Looking back at 2025, which developments genuinely shaped investor decision-making in Spain, as opposed to themes that were widely discussed but had limited real impact? What changed in how capital was priced, structured, or deployed?
The factors that have most shaped investment decisions in Spain in 2025 are those directly linked to the strong operational performance and occupancy of assets, together with the most favourable outlooks.
We are witnessing solid, sustainable demand across virtually every asset class, driven by structural elements that are intimately tied to endconsumer habits and to the resilience of our cities in their various dimensions.
Spain’s consolidation as a premier tourist destination, the persistent imbalance between supply and demand for residential and housing solutions, and our attractiveness to international students constitute the real levers behind investment in hospitality, the different livingtype assets, and purposebuilt student accommodation.
In the more traditional sectors, the true catalysts are a growing demand for logistics space, a renewed return to office use that reflects the specific characteristics of our society and our cities—particularly the very shortcommuting times—and an overall increase in consumer spending.
While sustainability considerations and digitalisation are part of the decisionmaking equation, they have not been the differentiating factors in this cycle. On the transaction side, we have observed a clear rise in jointventure structures that combine complementary capabilities and create vehicles capable of attracting private capital efficiently.
From your perspective advising both domestic and international clients, what types of capital have been most active in Spain over the past 12–18 months? Are distinctions between core, value-add, opportunistic, and private credit still meaningful, or are those lines increasingly blurred?
One of the defining features of the Spanish investment market in 2025 is the convergence of a large amount of capital coming from a variety of strategies, targeting different asset classes and catering to diverse risk profiles. However, not all these capital sources have been able to be deployed in the same manner. The macroeconomic context and the scarcity of products that match this risk profile have meant that opportunistic capital has played a very limited role. By contrast, core and coreplus capital have been the most active, with coreplus in particular delivering the greatest number of transactions that carry a moderaterisk profile. Core capital is gradually expanding its presence, although it still faces lower overall availability and it is increasingly difficult to find products that satisfy its stringent return criteria.
Finally, valueadd capital continues to play a significant role, albeit with a degree of flexibility. This flexibility often blurs the distinction between the returns and risk profiles of the two types of capital, leading investors to adopt hybrid strategies that allow them to acquire assets in an ever more competitive market where the available product does not necessarily fit a single, clearly defined strategy.
There is a growing narrative around “value re-emerging” in Spain. From a consultant’s standpoint, where does value genuinely exist today — by sector, geography, or risk profile — and where do you think investors are still anchored to outdated assumptions?
Fortunately, I believe that this value is a reality in Spain. Over the past few years there has been a significant shift in investors’ perception: the Spanish realestate market overall, and in particular several of our cities—Madrid, Barcelona, Valencia, Málaga—across various asset classes, have become a structural investment focus rather than one merely tied to the economic cycle. In short, the professionalisation of the sector, economic dynamism, the modernisation of the stock and the strength of demand are all contributing to a far more mature market.
In this context, genuine value can be found across many types of assets and locations. The hotel segment, clearly driven by tourism that continues to grow and that, again in a structural way, places us at the top of global destination rankings with a very broad geographic footprint, has repeatedly become one of the most soughtafter asset classes for investors. Likewise, the need for housing and the previous lack of an institutional supply have unmistakably propelled the living sector from an investment standpoint, delivering real value. Within that sector, certain subsegments—such as student residences, which are linked to the demand we are generating as an academic hub for students worldwide—could even be regarded as critical infrastructure, and, along the same line, we see potential in other asset types tied to population ageing.
I also see great value in the opportunity to reposition assets, introduce sustainability criteria and adapt to an everchanging demand, all of which are linked to the evolution of cities and a society that is becoming increasingly dynamic and connected.
More generally, I think investors’ assumptions are largely accurate. If there is any gap with reality, it might be the occasional lingering negative view of office space postCOVID—an outlook that is becoming rarer—not because it is an outdated assumption but because some still extrapolate the situation of other markets into ours. In our view, the office market is clearly recovering and will return to being a leading asset class in the coming years.
What are the most persistent misconceptions about Iberia as a real estate market — and how do those misunderstandings influence capital allocation and who do you expect to be most active in 2026?
Spain has firmly established itself as a core market within Europe for investors. We have left behind the era when yield differentials were the primary driver for allocating capital to Spain. Today, the country can attract international capital even when its return levels are comparable to those of the main European markets. The liquidity of the Spanish market gives investors confidence; if the cycle shifts, they can unwind their positions without difficulty.
Spain continues to offer very strong levers and high attractiveness for institutional, international and domestic capital. The macroeconomic outlook remains highly favourable, with GDP growth projections that are well above those of the leading euroarea economies. In this context, and taking the robust 2025 figures into account, we anticipate growth of around 15 % in 2026, pushing total investment to historic highs.
Looking ahead to 2026, we see sustained interest in the living sector—especially hotels—supported by positive market indicators that continue to rise. Tourist arrivals remain at very high levels, and the upward trends in ADR, occupancy and RevPAR are reinforcing investment activity. At the same time, the need to expand the rentalhousing stock aligns the interests of developers, investors and public authorities, all aiming to increase the supply of rental units. Consequently, we expect significant investment in 2026 in projects targeting users who are constrained by high purchase prices, as well as in flexible, shortstay residential formats.
Another segment likely to channel a large share of 2026 investment is retail, boosted by higher footfall, stronger sales and continued tourism inflows. The office market will retain the positive momentum it has built over recent months and will increase its share of total investment in 2026, particularly in markets where fundamentals are strongest.
Logistics will remain a major component of realestate investment, improving on 2025’s performance thanks to solid market indicators and an uptick in sales pipelines that are entering the market now or in the coming months. The consolidation of markets such as Valencia—where development activity is currently intense—will generate additional midterm investment opportunities once these new projects stabilise.
Finally, alternative asset classes that are carving out a notable position within capital allocations—such as data centres, clinics, hospitals, schools and other educational facilities—will gain even greater prominence in the months ahead.