Real estate investment in Spain during the first quarter of 2025 reached 3,001 million euros, an increase of 7.9% compared to the same period last year, according to the latest report from BNP Paribas Real Estate. Despite the context of international uncertainty, marked by geopolitical and commercial tensions, the Spanish real estate market maintains investor interest.
The analysis by volume of transactions reflects a more intense activity in transactions of less than 50 million euros, while larger transactions have shown less dynamism. In terms of number of transactions, there has been an increase of 63% compared to the first quarter of 2024.
The retail sector led investment during this period, with a total volume of EUR 1,053 million, representing 35% of overall investment in the quarter and a year-on-year growth of 26.6%. Within this category, shopping centres accounted for 62.3% of the capital invested, with notable operations such as the acquisition of the Bonaire shopping centre in Valencia and Alcalá Magna in Alcalá de Henares (Madrid).
Investment in logistics assets amounted to 456 million euros, an increase of 30.9% compared to the same quarter of the previous year. This figure is largely due to the acquisition of a Blackstone portfolio by the Singaporean fund Mapletree, for close to 215 million euros, which represents more than 47% of the logistics volume recorded in the quarter.
The residential sector recorded an investment volume of EUR 671 million, 27.2% less than in the first quarter of 2024, when large deals totalling EUR 760 million were closed. However, transaction activity was higher, with 22 more transactions recorded compared to the same period last year. According to David Alonso, Head of Research at BNP Paribas Real Estate - Spain, ‘the interest of value-added investors in acquiring office properties for conversion to residential for rental, provided that the economic conditions allow it, stands out’. Alonso also highlights the growth of investment in products for medium and short term rental, known as Flex Living.
In the hotel segment, 24 transactions have been recorded for a combined value of 439 million euros. The report predicts that both investment funds and institutional investors will continue to have a significant presence throughout the year. Challenges for the sector include repositioning assets and adapting to new market demands, as well as integrating sustainability criteria.
Finally, office investment in the Madrid and Barcelona markets reached EUR 165 million, down 22% compared to the same period last year. Although volumes remain low, BNP Paribas Real Estate points to an incipient reactivation, with a greater number of open sales processes and new analysis of opportunities by institutional funds.
