Spain has topped the ranking of Europe’s most attractive countries for real estate investment for the first time. Investment volumes have already exceeded €18.4 billion, and demand continues to grow amid a housing shortage and economic stability. Learn more about why investors are flocking to Spain in 2026

Order professional advice from a real estate lawyer from Visit World to safely conduct a transaction, avoid risks and protect your interests in any jurisdiction

BOOK A CONSULTATION

Spain has become the leader among European countries in terms of real estate investment appeal for the first time—according to data released by the consulting firm CBRE in its European Investor Intentions Survey 2026 report.

In 2025, investment in the sector reached €18.4 billion, a 31% increase from the previous year—the highest figure since 2018. Analysts predict further growth of 5–10% in 2026, bringing the total to €19–21 billion.

Demand for Spanish real estate is growing due to a combination of several factors: a stable economy, high interest in rentals, and a chronic housing shortage in key regions. As a result, the country not only topped the ranking but also cemented its status as one of Europe’s most dynamic markets.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

Are you planning to buy real estate abroad? Before concluding a deal, it is important to consider not only the price per square meter, but also tax liabilities, restrictions for foreigners, title checks, and additional costs. Visit World's real estate lawyers will help you analyze the property, assess legal risks, and accompany you at all stages of the transaction: from the initial consultation to the signing of the contract. Get professional support and confidence in every step.

Spain Tops the Ranking of Real Estate Investments in Europe

For the first time, Spain has taken first place among the most attractive European countries for real estate investment, surpassing traditional market leaders. This indicates a shift in investment priorities in the region and growing interest in southern countries.

The ranking is based on a survey of nearly 700 investors active in the European market. Its results confirm a clear trend: capital is gradually flowing into countries with higher returns and growth prospects.

In 2026, the top looks like this:

1. Spain — 1st place

2. United Kingdom — 2nd place

3. Poland — 3rd place

4. Italy — 4th place

5. Portugal — 5th place

Investors are particularly drawn to Southern Europe, which is demonstrating better growth dynamics compared to more mature markets.

In our previous article, we reported that housing prices in the EU have risen by 65% over 10 years.

Madrid and Barcelona – among the most attractive cities for investors

It is worth noting the standing of Spanish cities, which continue to attract international capital. For the second year in a row, Spain remains the only country in Europe with two cities in the top 5 most attractive to investors.

Madrid ranks 2nd thanks to its large market, stable economic growth, and high asset liquidity.

Barcelona ranks 5th, remaining one of the key hubs for investment in residential and commercial real estate.

The strong positions of these cities are explained by a combination of factors: high demand for housing, active business development, international appeal, and a steady flow of foreign investors.

In our previous article, we provided a ranking of the most expensive European capitals for buying a home in 2026.

Why do investors choose Spain?

The growing interest in Spain is no coincidence—the market combines several factors that make it one of the most promising in Europe. For investors, this is primarily an opportunity to generate stable income in a relatively predictable environment.

Nearly half of international investors view Spain as their primary investment destination. The main reason is the potential for profitability, driven by strong macroeconomic indicators and robust demand for housing.

The imbalance between supply and demand plays a key role. A housing shortage has already emerged in many regions of the country, particularly in major cities and tourist areas. This creates favorable conditions for rising prices and rental rates, which directly impacts investment returns.

Among the main reasons why investors choose Spain:

- A stable economy and positive growth expectations

- High demand for housing among both locals and foreigners

- Limited supply in key real estate segments

- An attractive balance between risk and potential returns

An additional factor is the improvement in financing conditions. Access to credit is gradually recovering, which is stimulating both home purchases and new investment projects.

To learn more about the best countries in Europe to live and work in 2026, please follow the link.

Which real estate segments are the most attractive?

Investor interest in Spain is spread across several key segments, but priorities are quite clearly defined. The greatest demand is concentrated in areas that provide stable income and have potential for further growth.

According to the results of an investor survey, the breakdown is as follows:

- 34% choose residential real estate

- 25% invest in logistics facilities

- 13% invest in office real estate

- 12% invest in retail space

Residential real estate remains the clear leader. This is due to high demand for rentals, particularly in major cities and tourist regions, as well as limited supply of new housing.

The logistics segment is growing rapidly thanks to the development of e-commerce and changes in supply chains. Offices and retail, although less popular, continue to be important sectors for diversifying investment portfolios.

In our previous article, we told you where in Europe it will be the cheapest to buy real estate in 2026.

Investor Expectations for 2026

Investor sentiment regarding the Spanish real estate market remains confident. Most market participants expect activity not only to remain steady but also to continue growing throughout 2026.

According to the survey results:

- 89% of investors predict that their purchasing activity will increase or remain stable

- 83% expect similar trends in sales

These figures indicate a high level of confidence in the market. Investors see no grounds for a sharp downturn, even amid global economic and geopolitical uncertainty.

It is worth noting separately that the market is entering a phase of more balanced development. On the one hand, demand remains high; on the other, financing and activity in the construction sector are gradually recovering. This creates the conditions for stable, rather than overheated, growth.

Rental and housing prices: what’s happening in 2026

Spain’s real estate market remains tight in 2026: demand exceeds supply, which directly impacts the growth of both rental rates and housing prices.

Rents are expected to rise by an average of 3–6% annually. In major cities and coastal regions, the rate could be even higher—over 8%. At the same time, 16 provinces are already seeing double-digit price increases, underscoring the scale of the housing shortage.

The situation in the sales market looks no less dynamic. The average housing price has reached a historic high of €2,354 per square meter.

- New construction – approximately €2,500/m²

- Resale housing – approximately €2,317/m²

Analysts forecast further price growth of 6–9% over the course of the year. The main reasons are stable demand, improved financing conditions, and a chronic shortage of supply in the market.

Transaction volumes also continue to grow—an increase of 4–6% is expected. However, even an uptick in construction cannot quickly resolve the housing shortage. New construction may increase by 4–9%, but this is insufficient to meet pent-up demand in the short term.

As a result, the market remains in a phase of “cautious optimism”: high demand supports prices, while limited supply creates favorable conditions for investors.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

Products from Visit World for a comfortable trip:

Travel guide for 200 countries;

Legal advice from a local specialist on visa and migration issues;

Travel insurance around the world (please select the country of interest and citizenship to receive services);

Medical insurance all over the world.

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.