In 2024, total real estate investment in Spain and Portugal exceeded €16.4 billion, a figure that highlights the strength of this market on the Iberian Peninsula. This is outlined in the report “Guide for Property in Iberia 2025”, a collaboration between consulting firm Prime Yield and law firm Pares Advogados, which showcases the dynamism across all segments, supported by a favorable economic backdrop.
Residential: a growth pillar
In the residential sector, the study reports over 716,000 transactions, reflecting a year-on-year growth of 11.5%. This positive trend is mirrored in price increases of around 6%, driven by the persistent imbalance between limited supply, land scarcity, and high construction costs. In Portugal, transaction volume rose by 14.5%, while prices climbed by 9.1%. The easing of interest rates and incentives targeting young buyers supported this progress.
Offices: record-breaking figures
In the office segment, performance was also positive in Spain, driven mainly by strong demand for prime assets in Madrid and Barcelona. These cities lead year-on-year growth, with 550,000 m² of space in the capital, marking a 23% increase, and 290,000 m² in Barcelona, reflecting a 20% rise. Portugal also saw remarkable numbers, with Lisbon doubling demand (+97%) to 221,950 m², and Porto registering its best year ever with 76,000 m² (+53%).
Foreign tourism: a pillar of the hotel segment
The recovery of tourism underpins the strong performance of Iberian hotel properties, which once again attracted significant investor interest. In Spain, investment in this asset class reached €3.2 billion, fueled by high demand in destinations such as Madrid, Barcelona, the Balearic Islands, and the Canary Islands. Both guest numbers and overnight stays increased—by 9% and 5%, respectively. Portugal also posted positive results: €500 million in transactions and a 5% rise in guest numbers, with overnight stays up by 4%. The country’s tourism sector is largely driven by international visitors, with strong development prospects in the Porto region, the Lisbon metropolitan area, and the Alentejo and Algarve regions.
Retail consolidation
Retail consolidated its role as a key segment in both economies, driven in large part by the growth of High Street retail, which has become the primary format for new openings, as well as the expansion of retail parks, which aim to meet evolving consumer demands. With €2.2 billion in investment, Spain experienced notable growth, especially in large urban retail formats in cities such as Madrid and Barcelona.
Strength in logistics and industrial real estate
The Iberian logistics market remained strong in 2024. Spain surpassed 2023 activity levels in both Madrid (900,000 m²) and Barcelona (700,000 m²). Growth was driven by e-commerce, the consolidation of logistics operators in strategic areas, and last-mile delivery demand. In Portugal, the industrial and logistics segment reached record levels last year, with 793,000 m², fueled by large-scale operations. The Lisbon region accounted for 50% of activity, followed by Porto with 24%.
