Companies are still committed to grow at a European level. While Madrid and Barcelona recorded an uneven evolution in the rental of offices during the second half of the year.
The current recovery period has a direct impact on both the European economy and its real estate market. Especially in the business activity.
According to the latest data from BNP Paribas, the office market will grow by 7% in Europe. Following the positive dynamics of the last three years.
A panorama that raises the rents in the prime areas of Madrid and Barcelona. Although the pace of hiring of offices for companies follows an uneven evolution.
While the demand began the year growing strongly in both capitals, the second semester has been marked by a double speed in the rental of offices. Affirms Knight Frank.
Madrid with a growth rate of 4%. And Barcelona with a braking to many business plans. Falling recruitment from 82,500 m2 in 2016 to 50,000 in 2017.
The demand for offices continues to grow in Europe
The European office market will continue to grow. Specifically in 2017 at a rate of 7%, thanks to domestic demand.
The consultant BNP Paribas foresees that the rental of offices continues gaining ground in the real estate investment, after having been left behind in the years of the crisis.
The two large cities, London and Paris, will continue to have the most expensive rents. Very strongly among the offices with prime rents.
While the German capitals will gain strength with rapid price increases in office rental. Especially now that the European Banking Authority moves to Frankfurt.
On the other hand, Madrid and Barcelona will continue their upward trend in rents. Highlighting prime areas, with good services and communications, for the competitiveness of their prices compared to other European capitals.
Change of direction in the Spanish office market
Among the main factors driving the European office market is monetary policy in the current economic scenario.
Fact that does not hide the current political situation in Catalonia. A context that causes uncertainty among investors in the Barcelona office market. In contrast to the sociopolitical framework of the Spanish capital.
This is what Knight Frank’s experts point out. surprised by the change of trend in Barcelona during the second half of the year.
Despite the excellent business figures in both capitals during the first three quarters of 2017. No less than 928 million euros in Madrid and 705 million in Barcelona.
Office rental grows to 4% in the capital
While the retail sector and logistics investment seem to evolve outside of politics, investment in offices is much more sensitive to uncertainty.
In the case of Madrid, during the last quarter of 2017, the volume of leased area will reach 141,300 m2. Exceeding by 4% the area contracted a year ago.
And that, despite the slowdown compared to the previous quarter. When they came to hire 110,400 m2 of offices in Madrid. 28% more in interannual rate.
In this context, the Spanish capital can reach a total volume of 500,000 m2 by the end of the year. Historical figure that contrasts with the braking suffered in Barcelona.
Barcelona’s paralysis in business investment
Against the expectations of Knight Frank, with a hiring of 100,000 m2 in the last quarter of 2017, political uncertainty has slowed investment by 50%.
Registering, for the second consecutive month, a quarterly contract of 50,000 m2.
In fact, the evolution of office rental in Barcelona was positive during the first half of the year. Exceeding both the first quarter (82,000 m2) and the second (118,000 m2) the 2016 levels.
However, the holding of the 1-O referendum and the expectations before the 21-D elections have paralyzed many investments. Including large projects such as the tower Abgar, which is currently looking for tenants.
Two events that have led to revise the estimates in the hiring of offices in Barcelona. From the 350,000 m2 originally planned to the 300,000 m2 currently envisaged.
