The cost of renting offices in the financial center of Madrid in the next 3 years could rise by 22% due to lack of building premium, according to its report, Global Cities in 2016, experts company Knight Frank.
"To speak about increase of 22% - is not an exaggeration. The reason may be a lack of available buildings appropriate level on Paseo de la Castellana and the surrounding area. The share of the objects of so-called" A "class accounts for only 2% of the total number of available meters, and the lowest rate in Europe "- said Humphrey White, managing partner of the commercial department of Knight Frank.
Despite the projected increase in prices, their level in Madrid remains low compared to other European cities such as London or Paris, and very far from the rates in San Francisco, Sydney and Hong Kong.
"The Fall of the cost of the rent in comparison to the year 2007 in Madrid was one of the most pronounced and reached 35%, which is why the above growth forecasts should be viewed in context", - stressed White. "The return on assets in the premium areas can reach 4%, which roughly corresponds to the level of London or Frankfurt," - said the expert.
The lack of high-end office space has led to the fact that the owners have become more active to restore existing buildings. The cost of such works can reach 1000 euros per square meter. The owners strive to provide a new type of offices, adapting to the needs of today's customers, especially technology companies.
In this situation, the special role played by real estate investment company (Socimi). "They have attracted foreign investment, increased the level of professionalism in the sector and are betting on major changes to improve the quality of their assets," - says White. The expert highlighted the role of companies such as Merlin Properties and Gmp.
Specialists Knight Frank believes that the total area of offices, lease agreements were signed this year, will reach 420,000 square meters, and in 2016 this figure will rise to 500 000 kv.adratnyh meters. However, these figures are still far from pre-crisis rate of 900, 000 meters.
