In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in Madrid have risen by 31.1% over the last year. The prime yield is 4.3%, or a 1.94% premium/discount to the yield on 10-year government bonds. Over the last year, rents have risen by 6.1% and net absorption (on a rolling one year basis) has been 1.4%. The vacancy rate is currently 11.1%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 0.8% of current stock. JLL considers that conditions will likely favour neither landlords nor tenants in 2016.

Source : November 2015/JLL/Madrid/OFF