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The Spanish office market is consolidating as one of the most attractive for real estate investors. This is evidenced by major transactions closed in recent months and the short-term growth prospects forecasted by experts. After a gradual return to the workplace in the post-pandemic era, the segment was reactivated in 2024. Experts predict that 2025 will be a key year in its evolution.
According to the 2024 MAD&BCN Office Report by Colliers, investment in this type of property grew by 33% in 2024 compared to the previous year, reaching €1.687 billion. While this figure is below the 10-year average of €2.625 billion, Spain has performed better than other Eurozone countries, where declines have averaged around 65% compared to the same period.
The consultancy also notes that Madrid attracted the most investor interest last year, accounting for 45% (€773 million) of the transacted capital, while Barcelona came in second with 31% (€525 million).
An analysis by Savills in the latest edition of Office Pulse: 2024 Review and 2025 Outlook points to an even higher investment figure—close to €2 billion—marking a 50% increase compared to 2023. It also highlights the growing dynamism in the Madrid and Barcelona markets, where recovery has been consolidated with a 30% increase in space absorption in the capital (reaching 570,000 sqm) and 22% in Barcelona (289,000 sqm).
Savills reports that, in 2024, Madrid saw 39 transactions of over 3,000 sqm, including 19 over 5,000 sqm and 6 exceeding 10,000 sqm. The region’s vacancy rate stood at 8.96%, fluctuating between 3.82% within the M30 ring and 12.17% outside it. The total space contracted in the capital amounted to 130,000 sqm, representing a 30% year-over-year increase.
In Barcelona, the vacancy rate was 14.6%, with 12 transactions between 3,001 and 5,000 sqm, 5 between 5,001 and 10,000 sqm, and just one exceeding 10,000 sqm.
Additionally, Savills highlights that 25% of the total investment in the office sector was directed toward repurposing buildings that had lost competitiveness. In this regard, CBRE estimates more than €700 million was invested in converting these properties—mainly into hotels and residential buildings—surpassing the €250 million recorded in 2023.
Signs of dynamism: the office market moves forward
In 2024, the office market saw major transactions and entered a phase of increased dynamism:
- Torre Tarragona (Barcelona), acquired by the Consorci de la Zona Franca de Barcelona (CZFB) from U.S. fund Blackstone for €100 million. The building has a total area of 17,900 sqm.
- Calle Claudio Coello, 123 (Madrid). Last year, Kutxabank acquired ownership of this property, which became its new headquarters in Madrid. The bank purchased the 4,560 sqm asset from the investment fund Greenoak Spain Holdings for €59 million.
- Calle Sagasta 31–33 (Madrid). Real estate firm Impar Capital acquired this building, formerly owned by Colonial and used as the headquarters of consultancy McKinsey. With a total investment of approximately €100 million, the property has a cadastral area of 10,932 sqm.
- BBVA Offices. BBVA sold 300 of its 1,900 branches nationwide. According to Bloomberg, the buyer was a Spanish real estate fund that paid €100 million for the asset package.
Other significant deals are underway, such as the purchase of the Planeta headquarters on Avenida Diagonal (Barcelona) by Pontegadea, the investment holding of Amancio Ortega, valued at an estimated €240 million and comprising 27,000 sqm.
The office market enters 2025 with clear signs of recovery and key transformations that will redefine the landscape in Spain’s major cities. Forecasts for the year point to “stable leasing activity, declining vacancy rates, and rising prime rents,” according to JLL.
