Report | Intelligent Investment
Mid-year Real Estate Outlook Spain 2025: Real Estate market keys for the second half of the year
Despite an international context marked by geopolitical uncertainty and trade tensions, the outlook for the second half of the year remains positive, with growing interest in assets with the capacity to generate value.
July 22, 2025 5 Minute Read
In mid-2025, the Spanish real estate sector presents a favorable balance, in line with the strong performance of the national economy, whose GDP growth forecast remains at 2.6%. This dynamism, driven by the strength of the labor market and the boost from the external sector, has created a favorable environment for real estate investment. Despite an international context marked by geopolitical uncertainty and trade tensions, the outlook for the second half of the year remains positive, with growing interest in assets capable of generating value.
In the first half of the year, the real estate market concentrated an investment volume of 7.3 billion euros, representing a 22% year-on-year increase and 15% above the average of the last ten years. CBRE continues to maintain its forecast from the beginning of the year to exceed the previous year's volumes by 10% to 15%, without taking into account corporate transactions (with some already planned) that could increase this forecast.
- Office leasing in Madrid will remain stable compared to the previous year, at around 510,000 square meters. In Barcelona, growth of close to 10% is expected, recovering levels of around 300,000 square meters. Availability shows an uneven evolution: in Madrid it continues to progressively decrease, and will be close to 10%, while in Barcelona it will reach its maximum point, around 15%, due to planned deliveries.
- Forecasts for 2025 anticipate an expanding residential market, with a 9.6% increase in housing prices and around 742,000 transactions (+3.7%), figures revised upwards after the market's good performance at the beginning of the year. Although a 17% increase in supply is expected, it will still not cover the structural demand derived from the formation of new households.
- The Living sector maintains its leadership as the main destination for real estate investment in Spain, with solid prospects for the second half of the year thanks to strong investor interest, especially in affordable rental housing and in alternative segments such as student residences and Flex Living.
- Tourism in Spain remains strong in the first half of 2025 and everything points to the trend continuing in the second half, with expected demand growth of around 3% and a notable boost from international travelers, who will raise average spending above the pace of arrivals. The operational results of the hotel sector will continue to rise, with increases in ADR and RevPAR, although more moderate than in previous years.
- The Spanish logistics market closed the first half of the year with a solid performance, exceeding the average of recent years. According to our Logistics Confidence Index, sector confidence remains positive and occupants' expansion plans continue to be on the rise for the next 12 months. Looking ahead to the end of the year, a more contained demand is expected, below the record levels of the last two years.
- The first half of the year confirms the strength of retail anticipated at the beginning of the year, driven by robust fundamentals and a favorable macroeconomic environment. Demand remains firm, supported by sustained growth in private consumption (+2% year-on-year) and international tourism at historic highs. This environment is driving investment, with an increase of 39% compared to the first half of 2024, with shopping centers being particularly prominent.
Hospitals, educational centers, and Data Centers are establishing themselves as strategic sectors, demonstrating a firm commitment to social impact and technological transformation
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Risk diversification, along with the structural evolution of the market and new demand patterns, are driving the role of alternative sectors in real estate, attracting increasing interest from different players.
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The Data Centers sector in the Iberian market is entering a new phase of maturity, marked by geographical diversification and the sophistication of demand. The next wave of growth will be defined by agility in delivery, operational efficiency, and ESG commitment, consolidating Iberia as a strategic digital hub in Europe.
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Iberia is the most dynamic region in Agribusiness, driven by the weight of high-value crops, along with optimal climatic conditions for a wide range of crops throughout the geography.
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Investment in Healthcare assets, especially hospitals and clinics, has gained strong momentum in the first half of 2025, with a 45% growth compared to the previous year and a forecast of new corporate operations in the second half.
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The Education sector also shows a significant evolution. More and more educational centers are choosing to locate in higher quality buildings, generating positive externalities on other uses in the areas where they are implemented, revitalizing services, leisure, and research by students and faculty.
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Sports spaces are evolving towards more efficient and experience-oriented management models, consolidating the role of Sports as key places in urban life.
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The growth of large cities in Spain, the increase in consumption levels by people, and the smaller storage space in homes have favored the maturation of the Self Storage sector, especially in these locations, where the demand for flexible and accessible storage solutions has experienced a notable boost.
The real estate sector not only accompanies change: it anticipates it, leads it, and turns it into an opportunity.
Access the executive summary:
Spain Research Team
Miriam Goicoechea
Head of Research, CBRE Spain
MartaTarrío
Associate Director Research Office
Laura Pelaez
Senior Consultant Research Living, Alternative & Hotels
Nicolás Atorrasagasti
Senior Consultant Research Offices y Alternative
Arancha González
Associate Director Research I&L
Jordi Chavez
Associate Director Research Retail
