Rental declines 'slowing down' in Spanish markets
By Danny Bance

Rental declines 'slowing down' in Spanish markets

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The rate at which office rents are falling in Spain's major cities is slowing down, indicating the market may be reaching its bottom and could begin to improve.

In its latest Global Office Rent Cycle MarketView, CBRE revealed the speed at which office rents in Madrid and Barcelona are declining was less rapid in the second quarter of the year, although the data highlighted the generally weak picture for the office market in the Europe, Middle East and Africa (EMEA) region as a whole.

According to the organisation, the austerity programme being implemented by the Spanish government, as well as the ongoing issues in the eurozone, has been the major factor pulling the country's commercial property sector down.

The report stated: "As the eurozone grappled with the heightened uncertainty surrounding the sovereign debt crisis, very few markets were poised to experience significant rent growth."

Last month, Michael Haddock, a director at CBRE, told Reuters that investors looking to enter the Spanish commercial property market are struggling to do so, because many of the country's banks are not providing finance for real estate deals.

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