Madrid to lead office growth worldwide
Madrid is predicted to lead growth in office rents around the world in the coming years.
Spain's capital has enjoyed a strong recovery in the past year, as the country's overall economy slowly improves. Combined with a lack of supply in the city's CBD, conditions are ripe for rents to increase between now and 2018.
2015's Global Cities report studies the real estate markets of the world’s leading business centres and concludes that the coming years will see rising opportunities for real estate investors in advanced economies. This is because the recent falls in commodity prices, that are adversely impacting emerging markets, will increase spending power for firms and consumers in the west, and buoy economic growth.
While Mumbai is forecast to enjoy the second highest rental growth (21.3 per cent), San Francisco leads a promising US, with predicted growth of 20.2 per cent - behind Madrid's 22.2 per cent.
The growing tech industry is key to San Francisco's market strength, with corporate demand for property helping to push up rents. Indeed, London is also buoyed by a growing technology sector, with rents expected to climb 13.6 per cent in the coming three years, while India's IT and outsourcing industries are enjoying rising demand from Western corporations, helping to support Mumbai's position in the charts.