To understand the evolution of the real estate market up to the present, we need to go back to the beginning of the century. Between 2000 and 2007, Spain experienced a historic expansion in the real estate sector. Housing prices multiplied, credit flowed easily, and construction progressed at a frantic pace. It seemed that prices would never stop rising.
However, in 2008 the financial crisis revealed certain imbalances, and the Spanish real estate market recorded annual price drops of between 9% and 10%, according to the Ministry of Housing and Urban Agenda. The sector gradually recovered until the COVID-19 pandemic in 2020, which froze the global economy, reduced mobility, and generated uncertainty, affecting the sector and causing significant declines in property values.
Recovery began in 2021, increasing supply, demand, and even employment in the sector. Since then, the real estate market has maintained a sustained upward trend, currently experiencing a period of strong activity. This phenomenon is accompanied by a favorable macroeconomic environment, with positive forecasts for the country’s economy: BBVA Research estimates GDP growth of 3% by year-end, and the Ministry of Labor and Social Economy reports employment at record highs.
According to CBRE’s report on real estate investment in Q3 2025, Spain is experiencing the second-best historical record, only surpassed by 2018 and 2022, as real estate investment in the country reached €12.9 billion up to September, 44% higher than the same period last year.
This increase in investment places Spain above the European average, with 8% year-on-year growth, positioning the country for the first time in the top 5 of international real estate investment alongside the UK, France, Germany, and Italy, reinforcing the attractiveness of the Spanish real estate sector.
Living: The Most Demanded Sector
Within this growth, some segments stand out above the rest: living is the main focus of investment, with over €3.75 billion, representing 29% of the total.
This asset had already stood out and in 2025 has consolidated as the leading sector in Spain and Europe, according to the European Investor Survey 2025. In Spain, its success is due to the growing popularity of rental housing, making it a star product.
It continues to be a profitable and stable investment, especially in large cities like Madrid, Barcelona, and Valencia, where urban growth and international mobility maintain high demand, resulting in average returns of 4.8%, 5.8%, and 5.7%, respectively. For this reason, Madrid concentrates 42% of investment, Barcelona 15%, and Valencia 8% of the total.
Outside residential housing, another booming living asset is student residences, which have become the driving force of the segment, accounting for 47% of total investment and closing a record quarter, the best in the entire historical series according to CBRE. In this third quarter, high-level transactions were carried out, such as Brookfield’s sale of its student residences across Madrid, Seville, and Valencia to Livensa, a deal that represents a major capital injection into the sector.
Closely following are traditional rental homes for families or individuals, called multifamily, representing 36% of total investment, i.e., over €1.3 billion. This growth is mainly driven by tender processes, such as the Plan Vive in Madrid, or public-private collaboration entities that promote sustainable rental housing, like Habitatge Metròpolis Barcelona S.A. in Catalonia.
Finally, within the segment, senior living represents a strategic opportunity for investors. According to the Colliers Healthcare report in Spain, this sector is prepared for significant growth in the coming years, with the supply of Senior Living apartments expected to double by 2030. The development of housing solutions tailored to the needs of an aging population, characterized by a more active profile and higher quality-of-life expectations, is on the rise.
The Hotel Sector Represents a Fifth of Total Investment
Behind living and its variants, the hotel sector accounts for over €2.6 billion, representing 20% of total investment. In this segment, a curious phenomenon occurs, as investment is focused on luxury 4- and 5-star hotels as well as budget hotels that offer affordable accommodations and a clear value proposition for cost-conscious customers.
Retail, Offices, and Industrial Complete the Investment Picture
The retail sector consolidates as the third largest by investment volume, exceeding €1.935 billion, equivalent to 15% of the total and reflecting 15% growth compared to the previous year. This rebound is mainly due to significant operations in shopping centers and increased interest from international capital.
The office sector recorded over €1.677 billion in the first nine months of 2025, 13% of total investment, highlighting certain transactions in central Madrid. The trend of acquiring office spaces for residential use continues.
Finally, the industrial and logistics segment reached €1.064 billion, 8% of the total, representing 18% growth compared to the same period in 2024, showing signs of reactivation.
CBRE anticipates an increase in investment activity in the final quarter of the year and raises its growth estimate to 20%, which would place this year’s total volume at €16.8 billion.
