The real estate sector in Spain continues to strengthen, with indicators reflecting sustained growth and new opportunities for investors. In this regard, demand remains active in key segments such as residential and tertiary, driven by market stability and interest from both national and international investors. A favorable environment that could persist, especially with projections of moderate growth throughout the year. In light of these prospects, the Spanish real estate business consolidates as an attractive destination for investment.
According to data from the consultancy CBRE, in the first half of 2024, real estate investment in Spain reached 5.5 billion euros, marking a slight increase compared to the 5.3 billion accumulated the previous year. This performance aligns with the average of the last decade, and increased investment activity is expected in the second half of the year. By the end of 2024, a progressive increase is projected, estimated between 5% and 10%, which could be driven, among other reasons, by the recent reduction in interest rates by the European Central Bank and the rise in investor appetite.
The consultancy’s analysis confirms that national investors dominate the market, accounting for 57% of investments. Foreign investors stand out for their great interest in the residential sector, while family offices prefer the tertiary sector, especially the office and retail segments.
Foreign capital driving the residential sector
27% of investment has been concentrated in the residential (living) sector, mainly driven by foreign capital. This type of asset remains an attractive bet due to the demand for housing in major cities such as Madrid and Barcelona. Despite regulatory and pricing challenges, these markets continue to offer interesting returns, justifying the constant flow of international capital. International investors see Spanish residential real estate as a safe haven, particularly Europeans and North Americans, who lead this type of transaction, according to CBRE.
This is confirmed by the Real Estate Registry Statistics prepared by the College of Property Registrars, which shows the growth in the number of foreigners deciding to buy a home in Spain. In this regard, during the second quarter of 2024, demand for real estate properties from foreign buyers experienced an increase of 0.63 points compared to the first three months of the year, reaching 14.84% of total real estate transactions between April and June. The main buyers of property in Spain were British, Germans, and Moroccans.
Family offices and the tertiary sector
On the other hand, family offices, primarily national, are more focused on the tertiary sector (offices, retail, logistics, hotels), according to CBRE data. These investors largely avoid the residential sector due to price instability and changing regulations. Instead, they prefer commercial and office assets, which in many cases offer more stable and long-term returns. This behavior reinforces the trend of diversification and prudent risk management that characterizes these market players.
The tertiary sector also includes investments in hotels (with 25% of operations) and retail (18%), which continue to be important pillars in the portfolios of national investors.
Madrid and Barcelona, favorite destinations for investors
Spain’s two main cities, Madrid and Barcelona, remain favorite destinations for investors. In fact, both are ranked in the top 10 most attractive European cities for investment, according to the latest European Investor Intentions Survey by CBRE. These cities concentrate the majority of real estate operations, being particularly attractive to international buyers. In addition to their solid infrastructure, both the capital and Barcelona offer a dynamic market with multiple opportunities in both the residential and tertiary sectors.
Madrid stands out for its stability and its relevance as a financial center, while Barcelona continues to attract investment due to its tourist appeal and growing technological influence.
After months of intense activity in the Spanish real estate sector, marked by fluctuations in sales and changes in interest rates, the Spanish real estate market is expected to gain momentum in 2025. According to forecasts by Solvia, in its latest analysis of the residential market, demand will grow by 2% to 3% next year, after an adjustment in operations of between 4% and 5% year-on-year in 2024. The sector once again proves that it will remain dynamic and capable of adapting to global economic challenges.
