Spain is set for a record-breaking year in real estate investment, on par with top European markets like France. According to the Association of Real Estate Consultants (ACI), investments in Spanish real estate are expected to surpass €17 billion in 2025—a 30% increase from 2024 and the third-best year in Spain’s history for the sector.
Booming Sector Driven by Economic Growth
The Spanish real estate market continues to be one of the most dynamic sectors of the national economy, attracting both foreign and domestic investors. Experts credit Spain’s robust economic growth and stability, which have made it Europe’s most attractive real estate market and landed it among the world’s top 10.
Private debt funds are increasingly entering Spain, drawn by “core” commercial assets and office properties. The residential market is also under pressure, with Spain’s population growing by 500,000, yet new housing supply has stalled due to zoning and land constraints. This imbalance between supply and demand further boosts property values and investment appeal.
Outperforming the EU Market
While investment volumes in the broader European Union have remained steady in 2025, Spain and Italy are bucking the trend with notable gains. Spain’s projected €17 billion in real estate investment puts it on par with France, traditionally one of the continent’s leaders. However, Spain lags behind Germany, whose largest years have seen up to €120 billion in real estate deals.
In specific sectors like logistics, Spain’s investment activity has remained strong and flat, while other European countries have seen declines.
Why Spain Stands Out
Experts say that exceeding €10 billion is already considered a “good year” for Spanish real estate, so the projected €17 billion in 2025 is particularly remarkable. The key to Spain’s success lies in its economic performance and its new status as a “liquid market” throughout the real estate cycle. Historically, Spain only attracted international investment when returns elsewhere softened, but today it has become a staple for global investors.
Looking Ahead
Industry leaders caution that Spain’s outperformance might not last indefinitely, as investment trends are cyclical and may eventually return to markets like France and Germany. But for now, “Spain is fashionable” in the real estate world, and 2025 promises to be a landmark year.
For more updates on Spain’s real estate market and property investment news, stay tuned to our latest reports.
