Madrid closes the first semester with space take-up growing at 10% per annum, while increasing the new construction and the reforms. This will increase the quality of the stock and meet a demand that prioritizes the retention of talent versus cost. The prime rent maintains its expansion which transmits to other submarkets. The capital market liquidity and the pace of space take-up boost real estate investment, increasing 20% over the first half of last year.
Indicators continue to point towards the firm progress of economic activity. In May, the service sector turnover index grew by some 7.9% year-on-year and that of the industrial sector by 10.8%.
For the second quarter running, the business confidence index of la Caixa showed a rise in the percentage of business people with an optimistic outlook, pointing towards continuity of the strong economic momentum.
Both occupancy and real estate investment are based on positive prospects for employment creation and GDP growth in the Spanish market. If growth forecasts are met, the year will close with GDP growth of at least 3.1%, above the figure for 2008.
For their part, house purchase transactions grew by some 12% year-on-year (month of May).
Source : Cushman & Wakefield