Real estate investment in Spain in 2026: Europe’s top destination
Real estate investment in Spain in 2026 has reached a historic milestone, with Spain ranking as the most attractive country in Europe for property investment and strengthening its position as a leading destination for international capital.
This result marks the high point of a clear upward trend. Spain was not included in the ranking in 2021, entered in seventh position in 2022, moved up to fourth place in 2024, reached second place in 2025, and now takes first place in 2026.
Why real estate investment in Spain in 2026 leads the European ranking
According to CBRE’s European Investor Intentions Survey 2026, based on the views of nearly 700 Europe-based investors, confidence in the real estate market continues to improve while expectations for investment activity also rise.
Spain now ranks first, followed by the United Kingdom in second place and Poland in third. The report also confirms a growing preference for Southern Europe. Alongside Spain in first position, Italy moves up to fourth place and Portugal reaches sixth, reflecting the relevance of these markets thanks to competitive pricing, limited supply, and strong fundamentals.
Nearly half of cross-border investors choose Spain as their main destination because of its return potential, supported by the strength of the economy, solid residential demand, and a shortage of supply in certain segments. This imbalance continues to put upward pressure on rents and absorption.
Spain attracts international capital with strong market fundamentals
For the second consecutive year, Spain is once again the only country with two cities among the five most attractive in Europe for international investors.
The report places Madrid in second position, just behind London, underlining its appeal thanks to market size and economic dynamism. Barcelona ranks fourth, while Lisbon stands in eighth place.
Spain’s leadership also follows a strong 2025, with more than €18.4 billion in investment, up 31% year on year and marking the highest level since 2018.
Looking ahead to 2026, CBRE’s Real Estate Market Outlook forecasts a further increase of between 5% and 10%, taking total investment volumes to between €19 billion and €21 billion. This outlook is supported by monetary stability and improved financing conditions, both of which are expected to help transactions and market liquidity.
Real estate investment in Spain in 2026 is supported by sector strength
The structural shift in investor preferences is becoming increasingly clear. Returns are no longer expected to come mainly from yield compression, but from the real ability to generate income. In this context, asset management and operational performance are becoming more important.
Living and Hotels are expected to remain among the most attractive sectors, while Offices and Retail could become two of the main surprises of 2026.
Living remains the leading sector
For the second consecutive year, Living is the preferred sector among European investors, chosen by 34% of respondents. Its attractiveness is supported by structural imbalances between supply and demand, as well as demographic growth.
Logistics keeps a strategic position
Logistics ranks second with 25% and continues to benefit from e-commerce growth, supply chain optimisation, and the need for modern assets close to major urban centres.
Offices, Retail, and alternative sectors gain relevance
Offices rank third with 13%, with a clear focus on prime, sustainable, efficient assets located in established business areas across major European cities. Retail is selected by 12% of respondents.
At the same time, alternative sectors continue to gain momentum. A total of 69% of investors plan to allocate capital to at least one alternative segment, especially student housing, senior living, or healthcare. This confirms growing interest in assets linked to long-term demographic and social trends, with more defensive risk profiles and more stable income flows.
Market outlook for real estate investment in Spain in 2026
The improvement in investor confidence across the European property market reflects price stabilisation and greater access to debt.
Almost nine out of ten investors, or 89%, expect their buying activity to increase or remain stable in 2026, while 83% expect selling activity to increase or remain stable.
The main challenge continues to be the gap between buyer and seller pricing expectations. Even so, the survey points to growing convergence, supported by better economic prospects, more stable valuations, and the expectation of further reductions in financing costs throughout 2026.
Investors continue to favour value-add and core-plus strategies, taking advantage of stable pricing and opportunities to improve income.
ESG is now a key factor in investment decisions
Sustainability is emerging as a major value driver in the European real estate market.
A total of 88% of investors take ESG criteria into account when making investment decisions, using them as a differentiating factor in risk management and in the future liquidity of assets.
Conclusion
Real estate investment in Spain in 2026 confirms Spain’s position as the leading European destination for international property capital.
With a resilient economy, strong residential demand, limited supply in key segments, and improving financing conditions, Spain enters 2026 as the market to watch in Europe.
