Office market in Spain will remain stagnant until 2013

Posted on March 31st, 2012 in Real Estate in Spain by editor

Commercial real estate experts Savills believe the office market in Madrid won’t show an improvement until 2013, although the beginning of 2012 has been encouraging.

Savills believe that investment in Spain’s commercial real estate sector will be hampered by a lack of demand for office space and a distinct shortage of trust in Spain’s economy picking up any time soon.

Gema de la Fuente of Savills’ Research noted that growth in Spain was likely to remain “muted until 2013”, adding that, as overseas investors were concentrating on  retail, the domestic market would be more likely to control the office market in 2012.

Among the few highlights in Spain’s commercial property market was the sale of Torre Picasso in Madrid. With 43 storeys Torre Picasso ranks as one of Madrid’s tallest skyscrapers, using most of the space as offices. The office development changed hands for €400 million / £338 million at the beginning of this year and Savills confirmed that this particular deal accounted for 10% of the total volume of transactions brought to completion by the end of 2011.

The buyers are Pontegadea Inmobiliaria SL, an investment company founded by Zara’s Amancio Ortega. The intention to sell was announced at the very end of last year, when construction company Fomento de Construcciones y Contratas made the deal public.

SOURCE: www.propertyshowrooms.com

Comments are closed.