Barcelona’s office market has seen a quarter-on-quarter take up increase of 10% with over 60% of properties leased in new business areas, according to Savills. The international real estate advisor’s research confirms a trend that sees companies locating outside the Central Business District, in particular Placa Europa.
In total over 66,000 sq m 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 €18 sq m per month, as a result of an increase in supply. That said, the vacancy rate in Barcelona is anticipated to rise marginally to 13%, up from 12.8%, as the office pipeline “dries out” following the postponement of some developments. Only 46% of the 201,000 sq m of new projects expected to complete in 2011-2013 will enter the market as vacant supply.
Eusebi Carles, Managing Director of Savills Barcelona, comments: “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.”
In terms of the investment market, due to the lack of sales, only €19.6m has been transacted in the first quarter of the year with annualised investment at the lowest recorded rate since 2001.
View the Barcelona office market research here
For further information, please contact:
Eusebi Carles, Savills, 0034 93 272 4100
Muna Benthami, Savills, 0034 93 272 4100
Victoria Cambridge, Savills press office, 00 44 20 7409 8940