With a total of €21.9 billion in investments in 2024, the Southern European regions recorded a 34% increase compared to 2023. Notably, the second half of the year showed a significant rise over the first half, with a 55% increase in volumes, being respectively at €13.3 billion and €8.6 billion.
This positive trend underscores the increasing investor confidence in the Southern European economies and the resilience of their real estate markets, driven by factors such as economic stability, the attractiveness of key sectors like Retail and Hospitality, which have become the leading asset classes in each market, and improved financing conditions. Moreover, growing interest is directed not only towards high-quality assets but also towards buildings with repositioning potential. Significant capital movements are taking place, particularly in the conversion of obsolete office buildings into residential or hotel spaces.
Spain Investment Market
Investment in Spain closed the second half of 2024 with a total volume around 5€Bn. This figure is 50% above the same period last year. This increase brought the full-year volume to 9.6€Bn, some 17% above the level reached in 2023.
Hospitality (2.9€Bn) and retail sectors (2.0€Bn) are driving investment in Spain, with record numbers of thanks to the strength of their fundamentals. The living sector continues at a good pace and the logistics and office sector are struggling despite healthy fundamentals.
Specially in Madrid (450€Mn), important capital movements are being carried out towards changes of use of obsolete office buildings to be transformed into Living/Hotel.
