10 February, 2021

2021 Spain Real Estate Market Outlook

How will Spanish Real Estate perform through 2021? Find out more on investment, financing and the main sectors of Real Estate.


After posting the most drastic fall in GDP in its history in 2020, Spain is forecast to be on track for growth of 4.4% in 2021. With the world still hanging on the pandemic’s next move, it is likely to be late in 2022 before the Spanish economy finds itself back on a pre-covid footing.

Activity is projected to pick up in 2021, with investment volumes reaching somewhere between €10,500 and €12,000 million. Alert to any opportunities that may arise, a broad spectrum of ready investors will sustain demand across all sectors.

We expect today’s predominantly cautious mood to gradually lift over the course of 2021. Margins and gearing should return to pre-pandemic levels at some point in 2022. Potential for growth in alternative finance.

Occupiers are reluctant to take decisions pending greater clarity on their post-covid needs. Expect a slight uplift in take-up, more plentiful supply and a slight adjustment in prime rents.

Recovery will hinge on decisions on public health measures. Strong investor interest in supermarkets, retail parks and prime high-street property. Operators will double down on omnichannel retailing and placemaking, with an emphasis on consumer experience.

Heightened logistics demand, fuelled by e-commerce growth. Logistics platforms will become increasingly automated, while last-mile logistics, sustainability and employee well-being jostle for priority.

Growth in residential demand forecast for 2021, with a slight realignment in prices. The multifamily housing segment is expected to be positive in 2021, driven by increased demand forecasts and strong investor interest.

While the hotel sector bore the brunt of pandemic losses, making structural changes inevitable, investor confidence in the Spanish market is holding strong, particularly towards the top end of the prime segment.

Continued growth in 2021, driven by the strong imbalance between supply and demand. The biggest firms will continue focusing on consolidation, contributing to build a larger institutional market.

This segment made hay in 2020 as covid-19 spurred the advance of digitalisation. The data centre segment is poised for further growth in 2021, particularly in Madrid and Barcelona, with new operators jostling to join the market.


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