The real estate market in Spain faces 2025 with sustained growth, driven by digitalisation, artificial intelligence (AI), sustainability, and an evolving legal framework. Investment is expected to increase by between 10% and 15%, reinforcing the dynamism of the previous year.
The transformation of the sector is the result of a combination of economic, technological, and regulatory factors. Sustainability and energy efficiency are positioned as key elements in decision-making, while digitalisation and automation are redefining asset management. In addition, the legal framework is adapting to new challenges, with regulations that seek to balance consumer protection with the development of a competitive and sustainable market.
In this scenario, the different real estate segments — logistics, residential, retail, offices, and hospitality — are evolving to remain attractive to investors. The sector's profitability and viability in the coming years will depend on its ability to adapt to these trends.
Logistics & Industrial
The logistics sector will continue to show great vigour in 2025, due to the boom in e-commerce that has driven demand for logistics and industrial space, which has led to an increase in the construction of warehouses and distribution centres. Likewise, the self-storage market will continue to experience significant growth, fuelled by the demand for flexible storage solutions for both individuals and companies.
At a regulatory level, land use planning, licences, and environmental standards will continue to shape the development of the sector. Requirements for energy efficiency and sustainability will be strengthened, with incentives for projects that meet these requirements. In addition, automation and digitalisation will impact lease agreements, resulting in a need for greater flexibility.
Another key segment in the logistics sector will be data centres, which are attracting large investments in Spain due to the combination of competitive energy prices and the growing demand for digital infrastructure.
Residential
The residential market will continue to be the most attractive sector for investment in Spain during 2025, although with the persistent challenge of a lack of supply. A 5.3% increase in house prices is expected. The “build to rent” trend will be strengthened by the low interest rate policy of the ECB, boosting the construction of rental housing.
From a regulatory point of view, the Spanish Housing Act (Ley de Vivienda) will maintain pressure on the so-called "stressed areas" (zonas tensionadas), limiting prices and requiring a percentage of subsidised housing in new developments. Energy-efficient renovation will receive an additional boost from public subsidies, and the elimination of the ‘golden visa’ is not expected to significantly affect the international market, diversifying the profiles of foreign investors.
Retail
The retail sector will continue to attract investment during 2025, with retail sales growth estimated at 3.5%, driven by private consumption and tourism.
Regulatory trends will include the relaxation of commercial lease agreements and compliance with new regulations on accessibility and security in establishments. In addition, the process of digital transformation and the adaptation of commercial spaces to new shopping experiences will continue to advance, with specific requirements for consumer protection.
Offices
The office segment will remain stable, mainly in Madrid and Barcelona, with demand concentrated in quality, flexible spaces, with rising prime rents.
Regulations will continue to adapt to hybrid working models, with regulations on health and safety in the workplace and sustainability in buildings. Digitalisation and smart buildings will gain prominence, requiring new regulations on energy management and space optimisation.
Hospitality
Tourism will continue to be a key economic driver in Spain, with interest persisting in the luxury segment, while alternative formats such as branded residences, serviced apartments and glamping will increase in relevance.
The sector will face evolving regulations, with updates in health and safety, energy efficiency and digitalisation of services. The regulation of holiday rentals will continue to tighten in cities such as Madrid and Barcelona, seeking a balance between tourist supply and the availability of residential housing.
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