Domestic investors 'will dominate madrid office market'

Madrid's office market is not expected to significantly improve during 2012, despite a strong start to the year.

This is the opinion of Savills, which noted investment in Spanish offices will be limited due to falling demand for space and a lack of confidence in the country's economy.

"It is likely that growth in Spain will remain muted until 2013, and with foreign investment mainly focused on retail, we expect the domestic buyers to dominate the office market this year," Gema de la Fuente, of Savills Research, commented.

One bright spot for the Spanish commercial property sector was the sale of Torre Picasso, a Madrid office development that was purchased for €400 million (£338 million) at the start of 2012. The firm revealed this transaction represented over ten per cent of the total volume of deals completed in 2011.

Source: PropertyShowrooms.com