Madrid occupies one of the leading positions in Spain and Europe in per capita income. Its tourist appeal has also grown, drawing 25% moreforeign visitors over the last 5 years.
Madrid boasts an extensive offering of international retailers in the mass market and luxury segments. New firms are seeking strategic locations on the main retail thoroughfares.
An increase was noted in occupancy and rents within the M-30 ring road during 2014 and 2015. The main streets in Madrid have performed positively in rental prices. Nevertheless, secondary streets have been unable to attain a recovery in rents and even show increases in vacancy rates.
The market for High-Street premises has functioned as a safe haven for domestic investment during the crisis. Investor demand for this segment shot up with the improvement in consumer spending and the entrance of international capital. German investors have been the leading players in the most significant transactions. The lack of investment opportunities has led to a contraction in yields, reaching rates of less than 4%.
Source : BNP Paribas Real Estate