The conversion of buildings is consolidating its position as a lever of value in the Spanish real estate market

The conversion of buildings to new uses has become one of the major trends in the Spanish real estate market. In 2025, conversion reached historic highs in both the number of transactions and the surface area converted, confirming that giving assets a second life is now a structural strategy for responding to new demand patterns and optimizing existing stock. During the last financial year, 73 changes of use were identified, mobilizing nearly 392,000 square meters for new purposes. This dynamism reflects the growing interest in repositioning obsolete or underutilized buildings, especially in a context marked by a shortage of residential supply and the strength of the tourism sector.

 

Living and Hotels, the main destinations

 

Market analysis shows a clear concentration of conversions in the Living and Hotels segments, which accounted for more than 90% of changes in use. Residential led the activity, with projects ranging from homes for sale to flexible products such as Flex Living or student housing. For its part, the hotel sector remained highly attractive, with high-end assets and tourist apartments in central locations playing a particularly prominent role.

 

In terms of the origin of the properties, office buildings continued to be the main starting point for this type of transformation, highlighting the need to adapt part of the existing stock to new uses more in line with current demand.

 

A more balanced map and greater weighting of secondary locations

 

Although Madrid continued to play a key role, in 2025 there was a more balanced distribution of activity. Secondary locations accounted for slightly more than half of the conversions, with particular dynamism in regions such as Andalusia, the Basque Country, and the Valencian Community. This trend reflects the growing attractiveness of alternative markets, where conversion is seen as an opportunity to revitalize urban environments and generate new value.

 

Selective investment and focus on medium-sized assets

 

More than six out of ten changes of use were associated with a real estate transaction, with an investment volume of close to €823 million. The market showed a more selective profile, with a greater concentration on medium-sized assets and transactions in the mid-cap segment, in a year marked by the absence of large transactions.

 

Looking ahead to 2026, the conversion of buildings is emerging as a consolidated trend, supported by a growing pipeline and sustained interest in residential and hotel uses. In this context, the ability to offer comprehensive advice, combining urban analysis, financial feasibility, and execution, will be key to unlocking the potential of numerous assets and supporting investors and owners in creating long-term value.