The Spanish real estate market has established itself as one of the most dynamic in Europe, although it still remains well behind the continent's largest economies. Spain is expected to generate around €156 billion in real estate transactions in 2027, a figure significantly lower than those forecast for the European Union's three largest markets, according to the European Outlook 2027 report by the Italian consultancy Scenari Immobiliari. The study estimates total European real estate investment at €1.36 trillion in 2027, across the residential, office, logistics and retail sectors.
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The report forecasts growth rates of 10.7% in 2026 and 10.2% in 2027 for Spain, the strongest performance in Europe. However, total investment volumes remain below those projected for the leading markets in 2027: Germany (€338 billion), France (€234 billion) and Italy (€194.1 billion).
According to Mario Breglia, president of Scenari Immobiliari, "The European real estate sector is once again demonstrating that it has stronger foundations than the turbulence affecting the international economy. Despite geopolitical, financial and energy-related pressures, real estate is steadily strengthening its role as a vehicle for investment, asset preservation and urban transformation."
The report also predicts that house prices in Spain will rise by 10% this year and a further 7% in 2027, substantially outpacing forecasts for other major European markets. Comparable projections stand at 4.2% and 4.8% in Italy, 1.8% and 2% in Germany, and 1.2% and 2.4% in France.
Beyond the residential sector
The logistics sector is also expected to remain highly active, with projected price growth of 4.6% this year and 3.9% in 2027.
The office market, meanwhile, is showing signs of gradual stabilisation, with annual growth of around 3%, reflecting the ongoing evolution towards hybrid working models.
Scenari Immobiliari attributes the resilience of the Spanish property market to favourable macroeconomic conditions and its ability to attract both domestic and international capital. Even so, the gap with Europe's largest markets highlights the greater economic scale and population size of Germany, France and Italy, which continue to command substantially higher investment volumes.
