Real estate investment in Spain reached €5.5 billion in the first half of the year, which represents a slight increase from the €5.3 billion in the same period in 2023, according to data provided by CBRE. This figure is in line with the investment average of the last decade and an increase in activity is anticipated for the second half of the year. For the whole of 2024, investment growth is estimated to be between 5% and 10%, probably close to 10%, with a projection to reach €12.5 billion by the end of the year.
In terms of sectoral distribution, living leads the investment with approximately EUR 1.5 billion, mainly in the categories of flex living, student residences and senior living, as well as in the affordable rental housing segment. The hotel sector is in second place, accounting for 25% of total investment, equivalent to EUR 1.385 billion, with a significant focus on the islands. The retail sector showed a remarkable increase of 89% compared to the previous year, registering 1,008 million euros through various transactions in shopping centres.
The office sector experienced a growth of 14%, reaching more than 830 million euros, while the industrial sector accounted for 407 million euros, slightly less than last year. The healthcare sector recorded 275 million euros, and the alternative sector, which includes education and sport, doubled its investment compared to the first half of 2023, reaching 32 million euros.
Investments outside the main markets of Madrid and Barcelona captured more than 50% of the total, a significant increase from the 33% seen in the first half of 2019. Andalusia and the Canary and Balearic Islands have been particularly attractive to investors.
Miriam Goicoechea, Head of Research in Iberia at CBRE, says: "We expect a second half of the year with increased activity in line with the expected normalisation of rates. In any case, the main risk continues to be the geopolitical context, marked by the global dynamics of 'ballot boxes and guns', with half of the world's population called to the polls and armed conflicts".
