The Spanish market recorded 46 changes of use during the first half of 2026, double the figure for the same period the previous year, according to an analysis by CBRE Research. These projects involved more than 224,000 sqm, the highest half-yearly volume on record. Twenty of these were linked to a property transaction, totalling 390 million euros – 115 per cent more than a year earlier.
This figure builds on the record set in 2025, when 73 conversions were recorded and more than 392,000sq m were undergoing transformation. Pressure from residential and tourist demand is driving this activity, which allows obsolete or disused properties to be incorporated into segments where there is a need for supply, provided that regulations and the building’s characteristics make the change feasible.
“The conversion of properties is establishing itself as a structural response to two major market trends: the need to modernise an increasingly obsolete property stock and the pressure of demand in certain segments where supply remains insufficient,” says Miriam Goicoechea, Head of Research for Iberia at CBRE.
Hotels and Living account for 91% of new uses
52 per cent of the conversions were for the hotel sector and 39 per cent were for Living. In the former segment, premium-product projects and holiday apartments in established urban locations stand out; in the latter, residential developments, flex living and student accommodation.
Offices remain the main source of these projects, although activity is extending to other types of property. They accounted for 35 per cent of changes of use, and nearly 105,000 sqm have begun the conversion process. CBRE also identified seven conversions of alternative assets, including historic or disused buildings.
Activity is spreading to secondary markets
Secondary locations accounted for 30 projects, 65 per cent of the total, compared with the 13 recorded in Madrid, which represent 28 per cent. Barcelona accounted for a further three. In the capital, 69 per cent of the conversions involved office buildings and 85 per cent were located within the M-30 ring road; in the rest of the country, office buildings accounted for 21 per cent of the conversions.
Andalusia led the way among secondary markets, with 14 projects, mainly located in Seville, where tourist demand and a thriving hotel sector are driving the repositioning of buildings. It was followed by the Basque Country, with five changes of use, and the Valencian Community, with four – the same number as in the whole of 2025.
Investment linked to transactions rises by 115%
Of the €390 million invested in conversions linked to transactions, Madrid attracted €283 million, 73 per cent of the total. Even so, secondary locations gained ground thanks to a higher number of transactions. The average deal size stood at around €20 million, and there were no transactions exceeding €100 million.
Domestic investors accounted for 65 per cent of purchases, alongside capital from Europe, the US and Latin America. In deals involving a related transaction, Living was the most common destination, accounting for 55 per cent of the assets converted.
