ANALYSIS OF THE MADRID OFFICE MARKET | Q1 2026. ECONOMIC ENVIRONMENT, SUPPLY, DEMAND, RENTS AND INVESTMENT
The state of the office market in Madrid: data and outlook for 2026. How is the office market affected by global economic uncertainty? How are office supply and demand evolving in the outlying areas of Madrid? What type of investors are leading the way in purchasing offices in decentralised areas of Madrid?
The geopolitical situation, of course, is once again influencing the economic environment, impact on the growth outlook for economic activity in the coming months. The IMF estimates Spanish GDP growth of 2.10% in 2026, with scenarios varying according to supply chain disruptions, price rises and trends in consumption. The Bank of Spain outlines three scenarios: a central scenario, a severe scenario and an adverse scenario. Madrid is projected to maintain economic growth of 2.70 per cent, with increases in employment, tourism, investment and consumption, although international tensions could temper this trend.
In the office lease market, demand is concentrated in the financial, technology and professional services sectors, with greater interest in outlying areas due to more affordable rents. The vacancy rate in Madrid stands at 8.2 per cent, with a higher concentration of vacant space outside the M-30 ring road, whilst net take-up continues remains in negative territory.
Meanwhile, the buoyancy of the residential market in Madrid continues to put pressure on the commercial property sector, with changes of use accounting for a quarter of the transaction volume. Transactions predominantly involve properties that are currently occupied or have strong potential due to their location. However, more value-added transactions have also been completed on out-of-city assets, reflecting investor interest in opportunities for repositioning and value creation.
