Building Blocks: Madrid Nuevo Norte, Madrid, Spain
A new financial district inspired by the City in London, Madrid Nuevo Norte is vying to become Madrid's financial epicentre. Rosa Uriol, Deputy Head of Valuations and Head of Research at Knight Frank Spain, explains why
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Why is it up and coming?
Europe’s largest urban redevelopment project, Madrid Nuevo Norte will generate thousands of jobs, create new public spaces and provide key infrastructure including 1 million sq m of office space. It will utilise the large empty space that splits North Madrid, currently occupied by the railway sidings leading out of Chamartín Station. It is also very close to the airport, and at its heart will be a new underground transport hub, surrounded by green space, residential areas and retail units.
My favourite bits
Housing, offices, commercial premises, public facilities, green spaces and public transport will complement each other and ensure the area is alive and buzzing 24/7. There will be 320,000 sq m of green space and some 250,000 sq m dedicated to public services, including six educational centres, six sports centres and two health centres. Three new underground stations will be added to the Madrid transport network.
What are prime yields (cap rates) in the area?
It seems reasonable to expect yields in the same region as the prime AZCA and Castellana axis; that is, between 3.5% and 4.5%.