Real Estate Market Outlook Spain 2026

Throughout this year, real estate investment will benefit from current macroeconomic inertias, driving greater activity in the coming year. In a market impacted by macrotrends and certain structural imbalances, geopolitical and macroeconomic dynamics will continue to redefine the sector, opening new opportunities for growth and investment.

The Spanish economy registered the highest growth among the large economies of the Eurozone in the previous year. A dynamic that is expected to continue throughout 2026, with growth rates above 2%. The gradual de-escalation of inflation, although above the European average, will favor domestic demand, which becomes the main contributor to Spanish growth, driven by the labor market.

Global geopolitical instability contrasts with the certainty with which European monetary policy faces 2026. The last five years have been marked by several phases: negative interest rates, a rise to 4% and a subsequent relaxation to the current 2%, with no expectations of changes in the current year. This fact, together with an expansive fiscal policy, improves the growth expectations for the Eurozone as a whole for the coming years.

Key Highlights:

• Real estate investment closed 2025 exceeding 18.4 billion euros, a year-on-year increase of 31%, thus surpassing the expected forecast and becoming the best year since 2018. Looking ahead to 2026, we anticipate that the positive outlook observed this year will be maintained, with an expected advance of over 5-10%.
• Spain will continue to consolidate itself as a key focus of investment and financing in Europe. Both local and international banks show increased activity, with reduced costs and greater leverage.
• In the office sector, we expect occupancy to improve on last year's levels. In both cities, the CBD shows availabilities below 4% and rental growth in higher quality buildings.
• Living maintains its position as the main destination for real estate investment in Spain, supported by the growing demand for rental housing and strong interest from institutional capital. With the planned delivery of new projects in 2026, the sector will move towards a broader and more adapted offering, key to improving accessibility and responding to new housing preferences.
• Spain reaffirms itself as one of the most attractive hotel markets in Europe. This leadership translates into positive prospects for the hotel sector in 2026, in a context of more moderate growth in tourist arrivals, offset by higher spending per visitor. Investor appetite remains solid, and interest in less mature destinations, reconversion and mixed-use projects is expected to continue, along with increasing polarization between luxury and economy segments.
• The Spanish logistics market closed 2025 with exceptional performance. For 2026, stable demand is expected in the main hubs, although conditioned in certain markets, such as Barcelona, by the lack of supply.
• We expect the retail sector to prolong the positive trend observed in 2025, supported by moderate retail sales growth, driven by robust private consumption, a gradual reduction in the saving rate, and the expectation of maintaining record levels of tourist arrivals.

Data Centers, Healthcare, and Agribusiness are consolidating as new sources of value, driven by AI, aging, and agri-food demand, turning infrastructure into a sustained investment opportunity.