Spain’s real estate sector is enjoying a boom in 2025, attracting €12.9 billion in investment since January—an impressive 57% growth compared to last year, according to the latest study by leading real estate consultancy Colliers.
This surge stands in sharp contrast to the overall decline experienced elsewhere in Europe, where real estate investment fell 12.6% compared to 2024’s average. The global landscape reflects more negative figures, with Canada shrinking by 18%, Japan by 20%, the UK by 25%, China and Taiwan by 40%, and the USA by 3%. Notably, Sweden was one of the few exceptions, recording a modest 2% growth.
Segment Breakdown: Where the Money Is Going
- Residential Real Estate: The clear star of the market, this segment has nearly doubled its investment, jumping 99% year-on-year to €3 billion—accounting for a quarter of the total investment in Spain’s real estate market. There’s been a surge in demand for ‘flex living’, student residences, ‘build to rent’ models, and even ‘room rental’ formats.
- Hotel Sector: Investment in hotels soared by 41% year-on-year to €2.8 billion, reflecting a strong recovery in the tourism industry.
- Alternative Assets: The most dramatic growth comes from sectors like healthcare real estate and data centers, which grew an astounding 329%, totaling €2.28 billion in investment.
- Industrial & Logistics: These sectors saw a healthy 23% increase, reaching €1.37 billion.
- Office Space: With €1.69 billion invested, this sector rose 35% year-on-year.
- Retail: Retail investment remained steady, bringing in €1.73 billion, just 4% lower than last year.
Top Investment Property Types in September 2025:
- Urban hotels (€1.64 billion)
- Student residences (€1.57 billion)
- Holiday hotels (€1.19 billion)
- Data centers (€1 billion)
Outlook: Spain Remains a Top Choice for Global Investors
Colliers emphasizes the increasing importance of foreign investors, noting that institutional funds, property developers, and private investors now see Spain as a priority destination for their capital. If current trends hold, 2025 could become Spain’s second-best year ever for real estate investment, targeting a record €17 billion—just behind the peak reached in 2022, and marking a 30% annual increase.
With positive signals from inflation, GDP, and market sentiment, Spain’s real estate market stands out as a European powerhouse—while much of the world faces downturns. As lifestyle trends and investment strategies continue to evolve, Spain looks set to consolidate its place as a magnet for global real estate capital into 2026 and beyond.
