Foreign Investors Return to Spain

Foreign Investors Return to Spain, Fueling a New Luxury Real Estate Boom

Spain is once again in the international real estate spotlight, as a new wave of foreign investment flows into the country’s residential property sector. From luxury homes to emerging housing asset types like flexible rentals and student residences, Spain is attracting global capital at levels not seen since the last property boom.

SIMA and SIMAPRO Highlight Spain’s Rising Star Status

At the 2025 editions of SIMA (Salón Inmobiliario Internacional de Madrid) and its professional forum SIMAPRO, Spain was firmly recognised as Europe’s second most attractive real estate investment market, just behind the UK. Industry leaders gathered to discuss trends driving this resurgence—and much of the focus was on the growing importance of the ‘living’ sector.

Strong Appetite for ‘Living’ Assets

One of the standout themes of SIMAPRO’s Living Investors Day was the rising demand for residential property tailored to modern lifestyles. This includes:

Build-to-Rent developments
Co-living spaces
Student housing
Senior living communities
According to Patricia García de Ponga of CBRE, Spain’s ‘living’ sector attracted €4.3 billion in investment during 2024 alone—a figure that underscores both the maturity and momentum of this market. CBRE’s 2025 European Investor Intentions Survey also placed Spain as Europe’s second most promising destination for property investors, with Madrid and Barcelona both ranked among the continent’s top 10 cities for real estate opportunities.

Why Spain?

The renewed investor confidence is driven by:

Strong urban demand in key cities
High-quality lifestyle appeal for end-users and tenants
A stable legal and institutional framework
A diversifying housing market that supports long-term returns
Spain’s ability to offer both lifestyle and investment-grade assets—particularly in the luxury segment—makes it a standout in today’s competitive European market.

Policy Improvements Still Needed

Despite the upbeat sentiment, experts caution that structural reforms are needed to sustain momentum. Key recommendations include:

Streamlining urban planning processes
Improving access to project financing
Increasing the speed and efficiency of housing supply delivery
As international investors continue to view Spain as a long-term bet, these improvements will be critical to ensuring the country remains competitive and responsive to market demand.