Madrid in the first half of 2025 confirmed its status as one of the key business centers of Southern Europe, remaining an attractive market for investors and tenants. Despite high inflation in the eurozone and ongoing geopolitical risks, the city’s office real estate market shows moderate growth and maintains a high level of activity in the premium segment.
Prices and rental dynamics
The average rental rate for Class A offices in Madrid’s central business district (CBD) in June 2025 was €36-39 per sqm per month, 3-4% higher than in the same period last year. In areas outside the CBD, including the Atocha and Chamartin districts, rates are holding between €22-28 per sqm.
The rental growth is mainly due to the shortage of quality modern space and increased demand from international companies in the IT, consulting and finance sectors.
Sales market
The average purchase price of office properties in Madrid in the first half of 2025 was €4,200-4,800 per sqm in central areas. In suburban areas (Alcobendas, Las Rosas, San Sebastian de los Reyes), prices range from €2,200 to €2,800 per square meter.
Deals with investment funds and REITs remain a key driver: in the first half of the year, several large office building renovation projects entered the market, and the volume of investment in the sector is estimated at €1.6-1.8 billion, 12% more than in the same period in 2024.
Expert opinions
According to CBRE Spain analysts, companies are increasingly abandoning old premises in favor of offices with energy efficiency certification (BREEAM, LEED). The share of such areas in the structure of transactions reached 45%, indicating a growing interest in sustainable development.
Jones Lang LaSalle (JLL) notes that demand for co-working and flexible office solutions in Madrid has increased by 15% year-on-year. Startups and branches of international corporations that are expanding their presence in Spain are particularly active using this format.
Forecast
Office rental rates in Madrid are expected to continue their moderate growth of 2-3% in the second half of 2025, especially in the premium segment. Purchase prices, according to Knight Frank experts, will fluctuate within the current values, but investor interest will continue due to stable demand and limited supply of new space.
In the medium term, the Madrid market will remain a benchmark for investors in Southern Europe: the combination of high quality of life, developed infrastructure and a growing number of international companies makes it one of the most stable office markets in the region.
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