International investors are once again focusing on Spain.

The current SIMA event has once again highlighted the interest of foreign investors in purchasing real estate assets . This was evident in sections such as the Living Investors Day, where numerous experts and industry leaders highlighted the opportunities offered (in this case, Madrid) in a context of growing residential demand and urban transformation, with options such as build-to-sell, affordable housing, flex living, and student residences.

As Patricia García de Ponga, head of Living at CBRE and co-chair of the Living product council at ULI, pointed out at SIMAPRO, by 2024 " €4.3 billion has been invested in living in Spain" and highlighted that the consultancy firm's European Investor Intentions Survey 2025 positions Spain as the second most popular country in Europe, after the United Kingdom. There is a lot of interest in Spain and in the residential segment from international capital."

As also highlighted at Living Investors Day, "Professionals warn of the need to streamline urban and financial development to take advantage of foreign investment potential, as core capital (and value-add capital, which seeks higher returns through asset transformation) calls for long-term measures aimed at boosting housing supply."

In this context, and according to the latest edition of CBRE's European Investor Intentions Survey, Madrid and Barcelona are among the ten European cities preferred by international investors, through co-investment models, joint ventures, or equity stakes in listed developers. Valencia and Malaga also stand out for their economic growth and attractiveness to international demand ("the importance of understanding micromarkets and adapting investment strategies to the specific characteristics of each location has been emphasized").

From SIMA (which has also included a forum on good practices regarding regulatory changes at SIMAPRO), its director, Eloy Bohúa, comments on the increase in foreign visitors interested in the Spanish real estate market. "The international presence at SIMA 2025 (he emphasizes) has grown significantly: we have 35 countries represented, compared to 17 last year, and more than 20% of companies are presenting international offerings," he asserts.

In Bohúa's opinion, given the evolution of recent years: "The current situation clearly reflects the growing global interest in the Spanish residential market , one of the most attractive destinations for housing investment in Europe, thanks to its institutional stability, clear legal framework, high residential demand, and a lifestyle that continues to act as a powerful magnet for international investors."

Jose Albadalejo, managing director of Expert Services and leader of the Construction and Infrastructure group at Kroll (which advises companies, financial lenders, funds, and stakeholders on complex transactions), states that "foreign investment in the Spanish real estate market is positive, but not optimistic. I say positive because there is undoubtedly interest, in a global context where there is little activity, and in which, in general, Spain is better positioned than other comparable markets."

Going into detail, Albadalejo points out how "it is important to differentiate between investment types, where we believe there is greater appeal in 'value-add' operations (operations that transform/improve the asset) than in 'core' operations, focused on investments in stabilized assets. This is primarily due to the higher cost of capital and financing, which in leveraged operations such as real estate, seek greater profitability through transformation."

Albadalejo adds to his analysis the importance of Spain "having benefited from being one of the few economies where international organizations have specified their GDP growth forecasts upwards, leading Europe in this metric and therefore attracting the attention of foreign investors." This is a magnet for a market where sectors such as living and hotels stand out compared to offices, which generate less interest among foreign investors (although reports such as the "Investment Guide for Property in Iberia 2025," prepared by Prime Yield—a company belonging to the Gloval Group—in collaboration with the law firm Pares Advogados, point to signs of recovery over the last year, with a combined investment volume exceeding €16.4 billion).

The Simple Rent, a company specializing in rentals, sales, and asset management, has conducted a study indicating a 28% growth in luxury property sales, as well as the most sought-after areas and buyer profiles where foreign investment predominates. Regarding buyers, 41% of transactions are led by Latin Americans (especially Mexicans, Colombians, and Venezuelans), attracted by the stability, quality of life, and accessibility of European markets, and 26% come from Western Europe (Germany, France, the United Kingdom, and the Netherlands).

In this premium market, from individual investors to investment funds, the bulk of demand is focused on real estate transactions in the Salamanca, El Viso, and La Moraleja neighborhoods. On the coast, Marbella and Sotogrande "continue to be magnets for European and Latin American fortunes, with Ibiza and Mallorca reaching unprecedented prices."

These investment hotspots continue to generate interest: "Every week, a new property appears that exceeds the price of the previous one. The extraordinary thing is that they barely last on the market (notes Sonia Campuzano, CEO of The Simple Rent). In prime areas, some buyers wait months to access a specific property. We are experiencing a true euphoria in luxury."

Also in the premium sector, Luxury Estate.com highlights how this part of the market maintains its dynamism in the first quarter of 2025, "consolidating itself as a safe haven and a driver of activity despite interest rates, thanks to growing international demand and the increasingly rapid revaluation of assets."

For context, the National Statistics Institute's (INE) Housing Price Index (HPI) for the first quarter of 2025 recorded a 7.5% year-over-year increase in average housing prices.

In the more detailed case of student residences, a growing trend in the sector and a new focus of investment, Patrizia Se, a global real estate and infrastructure investment manager, highlights in its 'Student City Index' report that "Spain is consolidating its position as a preferred destination in Europe for investment in student residences, with Madrid and Barcelona ranking in the continental top 10."

An analysis of data collected in more than 180 cities across 21 European countries highlights the attractiveness of the Iberian market, both in terms of demand and its solidity and undeniable long-term growth potential… variables that are essential for the growth of a real estate market that is attractive for investment, even in times of economic uncertainty.