The conversion of buildings continues to be on the rise in the Spanish market. According to the latest report by CBRE, in the first half of 2025, there were more than 20 changes of use, totalling more than 137,000 sqm in transformation, 4% more than in the same period last year. Although the volume of transactions is lower than that recorded for the whole year—when nearly 70 conversions and more than 390,000 sqm were identified as undergoing transformation—the average surface area of the projects has increased, reflecting the greater scale of the transformations initiated this year, according to CBRE's annual report on building conversions in 2024.
Eighty-seven per cent of these transactions are destined for the residential and hotel sectors. Within the residential sector, which accounts for 61% of the total, both luxury residential developments for sale and flex living projects stand out. Hotels, accounting for 26%, are mostly geared towards the high-end segment.
In terms of the origin of the assets, offices account for 52% of cases, with 67,000 sqm undergoing conversion, mainly in central locations. Six conversions of alternative assets were also identified, including historic buildings such as cinemas, museums and wineries.
Geographical distribution of operations
For the first time, secondary locations surpassed Madrid in terms of the number of conversions. Between January and June, these areas accounted for 52% of changes of use, compared to 48% in the capital. Andalusia led the activity outside Madrid, with eight transactions in cities such as Jerez de la Frontera, Málaga, Seville, Córdoba and Granada. It was followed by the Valencian Community, with cases in Valencia and Alicante.
In Madrid, two out of every three conversions were located within the M-30 ring road. 64% of the changes in the capital came from offices, while in secondary locations this percentage fell to 42%, reflecting a greater diversity of initial uses.
Transactions worth €200 million
Sixty per cent of the changes of use involved a sale, representing a total investment of close to €200 million, in line with the same period last year (+1%). The average transaction value stood at €14.2 million, 23% more than in 2024.
Transactions were concentrated in medium-sized assets: only three transactions exceeded €20 million. Living was the most frequent end use, while offices accounted for 64% of initial uses. Madrid was the preferred location for conversions with associated transactions (57%). In terms of investor profile, 64% were domestic, followed by Latin American capital (21%), mainly from Venezuela and Argentina.
Notable transactions include the conversion of an office building on Madrid's Paseo de Doce Estrellas into flex living; the conversion of a property on Avenida de Burgos, also in Madrid, into luxury residential accommodation; the conversion of an asset in Plaza Nueva in Seville into a luxury hotel; and the conversion of a building on Avenida Doctor Marañón in Malaga into a hospital.
Evolution over the last decade
Since 2015, more than 270 changes of use have been identified in Spain, with an upturn since 2019. In total, nearly 880,000 sqm of office space has been converted in the last ten years, of which 440,000 sqm has been converted into residential properties and more than 200,000 sqm into hotels. Madrid and Barcelona account for 77% of these operations.
According to CBRE, the trend will continue in the coming years, subject to regulatory flexibility and the evolution of office availability. In Madrid, the average office availability rate at the end of the first half of 2025 was 10.6%, with lows of 2.6% in the CBD and below 5% in the city centre market.
