Spain has started 2026 with solid growth in property investment and is establishing itself as one of the most dynamic markets in Europe. According to data from Savills, the volume invested in the first quarter of the year reached €6.2 billion, representing a year-on-year increase of 56% and the best start to the year since 2018.
This strong start suggests that the total volume of investment in 2026 will exceed the €20 billion mark for the first time in Spain, driven by a favourable macroeconomic environment and solid fundamentals across all property segments. Key factors include the strength of economic activity, population growth and high structural demand for housing and development space.
Residential property, comprising the living and hotel segments, once again emerged as the main driver of property investment during the quarter. Together, they accounted for 58% of total investment for the quarter, with €2.73 billion in serviced living and €900 million in hotels.
Institutional investors’ interest in these assets stems from the shortage of supply in major cities and the sustained rise in residential and tourism demand. This combination is driving large-scale transactions and reinforcing the sector’s reputation as a stable long-term investment.
Meanwhile, the traditional segments also achieved significantly high volumes. Retail reached €1.3 billion and offices €950 million, figures that double the average recorded over the same period in the last five years. This upturn confirms the recovery of investor appetite for more established assets within the property market.
Transaction activity has also seen significant growth. In the first quarter, 140 transactions were completed, 13% more than in the same period of the previous year. Furthermore, the average deal size increased by 38%, standing at around €44 million. This increase has been driven by the return of large transactions to the market. In total, 18 transactions exceeding €100 million were recorded, compared with just four in the same quarter of 2025, reflecting greater confidence and investment capacity.
Geographically, Madrid continues to account for 45% of the total investment volume, while Barcelona accounts for 15%. However, secondary markets are becoming increasingly significant. Valencia stands out, having exceeded €1 billion in investment for the first time last year and continuing to perform well, particularly in the logistics and residential sectors.
By investor profile, institutional capital leads the market, accounting for over 70% of the total volume, although there is a growing prominence of REITs, including Spanish SOCIMIs and international vehicles such as French SCPIs.
Private investors account for 14% of the total, in line with the same period last year. In terms of segments, funds account for 85% of investment in multifamily, while REITs lead the senior residential and logistics sectors, both with shares exceeding 60%. In the case of hotels, private investors stand out with 37% of the transaction volume.
International capital is playing an increasingly prominent role and now accounts for more than half of the volume invested, with a particularly strong presence in segments such as residential, senior housing and alternatives, where it exceeds 85%. Among cross-border capital, European investors account for approximately 62% of the total and North American investors for 26%. In terms of returns, yields remained stable across all segments during the first quarter of the year, against a backdrop where geopolitical uncertainty, including the conflict in the Middle East, has not had a significant impact on the fundamentals of the Spanish property market.
