CBRE forecasts a 15% rise in Spain’s real estate investment by 2025, driven by international capital and favorable financing conditions.
Spain’s real estate investment is poised for a remarkable ascent, projected to surge by 15% in 2025, ultimately reaching a staggering €16 billion. This optimistic forecast, as delineated by the esteemed consulting firm CBRE, is underpinned by a trifecta of compelling factors: the resurgence of international capital, a notable decline in financing costs, and the euro’s newfound allure against the dollar.
The trajectory of Spain’s real estate investment is set to continue its upward momentum, following a robust 20% year-on-year increase recorded in the previous year. This growth is anticipated to surpass the average investment levels observed during the 2015-2019 period. CBRE’s ‘Real Estate Market Outlook 2025’ report articulates a near 15% growth forecast for the current year, projecting the investment volume to hover around €16 billion, a significant leap from the €14 billion anticipated for 2024.
Interestingly, this forecast may be subject to upward revision should there be an uptick in the closure of corporate transactions, a trend that has been gaining traction in recent months. CBRE emphasizes that the return of international capital, coupled with diminishing financing costs and the euro’s competitive stance against the US dollar, will serve as the primary catalysts for this investment boom. Furthermore, the occupancy market is expected to remain robust across all segments, providing a solid foundation for sustained growth.
However, it is essential to note that geopolitical uncertainties and the ramifications of the US economic agenda may instill a degree of caution among investors, particularly in the early months of the year. This hesitance is likely to persist until there is a discernible reduction in volatility within the financial markets, as indicated by CBRE in their recent press release. Thus, while the outlook remains optimistic, the path forward is not devoid of complexities and potential pitfalls.
