Real estate investment

In Spain’s residential market, the gap between supply and demand has pushed rents more than 40% above pre-pandemic levels, particularly in Madrid and Barcelona, according to the latest DWS Real Estate report. As a result, investors must be increasingly selective. DWS identifies affordable housing developed with local authorities, student accommodation and flex living schemes for short- and medium-term stays as some of the most attractive opportunities in the current market.

Spain has become a leading destination for real estate investment, attracting strong interest from global investors. At SIMA, BlackRock’s Spain chief, Adolfo Favieres, described the country as “the star of Europe” thanks to solid fundamentals. The firm is focusing on hotels, student housing, residential sales and flexible living, while also maintaining interest in affordable housing. He expects this positive trend to continue in the short term.

Spain has once again positioned itself as Europe’s most attractive destination for hotel investment for the third consecutive year, ahead of Italy, the United Kingdom and Portugal. This performance is driven by strong tourism demand and solid operating results, despite ongoing geopolitical and macroeconomic uncertainty linked to conflicts in the Middle East. Barcelona ranks as the most attractive city for investment, sharing the top position with London, while Madrid also features among Europe’s top three destinations.

As spring reaches its peak, it's an excellent moment to find your ideal home in Spain at a more attractive price.

Sixty percent of the demand for luxury housing in Spain comes from abroad, primarily from Latin America, Western Europe, the United States, and the Middle East, according to The Simple Rent, an online real estate network specializing in luxury properties. During the last fiscal year, transactions exceeding €1.5 million have maintained steady growth, driven by international demand and an increasingly limited supply.

Spain has reinforced its standing as a leading destination for real estate investment – with €6.39bn recorded in the first quarter, according to Colliers. This figure surpasses the combined total for Italy, France and Portugal, highlighting the market’s strength. Beyond southern Europe, Spain is also emerging as one of the most dynamic real estate hubs across the EMEA region – with strong performance driven by the living, retail and hotel sectors.

Spain has increased its share of European real estate investment, rising from 6% in 2019 to 15% in 2025, thus entering the "European top tier," according to the Spanish Association of Real Estate Consultants (ACI). In a comparative study, the association emphasises that the Spanish market "has moved from a secondary position to consolidate its place among the leading players in European real estate investment" and confirms its third-place ranking, after Germany (28%) and France (18%). Italy occupies fourth place (11%).

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Real estate investment in Spain reached €6.3 billion in Q1 of 2016, representing a 93% increase compared to the same period of the previous year and the third-best figure in the historical series, surpassed only by those recorded in the Q3 and Q4 of 2018, according to data from CBRE. Domestic investors accounted for half of the volume, while Madrid and Barcelona attracted the most geographical interest, and the living space segment led the sector. Following these results, the consultancy anticipates a particularly dynamic year in terms of investment activity.

Buying property in Spain is a dream for many, but the process can sometimes be lengthy and costly.

Amancio Ortega may be best known as the founder of Zara, but in 2026 he oversees the most valuable private real estate portfolio in the world.

Spain has no shortage of pretty seaside towns and chilled pueblos, but a handful of postcodes sit in a very different league. In 2026, the most exclusive places to live in Spain are still clustered around Madrid, Barcelona, the Costa del Sol and the Balearic Islands.

As the year draws to a close, there’s no better time to start dreaming of a new life in the Spanish countryside.

Salto de Castro, a village in Zamora that has lain abandoned for more than 30 years, is set for a remarkable comeback thanks to American entrepreneur Jason Lee Beckwith.

What is the profile of home buyers in Spain? What trends are currently shaping the market, and what can we expect in the coming months?

According to a report by the Real Estate Credit Union (UCI), 72% of buyers cite the price of the property as their top concern, while 49% prioritise finding a location that suits their needs. The ability to afford a home on one’s own salary has risen in importance by nearly two percentage points since the previous survey and is of particular concern to women, at 54%.

The Spanish housing market is reaching a historic peak, with sales and rental prices expected to hit record levels in June 2025, according to idealista. Purchasing a property as an investment can offer substantial returns, but it also carries risks and requires careful planning.

The European real estate market is set to enter a phase of moderate recovery in 2025 after two years of correction, with Spain emerging as one of the best-positioned countries to benefit from this new cycle, according to the Global Trends and Tactics Q1 2025 report by Nuveen Real Estate.

According to the latest Colliers report, Europe now hosts seven of the world’s top ten destinations for foreign investment in commercial real estate. Amid growing geopolitical uncertainty, investors are favouring safer, more stable markets, making Europe the leading global region, surpassing North America and Asia-Pacific. Spain has risen three spots since Q1 2024 to rank fifth worldwide, entering the global top five for the first time.

The purchase of second homes by foreigners, particularly along the Mediterranean coast, continues to rise, with a significant number of buyers choosing Catalonia for its prime location.

Real estate investment in Europe could reach €214 billion in 2025, marking a 23% increase compared to the previous year, according to forecasts by real estate consultancy Savills.

The President of Spain, Pedro Sánchez, has proposed a tax increase of up to 100% of the property's value for non-EU buyers who are not residents of Spain.In response to this proposal, the American real estate network Keller Williams anticipates a 6% decline in property sales along the Spanish coast,

Finding the perfect home in Spain can be a challenging task, but instead of settling for a finished and furnished property, why not consider buying one in need of renovation?

Spain’s real estate market is transforming, driven by the rapid growth of the "living" sector – a trend that includes models such as build-to-rent (BTR), flex living, coliving and senior living. According to a recent report by Tecnitasa, investment in this segment has reached record levels.

Madrid is ranked as the second most attractive European city for real estate investment, according to a report by PwC and the Urban Land Institute (ULI).