The retail sector has started 2026 maintaining a positive trajectory in Spain, although now within a more balanced growth phase following the strong momentum recorded in 2025. Consumption, tourism and the strength of certain retail locations continue to support activity, in a market environment that shows solid fundamentals, albeit with signs of moderation compared to the previous year.
The latest Cushman & Wakefield report for the first quarter of 2026 depicts a market with solid tenant demand, especially for prime assets, and a shortage of available space that continues to put pressure on occupancy and rents in the main shopping streets.
Consumption and tourism continue to support the market
The Spanish economy continues to grow faster than the eurozone average, and retail remains supported by two fundamental pillars: consumption and tourism. The report notes that retail sales continue to grow, although without the peaks seen in the final stretch of 2025, and that the strongest performance is concentrated in categories linked to experiential consumption, home improvement and leisure.
Tourism also continues to play a key role. During the first quarter of 2026, international tourist arrivals increased by around 2%–3% year-on-year, while tourism spending rose by approximately 4%–5%. This trend continues to support retail activity in both urban and holiday destinations, especially in prime locations.
High street: limited availability and rising rents
One of the clearest characteristics of the Spanish retail market continues to be the scarcity of available product in the best locations. Madrid and Barcelona maintain a vacancy rate of just 2.5%, reflecting strong competition for access to the main shopping streets. This pressure does not affect the entire market equally, but is concentrated mainly in prime and super-prime areas.
Leasing activity also remains strong. During the quarter, 22 transactions were signed in prime and super-prime areas of Madrid and Barcelona, representing a 45% increase compared to the same period last year. Fashion accounted for 48% of the demanded space, while 55% of transactions involved units larger than 800 sqm. At the same time, prime rents increased by 5% year-on-year, reaching €290/sqm/month in Barcelona and €280/sqm/month in Madrid, even surpassing pre-pandemic levels on some streets.
Shopping centres and retail parks: higher sales, higher footfall and strong occupancy
Shopping centres also began 2026 with solid operational performance. Sales increased by 4.7% year-on-year, while footfall rose by 5.6%, with positive performance across most regions. Among categories, fashion led growth with +9.2%, while leisure posted a sharp increase of +33.1%, driven mainly by cinemas.
In retail parks, sales rose by 4%, with fashion performing above average and the home segment showing more stable growth. All this translates into very high occupancy levels: shopping centres now reach 95.5% of GLA (gross leasable area), improving by 0.5 percentage points compared to the end of 2025.
Retail investment gains visibility in 2026
The report also reflects a clear recovery in investor interest in retail. During the first quarter of 2026, investment volume reached €1.488 billion, up 22% year-on-year. Capital is especially concentrated in shopping centres, retail parks and prime high street assets, formats that combine high occupancy, operational stability and stronger income prospects.
At the same time, prime yields are showing signs of stabilisation: 3.60% for high street, 6.25% for shopping centres and 6.35% for retail parks. Cushman also points out that, following the beginning of the interest rate cutting cycle in September 2024 and the subsequent stabilisation of yields, the market is starting to register slight additional yield compression.
A context that also aligns with the growing focus on non-residential assets
The recovery of retail also fits within a broader trend in both the market and Urbanitae’s recent activity: the growing prominence of non-residential assets within the real estate universe. So far in 2026, this focus has been reflected in projects and content related to hospitality, tourism, offices and other commercial real estate (CRE) assets. A clear example is Roca Negra, a hotel debt project repaid ahead of schedule with full return of capital and a final IRR of 13.85% over 14 months, following bank refinancing. More than a bet on a single asset class, what is becoming visible is a search for opportunities in non-residential assets with increasingly selective investment theses.
A more selective, more technological and more demanding retail market
Beyond the operational data, Cushman points to a retail sector that is becoming increasingly selective, technology-driven and efficiency-oriented. The report highlights that European retailers are adopting more strategic decision-making, optimising locations and relying more heavily on artificial intelligence, data and unified commerce strategies – the full integration of physical, digital and social channels – to improve both customer experience and profitability.
Carefully selected opportunities
The beginning of 2026 confirms that Spanish retail maintains a solid operational base, although in a more normalised phase than the one experienced in 2025. Consumption and tourism continue to support the market, prime availability remains extremely low, shopping centres are showing positive sales and occupancy figures, and investment activity is regaining momentum.
The underlying takeaway is not so much an indiscriminate return to retail, but rather a more demanding selection of formats and locations. In high street, shopping centres and retail parks alike, the market is rewarding above all those assets capable of combining footfall, operator quality, occupancy stability and adaptability to new consumer habits. That is where much of the sector’s value appears to be concentrated today.
