Real estate investment in Spain reached €12.9 billion in the first nine months of 2025, up 44% on the same period last year, according to data from CBRE. This volume makes it the third highest in the historical series, behind only 2022 and 2018, and places it well above the European average growth rate, estimated at 8%.
The third quarter was the second best since records began, driven by large corporate transactions such as the acquisition of Livensa's student residence portfolio by Nido —owned by Brookfield Asset Management— and the purchase of the Vitalia Home group of nursing homes by StepStone and Greykite from CVC.
CBRE expects investment activity to intensify in the last quarter of the year and has raised its annual growth forecast to 20%, which would bring the total volume to over €16.8 billion, compared to €14 billion in 2024.
Miriam Goicoechea, Head of Research at CBRE Iberia, explains that "the strong momentum seen in the first half of 2025 continues into the third quarter, reaching levels close to those of 2022. We anticipate a stronger finish to the year, driven by upcoming corporate transactions and continuing the trend seen in recent months. In any case, the main risk remains the high level of uncertainty in global economic policy and geopolitical tensions."
In the Iberian market as a whole, investment grew by 48% compared to the first half of 2024, with an increase of 81% in Portugal. CBRE's European Investor Intentions Survey 2025 reflects this trend: Spain remains the second most preferred destination for European investors, while Portugal ranks sixth. Madrid rises to second place in the ranking of most attractive cities, Barcelona to fourth and Lisbon remains in eighth position.
Capital profile: institutional growth and national leadership
Institutional capital now accounts for 17% of the total invested, up from 7% in 2024, driven by large corporate transactions. SOCIMIs and family offices each maintain a 12% share.
In terms of the origin of capital, Spanish investors lead the activity with 50% of total investment, followed by Americans (17%) and Canadians (8%). Corporate transactions total nearly €3 billion, compared to an average of €1.6 billion per year over the last five years.
Excluding these transactions, private investors lead with 15% (compared to 12% in the same period in 2024), and domestic buyers maintain their dominance with 59%, followed by US investors (12%), French investors (8%) and British investors (6%).
Territorial distribution: Madrid and Barcelona account for over 60% of the volume
Madrid accounts for 33% of total investment and Barcelona for 18%, while secondary locations account for 37%, a figure in line with the average for the last five years (38%) and clearly higher than the 27% recorded before the pandemic.
Among the regions with the highest activity are the Valencian Community, which accounts for 8% of the total (around €1 billion), and the Canary Islands, with 5% (around €600 million). Both communities represent nearly a third of investment in secondary locations.
Living, Hotels and Retail account for 64% of total investment
The Living sector continues to lead investment with more than €3.75 billion, equivalent to 29% of the total. Madrid accounts for 42% of the capital invested in this segment, followed by Barcelona (15%) and Valencia (8%). Within the sector, multifamily accounts for 36% of investment, student residences for 47%, and flex living remains active. Senior living recorded its first transaction of the year during the third quarter.
The hotel sector totalled more than €2.6 billion, 20% of the total and the second-best first half of the year in the last eight years. Four- and five-star hotels account for 76% of the transaction volume, while budget establishments represent 15%. In terms of type, holiday assets are regaining prominence, accounting for 57% of hotel investment.
Retail ranks third with more than €1.935 billion, 15% of the total, and a year-on-year increase of 15%. This growth is explained by the increase in shopping centre transactions, greater interest from international capital and the increase in the average ticket size. The high street segment also performed well, with an increase of 28%.
The healthcare and alternative sectors account for another €1.9 billion, equivalent to 15% of the total. Notable transactions include the corporate purchase of Vitalia, the acquisition of eight schools by Swiss Life and the sale of the Sociedad Deportiva Huesca football stadium.
The office market has accumulated more than €1.677 billion, 13% of the total, with significant transactions in Madrid's CBD, such as the Koi and Habana buildings. The trend of purchasing for change of use (€459 million) and for own use (€143 million) continues, reaching a combined total of more than €2.2 billion so far this year.
The industrial and logistics segment totals €1.064 billion, 8% of the total and 18% more than in the same period in 2024, showing signs of recovery and greater product output to the market.
Prime yields: stability with occasional adjustments
Prime yields remain stable, with slight compressions in some segments. In shopping centres, the yield stands at 6.5%, following a compression of 25 basis points. In student residences, it also fell by 25 basis points to 4.5% in Madrid and Barcelona. In offices, prime yields stand at 4.65% in the capital, driven by transactions in high-demand locations.
Goicoechea points out that "we are seeing a stabilisation in prime yields with occasional adjustments and renewed investor interest, especially in core products and prime locations. Lower interest rates and improved risk perception are driving activity, although limitations persist due to product scarcity and macroeconomic volatility".
