| Barcelona, Spain  Barcelona and its Commercial Real Estate Market are unique in many respects. Did You Know… · Barcelona is a culturally rich city located in the northeast corner of Spain, in the autonomous community of Catalonia. While Madrid is considered the political and economic center in Spain, Barcelona is considered the cultural and industrial hub in the country. The city is known for its beautiful parks, architecture, and beaches on the Mediterranean Sea. · Barcelona is a bilingual city: Catalan and Spanish are both official languages and are widely spoken. About 95% of the population understands Catalan. Barcelona’s education system is strongly developed, and is comprised of well-regarded higher education institutions as well as public and private primary schools. The city’s most renowned universities are University of Barcelona, Polytechnic University of Catalonia, and Pompeu Fabra University. The literacy rate in the city is over 98%.
· Barcelona is a significant hub for air, railway, and water travel in Europe and around the Mediterranean. The port of Barcelona is one of the largest and most active in Europe in terms of cargo transport and commercial travel. Barcelona International Airport is the second largest airport in Spain. · Catalonia imports 29% of all Spanish imports and exports about 27% of the country’s exports (Barcelona accounts for 80% of Catalonia’s exports and 84% of the imports). The most important industries in Barcelona are: textiles, chemicals, pharmaceutical, automotive, tourism, electronics, food, energy, logistics, publishing, telecommunications, and computers. · Barcelona is a huge contributor to the Spanish economy, which is the world’s 11th largest economy in terms of GDP (PPP) with over $1.362 trillion. Barcelona’s economy is based on small firms and large chain stores, rather than large corporations. Barcelona is also home to a thriving stock exchange, and is internationally known as a commercial and financial center. Barcelona leads Spain in foreign direct investment and is considered to be one of the world’s most highly regarded business locations. · As Barcelona’s economy becomes more prominent internationally, its real estate market becomes more attractive. All sectors of the market are currently expanding. The office market is experiencing high demand and a rise in rental prices. Rents have increased in all areas of the city, particularly in the CBD, where rents increased 8% since 2006, to an average of $3.30 per square foot per month. In the prime, secondary, and suburban markets, rents have also increased between 5% and 6%. Throughout 2008, over 3 million square feet was added to the market, and a large volume of supply will be delivered between 2009 and 2010. Rents are expected to continue increasing, while vacancy rates are expected to remain stable.
· The industrial market is also experiencing rental growth due to low supply and high demand. Since 2006, rents in centralized areas have increased by almost $0.15 per square foot per month, while in suburban areas rents have increased about $0.07. The real estate market in general is expected to continue strong over the next few years. |
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