Spain’s real estate market continued its upward trajectory in 2025, with CBRE’s latest ‘Trends in Valuations’ report revealing strong appreciation across all primary real estate segments—particularly Private Rented Sector (PRS) residential, residential land, and high street assets. This growth cements Spain as one of Europe’s most attractive destinations for property investments, thanks to robust demand, prime location scarcity, and evolving market dynamics.
Residential PRS: The Year’s Top Performer
Madrid’s residential PRS segment topped the charts, posting an impressive 10.38% increase in value over the previous year. This surge underscores growing investor appetite for stable, income-generating assets in Spain’s capital, driven by the ongoing shortage of rental properties and a thriving urban population.
Residential Land and High Street Assets Gain Ground
Residential land values rose by 10% in both Madrid and Barcelona, reflecting intense competition for buildable lots in Spain’s largest cities. Developers and investors are vying for strategic sites amid limited supply and persistent demand for new housing—fueling further appreciation.
High street retail in both metropolises also performed strongly, with values climbing 9.59% in Madrid and 9.20% in Barcelona. The resurgence in private consumption, tourism, and confidence in prime retail corridors is reshaping the post-pandemic landscape and strengthening asset valuations.
Alternative and Specialized Segments Thrive
Beyond traditional sectors, alternative assets like student residences soared by an average of 8.52% over 2024. This sector is buoyed by a growing student population and an outdated supply of accommodations. Nursing homes also saw modest growth, with values increasing in line with demographic trends and healthcare needs.
Retail, Logistics, and Office Markets Show Resilience
Prime shopping centres (+6.21%), dominant regional malls (+6.05%), and medium-sized retail parks (+2.64%) all reported positive advancements—mirroring increasing foot traffic and sales figures. The logistics segment witnessed continued dynamism, led by Madrid (+5.27%) and Valencia (+5.12%), as the surge in e-commerce and supply chain optimization solidifies the sector’s appeal.
Prime office spaces in Madrid and Barcelona moved past previous corrections, advancing 5.51% in value. The push for high-quality, sustainable, and tech-enabled workspace is driving this rebound—though secondary and peripheral markets noted a moderate decline (-2.57%) as polarization in demand persists.
Hotels Ride the Wave of Tourism Growth
The hotel sector sustained a healthy evolution: valuations climbed 4.8% for resort properties and 4.5% for urban hotels, buoyed by surging leisure tourism and the creative transformation of the local hospitality offer, especially with the rise of lifestyle brands.
Investor Sentiment Remains Upbeat for 2026
CBRE noted a 44% jump in overall investment through September 2025, reaching €12.9 billion—eclipsing Europe’s average increase of 8%. Looking ahead, analysts expect this growth trend to persist into 2026, albeit at a more moderate pace, as investors become increasingly selective and focus on value-driven strategies in core locations.
Key Takeaway: Spain’s real estate market remains a beacon for global investors in 2025, with PRS, land, and high street segments spearheading value growth. As economic fundamentals remain strong and strategic assets continue to attract capital, Spain looks set to maintain its real estate momentum in this year.
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