Q2 closes with the largest investment increase in three years
The Spanish real estate sector has recorded historic levels, with the largest investment increase in the past three years during the second quarter. This is according to the latest report by BNP Paribas Real Estate, which highlights a 52% increase compared to the previous quarter and a 106% year-on-year rise, reaching €4.582 billion. This is the highest figure since the third quarter of 2022.
This strong momentum reflects Spain’s new role within the European context, positioning itself as a top destination for both domestic and foreign capital.
As for the distribution by segments during this period, alternative assets led investment with €1.204 billion (26% of the total), closely followed by the hotel sector, with €1.171 billion (26%). Next were offices, with €793 million (17%); residential, with €665 million (14%); retail, with €542 million (12%); and logistics, with €201 million (5% of the total volume).
According to the consultancy, successive interest rate adjustments, positive macroeconomic outlook, and strong user demand place Spain among the most attractive markets in the eurozone. In the first half of the year, investment reached €7.583 billion, representing a 52% increase compared to the same period in 2024.
The islands account for nearly 30% of hotel transactions
The hotel sector is consolidating its position as one of the most promising in the real estate market, with more than €1.110 billion in capital mobilized, largely driven by the tourism boom. Spain continues to receive a growing number of visitors, with some experts forecasting that the country could reach 98 million tourists in 2025, a 4% increase from the previous year.
Favorable weather, the quality of hotel offerings, and positive economic outlooks are fueling growing investor interest in this segment. In the first half of the year alone, hotel transactions totaled €1.610 billion, reflecting a 16% year-on-year growth.
Among the top destinations are the Balearic and Canary Islands, which accounted for 28% of all sales, and Catalonia, which topped the ranking as the autonomous community with the highest capital inflow. One standout deal was the purchase of three hotels in Arona (Tenerife) for €430 million, the largest transaction in this asset category during the semester.
This trend is also evident in the results of the CBRE Hotel Investor Survey 2025, which ranks Spain as the most attractive European destination for investors for the second year in a row.
Madrid leads residential investment
The residential segment also continues to perform strongly, as noted by BNP Paribas Real Estate. In the second quarter, 27 transactions were recorded, with a total of €1.336 billion, representing a 25% increase compared to 2024.
One of the drivers of this growth is the rise in changes of use, especially conversions from offices to high-end housing. The consultancy emphasizes that “the purchase of office properties to convert them into luxury residences” is behind many of the current transactions. A clear example is the acquisition by the Argis fund of an office complex in Madrid’s Chamartín district, which will be converted into 71 residential units.
From a geographical standpoint, Madrid clearly leads the market, accounting for 52% of the transactions, followed by Barcelona with 34%. In both cities, investment funds have been the main players.
High street drives retail investment
Regarding the retail segment, BNP Paribas estimates an investment of €542 million in the second quarter and a total of €1.588 billion in the first half of the year. Notable among these is the acquisition of the Espacio Mediterráneo shopping center in Cartagena by Lighthouse for €135 million.
The report also highlights the strong performance of the High Street segment, which accounted for 48% of the transactions. This trend indicates a recovery in physical retail, with investment up 22% compared to 2024, leaving behind doubts from recent years due to changing consumer habits.
Along these lines, Savills notes that shopping parks opened in the past five years have adapted to the new consumer, incorporating more leisure and dining options to enhance the shopping experience. The consultancy expects that for the remainder of the year, investment levels will significantly surpass those of 2024, with projected deals worth up to €2 billion. Shopping centers are emerging as the most in-demand assets among investors, both in terms of volume and number of transactions.
