Madrid, Spain
 

Madrid and its Commercial Real Estate Market are unique in many respects. Did You Know...

•   Madrid, the capital of Spain, has a population of over 3.5 million and a metropolitan population of 5.8 million people, which makes it the third most populous city in the European Union in respect to both urban and metropolitan population.

•   Its economic and political importance, as well as its major cultural influence, ranks Madrid as one of the major cities of the world. It is the second most important industrial center in the country, after Barcelona. 

•   The economic growth rate of Madrid has surpassed the growth rate of Spain as a whole in recent years; furthermore, a year-on-year increase of 4.0% is expected to continue in Madrid during the rest of the year. Interest rate, unemployment rate, and inflation rate in Spain are forecasted to remain low in the near future.

•   Madrid has a large number of universities, many of which are well-known internationally and among the oldest in the world. The Complutense University of Madrid is the largest and most prestigious public university in the nation.

•   Art and culture are central to life in Madrid. The city has dozens of museums covering all fields of human knowledge. This cultural aspect acts as a huge factor in attracting tourism, which is one of the biggest industries in the city.

•   Madrid Barajas International Airport, the busiest and most important airport in Spain, ranks as the world's 13^th and Europe's 5^th busiest airport. Currently the airport serves about 45 million passengers per year, but recent projects have made it capable to serve up to 70 million passengers. 

•   In the last two years the commercial real estate market in Madrid has shown growth in all of its sectors. The market is strong and is expected to remain positive in coming years. 

•   Supply in the office market is limited in specific areas due to high demand. Local and foreign companies are having difficulties to find quality space in the CBD and in suburban areas, especially spaces with an area of over 86,000 square feet. Lack of industrial space has caused rental prices to go up. Industrial parks on the outskirts of Madrid are in high demand.

•   Rents will continue to increase during the rest of the year and supply will remain at low levels; however, the supply is expected to increase significantly next year, which will help to balance the supply and the demand.