The Barcelona office market saw take-up increase by 10% in the first three months of 2011 compared to the previous quarter with over 60% of properties leased in new business districts, according to international real estate advisor Savills. The research confirms a trend of companies locating outside the central business district, in particular Placa Europa.
The Barcelona office market saw take-up increase by 10% in the first three months of 2011 compared to the previous quarter with over 60% of properties leased in new business districts, according to international real estate advisor Savills. The research confirms a trend of companies locating outside the central business district, in particular Placa Europa.
Over 66,000 m2 of space was transacted during the first quarter of 2011 with relocation and cost savings driving the majority of lettings. Savills states that rents remain stable in almost all areas but the city centre has seen prices decline by 2.7% quarter-on-quarter to an average of EUR 18 per m2, as a result of an increase in supply. The vacancy rate in Barcelona is anticipated to rise marginally to 13%, up from 12.8%, following the postponement of some developments. Only 46% of the 201,000 m2 of new projects expected to complete in 2011-2013 will enter the market as vacant supply.
'Both year-on-year take-up and investment volume are at record lows. If we take into consideration macroeconomic forecasts and compare them with market fundamentals, we may be reaching the lowest point of the recession curve,' commented Eusebi Carles, Managing director at Savills Barcelona.
In terms of the investment market, due to the lack of sales, only EUR 19.6 mln has been transacted in the first quarter of the year with annualised investment at the lowest recorded rate since 2001.
