The number of new companies created in Spain grew by 11.8% year-on-year in August, rising for eight months in a row, according to the latest data published by the National Statistics Institute.
Between January and August, over 75,000 new companies were set up in Spain, 11.3% more than in the same period last year and the best figure since 2008, before the financial and real estate crisis. The dissolution of companies has decreased by 1%.
Madrid has most of Spain’s business activity, with 22.5% of total companies created during the first eight months, followed by Barcelona with 15.6% and Málaga with 6.4%.
The positive figures point to a surge in working space needs, which is leading flex office operators to expand their footprint in Spain. Flex office spaces are a good option for start-ups as well as for large companies especially during uncertain periods.
The market is proving to perform well with IWG’s on-demand membership increased by 123% in Spain compared with 93% year-on-year across Europe in 2022. The company is continuing to expand in 2023, securing 12,000 square metres of space across an entire building in Madrid.
Spaces Bernabéu, due to open in 2025, will become the largest flexible workspace in Spain with 180 offices and more than 900 workstations. The Moda Shopping Mall will be converted to flex space.
The project has been made possible by a partnership agreement with owner Mapfre, Spain’s largest insurance company, a proof that flex office is increasingly attracting large investors.
Real estate owners seem open to providing flex spaces as a key amenity to help optimise properties and generate return on investment.
In parallel, IWG continues to push its growth strategy throughout Spain with several additional openings. It will open a new coworking center in Malaga under the Regus brand, in response to the growing demand in the city. The hybrid workspace will open its doors in the fourth quarter, with 810 square metres.
Despite the challenging macroenvironment Spain is likely to continue to offer a wide potential client base to flex operators. The country has a high share of high-growth enterprises above the EU average, at 11.3% of total enterprises active versus 9.4% in the EU’s business economy according to latest Eurostat data available, for 2020. In France and Germany the share is below 9%.
Flex space is well positioned to meet the needs of young and high-growth companies as it brings flexibility to expand and contract at short notice compared to the long-term commitments of traditional leases.