Spain, Italy, Portugal and Greece reached a property investment volume of €35 billion in 2025, a record figure representing a 24% increase on 2024 and 21% above the average recorded since 2020, according to Savills’ latest report on Southern Europe.
The consultancy notes that the region’s performance is increasingly driven by structural factors, including the expansion of the asset universe, tourism-related demand, reduced retail exposure to e-commerce, and more favourable dynamics in the office and logistics sectors compared to several core European markets.
Spain was the market that attracted the highest volume of investment in absolute terms compared to its average since 2020, with an increase of €2.575 billion, up 17%. Greece recorded the largest relative increase, with growth of 76%, attracting €1.184 billion above its average since 2020.
The report also notes that macroeconomic forecasts will support both demand for property occupancy and investor confidence. By 2026, Oxford Economics forecasts GDP growth of 2.4% in Spain, 2.1% in Portugal and 1.8% in Greece, compared to the 1.0% estimated for the EU-27 as a whole.
“The data confirms that Southern Europe has moved from being a tactical allocation to a strategic investment, with Spain attracting more capital than any other country in the comparison. This reflects solid fundamentals that will continue to gain momentum, and we expect an even better year, with increased activity and long-term opportunities across the region,” says Jaime Pascual-Sanchiz, CEO of Savills Iberia and Head of Southern Europe.
Savills also identifies energy as a key differentiator for Southern Europe in a more volatile geopolitical context. According to the consultancy, the increased penetration of domestically produced renewable energy can reduce exposure to imported energy shocks and provide greater visibility on operating costs for users, a significant factor in leasing decisions and for business confidence in energy-intensive sectors.
Based on these figures, the report concludes that Southern Europe is gaining prominence within European property portfolios, not only as a market for cyclical recovery, but as a strategic exposure underpinned by demand, economic growth and diversification of opportunities.
