Spain real estate investment reached €15.14bn in 2025, driven by institutional funds (47%) and a booming living segment (60%). BNP Paribas RE forecasts stronger 2026 activity.
Institutional investors took centre stage in Spain real estate investment in 2025, capturing nearly half of the market as total deal flow accelerated. According to BNP Paribas Real Estate’s 2025 investment report, institutional funds will account for 47% of real estate investment in Spain by 2025 — a 20% rise versus 2024 — while private wealth increased its activity by 46%, with strong allocations to offices, hotels and high-street retail.
The market recorded total investments of €15,140 million (excluding large corporate deals), up 38.3% year-on-year. The fourth quarter was the busiest period, contributing €4,257 million — 21.9% more than the same quarter of 2024 — and making 2025 the second-best year on record for Spanish real estate. BNP Paribas highlights Spain as one of the most attractive and liquid markets in the Eurozone, with international capital returning to the market.
The living segment dominated flows, absorbing almost 60% of capital invested during the year. Residential-related asset classes — including built-to-rent (BTR), flex-living, co-living and affordable rental housing — accounted for a standout performance: residential investment reached €3,241 million in 2025 (up 28.4% YoY), with €1,329 million in Q4 alone (a more than 108% increase), concentrated mainly in Madrid and Catalonia. Hotels also posted robust figures, drawing €3,283 million (+18.4%), fuelled by a record number of tourists.
Office investment bounced back strongly, with €2,023 million transacted in 2025 — roughly double 2024’s total — and €551 million in Q4. Madrid absorbed 74% of the office capital, led by high-profile deals such as the Ombú transaction and the Naturgy headquarters, while Barcelona’s market featured significant operations like the Novartis deal. Logistics continued to grow, reaching €1,712 million (+10.5%) for the year and €534 million in Q4, with activity concentrated in Madrid, Catalonia and Valencia and an emphasis on portfolio and platform transactions.
Prime yields stabilised in the last quarter of 2025 with slight annual compressions across sectors: offices 4.30%, logistics 4.85%, high street 3.40%, hotels 4.50% and shopping centres 6.25%. BNP Paribas expects the market to enter a phase of greater dynamism, with higher volumes and a renewed return of international capital — notably French, American and British investors — across more Spanish regions in 2026.
Investor takeaways: Spain real estate investment in 2025 was characterised by strong cross-sector demand, a clear leadership role for institutional funds, and heavy weight in living assets. With yields stabilising and international capital regaining appetite, market participants should watch BTR and living alternatives, office reconversions in major cities, and logistics platforms as key themes heading into 2026.
