Real estate investment in Spain jumped 31% to €18.4bn in 2025 — the strongest year since 2018 — led by Living, Hotels and Retail (68%). Institutional capital gains prominence, says CBRE.
Real estate investment in Spain rebounded strongly in 2025, reaching €18,400 million — a 31% increase on 2024 and the highest annual total since 2018 (€20,383 million) — according to CBRE data. The rise was concentrated in a few big-ticket areas: Living, Hotels and Retail together accounted for 68% of the year’s transactions.
Quarter and Iberian picture
The year closed with the third-best fourth quarter on record (€5,291 million), helped by large alternative-asset deals and a late-year pickup in hotel activity. At the Iberian level, investment grew 29% to €21,169 million, with Portugal rising 17%. Across EMEA, provisional figures point to a 10% increase.
Geography and decentralisation
Madrid and Barcelona captured 58% of total investment, while regional markets collectively held 42% — a share in line with the five‑year average and well above the pre-pandemic norm. The Valencian Community and Andalusia stood out with 11% and 10% of national volume respectively (each exceeding €1.6 billion). The Canary Islands accounted for around 6% of the national total and remained a hotspot for holiday-oriented transactions, underscoring a gradual decentralisation of capital flows. Combined volumes in these regions were 49% higher than in 2024.
Investor profile and nationality
Institutional capital gained ground in 2025 — driven largely by corporate transactions — and became the principal investor type, representing 15% of the total. REITs retained a leading role with 11%, while family offices and private investors together also contributed 11%.
By origin, Spanish buyers led with almost 50% of investments, followed by the United States (15%) and the United Kingdom (8%). Together these three sources accounted for roughly €13 billion of the year’s flows. Corporate operations were sizeable in 2025 — about €3.4 billion versus a five‑year annual average of €1.6 billion — and excluding those deals, total investment still rose 25% year‑on‑year. Without corporate operations, private investors ranked first (14%), with nationals rising to 53% of activity.
Sector breakdown
• Living (€5,415m, 29% of total; +23%): Living led the market, fuelled by large student-residence and BTR/PRS transactions — notably Livensa’s deal in student housing. Student residences accounted for 43% of Living volumes, multifamily 41% (with Core/Core+ BTR strategies focused on affordable housing), and Flex Living reached €790 million. Madrid attracted 40% of Living investment, Barcelona 15% and Valencia 8%. Valencia nearly doubled its Living inflows to €520 million, and Seville hit a record (€390 million), driven by BTR and student housing deals.
• Hotels (€4,228m, 23%; +27%): The hotel sector recorded strong growth with high‑profile transactions including the Spring Hotels and Silken portfolios and significant individual hotel deals. Upscale 4- and 5-star assets made up 79% of hotel volume, while the holiday segment (Canary Islands, Barcelona and Balearics) accounted for 58% of hotel investment.
• Retail (€2,843m, 15%; +2%): Retail remained relevant thanks to shopping-centre transactions and renewed international interest. Notable deals in Q4 included purchases such as Parque Corredor and Parque Abadía; High Street activity also increased, reaching €573 million (+26%).
• Alternatives and Healthcare (each ~14% combined): Alternatives posted a dramatic rise (€1,121m, +598%), and Healthcare grew to €1,405m (+229%), with major moves in nursing homes (e.g., the Vitalia acquisition), education assets and infrastructure plays like car-park portfolios.
• Offices (€2,171m, 12%; +36%): Office investment rebounded, led by selective, higher-quality assets. Industrial & Logistics totaled €1,270m, down about 10% versus 2024.Yields and market tone
Prime yields were broadly stable in Q4 2025. Slight compressions were recorded in Industrial & Logistics (‑15 bps) and Offices (‑5 bps) versus the previous quarter. Overall, CBRE highlights a market driven by institutional appetite, corporate transactions and targeted investor interest in stable cash-flow assets like BTR, student housing, healthcare and well-located hotels.
Outlook
CBRE’s 2025 figures point to a market regaining momentum and diversifying geographically and by product. Institutional investors are increasingly influential, corporate deals have boosted headline volumes, and alternative and healthcare segments are cementing their place alongside traditional core sectors. Expect selective, yield-sensitive investment into resilient product types in 2026, with continued interest from both domestic and international capital.
