Spain Office Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 0.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Spain Office Real Estate Market Analysis
The Spain Office Real Estate Market is expected to register a CAGR of 0% during the forecast period.
Spain's office real estate market demonstrates resilience, adapting to shifting workplace requirements and an increasing focus on sustainability. A key wave shaping the market is the rising demand for flexible office spaces, driven by the widespread adoption of hybrid work models. In April 2024, leasing activity for flexible office spaces in Madrid and Barcelona recorded a 15% year-on-year growth. This surge is primarily attributed to startups and small and medium enterprises (SMEs) seeking cost-effective and adaptable workspace solutions that align with their operational needs and financial constraints.
Prime office spaces continue to dominate the market, particularly in central business districts (CBDs), which remain pivotal to Spain’s office real estate landscape. In Q2 2024, Madrid experienced a 3% increase in prime office rents, underpinned by sustained demand from key industries such as technology and finance. These sectors prioritize well-connected, prestigious locations to enhance their corporate image and attract top talent. Despite broader economic uncertainties, the demand for prime office spaces remains robust, reflecting their strategic importance for businesses aiming to establish a strong market presence.
Sustainability has emerged as a critical factor influencing market dynamics. Developers are increasingly incorporating green building certifications and energy-efficient designs to meet the growing demand for environmentally responsible office spaces. This trend is exemplified by the completion of a new LEED Gold-certified office complex in Barcelona’s innovation district in October 2024. Such developments not only align with tenant expectations but also serve as a competitive advantage in attracting high-profile tenants, particularly those with strong environmental, social, and governance (ESG) commitments.
Spain Office Real Estate Market Trends
Madrid's Growing Demand for Premium and Flexible Office Spaces
Madrid's office real estate market is witnessing robust demand for premium spaces, driving a consistent uptick in prime rent levels. This rent surge is particularly pronounced in the city's central business districts (CBD), where vacancies are scarce and businesses are gravitating towards contemporary, adaptable office solutions. For instance, in Q1 2024, prime rents in Madrid's CBD surged, fueled by a tight supply and fierce competition for top-tier spaces. A February 2024 report highlighted that, despite overarching market uncertainties, corporate tenants' strong demand propelled prime rent levels in Madrid's CBD.
Another notable trend in Madrid's office landscape is the rising allure of refurbished spaces. These revamped offices are fetching premium rents as companies prioritize modern amenities and versatile layouts. A testament to this trend is Johnson & Johnson's recent lease of nearly 9,000 sq m in Pozuelo de Alarcón, a coveted office hotspot. This deal, spotlighted in early 2024's market roundup, underscores the escalating appetite for top-tier office spaces in prime, accessible locales, mirroring the broader shift towards flexible, high-end environments.
Moreover, the proliferation of flexible office spaces is significantly influencing the rise in prime rents across Madrid. Operators such as Loom and Regus are clinching substantial leases in prime spots like the Ruiz Picasso Building and Castellana 86. A Q1 2024 industry report noted that these adaptable spaces are reshaping the office landscape, with businesses increasingly leaning towards solutions that support hybrid work models. Coupled with the demand for modern features, this trend is poised to keep prime rents on an upward trajectory throughout 2024.
Demand for Premium Office Locations in Central Hubs
In Spain, the demand for premium office locations in central business districts remains strong as companies emphasize accessibility and high-quality work environments. Major cities, particularly Madrid and Barcelona, continue to attract significant interest in premium office spaces, especially in areas offering prestigious addresses and proximity to key business hubs.
A key driver of this demand is the ongoing revitalization of central business districts. In Madrid, the Azca area, a historically prominent location, is undergoing extensive redevelopment, drawing top-tier corporations such as Deloitte and Google. Notable projects like Castellana 69 are introducing cutting-edge office spaces designed with sustainability and modern amenities in mind, catering to the evolving needs of businesses. Similarly, in Barcelona, the 22@ district has become a focal point for demand, driven by the presence of international firms and a concentration of innovative industries, further solidifying its reputation as a hub for business activity.
In addition to established commercial districts, new developments in Madrid’s financial landscape, such as the Madrid Nuevo Norte project, are expected to significantly enhance the city’s appeal to international investors. This ambitious project is set to deliver over 1.6 million square meters of commercial real estate, positioning Madrid as a strategic destination for multinational corporations seeking premium office locations. The initiative forms part of a broader urban transformation strategy aimed at providing modern, high-quality office spaces and reinforcing Madrid’s status as a global business hub.
Although hybrid work models have influenced overall office demand, businesses aiming to maintain a prestigious presence continue to gravitate toward prime office locations. Across Spain, companies are consolidating their operations in premium areas, balancing flexibility with the need for strategic locations and superior quality. This trend highlights the enduring importance of central business hubs in shaping office space decisions in 2024, as businesses prioritize accessibility, reputation, and operational efficiency.
Spain Office Real Estate Industry Overview
The Spanish office real estate market is highly fragmented, with the presence of both global players and regional players, and the competition in the market is very high. Some of the major players include Savills Spain, CBRE, JLL, Actividades de Construcción y Servicios, etc., The market was anticipated to regain normalcy by the end of 2022. Companies are gearing up to meet future needs, and many companies are entering the market for further opportunities.
Spain Office Real Estate Market Leaders
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Savills Spain
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Cushman & Wakefield
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CBRE Spain
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Avny Group
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Actividades de Construcción y Servicios
*Disclaimer: Major Players sorted in no particular order
Spain Office Real Estate Market News
- August 2024: Holcim, in collaboration with A3D Building, has successfully developed Spain's first 3D concrete-printed office building. This initiative marks a significant milestone in the adoption of advanced construction technologies. Additionally, Holcim has launched the "3DPrint Lab©," a pioneering concept that integrates 3D printing-based intelligent design with the modernization and transformation of workplace environments
- March 2024: Designer Isern Serra has strategically redesigned a 350-square-meter attic space, previously part of an old industrial building that housed the BOL production house, into a modern and functional 'pixelated' workspace located in Barcelona. This transformation reflects a blend of innovative design and efficient utilization of industrial architecture.
Spain Office Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Background
1.2 Study Assumption and Market Definition
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Demand for Flexible Workspaces
4.2.1.2 Growing Demand for Premium and Sustainable Office Spaces
4.2.2 Market Restraints
4.2.2.1 Rising Office Rental Prices
4.2.2.2 Shortage of High-Quality Office Space
4.2.3 Market Oppurtunities
4.2.3.1 Expansion of Flexible Office Solutions
4.2.3.2 Refurbishment and Repositioning of Older Buildings
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers / Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Industry Value Chain Analysis
4.5 Technological Innovations in the Office Real Estate Market
4.6 Government Regulations and Initiatives in the Industry
4.7 Insights into Rental Yields in the Office Real Estate Segment
4.8 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))
4.9 Insights into Office Real Estate Construction Costs
4.10 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Key Cities
5.1.1 Madrid
5.1.2 Barcelona
5.1.3 Valencia
5.1.4 Seville
5.1.5 Other Cities
5.2 By Type
5.2.1 Premium Workspaces
5.2.2 Grade A Workspaces
5.2.3 Co-working Spaces
5.2.4 Other Spaces
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Savills Spain
6.2.2 Cushman & Wakefield
6.2.3 CBRE Spain
6.2.4 Knight Frank
6.2.5 JLL*
6.2.6 Avny Group
6.2.7 Fomento de Construcciones y Contratas
6.2.8 Dragados S.A.
6.2.9 Actividades de Construccion y Servicios
6.2.10 Obrascon Huarte Lain*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
Spain Office Real Estate Industry Segmentation
An office is a space where an organization's employees perform administrative work to support and realize objects and goals of the organization. The office real estate market includes activities related to the buying, leasing, and construction of office buildings.
The report provides a complete background analysis of the Spain office real estate market, which includes an assessment of the economy, emerging trends by segments and regional markets, significant changes in market dynamics, a market overview, and company profiles. The report also covers the impact of COVID-19 on the market. Spain's Office Real Estate Market is Segmented by Key Cities (Madrid, Barcelona, Valencia, Seville, and Other Cities). The report offers market size and forecasts in value (USD) for all the above segments.
| By Key Cities | |
| Madrid | |
| Barcelona | |
| Valencia | |
| Seville | |
| Other Cities |
| By Type | |
| Premium Workspaces | |
| Grade A Workspaces | |
| Co-working Spaces | |
| Other Spaces |
Spain Office Real Estate Market Research FAQs
What is the current Spain Office Real Estate Market size?
The Spain Office Real Estate Market is projected to register a CAGR of 0% during the forecast period (2024-2029)
Who are the key players in Spain Office Real Estate Market?
Savills Spain, Cushman & Wakefield, CBRE Spain, Avny Group and Actividades de Construcción y Servicios are the major companies operating in the Spain Office Real Estate Market.
What years does this Spain Office Real Estate Market cover?
The report covers the Spain Office Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Spain Office Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Spain Office Real Estate Industry Report
Statistics for the 2024 Spain Office Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Office Real Estate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Spain Office Real Estate Market Report Snapshots
