Investment into Spanish offices has seen the strongest first quarter start in a decade, according to new data from Savills Aguirre Newman.
The volume transacted in Spain in the office market so far this year exceeds €800 mln, which is more than double the first full quarter last year and 80% higher to the average recorded in that period since 2008.
'We have made a strong start to the year with important closures from 2018 and a healthy level of new stock which we expected to be transacted in the first half of this year,' said Alejandro Campoy, managing director of Savills Aguirre Newman.
'These indicators both point to an even more successful 12 months than those that have just passed,' Campoy added.
The sound start to the year reflects the pace of the market at the end of 2018, when after two years of decline in activity, they reached €2.8 bn, 17% more than in 2017.
International deals
Of the figures recorded, 90% of investment has been concentrated in Madrid, where the largest operations have included the Hispania, on behalf of Blackstone, sale of a portfolio to Zurich and another portfolio which Starwood acquired from Autonomy.
LaSalle Investment Management acquired General Lacy 23, a 19th century office building in the capital (pictured).
Similar to 2018, international capital continues to dominate the Madrid market, with a 60% share of the total volume, while in the historical series overseas money only accounted for 30% of total volumes.
In terms of origin of capital, international investment continues to dominates – especially in prime CBD locations but also increasingly in urban areas and in periphery of the CBD where consolidated business districts are emerging. This trend is expected to continue into 2019.
'Although the majority of activity was concentrated in Madrid, the strong fundamentals of Barcelona including low employment levels and growing incomes, are proving attractive to investors,' concluded Campoy.
Spain's positive streak
The interest in Spanish property continues the positive trend seen throughout 2018.
Foreign investors ploughed €7.3 bn into Spain last year, with commercial real estate transactions across the board climbing from just under €10 bn in 2017 to €10.8 bn last year.
Including M&A transactions, the 2018 figure is €13.5 bn, according to Real Capital Analytics.
