Real estate investment, market data - Figures first quarter 2025 Spain

Real estate investment in Spain has shot up 39% in the first three months of the year, reaching 3.3 billion euros. The year-on-year growth was much higher than the European average of 6%, which is consistent with the European Investor Intentions Survey, which places Madrid as the second favorite city for international investors and Barcelona in a prominent fourth position. The performance of this first quarter is in line with forecasts for 2025, which predict annual growth of more than 10%.

In terms of prime yields, by the end of 2024, most types of assets had entered a phase of stability after reaching record highs. Depending on the evolution of the turbulent macroeconomic scenario, further downward corrections are expected to materialize throughout 2025. In fact, some products have already experienced them this year: Industrial, Retail HS, Retail CC or Student Residences.

Living and Retail, the leading sectors for real estate investment in Spain

The leading sector was Living, which exceeded 1.1 billion, up 189% over the same period last year. Residential rental accounted for 40% of this total volume, with investors' growing interest in affordable housing, followed closely by student housing (39%). Retail, meanwhile, came in second place as the preferred sector for investors, accounting for almost 1,000 million, 54% more than a year ago. The hotel sector was in third place, with a total of more than 550 million euros.