Office sales hit a high

INVESTMENT in Spanish office space hit an all-time high in 2014 with more than €2 billion being invested, three times higher than the figure for 2013.

According to experts, this is a “positive sign for the overall Spanish property market.” Foreign investors accounted for nearly two-thirds of the investment, according to figures from JLL, a property consultancy.

“In terms of deals, the largest purchase of office property was a portfolio of buildings belonging to the Catalan regional government sold to Zurich Insurance for €201 million,” said Mark Stucklin of the Spanish Property Insight website. “The next biggest deal was the acquisition of the Agbar Tower in Barcelona by Emin Capital for €150 million, and of IBM’s headquarters in Madrid for €130 million.”

Foreign investors were dominant in the commercial real estate market – a market that includes shopping centres and store premises – reaching 68 per cent of the total €2.7 billion spent of these assets during the year.

“Optimism and deals in the commercial and office market bode well for the Spanish economy, and could in due course have a positive impact on the residential market,” said Stucklin.