Malaga office market to attract international occupiers and investors in 2021
The office market in Malaga continues to establish itself as a secondary market in Spain, attracting multinational corporates and international tech companies, according to the latest Office Pulse report from Savills Aguirre Newman.
According to data from the international real estate consulting firm, Malaga, the Andalusian province with the highest number of new business start-ups, has the most active office market in Andalusia, with a maximum closing rent recorded at 18.5 euros per square metre.
The city comprises a total of half a million square meters and an occupancy rate of 95 per cent, suggesting that of the 5 per cent left there is not enough to satisfy demand, especially when compared to other cities in the region. Seville, Zaragoza or Valencia boast 1.3m sq m, 1.08m sq m and 728 thousand sq m respectively.
Aranzazu García, Associate in the office leasing division at Savills Aguirre Newman in Malaga, says: "Due to the limited supply available in Malaga, the incorporation of new projects and buildings to allow sustained growth to continue is very much required. The fantastic connections with European capitals, the quality of life and more benign economic parameters than the main markets, make Malaga the most attractive Andalusian capital for work, and also for flexible working models which we anticipate will grow in popularity as a result of Covid-19."
In terms of the investment story in Malaga, the city is already generating interest among international funds. This is evidenced by the recent transactions closed in the last two years, which show more attractive returns than the main markets such as Madrid and Barcelona.
Savills Aguirre Newman recently advised New Winds Group on the acquisition of a 3,441 sq m office building in the centre of Malaga, further demonstrating the attractiveness of the city from an investor point-of-view.