MADRID OFFICES MARKET RESEARCH Q2 2025

What is the situation of the office rental and investment market in Madrid, especially within the M-30, during the second quarter of 2025? Have prime yields fallen this quarter?

In the second quarter of 2025, although certain areas of geopolitical uncertainty remain, these are not causing significant instability. In Spain, the economy continues to grow strongly, outperforming most European countries. GDP forecasts for 2025 remain stable, according to Funcas. After more than two years of negative growth rates, trade in the region has been growing very positively since the beginning of the year, with exports of goods and services from the region rebounding in May.

Activity in the office rental market remains high, with more take-up and less availability, especially within the M 30 ring road, while a shortage of new supply and changes in use are reducing stock and pushing up rents in prime areas. In terms of office investment, the profile of transactions closed to date confirms the rotation of portfolios between institutional owners and a high presence of private investors (mainly family offices), who are seeking to transform buildings into residential solutions. We are seeing an increase in rents and a slight fall in prime yields.