REAL ESTATE INVESTMENT IN SPAIN RISES 44% AND MAY EXCEED €16.8 BILLION
Spain’s real estate investment volume reached €12.9 billion between January and September 2025 — a 44% increase over the previous year. This marks the third-highest level in history, behind only 2022 and 2018, and far exceeds the European average growth of around 8%, according to CBRE.
Record activity and year-end forecast
The third quarter became the second most active ever, driven by major corporate transactions such as Nido’s (Brookfield Asset Management) acquisition of Livensa student residences and StepStone and Greykite’s purchase of Vitalia Home senior living portfolio.
CBRE expects investment activity to accelerate in the final quarter, forecasting 20% annual growth, with total volumes surpassing €16.8 billion, compared to €14 billion in 2024. If ongoing deals close successfully, the figure could be even higher.
Spain and Portugal lead the Iberian market
In Spain, investments rose 48%, while Portugal saw a remarkable 81% increase. According to the CBRE European Investor Intentions 2025 survey, Spain remains the second most attractive European market, with Portugal ranking sixth. Madrid ranks second among the most attractive cities and Barcelona fourth.
Investor profile and market distribution
Spanish capital accounts for 50% of total investment, followed by the U.S. (17%) and Canada (8%). Institutional investors increased their share to 17%, up from 7% in 2024, reflecting renewed confidence in the market.
Madrid and Barcelona account for 33% and 18% respectively, while secondary locations represent 37%. The Valencian Community (8%) and the Canary Islands (5%) stand out, together comprising nearly a third of investment outside the main cities.
Leading sectors
The Living sector leads with over €3.75 billion (29%). Madrid accounts for 42% of transactions, followed by Barcelona (15%). Student housing (47%) and multifamily properties show strong momentum.
The hotel sector ranks second with €2.6 billion (20%), mainly focused on 4- and 5-star hotels and tourist assets (57%).
Retail attracted €1.93 billion (15%), up 15% year-on-year, driven by shopping centers and international capital interest.
Healthcare and alternative assets total €1.9 billion, while offices reached €1.68 billion (13%) and industrial/logistics investments grew 18% to €1.06 billion.
Yields and outlook
Prime yields remain stable: 6.5% for shopping centers, 4.5% for student housing, and 4.65% for offices.
According to Miriam Goicoechea, Head of Research at CBRE Iberia, “the market is showing yield stabilization and renewed investor interest in core assets. Lower interest rates and improved risk perception are boosting activity, although product scarcity and geopolitical volatility remain key challenges.”
