Take-up Performance: Madrid office market saw a record absorption of 136,360 sq m in Q1 2025, exceeding the previous high in Q1 2024 and surpassing the average take-up of the past two years.
Sector Trends: Tech and consulting services continued to dominate office space demand, accounting for 43.5% of total take-up. Pharmaceutical industry also showed significant growth, with 4.654 sq m take-up, indicating rising demand.
Hybrid Work Model: The hybrid work model is becoming established as the preferred option, with 52% of companies adopting this approach.
Prime Office Market: Prime office take-up accounted for 29.7% of the total in Q1 2025, with secondary centers contributing 26.5%. The vacancy rate in Madrid remained low at 2.1%.
Investment Market in Spain
Investment Overview: Investment in office assets in Spain reached €2.55 billion in Q1 2025, with Madrid accounting for 35% of the total. The majority of investments were in prime offices.
Investment Trends: Despite a 15% decrease in investment compared to 2021, the market remains active, with €1.533 billion invested in office assets in 2025.
Prime Yield: Prime office yields in Madrid decreased to 4.75% in Q1 2025, reflecting strong demand and limited supply.
Fund Activity: Fund transactions in Spain have seen a resurgence, with €2.609 billion of opportunities available in the real estate market.
Key Data and Conclusions
Madrid Office Market: The market continues to show strong demand, driven by tech and consulting sectors, with a growing adoption of hybrid work models.
Investment Market: Investment in office assets remains robust, despite some fluctuations, with prime yields declining and fund activity picking up pace.
