Barcelona is considered by many as the gateway to Europe; its location means it’s the perfect corridor for inter-European trade. And yet, this eclectic city is often underestimated when it comes to real estate.

Over the last few years, the Spanish economic outlook has been littered with uncertainty due to the volatile parliamentary situation. This, alongside the lack of clear progress made in the correction of public debt, has only increased the degree of economic vulnerability which has, understandably, had a negative impact on the national market and the city’s mindset as a whole.

The office market, however, has remained resilient during this rocky political climate, resulting in some extremely promising statistics. In fact, take-up volumes during the third quarter of 2018 ensured that Q3 ranked as one of the top 10 quarters, exceeding 100,000 sq m. This is double what they were in the same period last year.

The accumulated data is just over 308,000 sq m, which already represents 90 per cent of the annual total in 2017 and surpasses the record of the first three quarters of last year by 16 per cent. Further to these promising numbers, the 405 deals signed between January and September 2018 are ahead of those registered in 2017 by 25.

On the investment side, Planeta signed a sale and leaseback with Blackstone for €250 million which was not only the largest deal in Barcelona, but also Spain and the highest volume single asset transaction. This deal leads the list of largest transactions in the historical market series of the Barcelona office market.

So how is it that we are seeing such strong figures in Barcelona during such a fragmented economic period?

Barcelona is pegged by big corporations as one of Europe’s top cities in the start-up, innovation and technology scene. Barcelona-based start-ups received €477 million in investment last year, doubling the numbers of previous years, with 2018 set to be another strong year. With this knowledge, it’s hardly a surprise that the Financial Times has named it the top destination for business activities in Southern Europe.

Additionally, the Mobil World Congress created a big eco system of tech companies and mobile applications now represent 5.5 per cent of start-ups in the city. This highlights the high level of digital expertise and worldwide millennial workforce which make Barcelona an emerging city for employment technology and has been a strong factor in the resilience of the office market. A clear example of this was the 9,000 sqm lease acquisition of CCC (service centre of Facebook) in the emblematic Torre Glòries.

With this in mind, it’s understandable why year-end prospects are very optimistic and Barcelona will remain a high performer regardless of the strong economic undercurrent.

Further information

Read more: Market in Minutes: Barcelona Offices

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