Building reconversion is gaining ground in Spain

The transformation of buildings is consolidating as one of the main strategies in the Spanish real estate market, with more than 20 changes of use identified in the first half of 2025, in response to high tourist and residential demand. While the number of conversions is lower than the more than 30 identified in the same period of the previous year, the surface area increases slightly to more than 137,000 m² that have begun a transformation process from January to June (+4%).

Predominant uses in conversions

87% of the conversions are for Living and Hotels, with the Living sector being the most prominent with 61% of the total. The transformations include everything from luxury residential developments to Flex Living projects. For its part, 26% of the changes were for hotel use, with a clear commitment to high-end products, in line with the growing demand for quality tourism. Offices remain the most frequent initial use, present in 52% of cases.

Locations and transactions

For the first time, secondary locations have surpassed Madrid in conversions, with 52% of the changes of use registered in the first half of 2025. Andalusia leads the activity outside the capital, with 8 changes of use registered, followed by the Valencian Community. In Madrid, two-thirds of the conversions were located within the M-30, although the periphery continues to offer opportunities to activate areas that are losing dynamism.

60% of the cases identified by CBRE involved a real estate transaction, which represented a total investment close to 200 million euros. Living was consolidated as the most frequent final use in operations with a real estate transaction, while offices represented 64% of the initial uses. Madrid remains the preferred location for conversions with an associated transaction at 57%.

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