Market Size of Spain Office Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Spain Office Real Estate Market Analysis
The size of the Spain Office Real Estate Market is USD 2.10 billion in the current year and is anticipated to register a CAGR of over 4% during the forecast period.
- The COVID-19 pandemic significantly affected how the Spanish office real estate market has been performing recently. The crisis has specifically caused a significant drop in non-residential investment and a correction in sale prices, transaction volumes, and new finance activities. Spanish real estate investment trusts with a focus on this sector have also been impacted, both in terms of the number of new vehicles issued as well as the value of their stock prices and real estate assets. In contrast, there has not yet been a major decline in credit quality associated with the commercial real estate market.
- The Madrid market added 384,000 m2 of office space in the first nine months of 2022, and 308 letting contracts were completed, indicating that recent months have seen solid activity in the office sector. In this way, the surface area and operation levels for the entirety of 2021 were met in the first three quarters of the year.
- In Barcelona, the use of office space increased to over 254,000 sq m in the first nine months of 2022 through about 250 deals. This statistic is approximately 9% higher than that for the same period in 2021 and roughly average for the previous five years. In this third quarter, Barcelona had a take-up of 91,000 square meters, a 24% decrease from the same period last year.
- The strong pulse of the Spanish labor market in recent quarters has been evident in the office sector as well. The number of office-based employees is expected to maintain its good growth rate, above 3%, in 2023. This dynamism, along with the rising office occupancy rate, has resulted in a favorable backdrop in demand for office space.
