Spain real estate set for 2026 upswing — strong residential rent growth, Madrid retail demand, hotel investment and data centers drive investor interest, says Cushman & Wakefield.
Spain’s real estate market is entering 2026 with renewed momentum as investors shift from caution to action, according to Cushman & Wakefield’s European Outlook 2026 and European Investment Atlas. With stabilising macroeconomic conditions, improving financing costs and a growing appetite for prime and ESG-compliant assets, Spain is among the European markets best positioned to benefit from the next phase of the recovery.
Why Spain stands out
• Residential: Spain is projected to post one of the highest increases in residential rents in Europe, with rents expected to climb 5.3% in 2026 — well above the UK (3.7%) and Germany (3.1%). Persistent demand driven by demographic and social trends continues to outpace supply in key cities.
• Retail and high street: Madrid emerges as one of Europe’s most dynamic retail markets alongside Milan and Paris. Brick-and-mortar stores are evolving into brand experience spaces in prime locations, supporting an expected 1.9% annual growth in retail prime rents across Europe over the next two years.
• Hotels and tourism: European tourism recovery will lift hotel stays by an estimated 5.6% in 2026, driven by international demand. Spain leads capital inflows into the hotel sector and is central to rising investment volumes — Europe-wide investment is forecast to top €27 billion in 2026 (up from €25 billion in 2025).
• Logistics and industrial: Logistics absorption in Europe stabilised by Q3 2025. Prime logistics rents are expected to rise about 2.2% between 2026 and 2027, with Spain among markets with strong rent growth potential.
• Data centers and tech infrastructure: Demand for data centers across EMEA is accelerating as AI and digital transformation expand IT requirements. Southern Europe — including Spain — is increasingly attractive for data center investment thanks to strategic connectivity and gateway positioning. EMEA IT load could grow at a compound annual rate of up to 32% from 2025–2030.Investor sentiment and market mechanics
Cushman & Wakefield’s research highlights a broader, cross-sector recovery across Europe, supported by more favourable credit conditions and growing liquidity. Retail’s share of investment has rebounded to roughly 16% of total European investment volume (up from 12% in 2021), and Southern Europe is drawing larger-volume transactions, including deals above €250 million.
Crucially, the European Investment Atlas notes that about 78% of analysed European markets remain undervalued — implying that current asset prices do not yet fully reflect improving fundamentals. That gap presents a strategic window for investors targeting Spanish assets across residential, retail, hospitality, logistics and data infrastructure.
What this means for buyers, occupiers and developers
• Investors: Opportunity to acquire prime and ESG-ready assets at attractive entry points as credit conditions ease and deal flow improves.
• Developers: Strong demand for high-quality housing, modern logistics, and tech infrastructure supports pipeline acceleration, especially in major Spanish cities.
• Occupiers: Continued preference for well-connected, Grade A office space concentrated in CBDs is driving down availability and reinforcing the value of central locations.Spain’s real estate market is on a strong footing heading into 2026, benefiting from pan-European recovery trends and local structural drivers. From rising residential rents to renewed retail vibrancy in Madrid, growing hotel investment and an expanding role in data center development, Spain offers multiple entry points for investors and occupiers seeking growth as the recovery unfolds.
