MADRID OFFICES MARKET RESEARCH Q3 2025

Real estate renovation and repositioning. The office market is going through a period of readjustment, with the volume of space that is likely to be taken off the market in the coming months exceeding the volume of new space delivered.

According to data from the Quarterly National Accounts (CNTR), the increase in the contribution of capital investment to GDP growth confirms the confidence of operators. In the third quarter of 2025, the real estate sector is one of the sectors with the greatest impact on investment growth, as indicated by both the volume of home sales by individuals and the volume of transactions between institutional investors. However, the capacity to build homes, offices and new productive spaces is, for the moment, very limited and could generate tensions in the medium term. All of the [4] projects delivered in the first nine months of the year (55,800 sq m) correspond to renovations of existing buildings.

In terms of investment activity, private equity (both indirect managers and family offices) led the way this quarter, closing medium-volume deals (€10-20 million). Institutional investors, mainly insurance companies (MAPFRE, Zurich, HNA and Mutualidad de la Abogacía), continue to rotate assets in their portfolios.