Spain has increased its share of European real estate investment, rising from 6% in 2019 to 15% in 2025 – entering Europe’s top tier, according to the Spanish Association of Real Estate Consultants (ACI).
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In its European Comparative Analysis of Real Estate Investment, presented on 20 April, the association reports that Spain has made “the leap to the top tier of European real estate” – it has ceased to occupy a secondary position and has consolidated its place within the leading group of European property investment, it states.
The ACI justifies this by noting that, compared with the main eurozone markets, Spain has increased its share of real estate investment from around 6% in 2019 to 15% in 2025 – a stronger rise than Germany, which has reduced its share from 40% to 28% over the last seven years, France, which has fallen from 23% to 18% and Italy, which has grown more modestly from 6% to 11%.
As a result, real estate consultancies highlight the evolution of the Spanish property sector within the European context and its continued ability to attract investment and support economic growth in Spain.
Along these lines, they highlight that the Spanish market “maintains significant potential for growth” and point to real estate investment of €16.928 billion in 2025, which was 30% higher than the previous year. This figure surpasses Italy’s €12.012 billion, although it remains below France’s €20.347 billion and Germany’s €31.008 billion.
Furthermore, the ACI notes that Spain “offers one of the most attractive real estate returns among the major European economies” – after the record year of 2022 and the rise in interest rates, the adjustment in real estate investment in 2023 was more moderate than in other key European markets (-35% compared with -54% in Germany, -42% in France and -46% in Italy) – since 2024, the national market has shown a more pronounced recovery, consolidating high investment volumes within its historical series, it argues.
It also maintains that the country “retains one of the most attractive profiles for investment among the major European economies”, based on a prime office yield of 4.6% in 2025 – above Germany (4.3%), France (4.1%), Italy (4.1%) and the United Kingdom (3.9%) – and a real estate risk premium that has fallen from 2.6 percentage points in 2019 to 1.4 points in 2025, reflecting growing investor confidence in the Spanish market.
“The Spanish real estate sector has clearly strengthened its position in Europe and has shown itself to be an engine of economic activity,” says the president of ACI, Ricardo Martí Fluxá – who calls for “a stable, predictable and coherent regulatory framework that gives confidence to investors and fosters sector development” with the aim of “consolidating this progress and unlocking its full potential.”
Residential and hotels drive the Spanish market
By segment, residential assets predominate, accounting for 27% of real estate investment in Spain in 2025 – slightly above the 23% recorded in the other countries analysed.
This is followed by hotel assets, which represent 24% of the total compared with 9% in other European markets – reflecting the structural weight of tourism in the Spanish economy and its capacity to attract international capital.
Other real estate segments remain below the European averages. Retail accounts for 15% of investment in Spain, compared with 17% in Europe, while the gap is wider in offices (14% in Spain versus 24% in other major European markets) and in logistics and industrial assets (8% compared with 20% in the countries analysed).
