Investment into Barcelona office markets to break records in 2019
Volumes into the city are set to break records at the end of 2019 with the research predicting the total number to reach €1.7 billion, according to preliminary Savills data. 75% of this total is from international investment with funds such as Blackstone and Patrizia all active in the market during 2019 and new entrants as Aberdeen, KanAm Grund or Amundi.
In terms of location, declining vacancy rates in the CBD have meant that 22@, Barcelona’s innovation district, has benefitted from 54% of all investment in 2019 as well as boasting 68% of sites in the city’s development pipeline. The business hub has solidified its position not only in Barcelona but on a wider scale, with Cain International recently acquiring a 15,000 sq m Class A office development here.
On an occupier side, Barcelona has this year welcomed a plethora of tech companies including Gartner, who leased more than 6,000 sq m at the 22@, or Cellnex, who leased more than 8,000 sq m at new office area BcnFira District, reinforcing Barcelona attraction for the tech and creative sector as the main hub in Southern Europe.
Anna Gener, CEO & President of Savills Aguirre Newman Barcelona, explains:
“With notable deals such as Diagonal 00, Torre Tarragona and Torre Auditori, all completing in the last 12 months, it is clear that 2019 has been a year to remember. We have seen levels of investment not seen for many years and, with the majority of capital originating from overseas, it seems Barcelona has marked itself firmly on the map for funds looking to invest in Spain. The main challenge going forwards will be the development pipeline. The shortage of product for sale is going to mean buildings under construction will likely see fierce competition as we move into 2020.”