|Study Period:||2017- 2026|
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Spain's commercial real estate market is expected to grow at a CAGR of approximately 9% during the forecast period. Spain is one of the larger Western European countries, with a population of nearly 46 million. Furthermore, the population is expected to grow around 1.2% in the upcoming years, which is likely to increase the demand for commercial floorspaces in the country.
Before the coronavirus outbreak, the financial situation of Spanish households and companies in the industry was generally healthier than it was 12 years ago. In addition, the number of new properties being built is not excessive compared to demographic trends. The economic impact of COVID-19 will affect the labor market. During the state of emergency, construction activities were directly hit, but as restrictions were lifted, construction activities resumed relatively quickly. Nevertheless, due to climatic uncertainty, the start of new construction projects is likely to slow down significantly.
The institutional market of Spain is majorly dominated by investments in the office and retail markets, which make up 40% and 44%, respectively, of the Spanish IPD index. The large market players are eyeing cities, like Barcelona, for office spaces, which is one of the best cities for start-ups, innovations, and technologies in Europe.
Scope of the Report
Commercial real estate is a property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. In general, it includes buildings that are used for commercial purposes, and include office buildings, warehouses, and retail buildings (e.g. convenience stores, 'big box stores, and shopping malls). This report aims to provide a detailed analysis of the Spanish commercial real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the commercial real estate sector, and COVID-19 impact on the market. Also, it analyzes the key players present in the market and the competitive landscape in the Spanish commercial real estate market.
Spain Commercial Real Estate Market is segmented by Type (Offices, Retail, Industrial, Logistics, Multi-family, and Hospitality) and by Key City (Madrid, Valencia, Barcelona, and Catalonia).
|By Key City|
Key Market Trends
Office Space Take-up and Demand in Spain
Q4 2020 ended with an office space gross take-up volume of almost 85,500 square meters (sq. m.), distributed across 76 transactions. In contrast with the first three quarters, no megadeals (greater than or equal to 10,000 sq. m.) were recorded, and, even excluding the four deals of more than 10,000 sq. m. between January 2020 and September 2020, there has been a steady growth in office space take-up since Q2 2020. The annual total for 2020 stood at just over 355,000 meters, 43% down year-on-year and 29% below the average annual volume in the historical series (close to 500,000 sq. m.). It is important to note that the annual total space take-up value slightly exceeded the closing forecast of Q3 2020 (at which point the accumulated total was 270,000 sq.m.) when the annual volume was predicted to be between 335,000 sq. m. and 350,000 sq. m.
However, the full impact of the current COVID-19 outbreak has yet to be realized. Many experts believe that the toll of this pandemic upon businesses will be quite severe. This may lead to decreased office space demand and higher vacancy rates than would be observed within a normal economic climate.
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Decrease in Office Space Rents in Spain
The average market rent, calculated with the data from deals in business buildings, declined by 2.4% compared to 2019, standing at USD 21.04 per sq. m./month at the end of 2020. The drop in demand and the increase in supply have led to certain declines in rental values. The highest rental level (USD 47.15 per sq. m./month) registered a decrease of 3% compared to the highest value of 2019. The achievable Prime Central Business District rent stood at USD 40.67 per sq. m./month and prime outside the M-30 reached USD 21.22 per sq. m./month. Secondary rents within the M-30 ended the year at USD 28.29per sq. m./month and secondary rents outside the M-30 at USD 13.85 per sq. m./month. On average, the achievable values recorded a 3% y-o-y decrease.
The commercial real estate market in Spain is fragmented, with the presence of both local and international players. Some of the major players operating in the commercial real estate sector in the country include Merlin Properties, Via Celere, Kronos Investment Group, and Klapierre. The country is also witnessing an increase in international investors, as its economy is rebounding, with some of the international investors from countries, like United States, France, and Germany.
April 2021: Merlin Properties the largest real estate company, a leader in the construction and operation of sustainable real estate, announced a strategic alliance with Edged Energy, a subsidiary of the American technology specialist company Endeavor, dedicated to infrastructure development digital net zero. The objective of this agreement is the construction of a network of ultra-efficient data centers with zero net water consumption in Madrid, Bilbao, Barcelona, and Lisbon, on Merlin land reserves.
May 2021: Via Celere sold 117 new homes in Catalonia. With the launch of development in Barcelona and another in Girona, the developer reached 881 homes on sale throughout the Autonomous Community. Celere Moixero is designed to make the most of natural light and enjoy the climate of the area, with a deck equipped with a picnic area with barbecue and solarium.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives, Regulatory Aspects for Commercial Real Estate Sector
4.4 Insights into Existing and Upcoming Projects
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in Commercial Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
4.8 Insights into Public-private Partnerships in Commercial Real Estate
4.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Broker, Social Media, Facility Management, and Property Management)
4.10 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.4 Porters Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.2 By Key City
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.2 Company Profiles
18.104.22.168 Merlin Properties
22.214.171.124 Via Celere
126.96.36.199 Kronos Investment Group
188.8.131.52 Quabit Immobilaria
7.2.2 Other Companies (Real Estate Brokerage Firms, Startups, Associations, etc.)
184.108.40.206 Colliers International
220.127.116.11 AGP Real Estate Investment
18.104.22.168 Lusa Realty
22.214.171.124 Inmobilaria Cambas
126.96.36.199 Target Spanish Properties
188.8.131.52 Spain Properties Invest*
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Spain Commercial Real Estate Market market is studied from 2017 - 2026.
What is the growth rate of Spain Commercial Real Estate Market?
The Spain Commercial Real Estate Market is growing at a CAGR of 9% over the next 5 years.
Who are the key players in Spain Commercial Real Estate Market?
Merlin Properties, Via Celere, Kronos Investment Group, Klepierre, Quabit Immobilaria are the major companies operating in Spain Commercial Real Estate Market.