Spain has emerged as southern Europe’s top destination for real estate investment after attracting more property capital than Italy, France and Portugal combined during the first quarter of 2026.
According to a new report from Colliers, Spain has become one of the most dynamic property markets across the wider EMEA region, which includes Europe, the Middle East and Africa.
The consultancy said Spain attracted €6.394billion in real estate investment during the first three months of the year.
That figure comfortably exceeded the combined totals recorded in Italy (€2.9billion), France (€1.9billion) and Portugal (€915million) over the same period.
The report said Spain’s dominance was largely driven by strong demand in the residential sector alongside continued investor appetite for hotels, retail and logistics assets.
Colliers described the start of 2026 as a period of ‘exceptional investment activity’ in Spain, with volumes rising by more than 45% compared to the average quarterly figures from last year.
Residential property led the market with €2.382billion invested, accounting for 37% of total investment activity.
Retail followed with €1.14billion, while office assets attracted €923million and hotels drew €811million.
The consultancy said international investors continue to view Spain as one of Europe’s most attractive markets thanks to a combination of strong tourism demand, population growth and chronic housing shortages.
According to the report, sectors such as build-to-rent housing, student accommodation and multifamily residential developments are seeing particularly strong interest from large-scale investors.
The Costa del Sol, Madrid and Barcelona continue to attract major international capital as demand for housing and hospitality assets outpaces available supply.
Colliers also highlighted Spain’s industrial and logistics market as especially resilient, with limited stock availability helping sustain asset values in established locations.
The report noted that investors are not retreating from the market despite geopolitical uncertainty and higher financing costs.
Instead, it said funds are becoming more selective and focusing on sectors with strong long-term fundamentals and reliable income visibility.
Luke Dawson, Head of Global Capital Markets at Colliers, said: ‘What has defined this quarter has not been caution, but commitment.
‘The capital is still very present in the market and investors are increasingly willing to direct capital where the fundamentals are strong,’ he added.
The consultancy expects Spain to remain one of Europe’s leading investment destinations throughout 2026, particularly in residential property, hotels, retail, logistics and emerging sectors such as data centres linked to growing artificial intelligence demand.
However, Colliers warned that prolonged geopolitical instability – particularly involving tensions with Iran – could eventually weigh on investor confidence if global uncertainty intensifies further.
Read more Andalucia news at the Spanish Eye.
