Almost seven in ten lenders expect to increase their origination activity in Spain in 2026, according to CBRE’s European Lender Intentions Survey 2026, which analyses the outlook for the property debt market in Europe. The report points to a context of high liquidity, greater competition amongst lenders and more selective criteria when granting finance.
The Spanish market maintains a prominent position within Europe due to the activity of domestic and international banks and the presence of alternative lenders, such as insurers and debt funds. This competition is helping to keep costs at competitive levels, although access to finance increasingly depends on the asset’s location, the strength of the sponsor and the structure of each transaction.
“Spain is positioning itself as one of Europe’s most attractive markets for property financing, thanks to its solid fundamentals and the high level of interest from both banks and alternative lenders. Liquidity is abundant, but capital is becoming increasingly selective. The strength of development financing and the dynamism of sectors such as co-living, hotels and industrial property place Spain in a unique position. In such a competitive and fragmented market, structuring debt appropriately and accessing the full spectrum of lenders will be key to maximising opportunities”, said Nacho Meylán, Head of Debt & Structured Finance at CBRE.
One of the distinguishing features of the Spanish market is developer financing. Around 80% of lenders active in Spain are willing to finance development projects, compared with a European average of 69%. The report also notes a greater appetite for taking on commercial risk in certain projects, although construction costs rank among the sector’s main concerns, second only to geopolitical uncertainty and interest rate trends.
By sector, investors’ interest in Spain is mainly focused on residential and industrial and logistics properties, in line with European preferences for assets offering greater cash flow visibility. However, the Spanish market has certain distinctive features compared to the European market as a whole. The hotel sector ranks as the second most preferred segment for financing, while the ‘living’ sector maintains a prominent position, with interest in student accommodation and concepts such as flex living, particularly in prime assets in Madrid and Barcelona.
The report also points to growing interest in prime office and retail properties, the sectors where sentiment has shifted most significantly compared with the previous year.
At the same time, financing in Spain combines two main channels: banks, which are more competitive on price, and alternative lenders, which offer greater flexibility in terms of structure and leverage levels. The choice depends on the profile of the transaction and the investor’s business plan.
Sustainability now acts as a filter for access to financing. Two out of three lenders would not grant loans to assets that do not meet ESG criteria or that do not have an improvement plan, in line with trends in the European market.
At European level, 72% of lenders expect to increase their activity over the course of the year, which points to greater availability of debt. Residential property tops the list of preferred sectors, followed by industrial and logistics, and offices, which have risen from sixth to third place due to increased interest in prime assets. Furthermore, 86% of lenders are showing interest in alternative assets and 69% are willing to finance development projects.
