Spain is positioned as the second most attractive country for real estate investment in Europe in 2025, according to the European Investor Intentions Survey 2025 prepared by CBRE. The country gradually improves its position from seventh place in 2022, fourth place in 2024, and now behind only the United Kingdom. Poland, Germany and France are in third, fourth and fifth place respectively, while Portugal is in sixth place, consolidating the attractiveness of the Iberian Peninsula for investors.
For the second consecutive year, Spain is the only country with two cities in the top ten most attractive cities for real estate investment in Europe. Madrid rises to second place, up from third place in 2024, while Barcelona climbs to fourth place, up from seventh place last year. In recent years, both cities have gained weight in the investment market: Madrid has risen from sixth place in 2022 to second in 2025, and Barcelona has climbed five positions, from ninth to fourth in the same period.
According to the investors consulted, Spain's improvement in the ranking is due to factors such as the boost in tourism, population growth and GDP growth, as well as the positive outlook for the national real estate market.
A 15% increase in real estate investment is expected by 2025
CBRE forecasts a growth in real estate investment in Spain of approximately 15% in 2025, reaching an estimated volume of 16,000 million euros, compared to the 14,000 million recorded in 2024. This figure could increase if the upward trend in the closing of corporate transactions observed in recent months continues.
Paloma Relinque, Head of Capital Markets in Spain at CBRE, highlights that the survey again reflects the attractiveness of Spanish real estate for European investors, with a growing interest in Madrid and Barcelona. She stressed that the fundamentals of the sector are sound and that the improving macroeconomic scenario should continue to drive activity in the market.
Optimism among investors and a market with high liquidity
The CBRE report shows increased confidence among investors regarding the market recovery. Some 23% of respondents believe that the upturn has already begun, while more than 70% expect activity to fully recover by the end of 2025. In addition, 92% of investors plan to maintain or increase their buying activity, while more than 75% expect their selling activity to be maintained or increased, reflecting a highly liquid market.
Key challenges facing investors in 2025 include the misalignment of buyer and seller expectations in a context of tightening financing costs, as well as geopolitical uncertainty, mentioned by more than 40% of respondents. Sustainability continues to be a key consideration in investment decisions, with 95% of investors incorporating it into their strategy and mostly focusing on retrofitting existing buildings to meet environmental standards.
Residential sector consolidates as the preferred sector for investment
The report places the residential sector as the most attractive sector for European investors in 2025, with 32% of preferences, followed by the logistics sector, with 27%, and the office sector, with 16%. Compared to the previous year, when logistics investment led the ranking with 34%, residential has gained prominence, reflecting a trend in which multifamily/BTR has become the preferred option within the segment, with two thirds of investors opting for this model. Also of note is the interest in student housing, which represents 20% of the preferences in the sector.
In the case of logistics investment, half of the respondents show a clear preference for modern assets located in major cities. In the office sector, the focus remains on Grade A properties in prime locations, while in retail, the focus is on retail parks, supermarkets and prime assets in shopping centres and High Street. Meanwhile, 22% of investors opting for the hotel sector prioritise the luxury segment.
Investment in alternative sectors also maintains a growing interest, with 62% of respondents showing interest in these assets. Within this segment, student housing is the most attractive option, followed by data centres and senior living, confirming the diversification of the European real estate market.
