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Spain has become Europe’s top destination for real estate investment in the CBRE European Investor Intentions Survey 2026, overtaking the United Kingdom, Germany and France. The survey, based on responses from nearly 700 investors, places Spain first in Europe for cross-border property capital.
The result marks the culmination of a five-year rise. Spain did not appear in the ranking in 2021, entered in seventh place in 2022, rose to fourth in 2024, climbed to second in 2025 and now takes the top position.
Key findings
The survey highlights several trends shaping investor sentiment across the European property market.
- Spain ranked first among European countries for expected real estate returns in 2026, named by just under half of cross-border investors
- Madrid holds second place among Europe's most attractive cities for investment, retaining its position for the second consecutive year
- Barcelona ranks fourth — making Spain the only country with two cities in the top five, alongside London (1st), Warsaw (3rd) and Milan (5th)
- 89% of surveyed investors expect purchasing activity to increase or remain stable in 2026
- 83% expect sales activity to increase or remain steady, signalling improving alignment between buyers and sellers on pricing
- The residential sector remains the most preferred asset class for the second consecutive year, accounting for 34% of responses
Spain's 2025 investment figures
Total real estate investment in Spain reached €18.4 billion in 2025, representing a 31% year-on-year increase and the highest volume since 2018, exceeding the European average growth rate. Madrid and Barcelona together accounted for 58% of the total investment volume, reflecting strong demand from institutional investors as well as high-spending property buyers.
Investment activity in 2026 is forecast to reach between €19 billion and €21 billion, supported by greater monetary stability and improving financing conditions.
Caption: Real estate investment volumes in Spain, 2018–2026 (forecast). Source: CBRE Spain / Real Estate Market Outlook 2026.
What is driving investor confidence
Several structural factors continue to support investor interest in Spain’s property market:
- Resilient macroeconomic fundamentals, with GDP growth outperforming most European peers
- Structural supply shortages in housing, particularly in Madrid, Barcelona and coastal areas, supporting prices and rental yields
- Strong tourism demand, reinforcing confidence in hotel and retail assets
- Falling Eurozone interest rates narrowing the gap between buyer and seller price expectations
What this means for the market
Spain’s rise to the top of Europe’s real estate investment rankings reflects a combination of strong economic growth, housing supply shortages and sustained international demand. For investors, this suggests continued interest in residential assets and major urban markets such as Madrid and Barcelona, as well as growing opportunities in tourism-driven regions.
Last updated: 05/03/2026
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The information contained in this article is for general information and guidance only. Our articles aim to enrich your understanding of the Spanish property market, not to provide professional legal, tax or financial advice. For specialised guidance, it is wise to consult with professional advisers. While we strive for accuracy, thinkSPAIN cannot guarantee that the information we supply is either complete or fully up to date. Decisions based on our articles are made at your discretion. thinkSPAIN assumes no liability for any actions taken, errors or omissions.
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