Commercial Real Estate - Spain

Spain

The Commercial Real Estate market market in Spain is forecasted to reach a value of US$1.48tn by 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.13%, leading to a market volume of US$1.49tn by 2029.
In terms of global comparison, the United States is expected to generate the highest Real Estate value with US$25,280.0bn in 2024.
The demand for office space in Spain is surging due to the country's strong economic growth and increasing foreign investments.

Key regions: Europe, France, Japan, Brazil, Asia

Market

Region

Region comparison

Currency

Analyst Opinion

The Commercial Real Estate market in Spain has been experiencing significant developments and trends in recent years.

Customer preferences: In Spain, customer preferences in the Commercial Real Estate market have been shifting towards more flexible and modern office spaces. Companies are increasingly looking for office spaces that offer open layouts, collaborative areas, and amenities such as gyms and cafes. This change in customer preferences is driven by the growing importance of work-life balance and the desire to create a more dynamic and engaging work environment.

Trends in the market: One of the key trends in the Commercial Real Estate market in Spain is the rise of co-working spaces. Co-working spaces have gained popularity among freelancers, startups, and even larger companies due to their flexibility, cost-effectiveness, and community-oriented atmosphere. This trend is driven by the increasing number of entrepreneurs and freelancers in Spain, as well as the desire for companies to foster innovation and collaboration. Another trend in the market is the growing demand for logistics and warehousing facilities. With the rise of e-commerce, there is a need for efficient and well-located logistics centers to support the storage and distribution of goods. This trend is further fueled by the growth of online retail in Spain, as well as the country's strategic location as a gateway to Europe and Latin America.

Local special circumstances: Spain's unique cultural and historical heritage also plays a role in shaping the Commercial Real Estate market. The country's rich architectural tradition and vibrant urban landscapes attract companies and investors looking for distinctive and aesthetically pleasing office spaces. Additionally, Spain's warm climate and outdoor lifestyle have led to the popularity of outdoor workspaces and rooftop terraces, which are often incorporated into office buildings.

Underlying macroeconomic factors: The development of the Commercial Real Estate market in Spain is also influenced by underlying macroeconomic factors. The country's strong economic growth in recent years has created a favorable business environment, attracting both domestic and international companies. Spain's membership in the European Union and its access to the single market also contribute to its appeal as a business destination. Furthermore, government initiatives and incentives have played a role in promoting the growth of the Commercial Real Estate market. The Spanish government has implemented measures to attract foreign investment, such as tax incentives and streamlined administrative procedures. These efforts have helped to boost investor confidence and attract capital to the market. In conclusion, the Commercial Real Estate market in Spain is experiencing significant developments and trends driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards flexible and modern office spaces, the rise of co-working spaces, and the growing demand for logistics facilities are shaping the market. Spain's cultural heritage, economic growth, and government initiatives further contribute to the market's development.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.