<< Back to Main Valencia Press ReleasesBoom in Commercial Property in Valencia with an Increase of 25.3% in Office Rents in the Past Year
Added: (Fri June 8 2006)
According to the International Property Consultants CB Richard Ellis, Commercial
Property in Valencia City is booming and destined to continue to do so due
principally to strong demand from multinational companies. Research undertaken
by CB Richard Ellis over the past year has shown that the average price per
sqm per month for office rentals in the city increased by 25.3% to €22.05
between April of 2006 and March of 2007. Their prediction for the coming
4 years is that the availability of office space will increase by 50%, 90%
of which will be based in new areas of expansion both in and around the city.
Mr. Jose Luis Martin, director of CB Richard Ellis in Valencia attributes
this large increase in availability of office space to a strong increase
in demand due to economic expansion and urban development.
Office rents in Valencia
At present the average size of offices in Valencia is between 150 and 200 sqms however multinationals are looking for offices in the region of 500 to 1,500 sqms. They also require that the offices be situated in buildings specifically adapted for offices with all the ancillary services that offices require as opposed to buildings which are given over to mixed usage. At the moment in the region of 500,000 sqms are dedicated to office space with an expected 255,000 additional sqms to come on stream in the next 4 years.
As previously stated, 90% of these offices will be situated in areas of expansion
both within and around the city ; the following 4 areas being the principal
ones :
Avenida de Francia, Alfahuir, Avenida de las Cortes Valencianas and Vara de
Quart.In Vara de Quart the municipal government intends to transform an industrial
estate into a suburb of offices and apartments for young people principally
with the offer of lofts in business centres such as has been done by Ros Casares
which is a steel products company next to the V 30 motorway.
While rents have increased by an astounding 25.3% in the past year in the city, they are still competitively priced when one bears in mind that the average price per sqm per month is at €33.38 in Barcelona which is a good 50% more expensive than Valencia. Interesting times ahead therefore for commercial property in Valencia. With an ever increasing international exposure thanks to international events such as the America's Cup and Formula 1 which arrives next year to run until at least 2014, the prospects are excellent regarding continuing strong demand both national and international for well located, good sized and appropriately equipped office spaces.
Article by Dermot Quinn, Valencia Property Hound Ltd
