Spanish real estate investment is fourth most attractive in Europe this year

Spanish real estate investment is fourth most attractive in Europe this year

Spanish real estate investment continues to appeal globally and ranks as the fourth most attractive in Europe in 2024. The latest European Investor Intentions Survey from CBRE Research reveals that Spain sits behind just the UK, Germany and Poland. In addition, Madrid and Barcelona feature in the top 10 cities for real estate investment, with Spain the only country with two cities in the ranking.

Spanish real estate investment has the fourth-highest expected returns

CBRE Research’s annual report found that Spain ranks as the fourth most attractive destination this year for returns from real estate investment. The UK overtook Germany as the absolute favourite, while Poland climbed two positions to take third place.

(Source and image credit: CBRE INC.)

CBRE highlights the “major structural shifts” currently underway in the Spanish economy, particularly in the green energy and digitalization sectors. The real estate consultancy company suggests that as these shifts develop, investors with interests in Spain “may be poised to receive strong returns”.

Madrid and Barcelona in top 10

London reigns as the most attractive European city for cross-border investment in the top ten with two new additions this year. Dublin and Stockholm both entered this top 10 for the first time.

The two largest cities in Spain also featured in the top 10 favourites, with Madrid in third and Barcelona in seventh. Madrid improved its 2023 ranking, while Barcelona stayed put. Spain is the only country with two cities in the ten most attractive cross-border destinations.

Greater expectations for 2024

Investors reportedly have higher buying and selling expectations in European real estate this year. They believe activity will increase in the second half of 2024. However, levels will take another year to return to pre-2023 activity.

80% of the survey participants claim they intend to invest similar to higher investment levels this year. According to CBRE, this intention indicates an increase in allocations to real estate investment in Europe.

Residential and logistics sectors are firm favourites

This year will see residential and logistic real estate overtake office as the preferred investment vehicle in Europe. Logistics took 34% of the share, with investors citing solid demand as the main reason behind their choice.

Residential property had 28% of the expected investment. In this sector, too, investors said that drive from future demand was a deciding factor in choosing this property type. Within this niche, multi-family and build-to-rent were the preferred vehicles.

(Source: CBRE Research)