a great moment in the commercial sector. Both by demand of premises in prime areas as by the rebound of rental income in the main shopping streets.
The average capital of prime rents has increased by 5.8% per year, driven by large investment operations in the capital.
In that sense, Preciados street stands out as the most exclusive with an income of 275 € / m2 per month. Followed closely by Calle Serrano (245 € / m2), Gran Vía (225 € / m2), and Ortega y Gasset (190 € / m2).
Also note Fuencarral street (145 € / m2) and Goya Street (115 € / m2).
At the activity level, most of the streets are below the ten operations, with the exception of Fuencarral and Gran Vía with a score of annual transactions.
While profitability is around 4%, only surpassed by Fuencarral (4.4%), Ortega y Gasset (4.5%) and Goya (5%).
Main shopping streets of Barcelona
Barcelona has experienced an exercise marked by the great interest of investors. The large volume of demand and the scarcity of supply are straining excessively to the retail sector.
The city of Barcelona has a rise of 8.6% in prime rents, although the average profitability remains at 4%.
The most expensive artery, not only of Barcelona but of all Spain, is the Avda del Portal de l’Àngel. Its average rent is situated at 280 € / m2 per month, ahead of the emblematic Paseo de Gracia (250 € / m2).
Below 150 euros we find Portaferrisa Street (145 € / m2) and Pelai Street (130 € / m2).
Plaza Catalunya and La Rambla, a new landmark for brands, are also positioned. Both with 105 € / m2. While the Avda Diagonal is ‘off’ with 55 € / m2.
The largest number of operations remains in the hands of the two major avenues, Paseo de Gracia and Diagonal, with 18 and 16 transactions respectively.
At the level of profitability, the highest profits are distributed between Pelai Street, Plaza Catalunya and La Rambla with 5.1%. And above all, Avda Diagonal, with 5.6%.
Reference route that put the Spanish retail on the map of the international prime rents.
